Case Study: Central Florida acquisition from a regional management company
In 2002 Metro Storage LLC purchased a two year-old self storage property in Central Florida. Prior to Metro's acquisition of the facility, a regional property management company operated the facility for an investment group; occupancy stagnated in the 70% range for the eight months prior to acquisition with only $60,000 annually in nonstandard rents. Prior to acquisition the actual rent collected, per square foot, was only $8.96 compared to street rates equaling $11.97psf.
Metro implemented a structured business plan that increased physical occupancy to over 95% in less than nine months. Effective marketing, property repositioning and a competitive rate structure generated street rates equal to $12.60 psf within 14 months of acquisition. Metro reduced non-standard rents by 83%.
Cast Study: Indianapolis acquisition from Storage USA Franchise owner
Metro Storage LLC assumed ownership of a self storage property located on the north side of Indianapolis. The property was constructed in 1999 by Storage USA and owned as part of the Storage USA Franchise program. The property was 60% occupied at acquisition, fluctuating in the 60-70% range in the 12 months prior to Metro’s ownership.
During the first 14 months of ownership, Metro increased occupancy to 90%. The successful lease up enabled street rates to increase by 7% and improved total monthly revenues by 33%.
Case Study: Atlanta 3rd Party Management Turn-Around
Metro Storage LLC was retained to provide property management services in February 2004 by an investment group acquiring two facilities in Atlanta. Prior to management, Metro performed operational and financial due diligence on the assets.
A local management company had managed the first location in Midtown Atlanta since its opening in 2001. The property was 66% occupied when Metro took over and within six months occupancy increased and stabilized at 87%, increasing total monthly revenues by 28%.
The second location in Smyrna was neglected by previous management, requiring market repositioning and a new image. Metro executed a $250,000 capital improvement program and implemented aggressive marketing and professional management of the facility. Occupancy increased nearly 20% to stabilize at 85% and total monthly revenues rose 40%.
Case Study: Chicago suburb acquisition from a local owner/management company
In 2002 Metro Storage LLC purchased a four year-old self storage property located in the southwest suburbs of Chicago. The property's street rates were 25% below market, and it was only 74% occupied upon acquisition. Metro immediately reconfigured the property’s unit mix and implemented a targeted marketing program.
Within six months Metro increased occupancy to 90% while increasing the street rates by 30% and increased revenues generated from the existing tenants. Within a year Metro increased the financial occupancy of the property by 36% and improved rent per square foot collected by 21%.
Case study: 3-store portfolio acquired from local developer in Atlanta, Georgia
Metro Storage LLC purchased a newly developed portfolio of three self storage properties on the southeast side of Atlanta in 2002.
Property #1: Upon acquisition the property was 73% occupied. The seller represented a physical occupancy of 90%, but through its acquisition and due diligence process Metro identified a nearly 20% “phantom” occupancy. Metro immediately implemented a business plan providing for a new rental office, a more convenient gate configuration for tenant access, and began marketing to the thousands of apartment units immediately surrounding the property. In less than five months occupancy was 90%. The property remains at this occupancy level while increasing street rates by over 20%, improving total monthly revenues by 35%.
Property #2: Metro purchased a 71,000 square foot facility of which a 22,000 square foot expansion of the facility came on line the day of acquisition resulting in an acquisition occupancy of 59%. Within 10 months of implementing our business plan occupancy increased to 95%. Today the property continues to maintain highly stabilized occupancy with substantially higher street rates.
Property #3: This location was acquired with the goal of expanding the property with the addition of climate-controlled storage and RV parking spaces. Metro constructed an additional 27,175 square foot expansion (a 78% increase) and achieved 85% physical occupancy within 12 months.