This offering presents the rare opportunity to obtain a newly constructed Class A, facility within Philadelphia, PA. The asset provides 101,185 Net Rentable Square Feet in one of the nation’s most dynamic markets. In addition to storage revenue, the facility benefits from multiple other streams of income with a diversified set of NNN leases.
The REIT Managed Grant Avenue Self Storage is a single-story plus mezzanine, Class A storage asset in Philadelphia, PA currently in its second phase of lease-up after a recent expansion. The facility, located at 2901 Grant Avenue, Philadelphia, Pennsylvania offers 101,185 net rentable square feet among 1,208 units with an additional 20 RV Parking spots. The facility, which opened its first phase (65,050 leasable square feet) in March 2020, is strategically located within close proximity to Roosevelt Boulevard, a major retail thoroughfare. Population within the three-mile ring is 190,000, with 465,000 within five-miles. Property amenities include a wide variety of climate controlled units with easy access via 4 convenient loading areas; state of the art customer service area; electronic keypad ingress and high coverage video surveillance. With the initial phase over 85% occupied after 16 months, the Seller is developing the second phase, totaling 34,425 square feet, which will be delivered with a certificate of occupancy prior to closing. The expeditious lease up of phase 1 confirms that there is high, unmet demand for storage in this sub-market. This opportunity to acquire a brand-new storage asset with a newly delivered second phase, allows an investor the ability to capitalize on superior returns upon stabilization.
In addition to the traditional storage rental revenue, the subject property has multiple other streams of revenue. A childcare NNN lease, in place since February 1990 produces $168,756 yearly, with 3% annual increases. The lease is within its last option period, and the operator has expressed their desire to remain, long term. An LED Billboard lease will produce $30,000 yearly. The successful purchaser may also explore the use of a pad site for any number of retail occupiers.
Philadelphia is the largest city in the Commonwealth of Pennsylvania and the sixth-most populous city in the United States, with a 2019 estimated population of 1.579 million and more than 6 million in the seventh-largest metropolitan statistical area, as of 2019. Philadelphia is the economic and cultural anchor of the Delaware Valley, located along the lower Delaware and Schuylkill Rivers, within the Northeast megalopolis. The Delaware Valley’s population of 7.9 million ranks it as the eighth-largest combined statistical area in the United States.