- Opportunity to Acquire Two Well-Maintained High Quality Storage Facilities in the Chicago MSA
- Average Physical Occupancy of 92% Across the Trade Area
- Both Locations Benefit from Excellent Three-Mile Demographics
- Potential for Expansion at the Elmhurst Location
- Melrose Park Location Benefits from a 12-Year Real Estate Tax Abatement with the Opportunity to Reapply
- Excellent Drive By and Visibility – Average 58,000 Cars Per Day
- Favorable Square Foot Per Capita
U-STOR-IT Elmhurst: U-Stor-It Elmhurst is a 57,438 net rentable square foot multi-story self storage facility comprised of 535 indoor climate-controlled units, 106 paved outdoor parking spaces and 25 outdoor modular units on approximately 4.03 acres of land. The building was originally constructed in 1969 for commercial warehousing but later sold and converted to self storage in 2017. The facility is well located 16 miles west of downtown Chicago in the affluent suburb of Elmhurst (DuPage County) in the highly traveled IL-83 corridor. The property has maintained a steady lease-up trend since opening and has recently stabilized physical occupancy to 93.90 percent as of August 31, 2020.
The property offers construction and amenities typical of an institutional quality facility both inside and out. Most notable is the attractive frontage and the well-pronounced leasing office and signage visible from Highway IL 83. The facility is easily accessed via a large, covered drive-in loading and staging area with convenient access to a centralized elevator in the interior. Security is optimized through perimeter fencing with multiple digital gates at the front and rear of the property as well as a video surveillance system throughout with a centralized feed into the leasing office. In addition, all entry/exit points are secured with keypad access. There is an opportunity to easily expand the number of outdoor parking spaces or additional drive units in the parking area as well as build out a vacant office/retail suite above the leasing office for additional revenue potential.
U-Stor-It is well located on the IL-83 with no obstruction and high visibility to the passing 68,258 vehicles per day. The property is adjacent to a Walmart Super Center and just one mile north of the Oakbrook Center, the area’s premier shopping and entertainment district as well as Elmhurst Medical Center’s main campus. The immediate area is dominated by large mature residential communities boasting a population of 104,885 and 38,946 households within a three-mile radius. The Elmhurst area has an average household income of $126,574 within three miles, conducive for continued self storage rental rate growth and high occupancy well into the future.
The three-mile trade area has a favorable supply/demand ratio of 4.62 square foot per capita and average physical occupancy of 95 percent across the competitive set. The next investor will be in prime position to push rates now that the submarket has reached stabilization after multiple new self storage projects were delivered in 2017 and are now through their lease up phase.
U-Stor-It is an excellent opportunity to acquire a well-located seasoned facility primed for future rate growth in one of Chicago’s best suburbs. Upside can be achieved through pushing rates back up to stabilized levels and expanding the outside parking area to include additional parking and/or drive-up units.
U-STOR-IT Melrose Park: U-Stor-It Melrose Park is a 60,543 net rentable square foot single story fully enclosed self storage facility comprised of 477 indoor climate-controlled units, 28 paved outdoor parking spaces and 106 outdoor modular units on approximately 2.66 acres of land. The building was originally constructed in 1960 for light industrial/warehousing uses but was later sold and converted to self storage in 2016. It should be noted the current ownership secured a 12-year real estate tax abatement with the possibility of renewal in 2028. This program reduces real estate assessments to 10 percent, from the standard 25 percent, for 10 years, then raises it to 15 percent in year 11 and 20 percent in year 12.
The property boasts outstanding visibility and offers a straightforward design/layout conducive for easy access and high security. Most notable is the attractive leasing office with an open layout and podium style leasing counter with security monitor displays. The facility is easily accessed via multiple large, covered loading and staging areas with convenient single storage ground level hallway access to anywhere in the interior. Security is optimized with multiple cameras throughout the facility, keypad access and perimeter fencing with digital gate access at the rear of the building where the primary loading docks and modular units are located.
The property is in a high occupancy trade area and is currently 93.90 percent occupied as of August 31, 2020. The facility is well-located on West North Avenue, a heavily traveled four-lane surface road with over 46,000 passing cars per day. The immediate area is a diverse mix of mature residential housing, credit tenant retailers such as The Home Depot and Sam’s Club as well as industrial/distribution facilities. The three-mile population boasts 145,956 people, 47,935 households and an average household income of $82,059. The three-mile trade area has a favorable supply/demand ratio of 3.94 square foot per capita and average physical occupancy of 90 percent across the competitive set.
U-Stor-It in Melrose Park is a rare opportunity to acquire a well-located seasoned facility with proven in place cash flow and strong historic revenue growth. Upside can be achieved by capitalizing on the trade area’s high occupancy and continuing to push street rates and revenue managing legacy tenants.