Grandstone Investment Sales is pleased to exclusively present Simple Storage, a value-add self storage opportunity located in Demopolis, AL. The subject property is comprised of three facilities strategically spread across 724 N Walnut Ave, 1110 Sam Ave & 1200 Mason Ridge Dr, Demopolis, AL, totaling 314 units and 48,253 NRSF. The portfolio is offered at $2,875,000 ($59.58/NRSF) and is currently operating at 63.4% physical occupancy, providing investors with a compelling opportunity to implement professional management, optimize rental rates, and unlock significant operational upside.
The investment offers an attractive value-add profile with current NOI of approximately $134,384, with projected NOI growth to $246,647 in Year 2 as occupancy improves toward stabilization. Based on a 70% LTV interest-only financing structure, the underwriting projects a 5-year levered IRR of approximately 22.4% and a 2.48x equity multiple. Located within a Qualified Opportunity Zone, Simple Storage Demopolis presents investors with the opportunity to acquire an underperforming self-storage portfolio at an attractive basis and create value through institutional management, rental rate optimization, and strategic lease-up initiatives.
INVESTMENT
HIGHLIGHTS
- VALUE-ADD OPPORTUNITY
Acquire a 314-unit, 48,253 NRSF self-storage asset at an attractive basis of $2,875,000 ($59.58/NRSF) with significant upside through professional management, operational improvements, and revenue optimization. - LEASE-UP POTENTIAL
Current occupancy of 63.4% provides a clear path to stabilization, with potential to reach approximately 85% occupancy by Year 5 through improved leasing strategies and rental rate optimization
- NOI GROWTH POTENTIAL
Current NOI of approximately $134,384, with projected growth to $191,440 in Year 1 and $246,647 by Year 2, achieving an estimated 8.58% stabilized cap rate. - STRONG RETURNS
Underwriting projects an attractive 22.4% levered IRR and 2.48x equity multiple over a 5-year hold period, supported by operational upside and value creation initiatives. - OPPORTUNITY ZONE ASSET
Located within a Qualified Opportunity Zone, providing potential tax advantages while investing in a value-add self-storage opportunity.
Broker of record: BRIAN BROCKMAN | Bang Realty-Alabama Inc | bor@bangrealty.com | Tel: 513.898.1551 | License: 119315