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Self-Storage Facility

All Seasons Storage

4305 Benton Dr, Chattanooga, TN 37416

Listing Price: $6,750,000

Cap Rate
4.83%
Number of Units
323
Occupancy
97.0%
Rentable SF
48,275
Price/Rentable SF
$139.82
Year Built
1998

Investment Overview

All Seasons Climate Storage is a 323 unit single-story all climate-controlled facility located at 4305 Benton Drive, Chattanooga, Tennessee. This 48,275 square foot facility is equipped with a large rental office, four loading docks designed for box trucks and moving vans, covered loading area, security cameras and two electronic sliding entry doors that open into spacious staging areas. In the past year, the owner has painted the office, power washed the exterior, added LED lighting and programmable thermostats, replaced some of the HVAC units and made other repairs that will benefit the new owner. Chattanooga is the 4th largest city in Tennessee and as 1 of the 2 major hubs in east Tennessee, it offers quick access to Atlanta, Knoxville, Nashville, Huntsville and Birmingham. The local economy is heavily based in manufacturing with multiple headquarters such as that of McKee Foods Corp., the maker of the Little Debbie brand of snack cakes, and Roper Corp., a manufacturer of cooking products. Healthcare is also an important driver. The three local hospital systems are Erlanger Health System, Parkridge Hospital System and CHI Memorial. The metro’s proximity to other major Southern markets makes it a strategic location for distribution and third-party logistics firms including Amazon, U.S. Xpress Enterprises and Kenco Group. In 2011, Volkswagen built a plant 5 miles east of the subject property and chose Chattanooga "because of its skilled workforce and the proven ability of local and state leadership to partner with the automaker." This plant employs over 3,500 workers. And for fans of the nostalgic Moonpie, these beloved treats have been made daily at the Chattanooga Bakery for over 100 years. The 3-mile trade area features a population of 26,841 and an average household income of 68,908. As of November 2021, the facility was 97% physically occupied and 88% economic. The income is up 24% over last year and it is reasonable to believe a new owner can immediately raise street rates 20-25%. By following the street rate increase with existing customer rate increases, the new owner can achieve a stabilized cap rate of 6.85%. and a leveraged return of 10.52%.

Investment Highlights

  • 48,275 Rentable Square Feet All Climate Controlled Facility
  • 97% Physical and 89% Economically Occupied
  • Strong Demographics with 26,841 People Within 3-Miles and Over 100,000 People Within 5-Miles
  • Immediate Opportunity to Raise Street Rates Over 20%
  • Upon Stabilizing Rents, Proforma Cap Rate Reaches 6.85% with 10.52% Leveraged Return

Exclusively Listed By

  • Anne Williams

    First Vice President Investments

    (901) 620-3622

    Email Anne

    License(s): TN: 00255603, AR: PB00066390, MS: B-20181

    Memphis

Financing By

Self-Storage Facility

All Seasons Storage

Listing Price: $6,750,000

Cap Rate
4.83%
Number of Units
323
Occupancy
97.0%
Rentable SF
48,275
Price/Rentable SF
$139.82
Year Built
1998

Investment Highlights

  • 48,275 Rentable Square Feet All Climate Controlled Facility
  • 97% Physical and 89% Economically Occupied
  • Strong Demographics with 26,841 People Within 3-Miles and Over 100,000 People Within 5-Miles
  • Immediate Opportunity to Raise Street Rates Over 20%
  • Upon Stabilizing Rents, Proforma Cap Rate Reaches 6.85% with 10.52% Leveraged Return

Investment Overview

All Seasons Climate Storage is a 323 unit single-story all climate-controlled facility located at 4305 Benton Drive, Chattanooga, Tennessee. This 48,275 square foot facility is equipped with a large rental office, four loading docks designed for box trucks and moving vans, covered loading area, security cameras and two electronic sliding entry doors that open into spacious staging areas. In the past year, the owner has painted the office, power washed the exterior, added LED lighting and programmable thermostats, replaced some of the HVAC units and made other repairs that will benefit the new owner. Chattanooga is the 4th largest city in Tennessee and as 1 of the 2 major hubs in east Tennessee, it offers quick access to Atlanta, Knoxville, Nashville, Huntsville and Birmingham. The local economy is heavily based in manufacturing with multiple headquarters such as that of McKee Foods Corp., the maker of the Little Debbie brand of snack cakes, and Roper Corp., a manufacturer of cooking products. Healthcare is also an important driver. The three local hospital systems are Erlanger Health System, Parkridge Hospital System and CHI Memorial. The metro’s proximity to other major Southern markets makes it a strategic location for distribution and third-party logistics firms including Amazon, U.S. Xpress Enterprises and Kenco Group. In 2011, Volkswagen built a plant 5 miles east of the subject property and chose Chattanooga "because of its skilled workforce and the proven ability of local and state leadership to partner with the automaker." This plant employs over 3,500 workers. And for fans of the nostalgic Moonpie, these beloved treats have been made daily at the Chattanooga Bakery for over 100 years. The 3-mile trade area features a population of 26,841 and an average household income of 68,908. As of November 2021, the facility was 97% physically occupied and 88% economic. The income is up 24% over last year and it is reasonable to believe a new owner can immediately raise street rates 20-25%. By following the street rate increase with existing customer rate increases, the new owner can achieve a stabilized cap rate of 6.85%. and a leveraged return of 10.52%.

Exclusively Listed By

  • Anne Williams

    First Vice President Investments

    (901) 620-3622

    Email Anne

    License(s): TN: 00255603, AR: PB00066390, MS: B-20181

    Memphis

Financing By

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