The Florida East Coast Storage Portfolio is comprised of two facilities across 158,501 net rentable square feet. The portfolio offers 618 climate-controlled units, 697 non-climate-controlled and 28 boat/RV parking spaces for a total of 1,343 units. The Cocoa facility recently completed various capital improvements, including new roofing, premium video surveillance and updated electronic gating. The portfolio has a physical occupancy of 69.6 percent, with ample room for growth within a desirable region of Brevard County, Florida. Each site utilizes perimeter-wide fencing, electronic gating and 24-hour video surveillance to ensure secure self-storage.
The portfolio is ideally situated in Rockledge and Cocoa, Florida, which are two key components of Brevard County along the Atlantic coast of Florida. The driving distance between facilities is approximately 11 miles, allowing a regional manager to operate these sites seamlessly. Both facilities offer premium access to U.S Highway 1 and Interstate 95, which are two of the state’s most heavily-frequented thoroughfares. The portfolio benefits from its location in the rapidly growing Palm Bay-Titusville-Melbourne Metropolitan Area; the Rockledge facility has a projected three-mile annual growth rate of 1.3 percent from 2019 to 2023, while the Cocoa site benefits from a projected three-mile annual growth rate of 1.1 percent from 2019 to 2023.
Acquisition of the Florida East Coast Self Storage Portfolio secures two stabilized assets in a thriving MSA with multiple upsides. The financial upsides include a year-three proforma cap rate of 8.16 percent. This capitalization rate is combined with overall strong forward-looking financials: in years five and seven are projected leveraged IRRs of 20.6 percent and 20.4 percent, in addition to projected cash-on-cash returns in years one and two of 11.3 percent and 15.3 percent. An investor can capitalize by continuing to raise occupancies in this expanding region of Brevard County. Furthermore, the site offers tenant insurance and truck rentals for additional income. The Florida East Coast Portfolio represents a prime opportunity to establish a significant market footprint along Florida’s desirable Atlantic coast.
- Prime Opportunity to Capitalize on Lease-Up with a Portfolio-Wide Physical Occupancy of 69.6 Percent
- Year Three Cap Rate of 8.16 Percent
- Years Five & Seven Leveraged IRRs of 20.6 Percent and 20.4 Percent
- Years One & Two Cash-on-Cash Returns of 11.3 Percent and 15.3 Percent
- Low Price Per Square Foot of $123
- Annual Three-Mile Population Growth Rates Far Above the National Average Signify the Area’s Rapid Expansion
- Convenient Driving Distance of 11 Miles Between Facilities for Efficient Management
- The Cocoa Site Recently Implemented New Roofing, Video Surveillance and an Updated Electronic Gate
- Impeccably Situated Along the Atlantic Coast of Florida in the Palm Bay-Titusville-Melbourne Metro Area