I-17 Self-Storage Opportunity – Phoenix, AZ
3615 N 27th Ave, Phoenix, AZ 85017

NRSF existing
NRSF expansion
SELF-STORAGE TRIPLE THREAT: 27th Avenue is the only modern self storage facility within its competitive set to contain Climate Controlled, Drive-up Non-Climate Controlled, and RV/Parking. The diverse unit mix has led to strong positive net absorption through the first 18 months of operation
STRONG VISIBILITY FROM I-17: The subject site has visibility and access along I-17, which has a daily traffic count of 142,000 cars per day
DENSE POPULATION AND HIGH AVERAGE INCOMES: 193,000 people with an average household income of $58,409 live within a 3-Mile Radius
STRONG POPULATION GROWTH: Since 2010, the 3-Mile radius population has increased from 175,000 to 193,000 (10.7%) Over the next five years, the 3-Mile radius is expected to grow by 4,700 households and increase the population to 205,732 (6.6% growth)
LOW CLIMATE-CONTROLLED SF PER CAPITA AND LIMITED NEW GENERATION PRODUCT: Only 47% of the market is climate-controlled space (4.0 sf per capita). Several assets in the competitive set consists of older antiquated product. The average age of the existing stock is 32 years
ROBUST POSITIVE NET ABSORPTION: Since opening the asset in December 2019, the asset has averaged 102 rentals a month. The positive net absorption outperformance showcases the unmet demand in the submarket and prospective tenant’s desire to occupy a modern self storage facility opposed to older antiquated product
POSITIVE CASH FLOW: In June 2021, the self storage is 87.3% leased and the RV parking is 63.6% leased. The asset is approaching physical stabilization and is expected to generate $756,735 of NOI in Year 1
VALUE-ADD BUSINESS PLAN: The business plan contemplates (i) converting 38 RV Spaces to 68 NCC units and 12 RV Spaces and (ii) converting building 4 into 38 NCC units. The conversion and expansion increase GPI by $191,604 per year (Year 5 stabilized NOI $1,313,615)

The Self-Storage Advisory Group of Cushman & Wakefield has been selected to exclusively market the I-17 Self-Storage opportunity in Phoenix, AZ.

The I-17 Self-Storage represents a best-in-class facility that spans 88,052 net rentable square feet with plenty of expansion opportunities. The property is strategically located less than a quarter mile west of I-17 and is highly visible from both the north and south-bound lanes of the interstate. Built in 2019, the facility consists of a combined total unit count of 1,021 which includes climate, non-climate, and parking. In addition to the existing units, there is an exceptional value add opportunity which involves the potential relocation of the 15×60 RV spaces to add more drive-up, non-climate units to the property. The property utilizes 24-hour video surveillance and electronic gating to guarantee secure storage.

This facility offers premium access to multiple major thoroughfares which include but aren’t limited to I-17 which sees 142,394 VPD and Black Canyon Highway. With a population of 193,062 in the 3-mile, the I-17 opportunity presents excellent demographics and strong lease-up seeing the property sitting at 90% physical and 51% economic currently. With the increase of economic occupancy to match the physical occupancy, there is a substantial upside that can be realized from day one. In addition, there are several under construction and proposed multifamily developments within the three-mile which only increases the overall potential of the facility.

This is a rare opportunity to acquire a Class-A build in a growth market where a buyer can capitalize on multiple upsides including rapid lease-up and strong market fundamentals. This is an ideal storage investment to grow one’s footprint in one of the nation’s top self-storage markets.



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