$7,940,000 | 63,748 SF | CubeSmart Self Storage (managed) | Tallahassee, FL

Description

The Colliers Self Storage Group is pleased to exclusively offer to qualified investors the opportunity to purchase an investment grade self-storage facility located at 1839 & 1851 S Monroe Street in Tallahassee, Florida. This CubeSmart managed facility is strategically located along a 5-lane thoroughfare adjacent to the Florida A&M University campus, less than one mile from the legislative offices of the Florida State Capital, and just one and one-half miles from the campus of Florida State University.

This property was originally developed in 1999, with the current owner completing a 5,000 sf conversion of non-climate space to climate controlled in August of 2023.  This facility not only consists of 6 split-level block self-storage buildings, but also a two-story management office with a 2-bedroom resident manager’s quarters, 4 buildings containing warehouse units and a split-level retail building.  The property can be broken down into 40,648 rsf of self-storage, 17,700 rsf of warehouse units and 5,400 rsf of retail space.  Additional ancillary income is collected from a highly successful Penske truck rental business as well as the 39 RV parking spaces.  This facility is situated on approximately 5.485 acres and offers units ranging in size from 5’x 5’ to 70’x 20’.

Tallahassee, the capital city of Florida, is a thriving city due to a confluence of factors that contribute to its economic vibrancy and growth potential. The city’s strategic geographical location positions it as a hub for business, government, and academia, fostering a diverse and resilient economy. With a thriving technology sector, anchored by the presence of Florida State University and Florida A&M University, Tallahassee cultivates a skilled workforce, making it an appealing choice for companies seeking talent. The city’s commitment to fostering a dynamic business ecosystem, combined with its cultural richness and quality of life, solidifies Tallahassee as an excellent prospect for those looking to capitalize on the dynamic opportunities within the commercial real estate market.

This trade area surrounding this CubeSmart managed facility exhibits all demographic drivers desired for a successful self-storage facility.  The 5-mile radius is densely populated with an astounding 165,608 individuals, which is forecast to continue growing by 1.47% annually. The average household income within 5 miles is above average at $70,675.   However, the best demographic indicator is that 67.6% of the 80,346 housing units within 5 miles of the property are renter occupied units.

This facility offers its tenants superior amenities, including spacious management office, 20 24-hour video surveillance cameras, coded access control system with metal lift gates, multiple loading areas with short pull distances, a combination of concrete and asphalt wide drive aisles, and superb security lighting throughout.

Priced at $7,940,000 or just $124.55 PSF, this CubeSmart managed facility provides a Year 1 7.0% cap rate and a stabilized 12.28% cap rate.   The purchaser of this CubeSmart managed facility will benefit from the high traffic location among the perfect demographic for self-storage usage.  There is future upside through a better utilization of the RV parking area, either through the installation of canopies with roof-mounted solar panels or a self-storage expansion on this footprint. The demographics, as well as the prominent location along a major thoroughfare, will guarantee the continued success of this location for years to come.