Island Estate Group is now taking our knowledge of Multi-Family Investing into Self-Storage Facilities. We will take our business model for the multi-family and apply it to the self-storage facilities. If you are interested in investing in a Self-Storage property Contact Us.
Davenport SR 27, Davenport, Florida
We are in contract on our 2nd self storage facility. This parcel of land, known as SR 27, is located on Hwy 27 in Davenport, Florida. SR 27 is 6.84 acres of fully entitled land with approved building permits. The land is entitled for 222,631 Sq ft of self storage. The property has frontage on one of the most heavily traveled north-south arterials. This piece of land has traffic visibility in excess of 42,000 vehicles per day! Closing is scheduled for early summer.
Osceola Polk Line Road, Davenport, Florida
Davenport, is currently a piece of land where we will build a 1,193 unit self-storage facility totaling 153,150 rentable square feet on 8 buildable acres of the 14 total acre property. This property will be managed by Cutting Edge Self Storage Management.
We are scheduled to closed at the end of July 2018. The purchase price for the Property is $2,000,000. The total cost of this project will be $14,000,000.
After stabilization and seasoning of 36 months, we plan to refinance the property at a new projected value of at least $23,832,686 at a 7% cap rate or less. We will take equity out of the property and based on a conservative 70% LTV, we would be able to pay off the initial loan balance with $16,682,882 allowing a distribution to investors after reserves. While our valuation is based on a 7% cap rate, large facilities are selling for closer to a 5-5.5% capitalization rate
Click Here to see an updated picture of the construction progress.