The Mele Group of Cushman & Wakefield has been selected to exclusively market for sale the Albuquerque Self-Storage Portfolio. Acquisition of the self-storage portfolio demonstrates a rare opportunity to acquire three well-maintained facilities in New Mexico. The portfolio has significant growth potential through lease-up activity at the newly-built storage buildings. The Twin Oaks facility can be expanded to accommodate additional boat and RV storage, while the Abrazo property recently completed expansion within the past year. These growth opportunities are indicative of the need for self-storage among several growing residential developments within the region. Each property offers large office spaces, in addition to on-site apartments with the potential to remove and add additional storage space. The portfolio’s physical occupancy indicates the recent expansion at 79.2 percent. An investor can enhance returns by raising rental rates to the comparable averages upon stabilization; the climate-controlled rates for the Twin Oaks facility and the non-climate-controlled rates for the Abrazo facility are currently below market. Additionally, an investor can bolster revenue by implementing a robust tenant insurance and truck rental program.
The portfolio has 1,470 total units among its 184,640 rentable square feet. Combined, the subjects feature 881 climate-controlled units, 163 non-climate-controlled units, 417 drive-up non-climate-controlled units and 9 boat/RV parking spaces. The three properties utilize owner-operated, on-site management and are secured with 24-hour computerized video surveillance, fencing, electronic gate access and optimal lighting. Furthermore, the facilities offer excellent ingress and egress, in addition to drive-up units with wide aisles for consumer convenience.
Albuquerque is the principal city of its Metropolitan Statistical Area and is a major component of the larger Albuquerque-Santa Fe-Las Vegas Combined Statistical Area. The city is home to over 900,000 individuals and is consistently ranked among the nation’s best places to live; Albuquerque is ranked inside “the top 100 Best Place to Live and Retire” by U.S. News. The city is home to the New Mexico Technology Corridor, which consists of several nationally-renowned institutions including Lovelace Respiratory Institute, Sandia National Laboratories, Intel and the University of New Mexico. Netflix recently announced plans to open a location at ABQ Studios, while Facebook is currently constructing a $1 billion site with six buildings which will support over 100 full-time jobs. These technology developments are indicative of the region’s corporate growth. Furthermore, Albuquerque ranks among the top in the country for cities with the most college graduates, in addition to its reputation as a technology hub.
- Rare Opportunity to Acquire a Portfolio with Significant Upside in Albuquerque, New Mexico; a Nationally-Renowned Technology Hub and the Largest City in the State with over 900,000 Individuals
- Raise Returns by Increasing Rental Rates to the Comparable Averages; the Climate-Controlled rates for the Twin Oaks Facility and Non-Climate-Controlled Rates for the Abrazo Facility are Currently Below Market
- Substantial Revenue Growth by the Implementation of a Strong Tenant Insurance Program and the Continuation of Lease-Up Activity; the Twin Oaks and Abrazo Facilities Recently Completed Expansion Within the Last 12 Months
- Twin Oaks Facility has Further Expansion Opportunity for Additional Boat/RV Parking or Portable Storage to Maximize Returns; the Fulcrum Way Property has Potential to Add Lockers Above the Units Currently in Place
- All Assets Offer a Wide Array of Well-Maintained Units, Premium Security Features, Drive-Up Access and Consumer-Friendly, On-Site Management for Consumer Convenience
- Encompassed by Several Dense Residential Developments and National Retailers; Demonstrating the Need for Self-Storage Within the Region