Nogales Self-Storage is a facility owned and operated by a small family business. It has 619 units, consisting of 402 storage units, 181 mailbox units, 36 locker units that cover an area of 47,945 NRSF on 3.6 acres of land. The property has been under the same ownership since 1995 and presents a great opportunity for a new owner to drastically increase revenue. The facility currently has a physical occupancy of 75% and an economic occupancy of 56%. Once stabilized the property will be in line with the other two properties in the market, which sit at or near 100% occupancy, and will obtain a major increase in net revenue.
Nogales Self-Storage is situated about an hour south of Tucson and is unique in that it attracts renters from both sides of the US-Mexico border, including those who utilize the mailbox units which are 90% occupied. The market has only two other competing self-storage facilities that are nearly fully occupied, with no additional developments planned. Furthermore, the influx of new residents (1,100+ people annually) entering Nogales from the south side of the border increases the potential for occupancy growth.
Acquiring Nogales Self-Storage represents an increasingly rare opportunity to own an existing self-storage facility in Arizona that comes with exceptional upside potential. There are several value-add opportunities that a new owner can take advantage of, including continued rate and occupancy growth. With its ideal location and unique attributes, this facility is an excellent investment for an owner to manage and realize additional NOI growth.