Ted Deits, Eucalyptus at Beaumont
The storage condo market is more of a luxury market, says Ted Deits, owner and developer of Eucalyptus at Beaumont, Southern California’s first-of-its-kind RV storage condominium. “People will spend more money to own the space for their boats and RVs,” he says.
Deits conducted a due diligence survey of about 1,200 potential customers to find out what they wanted. Among the items were a variety of unit sizes and door widths, customizable interiors, restrooms, showers, dump stations, a playground, wash bays, ice machines, a 60-amp for each unit, propane tanks, Wi-Fi availability and valet service.
Area demographics for condos are also different than traditional self-storage. Most of the initial buyers for Eucalyptus live more than an hour away with some as far as Australia and Hawaii.
Eucalyptus at Beaumont pre-sold 50 percent of its units in two initial offerings before construction even began. The $10 million property offers 108 condo units priced between $55,000 and $182,000, and provides the extras many owners of luxury vehicles expect. There are five standard unit sizes. Unit depth ranges from 35 feet to 50 feet, and all have 14-foot door heights. Widths range from 11 feet to 26 feet with 10- to 20-foot-wide sectional doors. Some units can be combined to create a unit up to 100 feet deep.
“You can build a condo facility but still rent the units, but you can’t build a rental facility and sell the units,” Deits says.
Gary Morris, Premier Storage Condos
“We are in the business of selling garages to people to store their big toys,” says Gary Morris, owner of Premier Storage Condos in Phoenix. The 311-unit facility, the brainchild of Morris and Roger and Lee Farmer, exemplifies the rapid rise in popularity of the storage condominium. The partners are not traditional self-storage entrepreneurs but real estate developers who saw the potential of selling self-storage condominiums to recreational vehicle owners.
“Building a storage unit makes sense,” Morris says. “People can downsize their homes and have somewhere safe to store their toys but, at the same time, build equity in the unit.” Owners know if they sell their RV they can rent their unit to others or sell the unit on the open market.