Investment Overview

Marcus & Millichap is pleased to present En Route Storage, a unique Institutional grade, Class A storage development opportunity and an existing Class C storage facility with stable cash flows on the adjacent lot. Both locations are located on high traffic thoroughfare Hwy 331 with close proximity to the Emerald Coast's multiple beach destinations such as Seaside, Rosemary, Santa Rosa & Destin in one of the fastest growing counties in the Florida panhandle. The properties are located at 20383 US Hwy 331 Freeport, Florida 32439 and 20431 US Hwy 331 in Freeport, Florida 32439 in Walton County. The development site is fully entitled and approved for 609 storage units on approximately 3.62 acres which include 581 climate-controlled, 28 drive up units and 40 PO Boxes within 68,855 net rentable square feet. An additional 12,000 net rentable square feet of covered parking is included in the approved plans. On the adjacent lot, the existing storage facility contains 8,290 net rentable square feet of storage/warehouse space, a single-family home as well as 68 uncovered parking spaces on approximately 2.1 acres. Average annual income from the existing operation is $265,000 and growing. The existing facility is ripe for redevelopment to take advantage of the exceptionally strong Boat & RV demand in the area. The combined parcels have approximately 525 feet of frontage along the US highway 331 boasting 18,500 vehicles per day in close proximity to a high-use boat ramp, luxury homes, a 3,000-acre master-planned residential community in addition to DR Horton’s Live Oak Harbor development. Current existing supply for climate-controlled storage in a 5-mile radius is 5.29 sf/ft per capita. Supply index will grow to 11.16 sf/ft per capita assuming project buildout. Current competitors are effectively 100% occupied for climate control units. The location is located across the bridge crossing Choctawhatchee Bay as customers are leaving the Emerald Coast. There is a newly renovated boat ramp across Hwy 331 which will provide easy access to the water from the facility. Emerald Coast's beach cities host millions of visitors per year with second homes and vacation rentals. Rental rates for climate-controlled storage in the trade area average $16 - $20 per square foot. The qualified investor has the option of acquiring the development site for $2,500,000 or the development and existing storage facility for $5,000,000. When doing this, the investor can build the development site while the existing cash flow helps to pay for interest carry and lease up costs. As the development stabilizes, the existing Class C facility could be re-developed into Class A Boat & RV to capture the high-end demand for parking in the marketplace.