- Seasoned Portfolio with Steady In Place Cash Flow During the Pandemic
- Great Opportunity to Immediately Scale in a New Market or Add to an Existing Regional Portfolio
- Vibrant, Diversified Economy Anchored by Premier Higher Education Institutions, Technology and Manufacturing
- Well Maintained Single Story Drive-Up Construction
- Eight Locations – 416,136 Net Rentable Square Feet Across 3,563 Units
- Located in Knoxville – Home of the University of Tennessee
This eight property self storage portfolio encircles Knoxville, Tennessee and is strategically located within a 20-mile radius of one another. In the aggregate, there are approximately 3,457 storage units accounting for 416,135 net rentable square feet of self storage space and 106 rentable parking spaces. The structure of the buildings vary from concrete block and metal with brick finishes to steel structures with prefabricated metal rib roofing. As of May 2020, the portfolio had a physical occupancy of 86.23 percent and an economic occupancy of 70.70 per cent.
The portfolio offers convenient access to major north-south and east-west thoroughfares, including Interstate 275 and Interstate 40, and provide unlimited visibility from surrounding highways. The properties are also located along heavy retail corridors with high traffic counts. The portfolio boasts favorable three-mile demographics with an average household income of $61,229 and population density of 56,739 within the immediate trade area. The supply/demand ratio is also in balance at 7.6 square foot capita as evidence by the portfolio’s long history of high occupancy.
Knoxville Metropolitan Statistical Area (MSA) has one of the nation’s strongest labor forces with a low unemployment rate of 4.7 percent prior to the Covid-19 pandemic. The annual population growth rate is 0.60 percent and the number of households in the area is projected to grow at a 0.70 per cent rate annually.
Knoxville is home to the University of Tennessee, the state’s flagship university. The University is in the process of implementing capital improvements on its campus to the tune of approximately $1.2 billion. As the overall infrastructure of the University continues to improve, enrollment continues to grow and jobs are created at the nearby facilities. Other top employers in the area include the US Department of Energy and Covenant Heath. Knoxville has also become a tourist hotspot, being voted a top-10 city in “America’s Favorite & Friendliest Places”, by Travel + Leisure magazine.
This portfolio offers a new investor steady proven cashflow during times of economic uncertainty. The resiliency of self storage as an asset class coupled with the strong underlying fundamentals of Knoxville’s economy, will allow a new investor to continue to realize favorable returns now and into the future. The portfolios dominant geographic positioning creates management efficiencies while allowing for advantageous pricing power to maximize rents, minimize discounts and establish influence in the local rental market. In addition, the portfolio’s size allows for a commanding entry into a new market or a great addition to an existing portfolio.