Cushman & Wakefield has been retained as exclusive advisor to offer for sale Morena Storage (the “Property”). Morena Storage is a high quality, immaculately maintained, fully stabilized project located in core, coastal San Diego.
Morena Storage is located in a market with high population densities (139,000 people within three miles) and high average household incomes ($98,000). The site is located in the core, coastal Morena District (City of San Diego) which is currently undergoing a rezoning process that will allow more residential/multi-family development close to the newly expanded mass transit/trolley system. The project offers excellent visibility to both Interstates 5 & 8 with combined traffic counts of 300,000 at the interchange.
The project is currently 85 percent occupied with in-place rents of $2.00 per SF. The property is generating in excess $2,500,000 of top-line revenue giving a potential buyer the ability capitalize on a project with compelling in-place yield while still offering an excellent opportunity to streamline the current operations.
This offering represents an extremely rare opportunity to acquire a fully stabilized, high quality asset in Central/Coastal San Diego. The area offers very high barriers to entry for new competition, a highly visible and easily accessible location in a market with over 400,000 people within 5 miles.
LOCATION: 908 Sherman Street, San Diego, CA 92110
RENTABLE BLDG SF: 108,750 SF
TOTAL UNITS: 1,625
SITE AREA: 1.97 acres, 85,853
OCCUPANCY: 85% (Oct 2019)
ASKING RENT PER SF: $26.75 annually
CURRENT GROSS POTENTIAL RENT: $2,909,016
CENTRAL, CORE SAN DIEGO LOCATION
Morena Storage is located just off the interchange of the Interstate 5 & Interstate 8 in the central, densely populated Morena District of the City of San Diego. With three-miles the population is in excess of 139,000 people with the five-mile population more than 413,000 people. The area is a strategically located section of the city providing easy access to major transportation corridors, downtown San Diego and the coastal communities of Point Loma, Pacific Beach, Ocean Beach and Mission Beach. The San Diego MSA is now home to 3.3 million people making it the 3rd most populous MSA in California.
EXTREMELY RARE SAN DIEGO OPPORTUNITY
Morena Storage offers a very rare opportunity to acquire a fully stabilized, centrally located asset in San Diego County. San Diego County, and in particular Central San Diego, is experiencing very low levels of new supply because of strict zoning, high land costs and a very difficult entitlement process. Because of the muted new supply pipeline, this project offers an investor an excellent opportunity to capitalize on outstanding existing cash flow with opportunity to drive rental rates and streamline operating efficiencies.
HIGHLY VISIBLE, EASILY ACCESSIBLE LOCATION
Morena Storage offers excellent visibility to both Interstates 5 & 8 which have a combined traffic count in excess of 300,000 cars per day. The project is located one (1) block off Morena Blvd and offers tenants two (2) different loading/unloading areas with easy access to the two (2) extra-large passenger elevators.
STABILIZED ASSET, EXCELLENT IN-PLACE YIELD
Morena Storage is currently (as of Oct 2019) 85 percent physically occupied and has an excellent track record of maintaining high occupancy rates. Current asking rental rates exceed $26.75 per SF annually and the Trailing 12 month actual revenue number exceeds $2,.5M. This asset offers the potential / buyer operator an unmatched opportunity to take advantage of a larger operating/marketing platform and drive revenue while streamlining the current operations.