3231 North Main Street - Rockford, IL 61103
The Mele Group of Marcus & Millichap has been selected to exclusively market for sale the Rockford Self-Storage Opportunity.
Acquisition of the self-storage portfolio demonstrates a unique opportunity to acquire two well-maintained facilities in Rockford, Illinois. The portfolio provides multiple upsides through increasing rental rates to meet the market average and growing economic occupancies, in addition to implementing a professional management system and a strong marketing platform that includes a website for consumer convenience. An increase in marketing efforts could drastically increase revenue; the two facilities currently lack a website and an online presence through major search engines, including Google. Each location features convenient ingress and egress to and from North Main Street with several housing developments and national retailers within close proximity. Moreover, the subjects offer a wide-array of options to accommodate for all residential, business and recreational storage needs. The opportunity has substantial forwardlooking financials, including years five and seven leveraged IRRs of 27.1 percent and 25.9 percent, respectively, paired with a years one and two cash-on-cash returns of 13.1 percent and 11.9 percent.
Of the two self-storage facilities, the subjects offer 625 total units across 100,623 net rentable square feet; each facility consists of standard and climate-controlled units. The properties have a combined physical occupancy of 92.7 percent, which is indicative of the need for selfstorage within the region. The subjects feature wide aisles and drive-up loading areas for convenient accessibility. Both properties are located 1.5 miles away from one another along the same roadway but operate from two separate offices. This opportunity allows for a new investor to consolidate management to further benefit operations and cash flow. Furthermore, the subject properties could increase revenue by implementing an efficient truck rental and tenant insurance program, in addition to a strategic marketing campaign to improve branding and online visibility.
Consisting of 82,980 net rentable square feet on 5.57 acres of land, the North facility maintains 455 units ranging from 30 square feet to 500 square feet. Of the total units, there are 12 climate-controlled units and 443 non-climate-controlled units. The facility currently showcases a strong physical occupancy of 92.6 percent. The property maintains gated access and video surveillance to ensure secure self-storage. The North facility maintains clean and modern storage options, in addition to wide-aisles for easy loading and unloading. The property was built in 2005 and expanded in 2007 to meet the region's high-demand for self-storage. Cash-on-cash returns in years one and two for the individual property are projected to be significant at 13.2 percent and 12.2 percent.
The South facility consists of 17,643 net rentable square feet on approximately 1.32 acres of land. The subject maintains 170 units ranging from 25 square feet to 600 square feet. Of the total units, there are 50 climate-controlled units and 120 non-climate-controlled units. The subject sustains excellent physical occupancy of 93.3 percent. The facility utilizes a video surveillance system to ensure secure selfstorage. An investor can profit from projected cash-on-cash returns of 12.7 and 10.8 percent in years one and two. Like the North facility, there is an opportunity to increase revenue through the utilization of online resources and the implementation of a robust truck rental and tenant insurance program.
The properties offer convenient access to heavily-frequented thoroughfares within the region. Both properties are situated directly off North Main Street, which sustains a combined average traffic count of over 17,000 vehicles per day. Main Street is currently undergoing an expansion that will yield additional lanes to cater to the local traffic. Furthermore, North 2nd Street is approximately 1.5 miles from the facilities, demonstrating a traffic count in excess of 27,000 vehicles daily.
The subject properties are ideally situated near several residential areas with a multitude of resources and points of interest. The facilities are within a mile of the North Towne Mall, McDonald's, Burger King, Subway, Chase Bank, Culver's, Pizza Hut, Walgreens, Autozone and Domino's Pizza. The Rockford Country Club Golf Course, Boylan Catholic High School, West View Elementary School and Javon Bea Hospital are all situated within close proximity of both facilities. Mercy Health's new state-of-the-art Javon Bea Hospital Riverside is projected to open in January 2019. Furthermore, the subjects are encompassed by several residential zones, including the Edgewater Residential Development and the Huffman Boulevard Residential Area. Rockford, Illinois is the county seat of Winnebago County and is the largest state city outside of the Chicago Metro Area.
The region is home of over 285,000 individuals and offers excellent amenities, including unique dining, entertainment and recreational activities for all ages. The city offers several museums and galleries, including the Coronado Theatre, which was named one of the '150 Great Places in Illinois' by the American Institute of Architects. Rockford offers a quality park system which attracts outdoor enthusiasts from throughout the region. The city offers access to the Aldeen Golf Course, one of the toprated municipal golf facilities in the state of Illinois. The area sustains a thriving manufacturing industry and is home to several well-renowned medical centers. Rockford offers excellent amenities for residents and is located approximately two hours outside of Chicago.
The North facility is being offered at $4,050,000.
The South facility is being offered at $1,149,000.