Cushman & Wakefield has been retained as exclusive advisor to offer for sale Garfield Storage (the “Property”). Garfield Storage is a newly constructed (2017), institutional quality project located in the densely populated, high growth downtown Phoenix trade area.
The project currently totals 83,710 rentable square feet (SF) demised into 740 storage units. Seventy-five percent of the space is climate controlled with the remainder offering drive-up access. The property is a best-in-class, institutional quality asset with a prominent, highly visible location adjacent to Interstate 10 and offers visibility to over 200,000 cars per day. The project opened in February 2017 and has experienced rapid lease-up (72% occupied as of September 2019).
The project also offers a fully-entitled, ready to build expansion opportunity. The current approvals call for an additional 21,500 rentable SF of drive-up access space on the parcel adjacent to the existing store. Once completed the store will total approximately 105,000 rentable SF with an excellent mix of climate-controlled and drive-up access units. The zoning on the adjacent parcel also offers the ability to redesign the current expansion approvals to build more square footage and/climate-controlled units.
Garfield Storage is located in a market with high population densities (143,000 people within three miles) and dramatic new residential growth. The site is located less than 1.3 miles from the downtown Phoenix core and within 3 miles of the subject, 3,969 new residential units have been built or are currently under construction/planned.
This offering represents a rare opportunity to acquire a Class A, almost stabilized asset with a value-add/expansion component in one of the fastest growing and dynamic markets in the U.S. The Phoenix metro area has added 692,289 to its population in the past nine years and is expected to grow by an additional 413,400 over the next five years.
Property Summary:
LOCATION: 1616 E. Portland Street, Phoenix, AZ
RENTABLE BLDG SF: 83,710 SF (current)
TOTAL UNITS: 740 Storage Units (current)
EXPANSION: 21,555 rentable SF
TOTAL PROJECT: 105,265 rentable SF (after expansion)
SITE AREA: 4.14 acres, 180,338 SF
YEAR BUILT: 2017 (opened February 2017)
OCCUPANCY: 72% (Sept 2019)
PROJECTED STABILIZED RENT PER SF: $1.42 monthly (estimated)
STABILIZED GROSS POTENTIAL RENT: $1,792,800 (estimated)
Investment Highlights:
- DYNAMIC, HIGH GROWTH TRADE AREA
Garfield Storage is an institutional quality asset located in the highly desirable downtown Phoenix trade area. The three-mile population is in excess of 143,000 people with the five-mile population more than 350,000 people. The Phoenix/Maricopa County MSA has been one of the fastest growing areas in the country and was the fastest growing county in 2018. The Phoenix MSA is now home to 4.9 million people making it the 11th most populous in the U.S. The population of Phoenix is expected to grow by an additional 692,289 people over the next five years.
- VALUE-ADD/EXPANSION OPPORTUNITY
Garfield Storage opened for business in February 2017 and has experienced rapid lease-up since opening (72% occupied as of September 2019). The project offers a rare opportunity for a buyer to capitalize on increasing rental rates as the project finalizes stabilization, as well as a compelling, fully entitled expansion component. The expansion component is on the adjacent parcel with a separate entrance and won’t impact the existing operation while under construction. The current approvals call for 21,555 rentable SF of 100% drive-up access units. The existing zoning allows for a different design if a potential buyer wanted to redesign the expansion to add more space and/or climate-controlled units.
- HIGHLY VISIBLE, EASILY ACCESSIBLE LOCATION
Garfield Storage is located adjacent to Interstate 10 at the northeast corner of N. 16th and Portland Streets. The buildings and 30-foot tall pole sign are visible to the Interstate-10 (both east and west bound traffic), which has a traffic count of approximately 200,000 cars per day. The project also offers tremendous visibility and accessibility to N. 16th Street, a major north/south thoroughfare with more than 30,000 cars per day.
- PREMIER, BEST-IN-CLASS ASSET
Garfield Storage is a newly constructed Class A, institutional quality store that was developed with the long-term hold in mind. The project offers an excellent mix of climate-controlled and drive-up access units, ample customer parking, covered loading areas, wide drive aisles and an overall highly functional and efficient design. The project offers tenants easy access with right and left turns off N. 16th Street and plenty of room to maneuver moving trucks.
