How To Sell Your Storage Facility: Frequently Asked Questions For Selling Your Storage Facility (FAQ)

Q: How do you determine the value of a self-storage facility?
A: The value of a self-storage facility is determined by factors such as location, occupancy rates, revenue, operating expenses, facility size, and condition. We also consider market trends and comparable sales in the area to estimate its value.

Q: What types of self-storage facilities do you purchase?
A: We purchase a wide range of self-storage facilities, from small local operations to large multi-building complexes. We are interested in facilities in any condition, whether fully occupied, partially vacant, or in need of renovations.

Q: Can I sell a self-storage facility with tenants currently renting units?
A: Yes, you can sell a self-storage facility with existing tenants. The leases and rental agreements will typically transfer to the new owner, who will be responsible for managing them.

Q: How quickly can you close on a self-storage facility?
A: We can typically close on a self-storage facility within 30 to 60 days, depending on the complexity of the transaction. In some cases, we can expedite the process to close even faster.

Q: What documents are needed to sell a self-storage facility?
A: Key documents include the deed, financial statements, rental agreements, property tax records, maintenance records, and any relevant permits or licenses. We’ll guide you through the paperwork required for a smooth transaction.

Q: What should I consider before selling my self-storage facility?
A: Consider factors such as current market conditions, the facility’s financial performance, potential tax implications, and your long-term business goals. It’s also important to evaluate whether now is the right time to sell based on your personal financial strategy.

Q: How does the sale of a self-storage facility differ from other commercial properties?
A: Selling a self-storage facility involves unique considerations, such as the facility’s occupancy rate, rental income, and market demand for storage units. The transaction may also involve specific industry regulations and tenant rights that differ from other commercial real estate.

Q: Do I need to make any improvements before selling my self-storage facility?
A: No, you don’t need to make any improvements before selling. We buy self-storage facilities in as-is condition, meaning we handle any necessary upgrades or repairs after the purchase.

Q: What are the tax implications of selling a self-storage facility?
A: The tax implications can vary depending on factors like the length of ownership, depreciation recapture, and capital gains. It’s advisable to consult with a tax professional to understand the specific impact on your situation.

Q: What challenges might arise when selling a self-storage facility?
A: Challenges can include negotiating the sale price, dealing with existing tenant agreements, and addressing any deferred maintenance or legal issues. We have experience navigating these challenges to ensure a smooth transaction.

Q: How do you handle facilities with vacant units or low occupancy rates?
A: We evaluate the facility’s overall potential, taking into account current occupancy rates and the local market demand for storage. We are interested in purchasing facilities regardless of their current occupancy level.

Q: Can I sell a self-storage facility that has delinquent tenants?
A: Yes, we can purchase self-storage facilities with delinquent tenants. We will review the situation during our due diligence process and adjust our offer accordingly if necessary.

Q: What happens to existing tenant leases and agreements after I sell my self-storage facility?
A: Existing tenant leases and rental agreements typically transfer to the new owner, who will be responsible for managing those contracts. We ensure a smooth transition for both you and your tenants.

Q: Can I reinvest the proceeds from selling my self-storage facility into another real estate asset?
A: Yes, you can reinvest the proceeds, and we can help guide you through the process, including options like a 1031 exchange if you’re looking to defer capital gains taxes.

Q: How do market trends affect the sale of a self-storage facility?
A: Market trends, such as local demand for storage units, economic conditions, and interest rates, can significantly impact the sale price and timing. We monitor these trends to provide you with the best possible offer.

Q: What are the benefits of selling my self-storage facility for cash?
A: Selling for cash allows for a quicker and more straightforward transaction. It eliminates the uncertainty of buyer financing and typically reduces the amount of paperwork and contingencies involved in the sale.

Q: Can you help me with the sale of multiple self-storage facilities?
A: Yes, we can assist with the sale of multiple facilities, whether in a single portfolio transaction or individually. We offer tailored solutions to meet your needs.

Q: How do you assess the future growth potential of a self-storage facility?
A: We assess future growth potential by analyzing local population trends, demand for storage, competitive facilities in the area, and potential for expansion or development.

Q: What should I look for when buying a self-storage facility?
A: Key factors to consider include location, occupancy rates, competition, facility condition, revenue streams, and market demand. Due diligence should also include a thorough review of financial statements and tenant agreements.

Q: How do you handle environmental concerns or zoning issues with self-storage facilities?
A: We conduct thorough due diligence to identify any environmental concerns or zoning issues. If such concerns are present, we work to resolve them or adjust our offer to reflect the additional risks involved.