Cushman & Wakefield’s Self-Storage Advisory Group has been exclusively retained to arrange the sale of 3 properties in Tampa, Ocala, and Jacksonville, Florida.

This Portfolio presents an opportunity to acquire three nearly stabilized self-storage facilities in Florida. The Portfolio consists of 187,179 rentable square feet of single-story self-storage spread across 1,757 units. The facilities, currently managed by a regional owner/operator, opened between 1972 and 1996. The Portfolio is predominantly a mix of ground-floor climate-controlled and drive-up units, which are highly sought after by customers because of their convenience.

The E 10th Avenue facility, built in 1972, is located in a prime commercial and residential area of Tampa with excellent visibility from both directions of I-275. It features a two-sided digital billboard currently being leased for $45,000 in base rent or 20% of gross revenue – whichever is higher. The billboard lease is expected to generate between $75,000 and $100,000 at the end of its first lease year (‘Oct 2024). The facility is 60,663 rentable square feet and predominantly offers drive-up units but also has a small section for enclosed and uncovered Boat & RV parking. As of August 2024, the facility was 80.0% leased, achieving in-place rents of $15.47.

The SW 17th Road facility, built in 1987, is located in Ocala, Florida’s commercial and residential core, offering convenient access to major roadways. As of August 2024, the 77,071 rentable square foot facility was 90.6% physically occupied, with an economic occupancy of 76.57%, achieving in-place rents of $17.97. The facility primarily consists of climate-controlled and drive-up units and covered and enclosed spaces for boat and RV storage, catering to a wide range of customers.

The Western Way Circle facility, built in 1996, serves the Jacksonville market with convenient access to the city’s major thoroughfares. As of August 2024, the 49,445 rentable square foot facility was 86.9% physically occupied, achieving $16.74 in-place rents. Western Way Circle’s well-maintained condition, strategic location, and strong operating history position it well within its trade area. It also benefits from two in-place cell tower leases, which generated over $150 thousand in income over the last twelve months, and a third cell tower lease in final negotiations, which is expected to bring in an additional $30 thousand in base rent.

Each of these Florida markets is experiencing rapid population growth, with Tampa, Ocala, and Jacksonville seeing annual increases of 2.5%, 3.2%, and 2.8% respectively, according to the Economic Development Board of Tampa Bay. This growth is fueled by a robust job market, particularly in healthcare, technology, and tourism industries. Despite this economic vitality, these cities offer a more affordable housing option than other major Florida metropolitan areas. This affordability attracts both renters and homeowners, leading to a steady increase in homeownership rates. These factors drive a growing demand for storage solutions in these markets.

The Portfolio is the perfect fit for buyers looking for highly stable cash-flowing assets with over $2.8 million in top-line revenue and upside available on the management front. It allows investors to acquire NOI at scale in growing Florida markets. This Portfolio provides excellent in-place yield, with additional upside in rental rates and operating expense savings, enabling investors to achieve value-add type returns.