The facility opened in March 2005 and was 79% occupied at the time of acquisition in June 2006. Cantonment, Florida is north of Pensacola and about 20 miles inland from the coast. The facility is well located on the Northern side of Route 29, and it also has frontage and access from Route 95A. There are no self storage facilities within five miles south and north of Cantonment Self Storage. The current tenant base is 85% residential and 15% business. Self storage facilities are used by both households and businesses, but households typically represent 70% or more of the rented space. The Pensacola self storage market is strong with occupancy in excess of 90%.
Northwest Florida and Pensacola continue to experience significant economic and housing growth, with the Cantonment and Route 29 corridor experiencing above average growth. Pensacola is a favored retiree market for those from Alabama and Georgia. 10,000 new homes are expected in the area within five years of the acquisition.
The overall investment plan is to continue lease-up to market occupancy levels and then start to drive rate for the next two years. The site also allows for the development of an additional 6,000 sf. These units will be developed depending upon market conditions and the stabilization of existing units. Other revenue opportunities include the sale of packaging & moving goods and outside vehicle storage; neither of which have been underwritten.
99 Ranch signs long-term lease at Williams Trace Shopping Center
