$12,940,000 | 84,370 SF | Extra Space Storage (managed) | Indianapolis MSA

Description

The Colliers Self Storage Group is pleased to exclusively offer to qualified investors the opportunity to purchase an Extra Space managed facility located at 8591 Kingston Street in Avon, Indiana.  This institutional quality asset delivered in May of 2021 and has rapidly leased to 77% physical occupancy.  Extra Space has prominent signage along Rockville Road (38,686 AADT) and is strategically located in the primary retail corridor of Avon, an affluent suburb of Indianapolis.

This Extra Space managed facility is situated on approximately 8.31 acres and consists of a two-story brick and metal climate-controlled building as well as five single-story Betco buildings.  This facility offers tenants 754 units and 84,370 net rentable square feet, with units ranging in size from 5’ x 5’ to 20’ x 20’.  According to Yardi, the current saturation within a 5-mile radius is estimated at 8.1 square feet per person, with just 3.4 square feet being climate-controlled.

Avon is an affluent town located in Washington Township, Hendricks County, and is just five miles west of Indianapolis. Hendericks County is the 3^rd most populous county in the Indianapolis MSA and the 2^nd fastest growing county in the state.  This thriving community boasts a population within the 5-mile trade area is 128,536 individuals, which has been growing by 1.8% annually.  The average household income within 5 miles of the facility is $110,736, which is 64% above the national average of $67,521.

Extra Space offers its tenants superior amenities, including a full-service on-site management office, 20 strategically located 24-hour video surveillance cameras, sliding gate with a keypad access control system, a centrally located freight elevator, wide asphalt drive aisles, motion-activated LED lighting throughout the facility, and full perimeter fence.

Priced at $12,940,000 and just $153.37 psf, this investment provides the buyer with a Year 2 8.25% cap rate.  This asset will continue to benefit from the institutional quality construction and the strategic location in one of the fastest growing communities in Indiana.  The rapid population growth is forecast to continue for the foreseeable future and the strong leasing trends reinforce the stability of this asset.  Extra Space is well-positioned to be a rate leader in Avon for years to come.