This opportunity is a semi-autonomous self-storage facility and U-Haul dealer for sale located in Washtenaw County, MI that consists of an array of different unit types and sizes. The indoor climate-controlled and non-climate-controlled units were retrofitted in 2000, while the exterior drive-up units were added in 2010. There are a total of 229 storage units and 15 rentable parking spaces for boats, RVs, and other vehicles, for a total of 244 rentable units and 22,155 rentable square feet. The fully fenced in 1.3-acre property is located within close proximity of a major university and a dense population of apartment buildings and small businesses which bring in a large quantity of business for both self-storage and U-Haul. The property maintains an occupancy level of 95%+ year-round.
The company is run by the owner with two part-time employees alongside him who manage most of the property’s daily operations. The owner works anywhere from 2-5 hours per week. Most of this time is spent taking care of payroll and consulting with management. Employee time is largely spent on storage point of sale, U-Haul administration, cleaning, and general property care. The business excels in its customer service of its U-Haul services, leading to several awards within the last year for being a Top 100 dealer in the country.
The property is located where a railway coal station operated in the 1880s to early 1900s and a lumber supply business operated from 1966 to 1996. The previous owner took over remediation and improvements to the site to comply with Michigan Department of Environmental Quality (MDEQ) requirements to allow business operation on the site. Continued compliance with the MDEQ Due Care Plan requires basic upkeep of paved surfaces and complete removal and proper disposal of all soil dug up during building projects.
Number of Employees: 3 (including owner)
Year Established: 2000
Facility: The property is made up of four structures. Two buildings, the indoor climate-controlled units with office space and the indoor non-climate-controlled units, were retrofitted in 2000. The other two structures were added in 2010 and are outdoor drive-up units. The property consists of varying sizes of units, with the smallest being 4’ x 5’ x 8’ and the largest being 17’ x 20’ x 8’. Additionally, there are 4,650 square feet of lot space dedicated to rentable parking spaces. The average occupancy rate of the property is about 95%, however, the parking spaces most often have a 0% vacancy rate. The self-storage and U-Haul dealership is operated by two part-time employees excluding the owner.
Support/Training: Ownership is willing to provide reasonable and customary assistance during the transition period.
Reasons for Selling: Ownership would like to pursue other business opportunities.
Opportunities for Growth: The property has several opportunities to expand to increase potential revenue. These include raising rents to fair market values, converting larger units to smaller units that generate higher revenue per square foot, and converting rentable parking spaces to additional space for rentable U-Haul equipment.
(1) Low Vacancy Rates: Due to the already high demand for self-storage and U-Haul services alongside the convenient location, this self-storage facility and U-Haul dealer for sale is nearly fully occupied at all times. A conservative average vacancy rate is around 4-5%.
(2) Consistent Financial Performance: Over recent historical periods, the property has routinely recorded growing revenue and net operating income (NOI). In the most recent year, the Business recorded revenue and NOI of $303K and $187K, respectively, from storage rents and U-Haul commissions. Since 2019, NOI margins have been steadily increasing up to 61.5%.
(3) Admirable Location: The property is located within 1,000 feet of Eastern Michigan University and near a dense downtown population of apartment buildings and small businesses. These demographics provide significant demand for storage units and U-Haul while the Company has few local competitors. This results in very low vacancy rates.
(4) Large Selection of Units: The property has over 20 different unit sizes and 3 different types (drive-up, indoor climate-controlled, and indoor non-climate-controlled). This allows a variety of choices for the average customer to choose from, guaranteeing that one meets their needs. Additionally, the unit mix favors smaller units, which have the tendency to rent at higher rates per square foot.
The BEST way to receive confidential information about this opportunity is to fill out the form below.
Upon doing so you will receive a link via email to review and sign our confidentiality agreement. Once signed we will be able to further the conversation and send you the confidential Offering Documents. Please contact [email protected] with any questions. Interested parties must demonstrate proof of financial capability, sign a Non-Disclosure Agreement, and answer a few questions related to their background and interests. Enquire today about this self-storage facility and U-Haul dealer for sale!