Buying/Valuing Brand New Self Storage

[Christopher Brown]

I've got some proceeds from a 1031 sale that I'm considering investing in a new self storage project that just opened to renters last month; I don't know yet what the current occupancy looks like but I assume it's pretty close to zero, and I don't yet know how long I should expect it to take to stabilize. I haven't gotten any due diligence materials from the seller yet, so not a lot of details. I'm interested in a knowing a bit more how to value these properties before they've stabilized. The broker has it valued with a CAP in the high teens on projected NOI of ~$250k. 20,000 sf with approvals to build an identical 20,000sf on the 8 acre property. It's in a tertiary market with 2 other storage places within a mile (both of which seem to be close to full occupancy).

What are the rough cap rates for valuing stabilized self-storage? And how does the industry discount that valuation pre-stabilization? And how does it value the future development/NOI potential?

Appreciate any advice...