DEAL SUMMARY

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List Price:   Market Driven | Call for Offers: October 5th at 5 pm

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6620 Kingsport Hwy, Gray, TN

NRSF:  26,458

Units:   222

Acres:  3.1

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908 N Road St, Johnson City, TN

NRSF:  12,027

Units:   117

Acres:  0.8

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INVESTMENT HIGHLIGHTS

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LOCATIONS // Two strategically positioned self-storage facilities serving established markets across the Johnson City and Gray areas of East Tennessee offering investors exposure to distinct yet complementary submarkets.

 

STRONG DRIVE-BY TRAFFIC FLOWS // Prominent signage at both locations demands the attention of an active tenant base traveling on busy thoroughfares. The Johnson City location sits directly across from North Side Elementary School; The Gray location is elevated & prominent.

 

DIVERSE STORAGE UNIT TYPES // The properties feature a mix of climate-controlled, non-climate-controlled, parking, commercial flex/warehouse units which provides an excellent blend of unit types that can satisfy any tenant demand.

 

VALUE-ADD OPPORTUNITY // Current occupancy of 73% by unit provides a clear path to increase revenue through continued occupancy gains, operational and management improvements in addition to optimizing the approximately 1 acre of land at the Gray location.

 

SIGNIFICANT IMPROVEMENT POTENTIAL // The portfolio is priced to generate approximately $532,536 in gross potential rent, $13.84 per NRSF; However collectively the sites are under-performing with only $389,677 or $10.13 per NRSF in Trailing 12-month rental income, despite strong market fundamentals.

 

PROJECTED HOUSEHOLD INCOME GROWTH // Household incomes are projected to increase across both markets over the next five years, with median household income projected to grow by approximately 8% to 10% and average household income by approximately 9% to 12%.

 

ESTABLISHED AND GROWING STORAGE MARKETS // The properties operate within active and established self-storage markets supporting 12,818 people in a 3-mile radius at the Gray location and 47,722 people within a 3-mile radius of the Johnson City location; both areas continue to grow beyond the 15% and 14% growth rates respectively since 2010.

 

WELL-MAINTAINED FACILITIES // Extensive capital improvements completed over the last few years reduce ongoing maintenance costs and provide a turnkey operation.

 

REMOTE MANAGEMENT READY // Each property is optimized for remote management with both locations set up with secure access control and monitoring.

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INVESTMENT SUMMARY

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EquiCap Commercial is pleased to exclusively present Store Safe TN, a two-property self-storage portfolio located in the Tri-Cities region of Tennessee. Situated in Washington County, the portfolio includes 339 units totaling 38,485 NRSF, with approximately 1 acre of expansion land at the Gray location.

 

The portfolio provides geographic diversification across two complementary submarkets. The Johnson City property at 908 N Roan St benefits from strong visibility, dense surrounding demographics, proximity to North Side Elementary School and East Tennessee State University. The Gray property at 6620 Kingsport Hwy is positioned along a major commuter corridor between Johnson City and Kingsport, with convenient access to Tri-Cities Airport and the broader regional population base.

 

Both properties feature fenced and gated facilities with OpenTech access control and camera systems. The portfolio offers multiple avenues for operational upside, including lease-up of previously owner-occupied units, improved management for existing customer rates, including implementation of a tenant protection program, rental of the on-site apartment, and optimal utilization of approximately 1 acre expansion land at the Gray property.

 

The surrounding trade areas provide an established and growing customer base. Within three miles, the Johnson City property serves 47,722 residents, while the Gray property serves 12,818 residents; both trade areas have experienced approximately 14–15% population growth respectively since 2010, with continued residential development under construction surrounding the Gray location.

 

Store Safe TN has been owner-operated for decades. Current ownership has spent significant time and money trying to optimize and maintain the properties; however, ownerships primary focus has increasingly shifted away from day-to-day operations as he transitions to a less management driven lifestyle in Destin Fl. While the storage market has remained strong in the area since COVID, the operations demands of managing both properties have prompted ownership to pursue a sale. After initially transitioning management to a third-party manager, subsequently bringing operations back in-house, and implementing three new websites over the past four years, ownership has elected to transition the portfolio to a new investor.

 

Store Safe TN represents an opportunity to acquire an established, owner-operated portfolio with strong locations, diversified demand drivers, identifiable operational upside, and additional land potential in one of East Tennessee’s established growth markets.

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