This offering presents a unique opportunity to acquire 3 professionally managed self-storage facilities located within the rapidly growing Knoxville, TN MSA. Currently holding a population of roughly 796,000 people, the Knoxville Metro has grown by an average of 1.8% since 2020. Attracting the influx of new residents are Knoxville’s affordability, accessibility to Nashville, strong economy, and Tennessee’s no state income tax. Knoxville is also home to the University of Tennessee, the state’s largest university with a high-ranking football program nationally. This growth is expected to continue, with 7,641 multifamily units in development of which 3,627 have already broken ground.
The Oak Ridge Highway facility is strategically located on TN state route 26, offering convenient access to downtown Knoxville. Highway 26 also provides 17,183 annual average daily traffic volume directly passing by the facility’s excellent frontage along the roadway. Built in 2020, this facility offers 172 climate-controlled first-floor and 370 climate-controlled elevator accessible units, 92 drive-up units, and 25 parking spaces totaling 71,325 rentable square feet of class-A storage space. The facility’s 3-mile trade area boasts an excellent median household income of over $82,000, supporting strong rental rates in a high-demand area. As of December 2023, the facility was operating at 71% physical occupancy.
Just south of the Tennessee river, the Chapman highway facility sits directly on US Highway 441. This busy throughfare into downtown Knoxville sees an annual average daily traffic volume of just over 28,800 vehicles driving directly by the facility. The 3-story facility offers 53,975 rentable square feet entirely comprised of climate-controlled units, including 108 first-floor units and 299 elevator accessible units. The facility is only seven minutes from the University of Tennessee, which stands as the city’s largest employer. The facility benefits from its trade area’s low supply of storage, with only one other completed facility in a 3-mile radius and one in planning. As of December 2023, the facility was operating at 89% physical occupancy.
The Maynardville Pike facility is located 15 minutes north of the city’s center, sitting just off US Highway 441. The facility was completed in 2020, offering 73,625 rentable square feet of class-A storage space over 3 floors. The facility is comprised of 156 first-floor climate-controlled units, 364 climate-controlled elevator accessible units, 81 drive-up units, and 42 parking spaces. Highway 441 provides excellent visibility to the site, with roughly 39,500 annual average daily traffic volume passing by the facility, with an abundance of retail, food, and complimentary commercial developments surrounding the facility. As of December 2023, this nearly stabilized facility was operatingh at 82% physical occupancy..
Take advantage of the opportunity to acquire three nearly stabilized facilities with a current combined NOI of nearly $1.6 MM. The proximity of all three facilities provides the ability for efficient portfolio management, with all three within roughly 20 minutes of each other. There is significant potential to increase revenue through stabilizing physical occupancy and bringing current achieved rents up to market levels.