Self Storage Units
I am considering building a self storage facility on a lot I presently own. That said, I do not know a lot about this business yet. Any advice, ideas, or considerations would be appreciated. Also any cost samples or good ratios would also be appreciated. Thanks.
Most lenders do LTC ( Loan to Cost)calculation
How to calculate LTC;
Land +Construction Cost( Hard Cost & Soft Cost) + Closing Cost = LTC
If the developer is short on vested interest( skin in the game should be 15%- 25%) , they may allow a mezzanine loan.
Traditionally commercial construction lenders will only lend up to 80% of cost.
REAL ESTATE COSTS
Building acquisition: $495,000.00
Purchasing Costs, such as closing, transfer taxes, etc. $15,000.00
Mortgage, Carrying Costs and Fees: $150,000.00
Management and Administration Fees $-
Legal Costs $20,000.00
Total real estate costs: $680,000.00
New Construction
4 Stories: 9300.00 Sq. Ft. *$175 per sq. ft.: 10500 * 175 $1,837,500.00
$-
Landscape (including hardscape and plantings): $15,000.00
Construction Contingencies $75,000.00
Total Construction Budget: $1,927,500.00
SUPPLEMENTAL COSTS
Architecture fees: $120,000.00
$-
Structural Engineering fees: $11,000.00
Civil Engineering Fees $17,000.00
MEP Engineering fees: $21,000.00
$-
Landscape Architecture fees: $5,000.00
$-
Building permit: $10,000.00
$-
Permit expeditor’s fees: $2,500.00
$-
Total supplemental costs : $186,500.00
$-
TOTAL COSTS OPTION: $2,794,000.00
REVENUE
4 parking spaces @$25 K each $100,000.00
10 units: Total 9300 sq. ft., $416 per sq. ft. = $3,868,800.00
TOTAL REVENUE $3,968,800.00
LESS TOTAL COSTS $(2,794,000.00)
GROSS PROFIT Before Backend Selling Costs & Transfer Taxes: $1,174,800.00
Selling Costs and Transfer Taxes and Back-End Closing Costs $218,284.00
NET PROFIT $956,516.00
Example:
Quote:
On 2010-07-12 15:32, jasons wrote:
I am considering building a self storage facility on a lot I presently own. That said, I do not know a lot about this business yet. Any advice, ideas, or considerations would be appreciated. Also any cost samples or good ratios would also be appreciated. Thanks.
selfstorage association has numbers on almost everything related. If you want to contact me I have a roladex full of selfstorge contacts.
[addsig]
partnering w/ an unknown biz is risky. SELL!
Where are these properties located? I might have some investor friends who are looking for properties like these.
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