This portfolio presents a unique opportunity to acquire eight self-storage facilities located in Tennessee and Mississippi in the Memphis MSA. The facilities – which opened between 1972 and 2013 – include over 488,050 rentable square feet spread across 4,006 units. As of July 2023, the portfolio was 82% physically occupied (on a square foot basis) across the mix of climate-controlled, drive-up, RV, boat and auto storage units.
Memphis stands as a dynamic and evolving landscape, driven by a diverse range of sectors that contribute to its robust growth. Key factors propelling economic advancement include logistics, healthcare, manufacturing, education, and entertainment. With its strategic location as a major transportation hub, Memphis has become a logistics powerhouse, home to the headquarters of FedEx Corporation and boasting a critical role in global supply chains. The city’s world-renowned healthcare institutions, such as St. Jude Children’s Research Hospital and Methodist Le Bonheur Healthcare, fuel growth not only in the medical field but also in research and innovation. Moreover, manufacturing giants like International Paper and the continuous expansion of educational institutions like the University of Memphis provide employment opportunities and contribute significantly to the local economy. These factors underpin the Memphis economy’s vitality, with ongoing investments and innovative initiatives poised to sustain and amplify its growth trajectory.
This portfolio offers an excellent opportunity to acquire eight stabilized assets in a top 50 MSA, generating nearly $4.5 million of in-place NOI. Buyers will be well-positioned to capitalize on management inefficiencies which will materially increase occupancy and other revenue drivers. Based on our projections, we estimate that a buyer can increase net operating income by over $339,000 within the first 24 months of ownership.