On behalf of ownership, Cushman & Wakefield is pleased to offer for sale, the three property self-storage portfolio in Chesapeake, VA, and northern Outer Banks, North Carolina.
The three facilities are located at 3437 Western Branch Blvd., Chesapeake, VA; 4361 The Woods Rd., Kitty Hawk, NC and 209 W Eighth St., Nags Head, NC with annex locations at 2214 and 2230 Lark Ave. The facilities were constructed in 2006, 2004, and 1985 (annex in 1994 and 1989) respectively. The portfolio encompasses 180,010 rentable square feet among 1,472 units. The Chesapeake facility is primarily climate controlled with a limited number of exterior drive-up units, while the Nags Head and Kitty Hawk facilities are primarily drive-up with some interior corridor units and climate control at Kitty Hawk. The Nags Head location includes a one half-acre vehicle parking amenity.
All three properties are ideally located within their respective markets, with Kitty Hawk and Nags Head dominant on the Outer Banks. Physical occupancy across the portfolio is 95%. Competition is nearly non-existent on the Outer Banks and barriers to entry are virtually insurmountable. The nearest competitors sit just over the access bridges to Powells Point and Roanoke Island. The Outer Banks facilities should benefit from unchallenged pricing power.
The Kitty Hawk location sits on a picturesque parcel along The Woods Rd scenic byway in central Kitty Hawk and the physical condition of the facility is excellent. The property is secured by an electronic keypad entry gate, perimeter fencing, video surveillance, and a manager apartment. Physical occupancy is 100% while economic occupancy stands at 98%. Tenant insurance and fee income is minimal. The total rentable area is 36,350 square feet among 260 units on 4.05+/- acres.
The Nags Head facility is central to the town of Nags Head with 72,105 rentable square feet among 545 units and 45 vehicle parking slots. Buildings are of concrete blocks with tilt-up roofs. Physical occupancy is 92% with economic occupancy standing at 88%. Amenities include full perimeter fencing (no security fence at the 2214 Lark St location where buildings are steel with standing seam roofs), electronic keypad controlled gate, video surveillance, and manager
apartment. There is ample runway in ancillary revenue streams.
Western Branch Self Storage in Chesapeake is situated just off of I-664 on Western Branch Blvd, a high traffic commercial corridor dotted with national retailers, car dealers, and restaurant chains. The population within the three-mile trade area is 58,000+ and growing at approximately 1% annually with a median household income of $77,154. The facility is comprised of two, three-story climate-controlled buildings with exterior drive-up units around the perimeter and a limited number of vehicle parking slots. Other amenities include electronic keypad gate entry, perimeter fencing, video surveillance, and a manager apartment. Rental rates are substantially below the average in the market, while the facility is above average grade for the trade area. Physical and
economic occupancies stand at 96% and 94% respectively. As with the two other facilities, tenant insurance income lags substantially