Description:
- Brighton Storage is a core, purpose-built self-storage facility in Denver, CO. The property was built in 2003 and has 716 individual storage units.
- The property is located in Brighton, 25 miles northeast of downtown Denver. The submarket is expected to grow by 60% over the next 20 years according to traffic data, making it the fastest growing segment off I-76 with 28k cars driving by daily. Population demographics are strong with 3-mile median household income of $113k and expected population growth of 2.7% per annum from 2022 to 2027.
Storage Strategy:
The U.S. self-storage sector has been a desirable property type over the last decade due to its low capital expenditures profile, low operational intensity, and low obsolescence risk. Given the inherent noncyclical demand drivers and thus stable demand, this property type is considered a defensive and has ultimately outperformed traditional sectors throughout multiple real estate cycles. We believe that self-storage will continue outperforming, given the sector’s favorable net operating income growth forecast and low capital expenditures relative to traditional sectors.