Grandstone Investment Sales is pleased to exclusively present Buffalo Storage on Broadway, a climate-controlled self-storage facility at 459 Broadway, Buffalo, NY 14204. The asset comprises 364 storage units across approximately 28,012 net rentable square feet on a 0.71-acre lot — a 2020 conversion of a historic Buffalo industrial building to climate-controlled self-storage. The facility is 93% physically occupied but only 80.83% economically occupied, a roughly 12-point gap that a disciplined revenue-management program can close. Capturing it grows net operating income from $291,803 to $357,926 in Year 1, lifting the going-in 5.90% in-place cap rate to a projected 7.23%.
Priced at $4,950,000, or $176.71 per net rentable square foot, the in-place yield offers downstate capital a meaningful arbitrage to lower-yielding primary-market storage. The offering underwrites to a 20.3% levered IRR and a 2.30x equity multiple over a five-year hold, exiting at a $6,500,000 disposition. The Willert Park location — minutes from downtown Buffalo and within five miles of roughly 322,953 residents and 140,755 households — anchors durable, climate-controlled storage demand in a dense urban core throughout the hold.
INVESTMENT
HIGHLIGHTS
- CAP-RATE ARBITRAGE VS. PRIMARY MARKETS
A 5.90% in-place cap expanding to a projected 7.23% in Year 1 prices well inside gateway-market storage, offering downstate capital a yield premium for stepping into a secondary market. - DENSE URBAN DEMAND BASE
Sited in Buffalo’s Willert Park neighborhood minutes from downtown, the facility draws on roughly 322,953 residents and 140,755 households within five miles, supporting steady climate-controlled storage demand.
- CLEAR PATH TO HIGHER ECONOMIC OCCUPANCY
The asset is 93% physically occupied but only 80.83% economically occupied; closing that ~12-point gap through active revenue management lifts NOI from $291,803 to $357,926 in Year 1. - ATTRACTIVE LEVERED RETURN PROFILE
Underwrites to a 20.3% levered IRR and a 2.30x equity multiple over a five-year hold, exiting at a $6,500,000 disposition. - CLIMATE-CONTROLLED CONVERSION OF A HERITAGE BUILDING
A 2020 climate-controlled conversion of a historic Buffalo industrial building delivers a modern, fourseason storage product in a well-located, established structure.
Broker of record: BRIAN BROCKMAN | Bang Realty-New York Inc | Bor@bangrealty.com | License: 10311208985
