This property presents a unique opportunity to acquire a brand new, class-A self-storage conversion located in Redford, MI. The property will deliver with 95,950 rentable square feet, including 863 climate-controlled units spread over two floors, and 138 brand new drive-up units with its own private parking lot. The facility Is scheduled to deliver in March of 2024. The site is designated as an opportunity zone, which offers excellent long term capital gains tax incentives to investors.
The site is located on Woodbine Avenue, just off Telegraph Road which sees an impressive average two-way daily traffic volume of 117,266 vehicles with full visibility of the property. The facility is less than a mile from Interstate 76, which offers quick 15-minute drive to downtown Detroit, a top 20 MSA.
Surrounding the property are several industrial facilities, including the massive 2.3 million square foot Detroit Diesel Corporation facility directly across the street, which builds commercial truck components and is one of six worldwide locations for Mercedes Benz R&D. Located in the facility’s densely populated three-mile trade area, the Lyndon Park housing development will feature 100 new single-family homes, supporting the current population of over 113,000 residents with a strong median household income of $52,806. 30% of the trade-area population is made up by renters, who traditionally have a higher use of self-storage than homeowners.
This investment offers a unique opportunity to acquire a brand-new storage conversion in a densely populated & supply constrained market, with a very low supply of only 5.86 rentable square feet per capita. The property also has the added tax benefit of being designated an opportunity zone which provides capital gains tax incentives and the long-term property exemptions under the OPRA Act for 9 years. Based on our projections, we expect buyers will have the opportunity to realize over $1.5 MM in NOI upon stabilizing occupancy, with levered returns in the mid-teens.