Self Storage Q23 Costs and Timelines

A question I get from many new investors in the self storage space, especially from investors that came from the single family fix and flip strategy is, what are the costs and timelines associated with building self storage facilities? My name is Fernando Angelucci and I'm "The Storage Stud".

This is a very interesting question. And the answer set is, it kind of depends on the type of facility you're building and in the location. So let's start on the bottom here and talk about the third, you know, the tertiary markets, the classy facilities. Usually these facilities are drive up only. They have no climate control whatsoever. And all you really need to do is pour a concrete slab and then erect the steel structure. On top of it. These types of facilities can take anywhere from three to six months to build. At a cost of $20 to $30 a square foot.

Now, when you start looking at the large facilities and you know, the facilities that are appropriate for, you know, what REITs would buy and that are found usually in primary markets in the middle of urban areas, then your timelines and your costs usually expand. So here's an example of a deal that I'm working on right now. It's a $12 million facility. It's 130,000 square feet. It's a multilevel facility and includes a lot of HVAC and electrical. This facility is going to take us roughly 9 to 12 months to build. And you're usually going to be building, you know, all in cost is going to be somewhere between $80 to $90 a square foot. So still, you know, two or three times more than building a first generation or class C facility. But when you compare it to building multifamily, multifamily can usually take 12 to 24 months to build. If not longer, it can cost you anywhere between $150 to $250 a square foot.

So if you'd like to learn more about building self storage facilities, feel free to drop me a line. You could reach me at www.TheStorageStud.com until next time.

----------------------------------------------------------

Fernando O. Angelucci is Founder and President of Titan Wealth Group. He also leads the firm’s finance and acquisitions departments. Fernando Angelucci and Steven Wear founded Titan Wealth Group in 2015, and under his leadership, the firm’s revenue has grown over 100% year over year. Today,
Find out more at
https://www.TheStorageStud.com


http://titanwealthgroup.com/


Titan Wealth Group operates nationwide sourcing off market investment properties for Titan Wealth Group’s acquisition as well as servicing a network of thousands of active real estate investors world wide. Prior to founding Titan Wealth Group, Fernando worked for Dow Chemical, a Fortune 50 company, rolling out a flagship product estimated to gross $1B in global revenues.
With an engineering background, Fernando is able to approach real estate investing with a keen analytical mindset that allows Titan Wealth Group to identify opportunities and project accurate pictures of future performance.
Fernando graduated from the University of Illinois at Urbana-Champaign with a B.A. degree in Technical Systems Management.
Titan Wealth Group was founded in 2015 with the vision of gathering individual investors that have the means to invest but lack either the time to find high-yield investment opportunities or the access to these off-market deals. All too often, founders Fernando Angelucci & Steven Wear came across investors who had deployed their capital only to regret the lack of consistency or degree of returns their investments were producing. In response, Titan Wealth Group provides access to highly-vetted real estate secured investments and off-market acquisition opportunities primarily in the Greater Chicago MSA. Today, Titan Wealth Group not only assists individual investors but has grown to support the acquisition goals and capital deployment of investment groups, private equity firms, and real estate investment trusts (REITs).
As a facilitator of wealth growth, Titan Wealth Group believes that success is not limited to the sum of our efforts and is infinite with what can be accomplished through partnership.
#SelfStorage #RealEstateInvesting #AlternativeFunds