- Price: $6,700,000
- 100% Enclosed and Climate Controlled RV Storage
- 94.7% Physical Occupancy
- 110,000 Vehicles Per Day on Interstate 10
- 4th Fastest Growing U.S. State (Arizona Population, 2017-18)
- Record Setting U.S. RV Sales in 2017 and 2018
National RV Central is a 125,015 net rentable square foot (NRSF) storage facility located in Tucson, Arizona. They are the only fully enclosed and climate controlled RV and boat storage option in their market. Built in 2006, the facility is comprised of 112,115 NRSF of indoor climate controlled RV storage, 5,100 NRSF of traditional drive-up self storage, and a 7,800 NRSF service bay rented to a third party. There is no outside storage, 100 percent of the RV and boat storage is fully enclosed.
The RV storage buildings have large aircraft style hanger doors, 20 foot high ceilings, and are cooled by roof-mounted evaporation coolers. Additionally, the property has 37 traditional drive-up self storage units, the service bay rented to a third party, a drive through car-wash for RVs, and a leasing office with an upstairs managers apartment. 88 percent of the facilities revenue is from RV and self storage with the balance coming from retail sales, the car-wash, and the service bay rent. 60 percent of the storage customers have been a customer longer than 12 months. The property features 24-hour video surveillance, a covered drive through check-in area, power outlets to keep RV batteries charged, propane and retail sales, a dump station, a pet relief area, valet parking, and perimeter fencing with electronic gate access. There is an apartment on the property where the current on-site manager lives.
The property is strategically located next to Interstate 10 (I-10). Because of the tall buildings and prominent signage, the facility is very visible to all 110,000 vehicles which drive by each day. The property is situated in a populated area with approximately 130,279 people and 53,233 households in a five-mile radius with an average household income of $72,389.
National RV Central is Tucson’s largest enclosed RV storage facility and is currently 94.7 percent physically occupied and 65.6 percent economically occupied. Economic occupancy is low because many tenants have been paying old rates. Monthly revenue increased in 2018 because of managements efforts to increase rates and because occupancy increased above 90 percent. This is an excellent opportunity for an investor to acquire a well performing stabilized asset below replacement cost. Upside will be achieved by continuing to improve economic occupancy and rental rates. Economic tailwinds include the local Tucson Arizona population growth, strong National RV sales, and the lack of direct local competitors. The ideal location and strong demographics surrounding the property should ensure a well performing asset for years to come.