Investment Overview

Marcus & Millichap is pleased to offer for sale Laubach Mini Storage located at 3210 South 2nd Avenue, Paragould, Arkansas. Laubach Mini Storage offers 554 units made up of climate, non-climate and parking spaces within 77,175 rentable square feet on 7.04 acres. The facility was built in the mid-1990’s and expanded in 2015 to add climate control. Amenities include a large inviting rental office convenient for customer’s needs, security cameras, controlled access entry and perimeter fencing. In the rear of the property, there is room to expand on approximately 2 acres. The facility has been family owned and operated since it was built. As of September 30, 2022, the facility was 93 percent physically occupied and 81 percent economic. The lag in economic occupancy can be attributed to the large amount of “company” units being used by the family. The street rates are currently about 20 percent below the market. A new owner can immediately raise street rates and implement a revenue management program to eventually get all of the legacy customers up to market rates. Too, by adding tenant insurance and converting the security deposits to administrative fees, a new owner will be rewarded with a significant increase in cash flow within its first two years. Paragould, AR is located 20 minutes north of Jonesboro, AR and a little over an hour northwest of downtown Memphis, TN in a growing area of northeast Arkansas. The 3-mile and 5-mile trade area boasts a population of 15,989 and 28,795, respectively, and is expected to grow 5.6 percent over the next 4 to 5 years. Northeast Arkansas has a diverse workforce that not only include farming but also includes government, healthcare, higher education, food processing, manufacturing and transportation. Laubach Mini Storage is being offered at $3,000,000, $38.87 per square foot, which reflects a stabilized cap rate of 7.95% and leveraged return of 8.61%.