Memphis MSA Self Storage Portfolio

Memphis MSA Self Storage Portfolio2019-10-24T13:09:32-04:00

Project Description

The Self-Storage Advisory Group of Cushman & Wakefield has been selected to exclusively market for sale the Memphis MSA Self Storage Portfolio.

Call for Offers – Due Wednesday, November 20
NRSF – 490,187

Multiple Addresses
Memphis, TN MSA

The Memphis MSA Self Storage Portfolio is comprised of eight facilities across 490,187 net rentable square feet. The portfolio offers 296 climate-controlled units, 3,186 non-climate-controlled and drive-up units, 384 boat/RV parking spaces and one commercial office space for a total of 3,867 units. The Titus, Country Park and Winchester properties offer an on-site manager’s apartment. The Country Park apartment was newly renovated and all three apartments are currently occupied. Each property has recently completed various capital improvements, including unit conversions, painting and LED retrofitting, among other beneficial upgrades. The portfolio has a strong physical occupancy of 93.9 percent, which is indicative of the demand for storage within the Memphis Metro Area. Each site utilizes electronic gating and 24-hour video surveillance to ensure secure self-storage. An investor has the unique opportunity to profit from a distinct market footprint; all facilities have a strong presence in their respective regions of Memphis.

The portfolio covers several major divisions of Memphis, asserting market dominance throughout the MSA. The maximum driving distance between facilities is 37.5 miles, allowing a regional manager to operate these sites seamlessly. Each property offers convenient access to the region’s major thoroughfares, including Interstate 240, Interstate 55 and Interstate 40. The portfolio benefits from its location in the 42nd largest metro area in the United States; Memphis is the third largest city in the Southeastern United States and the eighth largest in the Southern United States.

Acquisition of the Memphis MSA Self Storage Portfolio secures eight stabilized assets in a densely-populated MSA with multiple upsides. The financial upsides include a proforma cap rate of 8.74 percent. This capitalization rate is combined with overall strong forward-looking financials: in years five and seven are projected leveraged IRRs of 35.9 percent and 31.3 percent, and cash-on-cash returns in years one and two are anticipated at 17.4 percent and 20.4 percent. An investor can capitalize by continuing to raise occupancies, in addition to implementing new management to establish systematic operations at each site. The portfolio represents a prime opportunity to invest in a market with minimal supply within a three-mile radius at all locations. Additionally, there is expansion opportunity across the portfolio to accommodate for the high demand for storage. Furthermore, a new owner will have the ability to scale revenue and leverage expenses with each property being situated in the same MSA.

Investment Highlights:

  • Prime Opportunity to Acquire Eight Stabilized Assets with a Significant Market Footprint in the Memphis MSA
  • High Portfolio-Wide Physical Occupancy of 93.9 Percent
  • Proforma Cap Rate of 8.74 Percent
  • Years 5 & 7 Leveraged IRRs of 35.9 Percent and 31.3 Percent
  • Years 1 & 2 Cash-on-Cash Returns of 17.4 Percent and 20.4 Percent
  • Minimal Supply Within a Three-Mile Radius at Each Location
  • Maximum Driving Distance of 37.5 Miles Between Facilities
  • Implement a Regional Manager to Increase Efficiency and Operations at Each Site
  • Various Capital Improvements Across the Portfolio
  • Capitalize by Scaling Revenue and Leveraging Expenses
  • 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 the Memphis MSA Self Storage Portfolio.

    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.