4995 US Highway 1 - Cocoa, FL 32927
The Mele Group of Marcus & Millichap has been selected to exclusively market for sale the Treasure Coast Self-Storage Opportunity.
Acquisition of the self-storage portfolio demonstrates an excellent opportunity to acquire two cash-flowing facilities in Florida's Palm Bay-Melbourne-Titusville Metropolitan Statistical Area. An investor can reduce costs by operating the properties in conjunction with one another, as each facility is currently managed separately. The subject boasts significant upside through strong forward-looking financials, including cash-on-cash returns of 15.2 percent and 17.4 percent in years one and two and leveraged IRRs of 28.6 percent and 26.2 percent in years five and seven. The portfolio has a year one capitalization rate of 8.07 percent in year one. There are also multiple opportunities to increase revenue through the implementation of a website; the facilities lack an online marketing platform for digital consumers. An investor can implement a tenant insurance program and truck rentals to further increase cash-flow. Both facilities can benefit from the installation of more prominent signage on their respective roadways. The subject properties are situated just 8.5 miles from one another; approximately a ten-minute driving distance. The back component of the Cocoa facility offers room for expansion to accommodate for the region's high-demand for storage.
Among its 43,808 rentable square feet, the portfolio features a total of 460 units, including climate-controlled and non-climate controlled units. There is a portfolio-wide physical occupancy of 85.1 percent. The Cocoa facility offers an on-site manager's apartment consisting of one bedroom and one bathroom. The properties currently maintain fencing and gating to ensure secure self-storage; an investor can increase the property value of each facility through the implementation of an updated video surveillance system.
The Cocoa facility consists of 282 units among 22,988 rentable square feet on an estimated 4.5 acres of land. The subject has physical and economic occupancies of 93.7 and 75.5 percent, respectively. An investor can increase revenue by expanding the back component of the property; there are 2.73 acres of allocated parking spaces which can be converted to self-storage. The Cocoa facility offers excellent ingress and egress to and from U.S. Highway 1, which boasts a traffic count of over 30,000 vehicles daily. Within three miles of the facility are over 20,000 individuals and over 7,000 households. There are over a dozen neighborhoods within the immediate vicinity, including MacArthur Heights, Morningside Home Estates, Brentwood Heights, Williams Point Estates, River Dunes, Tradewinds Park and Coquina Ridge Park. The property is within five miles of the University of Central Florida-Cocoa Campus, Space Coast Regional Airport, Eastern Florida State College-Cocoa Campus and Cocoa High School. Cocoa is ideally located along the coast of the Indian River, which is near Florida's hightraffic Interstate 95.
The Merritt Island facility consists of 178 units and 15,756 rentable square feet on approximately 0.28 acres of land. Of the total units, there are 45 newly-renovated office spaces which include new floors, walls and electrical features to accommodate for a wide-range of business needs. The subject has current physical and economic occupancies of 75.7 and 77.0 percent, respectively. The property is situated directly off Courtenay Parkway, which sustains a traffic count in excess of 33,000 vehicles per day. There are over 20,000 individuals and over 8,000 households within three miles of the property. Additionally, there is a household income in excess of $88,000 within three miles of the Merritt Island facility. The subject is less than a mile from Florida State Road A1A, seeing traffic counts of over 55,000 vehicles per day. The Merritt Island facility is within close proximity of several housing developments, including Island Lakes, Tropical Trail Village, The Groves, Citrus Isle and Sunset Lakes, among several other residential communities. The facility is within two miles of PNC Bank, Publix Supermarket, H&R Block, Supercuts, Sonic Drive-In, Circle K and Dunkin' Donuts. Additionally, the facility is seven miles from the nationally-renowned Kennedy Space Center, which employees over 13,000 individuals and hosts over a million visitors per year.
The subject properties are situated in Florida's Treasure Coast. This swelling region was recognized as one of the nation's 25 fastest-growing metro areas in 2017. Brevard County offers a strong job growth rate, a high-quality school system and excellent natural amenities along Florida's Atlantic coast. The area offers several beautiful beaches, unique recreational sites and a multitude of desirable resorts. The region serves as a major aerospace and technology hub; Lockheed Martin Space Systems, DRS Technologies, RELM Wireless Corporation, Knight's Armament and URS Corporation all have a significant presence within the area. Moreover, Brevard County's year-round tropical climate and wide-array of resources draw in consistent traffic on an annual basis.
The Treasure Coast Self Storage Opportunity is being offered at $3,150,000.