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.
- 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