The subject property represents a class A storage facility comprised of 84,667 rentable square feet on approximately 7.12 acres of land. The facility offers 330 upper climate-controlled units, 429 lower climate-controlled units, 8 office spaces and 67 parking spaces for a total of 834 units. The site offers a wide variety of premium options to accommodate this desirable region of the Chicago Metropolitan Area. The subject has excellent physical and economic occupancies of 97 percent and 83 percent, respectively. The high physical occupancy is indicative of the area’s high demand for storage. Moreover, the facility offers 2.5 acres of potential parking expansion for further upside.
The subject property is ideally situated in Oak Forest, Illinois, which is approximately 25 minutes from downtown Chicago. The property is located off Frontage Road and offers premium visibility from Interstate 57, which has a robust traffic count exceeding 132,000 vehicles per day. The facility benefits from a strong annual average household income exceeding $80,000 within three miles. Additionally, there are over 80,000 residents within three miles of the subject. The subject property represents one of the newest facilities in Oak Forest and is the newest storage option within a one-mile radius. The opportunity is situated in a high-barrier-to-entry district of the Chicago MSA.
The opportunity allows an investor the ability to acquire a class A storage asset with multiple upsides. The purchaser can capitalize by raising rental rates to meet the comparable average, as the subject’s climate-controlled rates are well below market. An investor will benefit from a class 8 tax abatement with 8 years remaining and a high probability for renewal. Additionally, an investor can continue to grow the subject’s economic occupancy in this underserved division of Oak Forest. The expansion opportunity in the rear of the parcel allows for further financial growth. The subject property will continue to benefit from an excellent demographic profile within the trade area, premium visibility from Interstate 57, limited competition and state-of-the-art amenities.
- Excellent Opportunity to Acquire a Stabilized Storage Asset with a Significant Market Footprint in a Thriving Division of the Chicago MSA
- Fully Occupied Asset with New Construction and Below Average Economic Occupancy Allows for Continued Growth in an Underserved Trade Area
- Eight Years Remaining of Class 8 Tax Abatement with High Probability of Renewal
- Capitalize on 2.5 Acres of Expansion Potential in the Rear of the Parcel
- Strong Average Household Income Exceeding $80,000 Annually
- Capitalize by Raising Rental Rates to Meet the Comparable Average
- High-Barrier-to-Entry Market will Ensure Success for Years to Come