On behalf of ownership, Cushman & Wakefield is pleased to offer for sale, Budget Self Storage, Springfield, VA. Located within the Highland Business Park Condominium at 7331, 7350 and 7327 Steel Mill Drive, Springfield, VA, the facility consists of two, three story self-storage buildings with both drive-up and interior storage, one flex industrial building encumbered by two commercial leases and one raw land parcel that is leased to a commercial user. Built in 1989, total self-storage rentable area is 25,065 among 306 units. The flex building is currently configured for approximately 10,678 square feet of floor area, while the leased land parcel spans approximately ½ acre. There is approximately one acre of parking adjacent to the flex building with additional parking dispersed throughout the complex. All structures are masonry and brick construction. Amenities include a modern storage office and video surveillance.
With high population density and an excellent demographic profile, the facility is perfectly positioned to capitalize on it’s location within a residential community adjacent to “the mixing bowl”, the confluence at the capitol beltway of I-95, I-495 and I-395, among additional local tributaries. Within the three mile trade area, median household income is $117,238 among a population of 127,324. Population growth rate within the trade area currently stands at .58% annually. Total current supply is 4.6 square feet per capita with one new project under construction and one in planning. Adjusted for potential new recorded development, supply may reach 6.9 square feet per capita if all proposed projects materialize. Since March of 2020, rental rates within the trade area have been on a steady upward trajectory, and currently stand at $27 per square foot among all units. In place rate per square foot at the facility is $15.36 with physical occupancy far below market average at 77%. Translated economic occupancy is 75%. There is currently no tenant insurance income, merchandise income or fee income.
Significant value-add opportunity exists through gains in occupancy, rental rates, ancillary revenue streams and revenue management. Eventual repositioning of all or part of the property may present further opportunity to capture value.