Self Storage Facilities
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, 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