CO Springs Storage

CO Springs Storage2020-10-20T16:27:01-04:00

Project Description

CO Springs Storage is under contract.

The subject property represents a well-maintained storage facility comprised of 49,095 rentable square feet on approximately 2.0 acres of land. The facility offers 272 non-climate-controlled units, 143 drive-up units and two rental parking spaces ranging from 25 square feet to 800 square feet for a total of 418 units. The property offers a four bed/one bath on-site manager’s apartment. To ensure a secure premise, the facility is equipped with 24-hour video surveillance and electronic gating. The facility has current physical and economic occupancies of 84 percent and 82 percent, respectively. CO Springs Storage recently underwent several capital improvements totaling $150,000. These improvements include all roofs being replaced in 2018, repaving of asphalt drives and painting of interior units and doors, among several other advantageous upgrades. The site benefits from its location in the heart of Colorado Springs, Colorado; the metro area is the second largest in the state with over 738,000 individuals and was named the most desirable city in the United States by U.S. News in 2018.

The subject property is ideally situated within a thriving corridor of Colorado Springs and benefits from a robust population exceeding 137,000 individuals within three miles of the site. The facility offers direct frontage along Oro Blanco Drive and is 0.2 miles from Barnes Road, which sees an average daily traffic count of over 27,000 vehicles per day. Additionally, the site is approximately one mile from Austin Bluffs Parkway and Power boulevard; these thoroughfares have solid traffic counts of over 58,000 and 56,000 vehicles daily. There is a strong projected annual growth rate of 1.1 percent over the next five years. Furthermore, there are over 52,000 homes within three miles of the property with an average income exceeding $85,000 annually, surpassing the national average. Colorado Springs is home to the United States Air Force Academy and offers a business-friendly environment with unrivaled natural amenities, drawing in consistent traffic on an annual basis. It is the largest city by area in the state of Colorado.

The opportunity allows an investor the ability to acquire a well-maintained storage asset with multiple upsides. CO Springs Storage has strong financial projections with leveraged IRRs of 21.5 percent and 20.6 percent in years five and seven, in addition to a cash-on-cash return of 10.1 percent in year three. The site can benefit by raising rental rates to meet the comparable average; the 5×10 and 10×10 rates are currently below market. There is only one competitor within a mile of the site; CO Springs is the main storage supplier within the immediate vicinity. There is additional upside through bolstering the current tenant insurance program and implementing truck rentals. The facility’s well-established reputation in a thriving division of Colorado Springs comprises a turn-key investment positioned for consistent success and ample growth over the next several years.

Investment Highlights:

  • Well-Established Storage Asset with Multiple Upsides in the Heart of Colorado Springs, CO
  • Over 137,000 Individuals Within Three Miles of the Property
  • $150,000 in Recent Capital Improvements, Including New Roofing Throughout, Asphalt Repaving and Painting of Interior Units and Doors, Among Other Upgrades
  • Leveraged IRRs of 21.5 Percent and 20.6 Percent in Years Five and Seven
  • Cash-on-Cash Return of 10.1 Percent in Year Three
  • Strong Three-Mile Household Income Exceeding $85,000 Annually
  •  Direct Frontage on Oro Blanco Drive with Convenient Access to Barnes Road, Supporting Over 27,000 Vehicles Daily
  • Sign CA to View Offering Memorandum

  • Confidentiality and Buyer Registration Agreement

    Cushman & Wakefield U.S., Inc. ("Broker") has been retained as the exclusive advisor and broker regarding the sale of the property known as CO Springs Storage.

    To receive an Offering Memorandum ("Offering Memorandum") please read, sign and return this completed Confidentiality Agreement to Broker. The Offering Memorandum has been prepared by Broker for use by a limited number of parties and does not purport to provide a necessarily accurate summary of the property or any of the documents related thereto, nor does it purport to be all-inclusive or to contain all of the information which prospective Buyers may need or desire. All projections have been developed by Broker and designated sources and are based upon assumptions relating to the general economy, competition, and other factors beyond the control of the Seller and therefore are subject to variation. No representation is made by Broker or the Seller as to the accuracy or completeness of the information contained herein, and nothing contained herein shall be relied on as a promise or representation as to the future performance of the property. Although the information contained herein is believed to be correct, the Seller and its employees disclaim any responsibility for inaccuracies and expect prospective purchasers to exercise independent due diligence in verifying all such information. Further, Broker, the Seller and its employees disclaim any and all liability for representations and warranties, expressed and implied, contained in or omitted from the Offering Memorandum or any other written or oral communication transmitted or made available to the Buyer. The Offering Memorandum does not constitute a representation that there has been no change in the business or affairs of the property or the Owner since the date of preparation of the Offering Memorandum. Analysis and verification of the information contained in the Offering Memorandum are solely the responsibility of the prospective Buyer. Additional information and an opportunity to inspect the property will be made available upon written request to interested and qualified prospective Buyers.

    By accepting the Offering Memorandum, you agree to indemnify, defend, protect and hold Seller and Broker and any affiliate of Seller or Broker harmless from and against any and all claims, damages, demands, liabilities, losses, costs or expenses (including reasonable attorney's fees, collectively "Claims") arising, directly or indirectly from any actions or omissions of Buyer, its employees, officers, directors or agents.

    By accepting the Offering Memorandum, you acknowledge that you are a principal and not an agent of or acting on behalf of any other party in connection with the acquisition. Buyer acknowledges that it is aware that any Agent/Broker other than Cushman & Wakefield, must be compensated by Buyer as Cushman & Wakefield is not cooperating on fees. Furthermore, Buyer acknowledges that it has not had any discussion regarding this Property's Sale with any other broker or agent other than Broker or an agent/broker properly identified through this registration process, including but not limited to, resolutions of incomplete, conflicting or duplicate registrations. Buyer shall indemnify and hold Seller and Broker harmless from and against any claims, causes of action or liabilities, including, without limitation, reasonable attorney's fees and court costs which may be incurred with respect to any claims for other real estate commissions, broker's fees or finder's fees in relation to or in connection with the Property to the extent claimed, through or under Seller.

    The Seller and Broker each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the Property and/or to terminate discussions with any entity at any time with or without notice. The Seller shall have no legal commitment or obligations to any entity reviewing the Offering Memorandum or making an offer to purchase the Property unless a written agreement for the purchase of the Property has been fully executed, delivered, and approved by the Seller and its legal counsel, and any conditions to the Seller's obligation thereunder have been satisfied or waived.

    The Offering Memorandum and the contents, except such information which is a matter of public record or is provided in sources available to the public, are of a confidential nature. By accepting the Offering Memorandum, you agree that you will hold and treat it in the strictest confidence, that you will not photocopy or duplicate it, that you will not disclose the Offering Memorandum or any of the contents to any other entity (except to outside advisors retained by you, if necessary, for your determination of whether or not to make an offer and from whom you have obtained an agreement of confidentiality) without prior written authorization of the Seller or Broker, and that you will not use the Offering Memorandum or any of the contents in any fashion or manner detrimental to the interest of the Seller or Broker.

    No employee of seller or at the subject property is to be contacted without the written approval of the listing agents and doing so would be a violation of this confidentiality agreement.