The subject property represents a well-maintained storage facility comprised of 25,504 rentable square feet on approximately 1.45 acres of land. The facility offers 80 fully climate-controlled units and 222 non-climate units in the heart of Manchester, Connecticut; a critical component of the Hartford Metro Area. The site offers a wide variety of premium options to accommodate the affluent population. The subject has excellent physical and economic occupancies of 95 percent and 71 percent, respectively, with ample room for growth. Moreover, the current owner will bear the cost of, and deliver 2,288 net rentable square feet of expansion within 12 months of closing.
The subject property is centrally located in the district of Manchester, Connecticut, which is approximately 15 minutes from downtown Hartford. The property is located off Elm Street and is half a mile from Center Street and Interstate 384; these thoroughfares have solid traffic counts exceeding 16,000 and 49,000 vehicles per day. The facility benefits from a prosperous annual average household income exceeding $90,000 within three miles. Additionally, there are over 60,000 residents within three miles of the subject. The site will benefit from a high renter-occupied population (approximately 50 percent of residents within a mile rent their homes), which is indicative of the strong need for self-storage within the region. Furthermore, the facility benefits from limited competition within the trade area; there are only two competitors within a mile of the site.
The opportunity allows an investor the ability to acquire a well-maintained storage asset with multiple upsides in a prosperous location of the Hartford MSA. The subject has forward-looking financial projections, including a cash-on-cash return of 11.2 percent in year three and a levered IRR of 22.5 percent in year five. The facility can further capitalize by raising rental rates to meet the comparable average, the 5×10 and 10×10 climate-controlled rates are well below market. The area’s limited supply and lucrative household income will justify rate increases. Additionally, a purchaser can implement professional management to eliminate operational deficiencies and further increase profits. The facility’s premium location paired with excellent demographics and a strong demand for storage comprises a turn-key storage investment positioned for continued success for years to come.
- Excellent Opportunity to Acquire a Stabilized Storage Asset with a Significant Market Footprint in Manchester, Connecticut
- Historically High Physical Occupancy of 95 Percent and Substantially Below Market Rents Allow for Ample Room for Growth
- Limited Competition Within the Immediate Trade Area
- Cash-on-Cash Return of 11.2 Percent in Year Three and a Levered IRR of 22.5 Percent in Year Five
- Affluent Average Household Income Exceeding $90,000 Annually
- Capitalize by Raising Rates to Meet the Comparable Average
- High Renter-Occupied Population with Several Multifamily Developments Surrounding the Facility