Posted by Paul Welborn,Jr. on July 19, 2010 at 12:28:47:
Yes, it is that new. They haven’t been open for business more than 3-4 months. I really do not know how much revenue it makes. I have written the realtor though.
Storage Buildings - Posted by Paul
Posted by Paul on July 19, 2010 at 05:42:04:
There is a set of storage buildings in my area for sale. They are new, recently constructed, however it seems as soon as they went up, they went for sale.There are 4 buildings measuring 25X125 and there are 96 units and 1/2 are rented.300,000 SF the asking price is $449,000.00. My question is can a person come out on this. I know it is much cheaper to build them yourself. It is a good location on a main highway. Does anyone have an opinion?
Re: Storage Buildings - Posted by ray@lcorn
Posted by ray@lcorn on July 26, 2010 at 16:38:04:
Paul,
The price is about equal to current construction costs. Whenever faced with the age-old sales spiel of being priced below replacement costs my first question is, “if I had the opportunity to replace this, would I?”
That means market evaluation is key. If the market is overbuilt then the lease-up period is going to be longer.
The owners may have hit the wall in servicing the debt and have to sell because of slow absorption. I’d find out how much they owe (available from a title report or your own research in the courthouse), and to whom, before making an offer.
ray
Re: Storage Buildings - Posted by Jusk
Posted by Jusk on July 26, 2010 at 14:53:21:
You’re looking at $4,677/unit or $35.92/S.F. which is not unreasonable depending on the actual revenue and expenses. A 50% occupancy level in 4 months is a good start. Most facilities take 1.5-3 years to stabilize. I don’t know why they’d try to sell before stabilizing the property, but I think you should consider a discount for the unleased spaces. You also need to look hard at the quality of the current tenants and the overall deliquency rate. All in all, the deal could make sense, but you still have a great deal of homework to do…
Re: Storage Buildings - Posted by John
Posted by John on July 19, 2010 at 10:39:10:
How much revenue does it currently bring in. And
why aren’t the other units rented…is it that new?
Re: Storage Buildings - Posted by Paul
Posted by Paul on July 26, 2010 at 15:00:15:
THis is very helpful. It seems as if they built them and never managed them, it doesn’t make sense.