Havasu Boat Storage

The subject property represents a well-maintained storage facility comprised of 140,633 rentable square feet on approximately 7.55 acres of land. The facility features all metal construction and offers 276 non-climate-controlled units, 11 drive-up units, 8 enclosed boat/RV spaces, 28 parking spaces and 9 spacious storage units for a total of 332 units. The site was initially constructed in 1971 and was expanded in multiple phases. The facility recently added a new 12,000 square foot building in July of 2020 to accommodate the highly active population in Lake Havasu City. The subject is stabilized with current physical and economic occupancies of 99.5 percent and 94.3 percent, respectively. To ensure secure storage, the property utilizes 24-hour video surveillance and electronic gating.

The subject property is impeccably located in the heart of Lake Havasu City, Arizona; a major vacation destination that is widely known as “Arizona’s playground” with impeccable shorelines and unrivaled natural resources. The facility has direct frontage along London Bridge Road and offers premium access to State Highway 95, which witnesses traffic counts of over 27,000 vehicles daily. Advantageously, the subject property is just 1.5 miles from downtown Lake Havasu City and approximately .25 miles from the Windsor Launch Ramp, which is one of the most popular launch areas in the city. Lake Havasu City is a recreational mecca for boating and water sports enthusiasts, bringing in millions of tourists on an annual basis. The subject property, along with the region’s competitors, maintain high occupancy levels ands low delinquencies due to the region’s strong demand for boat and RV storage.

The subject property represents an excellent opportunity to acquire a unique storage asset in a desirable location with multiple upsides. An investor can capitalize on a facility built to cater to the population’s recreational needs; Havasu Boat and RV Storage has a significant market footprint as one of the first boat and RV storage destinations within the city. The subject property boasts the most desirable waterway access, which is a major reason that the facility is fully occupied. The facility has forward-looking financial projections, including a cash-on-cash return of 9.2 percent in year three and a levered IRR of 18.9 percent in year five. Furthermore, the subject has completed major capital improvements over the last several years, including a keypad-controlled gate entry, exterior upgrades to all buildings, new LED lighting, security camera improvements and added surface stalls, totaling several hundred thousand dollars in renovations and upgrades.

Investment Highlights:

• Irreplaceable Location Directly Across from the Busiest Public Boat Ramp in Lake Havasu City
• Fully Stabilized Storage Asset with Multiple Upsides in Desirable Lake Havasu City, AZ
• Several Major Capital Improvements Implemented in Phases, Including a 12,000 SF Class A Expansion, which is Already 100 Percent Leased prior to Completion
• Significant Market Footprint as One of the First Boat/RV Storage Options Established in Lake Havasu City
• 99.5% Occupancy and Waiting List for Units Demonstrates the Historically Strong Demand for Storage
• Projected Cash-on-Cash Return of 9.2 Percent in Year Three and a Levered IRR of 18.9 Percent in Year Five