Grandstone Investment Sales is pleased to exclusively present the investment opportunity to purchase a former big box retail conversion with an Extra Space Storage and Americas Thrift Store at 5441 Highway 90 W in Mobile, Alabama. The 85,896-net rentable square-foot property is currently operating with the retail portion fully leased to Americas Thrift Store, which recently signed a lease extension through 12/31/37. The storage portion of the property is currently at 82.20% physical occupancy and 77.37% economic occupancy, providing stable in-place cash flow with additional upside through optimized management efficiencies, and continued lease-up.
Projected Net Operating Income increases from $456,714 in Year 1 to $498,400 in Year 3 and $509,799 in Year 5, supporting consistent annual cash flow growth. The offering represents an attractive acquisition opportunity at a purchase price of $6,850,000, with a 6.00% current cap rate that expands to 8.00% in Year 6.
INVESTMENT
HIGHLIGHTS
- TORAGE REVENUE & OCCUPANCY UPSIDE
With current physical occupancy at 82.20% and economic occupancy at 77.37%, immediate value-add opportunity exists to bridge the gap through optimized optimized management efficiencies, and continued lease-up. - RETAIL LEASE WITH 11.4 YEARS LEFT OF FIRM TERM
Americas Thrift Stores just extended the current lease through 12/31/37, providing stable long term cash flow & firm term - STEADY NOI GROWTH & CASH FLOW
NOI is projected to increase from $410,193 to $456,714 in Year 1, expanding cap rates from 6.00% (Current) up to 8.00% by Year 6 to provide predictable cash-on-cash yield.
- STRATEGIC MOBILE, AL LOCATION
Situated at 5441 Highway 90 W in Mobile County, the property benefits from high-traffic commercial visibility and steady local demand for self-storage and retail space. - FAVORABLE ACQUISITION METRICS
Acquired at $80 per rentable square foot with a $2,055,000 equity requirement (70.0% LTV), offering an attractive 6.00% entry cap rate that expands over the investment horizon.
Broker of record: BRIAN BROCKMAN | Bang Realty-Alabama Inc | bor@bangrealty.com | Tel: 513.898.1551 | License: 119315