I’m looking at acquiring a self-storage facility. It is 95% full. Has about 100 units. The rents haven’t been raised in years. The facility is open 4 hours a day. There’s also a UHaul associated with it. UHaul is also open 4 hours a day and is severely under-performing for its location. The location is on a major highway that must get ~100K vehicles per day easily. The population of this area would surpass the 1M mark probably in a 5 mile radius. The next closest UHaul is 20 minutes away.
The EBIT is $40K per year. The lease has 7 years left, with a 5 year option. The owner of the building would do anything not to lose the lease. The business owners have been absentee and are dying to get out. They will do owner financing. What is your offer?
I’m a residential investor but find this offer too good to be true to pass up. Your thoughts and comments would be most helpful.