Investment Overview

Marcus & Millichap is pleased to offer Safe Harbour Mini Storage located at 31756 Buzbee Road in Spanish Fort, Alabama. This facility contains 107 non-climate controlled units, 61 boat/RV parking spaces and a residential house within 19,312 rentable square feet. The residential house is being rented for $1,500 per month by a tenant who provides lawn care and currently watches over the property. This investment offers land expansion with opportunity to double the size of the facility. Immediately behind the already-erected buildings sits flat and clear land on which could be built upon according to a recent zoning and survey report. Amenities at Safe Harbour Mini Storage include on-site security, video surveillance, online booking and automatic billing. The facility gives an investor the ability to easily run all operations remotely. As of July 31, 2022, Safe Harbour was 87 percent occupied by unit, 99 percent by square foot and 76 percent economic. Just blocks from major highway US-31, Spanish Fort is located on the eastern shore of Mobile Bay. There are 16,504 people within a 3-mile trade area and 37,125 within 5 miles. This suburb of Mobile, Alabama, which has become a major cultural and arts mecca of the Gulf Coast, has grown at a pace of about 3.35 percent over the past 20 years; and is expected to increase 8.7 percent in the next 4 to 5 years. This opportunity is being offered at $1,500,000, or $77.67 per rentable square feet and will allow the ability to lease up more large vehicle parking units in addition to the opportunity to expand on this already highly occupied facility in a strong self-storage market. By raising the street rates to market, approximately 18 percent, and passing along rate increases to existing customers, the investors should be able to achieve a stabilized cap rate of 8 percent with a leveraged yield of 10 percent.