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.

Comments(5)

  • Johnnyq21431st August, 2010

    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.

  • flyhomes4th August, 2011

    selfstorage association has numbers on almost everything related. If you want to contact me I have a roladex full of selfstorge contacts.
    [addsig]

  • cjmazur14th October, 2008

    partnering w/ an unknown biz is risky. SELL!

  • loanhound24th November, 2008

    Where are these properties located? I might have some investor friends who are looking for properties like these.

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