Acquisitions guide

How to buy a self storage facility

A practical guide to buying a self storage facility: ways to buy, the acquisition process, due diligence, financing and sourcing off-market deals.

RSBy Ron Smith, OwnerPublished Updated 3 min read

Buying a facility starts with a clear thesis: the right market, the right unit mix, and a price justified by in-place income and realistic upside. This guide walks the whole path — the ways to buy, the acquisition process, due diligence, financing, and how to source off-market deals. Whether you're buying your first facility or partnering with us on the next, start here.

Ways to buy a facility

There's more than one way in. The right path depends on your capital, timeline, and appetite for operations.

  • Existing facilities. Stabilised, cash-flowing properties that generate income from day one.
  • Value-add facilities. Underperforming assets you reposition to grow net operating income.
  • Storage businesses. Operating businesses acquired as a going concern, systems and staff included.

If you would rather own the outcome than run the facility, partnering with an experienced operator is how most first-time buyers reduce execution risk — it is the model behind our own investment opportunities.

The acquisition process

The same disciplined, five-stage path we run on every facility we buy.

  1. Sourcing & site selection. We screen markets for demographic growth, drive-time demand, and limited competing supply, focusing on off-market and relationship-driven deals.
  2. Feasibility & underwriting. Third-party feasibility studies and conservative underwriting stress-test every assumption before we commit capital.
  3. Due diligence. Title, environmental, zoning, and financial review against a rigorous checklist to surface risk early.
  4. Financing & closing. We structure debt and equity, finalize the capital stack, and close — funding through our investor portal.
  5. Construction & stabilization. We manage construction and lease-up to stabilized occupancy, then optimize operations for the hold period.

Due diligence checklist

What we verify before closing on any facility. Miss one of these and the deal can turn.

CategoryItems
FinancialsTrailing 12-month P&L · Rent roll & occupancy history · Delinquency & concessions report
PropertyTitle & survey · Environmental (Phase I) · Physical condition & deferred maintenance
MarketCompeting supply & drive-time demand · Street rate comparison · Population & demand trends
Legal & opsZoning & permits · Service & vendor contracts · Management software & systems

Financing your acquisition

How buyers fund a facility — often a blend of these, structured to fit the deal.

  • Conventional mortgage. Bank or agency debt for stabilised facilities with strong cashflow.
  • SBA 7(a) / 504. Government-backed loans for owner-operators, with lower down payments.
  • Seller financing. Owner-carried notes that bridge valuation gaps and speed closings.
  • Syndicated equity. Pooled investor capital for larger acquisitions and portfolios.

Off-market deals

The best facilities rarely hit public listings. Our direct owner relationships and proprietary outreach surface off-market opportunities before the broader market sees them, and without a competitive bid process compressing your diligence window.

Value-add upside

Underperforming facilities offer the most upside — through revenue management, added units or climate control, and professional operations that lift NOI and value. Because price is income divided by cap rate, a durable increase in income raises the asset's value by a multiple of that increase. That arithmetic is the whole case for the value-add strategy described on our development and acquisitions page.

Ready to buy — or sell — a facility?

Whether you want to acquire, partner on a deal, or exit a facility you own, our acquisitions team can help. Contact acquisitions or see our current opportunities.

Frequently asked questions

How do I buy a self storage facility?

Buying a self-storage facility follows a repeatable path: source a deal (ideally off-market), underwrite the income and expenses, sign a letter of intent, complete due diligence on the rent roll and property, secure financing, and close. Working with an experienced operator de-risks every stage.

How much does it cost to buy a self storage facility?

Prices vary widely by market, size, and condition — small facilities can trade for under $1M, while large Class A facilities exceed $10M. Value is typically set by dividing net operating income by the market cap rate.

What is a good cap rate for self storage?

Cap rates depend on market and asset quality, but self-storage commonly trades in the 5–8% range. A higher cap rate means a lower price relative to income, but often more risk or value-add work required.

Can I buy a self storage facility with financing?

Yes. Acquisitions are commonly financed with conventional commercial mortgages, SBA 7(a)/504 loans for owner-operators, or seller financing. We structure the capital stack to fit each deal and investor group.

How do I find off-market self storage facilities?

Off-market deals come from direct owner relationships, brokers, and proprietary outreach. As active buyers, we maintain a pipeline of off-market opportunities that never reach public listing platforms.