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 America’s 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 America’s Thrift Store, which recently signed a lease extension through 12/31/37. The storage portion of the property is currently at 87.90% physical occupancy and 85.58% 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 $467,850 in Year 1 to $510,022 in Year 3 and $522,130 in Year 5, supporting consistent annual cash flow growth.
The offering represents an attractive acquisition opportunity at a purchase price of $6,250,000, with a 7.13% current cap rate that expands to 8.93% in Year 6.
INVESTMENT
HIGHLIGHTS
- STORAGE REVENUE & OCCUPANCY UPSIDE
With current physical occupancy at 87.90% and economic occupancy at 85.58%, immediate valueadd opportunity exists to bridge the gap through optimized management efficiencies, and continued lease-up. - RETAIL LEASE WITH 11.4 YEARS LEFT OF FIRM TERM
America’s 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 $445,686 to $467,850 in Year 1, expanding cap rates from 7.13% (Current) up to 8.93% 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 $178.36 per rentable square foot with a $2,062,500 equity requirement (70.0% LTV), offering an attractive 7.13% 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