2-Property, Stabilized Self-Storage Opportunity – Salem, OR
This Portfolio presents a unique opportunity to acquire two stabilized self-storage facilities in Salem, Oregon less than a 15-minute drive from one another. The Portfolio consists of 164,752 rentable square feet of single-story self-storage spread across 1,268 units. The facilities, currently managed by Westport / U.S. Storage Centers, opened in 2006 and 1992 and have been well-maintained by Ownership. 88% of the rentable space is drive-up accessible units, which consumers highly seek due to convenience.
The Blossom Drive facility opened in 2006 and serves the residential neighborhoods of northeast Salem near Highway 99E and Interstate 5. As of July 2024, the 71,500 rentable square foot facility was 89% occupied with $16.66 in-place rents. Blossom Drive is 16 years newer than the average facility within its trade area. That, in conjunction with attractive supply and demand fundamentals and recent operating performance, gives it a strategic advantage over its competitors.
The Glen Creek Road facility opened in 1992 and is located in the commercial and residential core of West Salem, near downtown and the Capitol Building, with convenient access to Highway 22 and 221. As of July 2024, the 93,252 rentable square foot facility was 94% occupied with $16.75 in-place rents. This trade area features minimal new supply, with the average facility age in the mid-1990s. As a result, this asset’s condition, location, and vintage give it a competitive positioning, which is noticeable via its recent operating performance.
Salem, Oregon, boasts a diverse and resilient economy driven by government services, agriculture, manufacturing, education, and healthcare. As the state capital, government employment plays a significant role in the city’s stability. The region’s agriculture sector is a major contributor, with Marion and Polk counties producing a substantial portion of Oregon’s crops. Manufacturing, particularly in food processing and hightech industries, adds economic strength—institutions like Salem Health and Willamette University anchor Salem’s healthcare and education sectors. The city also nurtures a growing tech and entrepreneurial scene supported by local investments. Together, these sectors ensure Salem’s continued growth and economic vitality.
The Portfolio is the perfect fit for buyers looking for highly stable cash-flowing assets with over $2.48 million in in-place revenue. Investors will benefit from acquiring two single-story assets located within a 15-minute drive, allowing for efficient portfolio management and operating synergies (e.g., on-site / payroll costs). This Portfolio provides excellent in-place yield, with additional upside in rental rates and operating expense savings, enabling investors to achieve value-add type returns.