Five Points Self Storage
Value-add Self Storage Opportunity in Chattanooga's Most Sought After Neighborhood
Marketing description
Fletcher Bright Realty is pleased to present the exclusive offering of Five Points Self Storage, an 81-unit, ±9,825 SF self-storage facility situated on a ±0.67-acre infill parcel at 500 W Manning Street in the heart of Chattanooga's North Shore. The property is offered at $1,650,000 and currently 90% occupied with a stable tenant base, Five Points Self Storage offers an investor a rare opportunity to acquire a stabilized, cash-flowing storage asset in one of Chattanooga's fastest-growing and most supply-constrained submarkets. The facility benefits from immediate proximity to the Walnut Street Bridge, Frazier Avenue, and downtown — a trade area defined by dense multifamily product, new-construction infill, and a renter-occupied household base that drives durable storage demand.
The opportunity is anchored by three reinforcing themes: (1) stabilized occupancy at below-market rents, providing immediate runway to push contract rents through ECRI to current street rates; (2) E-IX-3 zoning permitting up to 3 stories / 50' of vertical development, providing optionality to expand rentable square footage on the existing parcel; and (3) a basis below replacement cost in a submarket where new self-storage construction is increasingly infeasible due to land scarcity and rising construction costs.
Assumable owner-financing is available at a below-market interest rate, providing the next owner with attractive levered returns from day one. The combination of in-place yield, near-term ECRI upside, density entitlements, and below-market debt make Five Points Self Storage a uniquely positioned core-plus / value-add opportunity in the Chattanooga MSA.
Investment highlights
- In-Place Cash Flow at 90% Occupancy - As of April 2026, scheduled run-rate already producing $81,098 of NOI reflecting recent ECRI execution by ownership.
- Five-Year NOI Growth Path — Conservative 7.79% Year-5 Cap - Seller pro forma projects NOI growing from $81,098 (2026 run-rate) to $130,523 by 2031 — a 7.91% Year-5 cap rate at the asking price — driven by 6% annual rental growth on below-market units, a $12,840/yr facility-fee program rolling on in 2027, and a disciplined ECRI execution path.
- Vertical Expansion Optionality — E-IX-3 Zoning - Existing E-IX-3 entitlement permits up to 3 stories / 50' of vertical development on the parcel, providing optionality to expand rentable square footage on existing dirt.
- Infill Location with Strong Demand Drivers - Surrounded by new multifamily product and infill residential construction, with a renter-occupied household base of 12,684 within 3 miles.
- Priced Below Replacement Cost - $168 PSF basis is well below the cost of new construction in Chattanooga's North Shore submarket — providing a defensive margin of safety.
- Assumable Below-Market Owner Financing - Existing financing is assumable at a below-market interest rate, enhancing levered returns and reducing capital-markets execution risk.
- Climate-Controlled & Drive-Up Mix - 25 climate-controlled units and 56 drive-up units, plus 11 outdoor RV/boat spaces — capturing multiple demand segments.
- High-Growth Chattanooga MSA - Hamilton County population grew 6.5% from 2020–2025, more than double the U.S. rate, supporting durable long-term storage demand.
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