All Forum Posts by: Justin Staten

@George Fitz thanks for the insight I will IM you. 

Thanks @Michael Wagner, it is sitting at a 6 cap rate.  So is 6 to 10 normal for self storage?  I felt ok with a 6 cap.  

@Kris Bennett thanks for all those additional questions.  It definitely helps. This is an off market deal, met the owner on an off chance at a Starbucks.  They self manage.  Each is in a different suburb, but all are good sub markets with good population density.  Two of the four have room for expansion, and the other two have options to adjacent land, so they could be expanded as well.   None have space for RV or boat parking, so there could be some value add there too. 

@Greg Dickerson thank you.  That’s what I figured.  I actually have all of it.  So I’ll just drill down operating cost (which are minimal) and underwrite like I normally do.  Appreciate it! 

On an off chance meeting in a Starbucks was presented a self storage deal. It is 4 properties with 930 units total. They are separate locations all located close to a major US Interstate. They are willing to do seller financing package deal with a down payment (which negotiable). NOI is $869k, occupancy is high, close to 99%, which tells me there are room for rate increases.

I know how to evaluate and underwrite multi-family, but not sure on self storage.  Is it the same, roughly?  Anyone who can provide direction would be greatly appreciated.  Im currently modeling like I do multi-family just leaving out some things.  Just do not want to miss anything.