EZ Storage is comprised of 27,900 rentable square feet on approximately 2.687 acres of land. The facility was built in 2018. The subject property 295 non-climate-controlled units, ranging from 25 square feet to 200 square feet. The facility has physical and economic occupancies of 43.1 percent and 32.6 percent, respectively. The site offers 24-hour accessibility. The site is currently operated with no onsite management, our underwriting includes both onsite and off site management in the expenses. The site could be run as it is currently and would add $40,000 to the NOI.
EZ Storage is located in Des Moines, Iowa and offers easy access off U.S. Highway 5, witnessing over 17,000 vehicles per day. Des Moines is the city capital of Iowa located in the heart of Polk County, which has a population of over 220,000 individuals and is the largest populated metropolitan area located within the state. Situated conveniently between an abundant number of schools, major roads and industries this opportunity is in a prime location accessible to customers. Additionally, the site is within a 2 miles of the Des Moines International Airport of Walmart, McDonalds, Starbucks, Marshalls, Dollar Tree, Dairy Queen and several other nationally-recognized retailers and restaurants.
The subject has excellent, forward-looking financials with projected cash-on-cash returns of 13.3 percent and 14.7 percent in years three and four, in addition to levered IRRs of 21 percent and 22 percent in years five and seven. Furthermore, the facility can benefit from implementing a tenant insurance program and a truck rental program. EZ Storage will provide a buyer the opportunity to grow revenue and establish a significant market footprint in Des Moines, Iowa. EZ Storage is being offered at $71.68 per net rentable square foot, or $2,000,000.
- Well-Maintained Storage Asset with Multiple Upsides in Des Moines, Iowa
- Year Three Proforma Cap Rate of 8.2 Percent
- Cash-on-Cash Returns of 13.3 Percent and 14.7 Percent in Years Three and Four
- Projected Levered IRRs of 21 Percent and 22 Percent in Years Five and Seven
- The Subject will Benefit from a Low Storage Supply Within the Immediate Vicinity
- The Site Currently Operates Without an Onsite Manager or Management Company; an Investor Can Continue These Operations and Add $40,000 to the NOI