- 91.5% Average Physical Occupancy Across the Portfolio
- Diverse Local Economic Area in Southern Oregon
- 8% Population Growth (Medford MSA) from 2010 to 2018
- Both Properties within 19 Mile Drive
This is a rare opportunity to acquire two stabilized storage facilities in southern Oregon. Combined, the two locations have 64,104 net rentable square feet with an average physical occupancy of 91.5 percent. Rents were raised in mid-2019 with little impact to the physical occupancy. All units are drive-up non climate controlled with metal doors. The investor will experience immediate cash flow that will grow with continued rent growth.
Sage Road Self Storage (“Sage”) is in the southern Oregon city of Medford. This facility is 94.1 percent physically occupied and has a leasing office staffed 30 hours per week, Monday through Friday. The onsite manager is a couple who also manage the Rogue facility. Sage has strong demographics within three miles consisting of a 73,000 population with an average household income of $56,340. The facility is in an industrial part of Medford on the well-traveled Sage Road with 9,500 vehicles per day. The asphalt driveways are in good condition. Rogue Valley Mall and Interstate 5 are only one mile away. Security measures include a chain link fence and two keypad controlled gates.
Rogue River Self Storage (“Rogue River”) is 19 miles to the north and is the only storage facility in the Rogue River Interstate 5 corridor. It is currently 88.9 percent physically occupied and has a leasing office staffed 22 hours per week spread across four weekdays. The onsite managers are the same couple who manage the Sage facility. This results in a simpler operation for the owner and the ability for the onsite managers to send customers to the other facility for a different unit size. The facility is partially visible from south bound traffic on the nearby Interstate 5. Security measures include a perimeter chain link fence, security cameras, and a keypad controlled gate. Both the exterior paint and asphalt appear in good condition. Across the street is a newer office medical building and a large plywood manufacturing plant.
Both Sage and Rogue are in the Medford MSA, a 220,000 person MSA that grew 8.05 percent in population from 2010 to 2018. Medford’s economy is driven by the logging and wood products industry, 20 wine vineyards in the Rogue Valley AVA, two hospitals that serve the local area and retirement community, an agriculture industry of pears, peaches and hemp, and the corporate headquarters for the fortune 500 company Lithia Motors. The Medford airport is served by non-stop flights to Los Angeles, Portland, Seattle, Salt Lake City, Phoenix, and Denver. Medford city was ranked 28th in the country for job growth in 2018 by USA Today because of the quality of life and California residents moving to the area. The incoming buyer will own two stabilized facilities in the economically diverse southern Oregon region.