The Mele Group of Marcus & Millichap has been selected to exclusively market for sale the Treasure Coast Self-Storage Opportunity. Acquisition of the self-storage portfolio demonstrates an excellent opportunity to acquire two cash-flowing facilities in Florida’s Palm Bay-Melbourne-Titusville Metropolitan Statistical Area. An investor can reduce costs by operating the properties in conjunction with one another, as each facility is currently managed separately. The subject boasts significant upside through strong forward-looking financials, including cash-on-cash returns of 15.2 percent and 17.4 percent in years one and two and leveraged IRRs of 28.6 percent and 26.2 percent in years five and seven. The portfolio has a year one capitalization rate of 8.07 percent in year one. There are also multiple opportunities to increase revenue through the implementation of a website; the facilities lack an online marketing platform for digital consumers. An investor can implement a tenant insurance program and truck rentals to further increase cash-flow. Both facilities can benefit from the installation of more prominent signage on their respective roadways. The subject properties are situated just 8.5 miles from one another; approximately a ten-minute driving distance. The back component of the Cocoa facility offers room for expansion to accommodate for the region’s high-demand for storage.
Among its 43,808 rentable square feet, the portfolio features a total of 460 units, including climate-controlled and non-climate controlled units. There is a portfolio-wide physical occupancy of 85.1 percent. The Cocoa facility offers an on-site manager’s apartment consisting of one bedroom and one bathroom. The properties currently maintain fencing and gating to ensure secure self-storage; an investor can increase the property value of each facility through the implementation of an updated video surveillance system.
The subject properties are situated in Florida’s Treasure Coast. This swelling region was recognized as one of the nation’s 25 fastest-growing metro areas in 2017. Brevard County offers a strong job growth rate, a high-quality school system and excellent natural amenities along Florida’s Atlantic coast. The area offers several beautiful beaches, unique recreational sites and a multitude of desirable resorts. The region serves as a major aerospace and technology hub; Lockheed Martin Space Systems, DRS Technologies, RELM Wireless Corporation, Knight’s Armament and URS Corporation all have a significant presence within the area. Moreover, Brevard County’s year-round tropical climate and wide-array of resources draw in consistent traffic on an annual basis.
- Significant Value-Add Opportunity to Acquire Two Facilities with Strong Forward-Looking Financials Within the Rapidly-Growing Palm Bay-Melbourne-Titusville, Florida Metropolitan Area
- Portfolio Cash-on-Cash Returns of 15.2 Percent and 17.4 Percent in Years One and Two and a Cap Rate of 8.07 Percent in Year One
- Projected Leveraged IRRs of 28.6 Percent and 26.2 Percent in Years Five and Seven
- An Investor Can Reduce Costs by Operating the Facilities from One Location; Each Property is Currently Managed Separately
- Opportunity to Increase Revenue Through the Implementation of a Tenant Insurance Program, Truck Rentals, Visible Signage for a Prominent Market Presence and a Website for Online Consumer Traffic
- Surroundings Demonstrate an Influx of Housing Developments to Compliment the Booming Population Within the Metro Area