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Self-Storage Facility

Man Cave Storage

3908 Fountain Valley Dr, Knoxville, TN 37918

Listing Price: Request For Offer

Number of Units
223
Occupancy
65.9%
Rentable SF
115,000
Year Built
1960

Investment Overview

Marcus & Millichap has been selected to exclusively market for sale Man Cave Storage, a full-service Boat & RV property located at 3908 Fountain Valley Dr, Knoxville Tennessee. The property consists of two buildings on two separate parcels on a total of 16.28 acres. Man Cave Storage is the premier pure play Boat & RV storage facility in east Tennessee. It includes 85,000 net rentable square feet of indoor parking, 40,000 net rentable square feet of covered parking and approximately 4 acres of open uncovered parking plus a 30,000 net rentable square feet of commercial warehouse space leased by Clayton Homes Manufacturing, a Berkshire Hathaway owned company. Man Cave Storage is currently operated as a full-service Boat & RV property with valet parking, additional concierge services such as electrical trickle-charging, pre/post trip services, detailing, interior services, and basic maintenance. Man Cave Storage bills for indoor and covered parking tenants by linear foot; open/uncovered parking is billed per spot and each concierge service is billed individually. Current unit mix consists of 5,267 linear feet of indoor parking, 2,358 linear feet of covered parking, 140 uncovered parking spots and 84 indoor pallet spots. There are currently approximately 350 vehicles/boats/RVs being stored on site. Physical occupancy for the indoor parking is 91%. The owners recently expanded the covered parking area by 1,000 linear feet, dropping the physical occupancy from 98% to 64%. The economic occupancy for the entire facility is 66%. The economic vacancy is higher than it should be primarily due to lack of revenue management with no in-place customer rate increases since Covid and the fact that the owners occupy approximately 14% of the space, which they plan to vacate upon sale. The commercial lease to Clayton Manufacturing Homes was renewed in 2022 on a five-year, double net lease (Landlord responsible for roof, structure and 75% of insurance - tenant pays all other costs). This space can be converted to indoor parking within the first year by enforcing a 180-day termination clause. Man Cave has expansion / conversion opportunities abound. There is a draft master plan to expand and convert the property in a variety of ways. Initial plans lay out the ability to add 27,100 net rentable square feet of indoor storage space, convert all other covered and uncovered parking areas to 123 covered spaces and 22 fully enclosed spaces as well as add an additional 30,000 square feet of commercial warehouse space. Grading work and drainage has been completed for the bulk of the layout. Population demographics are 40,193 in a 3-mile radius and 95,759 in a 5-mile radius; both representing approximately a 26% population growth since 2020. Average household income is $77,365 in a 3-mile radius. Knoxville is central to numerous recreation areas for camping, boating and vacationing. Nearby national parks include The Great Smokey Mountain National Park and The Blue Ridge Highway – both considered the Top Two most visited parks in 2021 and set visitation records at 15.9m and 14.1 m respectively. Per a recent Globe Street article, RV registrations hit 571,000 in 2021, an all-time high, and motorboat sales were 313,000 in the same year across the United States. With the exceptionally strong sales for recreation vehicles, continued limitations on Boat & RV parking within neighborhoods due to HOA rules, Man Cave Storage is uniquely positioned to capitalize on current demand for high-end Boat & RV storage today and into the future.

Investment Highlights

  • 85,000 Net Rentable Square Feet of Indoor Storage
  • Niche Product Catering to High-End Clientele in Excellent Market with Extensive Waiting List
  • Significant Upside Through Occupancy Gains, Conversion of 30,000 NRSF Commercial Space and Site Re-Development
  • Gated, Fully Fenced with 32-port Camera system (Currently 16 in use)

Exclusively Listed By

Financing By

Self-Storage Facility

Man Cave Storage

Listing Price: Request For Offer

Number of Units
223
Occupancy
65.9%
Rentable SF
115,000
Year Built
1960

Investment Highlights

  • 85,000 Net Rentable Square Feet of Indoor Storage
  • Niche Product Catering to High-End Clientele in Excellent Market with Extensive Waiting List
  • Significant Upside Through Occupancy Gains, Conversion of 30,000 NRSF Commercial Space and Site Re-Development
  • Gated, Fully Fenced with 32-port Camera system (Currently 16 in use)

Investment Overview

Marcus & Millichap has been selected to exclusively market for sale Man Cave Storage, a full-service Boat & RV property located at 3908 Fountain Valley Dr, Knoxville Tennessee. The property consists of two buildings on two separate parcels on a total of 16.28 acres. Man Cave Storage is the premier pure play Boat & RV storage facility in east Tennessee. It includes 85,000 net rentable square feet of indoor parking, 40,000 net rentable square feet of covered parking and approximately 4 acres of open uncovered parking plus a 30,000 net rentable square feet of commercial warehouse space leased by Clayton Homes Manufacturing, a Berkshire Hathaway owned company. Man Cave Storage is currently operated as a full-service Boat & RV property with valet parking, additional concierge services such as electrical trickle-charging, pre/post trip services, detailing, interior services, and basic maintenance. Man Cave Storage bills for indoor and covered parking tenants by linear foot; open/uncovered parking is billed per spot and each concierge service is billed individually. Current unit mix consists of 5,267 linear feet of indoor parking, 2,358 linear feet of covered parking, 140 uncovered parking spots and 84 indoor pallet spots. There are currently approximately 350 vehicles/boats/RVs being stored on site. Physical occupancy for the indoor parking is 91%. The owners recently expanded the covered parking area by 1,000 linear feet, dropping the physical occupancy from 98% to 64%. The economic occupancy for the entire facility is 66%. The economic vacancy is higher than it should be primarily due to lack of revenue management with no in-place customer rate increases since Covid and the fact that the owners occupy approximately 14% of the space, which they plan to vacate upon sale. The commercial lease to Clayton Manufacturing Homes was renewed in 2022 on a five-year, double net lease (Landlord responsible for roof, structure and 75% of insurance - tenant pays all other costs). This space can be converted to indoor parking within the first year by enforcing a 180-day termination clause. Man Cave has expansion / conversion opportunities abound. There is a draft master plan to expand and convert the property in a variety of ways. Initial plans lay out the ability to add 27,100 net rentable square feet of indoor storage space, convert all other covered and uncovered parking areas to 123 covered spaces and 22 fully enclosed spaces as well as add an additional 30,000 square feet of commercial warehouse space. Grading work and drainage has been completed for the bulk of the layout. Population demographics are 40,193 in a 3-mile radius and 95,759 in a 5-mile radius; both representing approximately a 26% population growth since 2020. Average household income is $77,365 in a 3-mile radius. Knoxville is central to numerous recreation areas for camping, boating and vacationing. Nearby national parks include The Great Smokey Mountain National Park and The Blue Ridge Highway – both considered the Top Two most visited parks in 2021 and set visitation records at 15.9m and 14.1 m respectively. Per a recent Globe Street article, RV registrations hit 571,000 in 2021, an all-time high, and motorboat sales were 313,000 in the same year across the United States. With the exceptionally strong sales for recreation vehicles, continued limitations on Boat & RV parking within neighborhoods due to HOA rules, Man Cave Storage is uniquely positioned to capitalize on current demand for high-end Boat & RV storage today and into the future.

Exclusively Listed By

Financing By

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