We're about to buy a deal in a small tertiary market with 100k people.
The mom-and-pop self storage operations in town charge $60-70 for a 10x10 unit. All 98%+ occupied.
The only REIT in town, UHaul, charges $120.
We have 140k sf under contract and couldn't be more excited.
The mom-and-pop self storage operations in town charge $60-70 for a 10x10 unit. All 98%+ occupied.
The only REIT in town, UHaul, charges $120.
We have 140k sf under contract and couldn't be more excited.
We're going to $90 on day one and projecting 10% of our customers will move out.
I think much more realistically many more stay and we bump 10% every six months for a few years.
Portfolio doing $930k in revenue right now.
I think much more realistically many more stay and we bump 10% every six months for a few years.
Portfolio doing $930k in revenue right now.
Only 3.8 SF / capita of storage on the market here. Compared to 7+ nationwide.
Our proforma numbers show $1.5MM in revenue 5 years from now.
We'll see how it shakes out!
Our proforma numbers show $1.5MM in revenue 5 years from now.
We'll see how it shakes out!
Another thing:
An all-in cost basis of $66 per square foot. For a stabilized portfolio.
To put it in perspective we spent $50 / sf to build a facility 45 miles away 3 years ago!
I'll never do ground-up again.
An all-in cost basis of $66 per square foot. For a stabilized portfolio.
To put it in perspective we spent $50 / sf to build a facility 45 miles away 3 years ago!
I'll never do ground-up again.
Not right now. The risk profile is great and so are the returns but why would I do that when I can buy stabilized assets at a great going-in cap rate?
https://twitter.com/SacksRealEstate/status/1340363430960771073?s=20
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