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Offers Due: Thursday, February 1, 2018
The Mele Group of Marcus & Millichap has been selected to exclusively market for sale the A-Z Self Storage Portfolio, located in the northern Indiana and southwestern Michigan region.
Acquisition of the nine-property, self-storage portfolio provides an investor with widespread coverage of the northern Indiana and southwestern Michigan markets, in an area commonly referred to as Michiana. The portfolio offers the opportunity to enhance returns through raising rates to match the respective markets' averages and continuing lease-up activity at individual locations, while utilizing the expansion opportunities available at multiple sites to meet the strong demand for storage, as indicated by the sites at near or full occupancy. At the end of years one and two are excellent cash-on-cash returns of 12.4 percent and 13.4 percent.
Of the nine facilities and one annex location, the portfolio boasts 1,419 units across 247,398 rentable square feet. The offering has current physical and economic occupancies of 83.9 percent and 74.7 percent, respectively. Several of the facilities are nearly or fully occupied, indicating the market's high demand for storage. Four of the facilities offer the opportunity to expand upon their parcels to meet this demand in their growing areas. Furthermore, the Valparaiso and Plymouth locations feature self-service kiosks, contributing to a reduction in management fees.
The region is reputed for its quick access to major highways and railways, and the portfolio indicates this through each site maintaining high visibility and ease of access to thoroughfares in close proximity. Centered in South Bend, Michiana's counties include Elkhart, La Porte, Marshall, St. Joseph and Starke in Indiana, and Berrien and Cass in Michigan.
The area has witnessed considerable growth in recent years due to the increase in manufacturing jobs available in this market compared to other metro areas. This robust job market, paired with the abundance of family-friendly recreational activities and natural scenic beauty surrounding Lake Michigan, has made Michiana a thriving destination. The population is projected to continue flourishing at a rate that surpasses the rest of the state. Since 2013, Indiana has added thousands of manufacturing jobs which have benefited the region as the second highest in manufacturing employment. This region and Indiana are both lauded for their business-friendly benefits as its corporate income tax is steadily decreasing and will continue to drop.
|Property Type:||Traditional Site|
|Rentable Square Feet:||247,398 Sq Ft|
|Number of Buildings:||52 Bldg(s)|
|Number of Units:||1419 Unit(s)|
|Room For Expansion||Yes|
|Days Listed:||14 Days|
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