- Rents Significantly Below Market
- Professional Management in Place
- Strong Historical Income Growth
- On-site Security and Maintenance
- High Traffic Area
- Strong Population Growth
Hansen Storage located in Logan, Utah, is comprised of 37,988 net rentable square feet on approximately 2.3 acres. The property currently features 262 rentable spaces, 242 drive-up, enclosed storage units and 20 outdoor parking spaces. The property was built in three phases in 1984, 1994, and 1999. The facility is professionally managed by Deluxe Property Management, who has increased income on average 29% year over year since 2017. The facility also has on-site security and digital video surveillance.
Located just off Highway 252 (1000 West) which serves 17,409 cars a day and Highway 30 (200 North) which serves 7,224 cars a day. The property is located three and a half miles from Utah State University, Utah’s fourth largest university with 28,000 students. The student population provides a steady customer base throughout the year. The five-mile population has grown 33.5% since 2010 and is projected to grow an additional 7.61% in the next five years.
Hansen Storage is currently 93% occupied and a new owner will benefit from increasing rents, which are on average 28% below market rate. New ownership will be able to capitalize on strong historical occupancy and continue to increase rents in a growing region of Utah. At the offering price trailing twelve month cash on cash returns of 9.3% and proforma cash on cash returns of 19.7% once market rate is achieved. Returns can further be improved by introducing tenant protection plans. An investor should enjoy stable in place cashflow, the opportunity to increase returns, and a facility well-positioned with Logan City’s future plans.