- For sale
The Self Storage Group of Colliers International is pleased to offer this unique investment opportunity in a densely populated business suburb of Phoenix Arizona, with federally designated opportunity zone tax advantages.
Qualified investors will have the opportunity to purchase Lots 4 Rent of Gilbert at 625 W. Guadalupe Road in Gilbert, Arizona.
Visit our property website for more details and to sign the confidentiality agreement
The asset is being offered at a $6.95 million purchase price. Projected 2021 Net Operating Income is $403,541, up slightly from the $396,408 estimated 2020 Net Operating Income. Expenses have been adjusted to include a 5 percent management fee to the new investor.
This commercial storage rental facility is well-positioned on a heavily trafficked east-west road, where over 22,400 vehicles per day pass, allowing for good visibility/exposure.
The project consists of a ±9.94 acre parcel, with over 68 compartmentalized storage yards for rent to business tenants. The yards are used for storing vehicle fleets, mobile units, dumpsters, trucks, trailers, equipment, materials, RVs and boats. Lot sizes range from 1,400 square feet to 13,716 square feet.
Operating since 2000, the property experiences year-over-year 90 percent-plus occupancy with historically strong cash flow.
Lots 4 Rent of Gilbert is the largest, highest quality storage yard of this type within 17 miles. It is located in one of the most heavily populated business areas of greater Phoenix. Within three miles there are 5,395 businesses with over 58,600 employees. Of those, 2,057 businesses are retail, wholesale trade, construction, food services and manufacturing.
Tenants are offered water at each storage lot and access to electricity and phone/internet, where the tenant pays for usage. A rock base is on all lots for drainage purposes, with the exception of concrete/asphalt slabs used for parking, working or storage. Rents range from $1.39 per square foot to $4.29 per square foot, annually.
With the continued YoY 90 percent-plus occupancy and ever increasing business demand for yard storage, the investor will be able to aggressively increase rental rates and cash flow. Knowing there are very limited competing facilities in which tenants can relocate their businesses, tenant retention at Lots 4 Rent of Gilbert has been impressive. Forty-five percent (45%) of the tenant base has been retained or on lease for five years or longer and 55 percent for three years or longer.
Additionally the successful investor will find the operation to be relatively hands-off, as the on-site management includes one full-time manager.
The three competing storage yards within three miles are 100 percent occupied, with no available lots to rent. So the upside to this investment is the ability for new ownership to aggressively increase rents, which is conservatively estimated at 5 percent annually.