Project Description
The Self-Storage Advisory Group of Cushman & Wakefield has been selected to exclusively market for sale of AZ Drive Thru Storage.
SOLD
Total Size – 39,225 NRSF
The Cushman & Wakefield Self Storage Advisory Group has been retained as exclusive advisors for the sale of AZ Drive Thru storage.
This third-party managed facility is in Mesa, Arizona, which is one of the fastest-growing cities within Maricopa County. The acquisition will offer steady in-place cash flow, as well as allowing an investor to realize several value-add opportunities.
AZ Drive Thru represents an exceptional opportunity to acquire a rare infill located facility in Mesa comprised of 39,225 net rentable square feet, which includes 364 non-climate units. The property boasts a physical occupancy of 90% while the economic occupancy is 70%, allowing an investor to realize a tremendous amount of upside. The property itself is slightly set back from Southern Ave, positioned in a dense retail corridor that sees 34,900 cars per day and utilizes a very prominent monument sign for excellent visibility. The property utilizes a 24-hour video surveillance system and electronic gating to guarantee secure storage.
The property is ideally located less than a mile east of Loop 101 which sees 245,447 cars per day and sits adjacent to Banner Hospital. Additionally, it is situated on the border of the Fiesta District in Mesa, which is seeing strong revitalization and redevelopment efforts. 220 new apartment units will be added to the northwest corner of Alma School and Southern Ave, about a mile east of AZ Drive Thru and is scheduled to open in early 2022. Additionally, planning is underway for a master plan redevelopment of Fiesta Mall. Furthermore, Mesa has recently adjusted its zoning code making mini-storage a mandatory CUP (Council Use Permit) approval for any parcel intended for ministorage development.
The facility represents an excellent opportunity to acquire a long-established, well-performing, infill-located facility within a revitalizing area of Mesa where the average home price is expected to increase 11% +/- over the next 5 years. AZ Drive Thru offers multiple upsides with opportunities to realize occupancy and rental rate growth as well as being the only self-storage property within a one-mile radius of itself. This facility represents an ideal investment within a growth market
boasting very limited room for new competition.