Overview
The Cushman & Wakefield Self-Storage Advisory Group has been retained as exclusive advisors to offer for sale Storage One on 4th, a best-in-class self-storage asset located in the Renton Highlands neighborhood, an affluent suburban submarket within the Seattle MSA.
Built in 2001 as a 62,131 NRSF heated drive up facility and expanded in 2018 with 41,609 NRSF of Class A multi-story product, the Property spans 103,740 NRSF feet across 1,245 units offering a highly desirable unit mix.
The Property is prominently positioned at one of the busiest intersections in the Renton Highlands (NE 4th Street and Duvall Ave NE); both heavily trafficked corridors connecting upscale residential neighborhoods with daily needs retail and area freeways.
The three-mile trade area has strong demographics, supply-constraints, and high entry barriers; an exceptional combination for long-term self-storage appreciation. Approximately 99,663 residents live nearby with average household income of $151,153. Storage supply totals just 5.34 SF per capita, with no new supply and prohibitive zoning, underscoring the constrained nature of the local market.
Physical occupancy is 85% by square footage (80.0% by units), with economic occupancy of 85%. In-place rents of $2.13/SF trail the weighted market average of $2.21/SF. This represents immediate upside by driving both occupancy and rent growth. Further, two small adjacent parcels represent low-cost, low-complexity expansion potential.
Storage One on 4th represents a truly rare convergence of in-place performance, meaningful upside potential, a supply constrained market, and high entry barriers in one of the most dynamic MSA’s in the nation.
Investment Highlights
- Ideal Size and Layout: 103,740 NRSF across 1,245 units (73% multi-story climate-interior, 27% highly desirable drive-up climate), offers significant operating leverage and an ideal unit mix.
- Exceptional Visibility: Exposure to 21,380 vehicles daily on NE 4th, the primary commercial corridor through Renton Highlands with additional exposure on Duvall Ave NE.
- Embedded Rent Growth: Current in-place rents of $2.13/SF trail the $2.21/SF weighed market rate pointing to significant revenue upside.
- Occupancy Runway: Existing occupancy of 85% lags the 94% average for publicly traded operators in the Seattle MSA, underscoring clear path to occupancy gains.
- Supply Constrained Trade Area: The three-mile trade area contains just 5.34 SF per capita — with no identified new supply in the development pipeline.
- High Barriers to Entry Zoning: Zoning within the immediate trade area is highly restrictive to future self-storage developments.
- Limited Competition: Only 6 facilities sit in the 3-mile trade area, none operated by publicly traded REITs, forming a clear path to outperform the market through institutional management.
- Expansion Potential: Excess and adjacent parcels support two separately offered portable-unit expansions (10,500 SF and 6,400 SF), with potential for ~$350,000 revenue ($220,000 and $130,000).
- High Income Demographics: Over 99,663 residents are within the 3-mile trade area, with average household income of $151,153.
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