3556 Marnie Avenue

Description

Cedar Crossing Storage – Value-Add Self Storage Investment | Waterloo, IA Excellent opportunity to acquire a newly constructed self-storage facility with strong in-place income, continued lease-up, and significant upside potential. Cedar Crossing Storage is strategically located at the high-traffic intersection of Hwy 20 & Hwy 63, offering excellent visibility and accessibility in a growing commercial corridor. Phase 1 was completed in October 2023 and features 78,760 SF across 5.19 acres, including 157 drive-up storage units (10x15, 10x20, 10x30), a 1,280 SF climate-controlled office/shop (leased at $1,325/month), and 122 outdoor parking spaces (10x40). Total unit count is 280. The property is currently 72.86% occupied (83.44% indoor / 59.02% outdoor), providing immediate cash flow with substantial lease-up remaining—particularly in outdoor parking. Current NOI is $242,070 with projected stabilized NOI of $307,099 by mid-2026. Rents are currently below market (10x15: $95, 10x20: $115, 10x30: $135, outdoor: $45), offering a clear path for increased revenue through rate adjustments and continued occupancy gains. Leasing activity remains strong, averaging 3–4 units per week. A major highlight of this investment is the 15-year Tax Increment Financing (TIF) incentive from the City of Waterloo, providing a 90% tax rebate for the first 10 years and 60% thereafter. Current net property taxes are approximately $19,700 annually after rebate, significantly enhancing cash flow and overall return. At a 6.25% market cap rate, the current value based on in-place NOI is approximately $3.87M, with a stabilized value near $4.91M. Including the estimated $642,000 net present value of the TIF benefit, the stabilized value exceeds $5.5M, creating a compelling basis for investors. Additional upside is available through Phase 2 expansion, with preliminary plans offering multiple build-out options to further increase unit count and NOI. The property is fully secured with perimeter fencing, automated gate access, and high-definition security cameras. Financials are professionally maintained and updated monthly. Seller financing is available for qualified buyers, and current ownership is willing to remain involved in management during transition. Ideal for investors seeking a newer construction asset with strong cash flow, tax advantages, and clear value-add potential.