The Mele Group of Marcus & Millichap has been selected to exclusively market for sale the Rockford Self-Storage Opportunity.
Acquisition of the self-storage portfolio demonstrates a unique opportunity to acquire two well-maintained facilities in Rockford, Illinois. The portfolio provides multiple upsides through increasing rental rates to meet the market average, in addition to implementing a professional management system and a strong marketing platform that includes a website for consumer convenience. An increase in marketing efforts could drastically increase revenue; the two facilities currently lack a website and an online presence through major search engines, including Google. Each location features convenient ingress and egress to and from North Main Street with several housing developments and national retailers within close proximity. Moreover, the subjects offer a wide-array of options to accommodate for all residential, business and recreational storage needs.
Of the two self-storage facilities, the subjects offer 625 total units across 100,623 net rentable square feet; each facility consists of standard and climate-controlled units. The properties have a combined physical occupancy of 92.7 percent, which is indicative of the need for self-storage within the region. The subjects feature wide aisles and drive-up loading areas for convenient accessibility. Both properties are located 1.5 miles away from one another along the same roadway but operate from two separate offices. This opportunity allows for a new investor to consolidate management to further benefit operations and cash flow. Furthermore, the subject properties could increase revenue by implementing an efficient truck rental and tenant insurance program, in addition to a strategic marketing campaign to improve branding and online visibility.
The properties offer convenient access to heavily-frequented thoroughfares within the region. Both properties are situated directly off North Main Street, which sustains a combined average traffic count of over 17,000 vehicles per day. Main Street is currently undergoing an expansion that will yield additional lanes to cater to the local traffic. Furthermore, North 2nd Street is approximately 1.5 miles from the facilities, demonstrating a traffic count in excess of 27,000 vehicles daily.
The subject properties are ideally situated near several residential areas with a multitude of resources and points of interest. The facilities are within a mile of the North Towne Mall, McDonald’s, Burger King, Subway, Chase Bank, Culver’s, Pizza Hut, Walgreens, Autozone and Domino’s Pizza. The Rockford Country Club Golf Course, Boylan Catholic High School, West View Elementary School and Javon Bea Hospital are all situated within close proximity of both facilities. Mercy Health’s new state-of-the-art Javon Bea Hospital Riverside is projected to open in January 2019. Furthermore, the subjects are encompassed by several residential zones, including the Edgewater Residential Development and the Huffman Boulevard Residential Area.
- Opportunity to Increase Efficiencies and Reduce Management Costs by Operating the Two Facilities with One Leasing Office; the Facilities are Approximately 1.5 Miles from One Another Along Main Street
- An Investor Can Increase Revenue by Raising Rental Rates to the Market’s Competitor Averages
- Portfolio-Wide Physical Occupancy of 92.7 Percent
- Potential to Increase Revenue Through the Implementation of a Robust Tenant Insurance and Truck Rental Program
- Upside Through Implementation of a Professional Management System and a Strong Marketing Platform that Includes a Website to Increase Branding and Online Visibility Through Major Search Engines, Including Google
- Situated Off North Main Street, with Traffic Counts Projected to Swell with the Construction of Additional Lanes Underway; Rockford, Illinois is the State's Largest City Outside of the Chicago Metropolitan Area