Coastal Self-Storage Investment
For Sale
Contact for pricing
Pending
517 Lewis Dr, Carolina Beach, NC 28428
237-unit self-storage facility in Carolina Beach, North Carolina.
Property Size25,720 SF
Days on Market156
Property Features for 517 Lewis Dr
General Information
Standard status
Pending
Size
25,720 SF
Class
B
Property subtype
Business for Sale, Self Storage
Zoning
HB
Occupancy
83%
Investment Type
Owner/User
Building Details
Buildings
8
Units
237
Tenancy
Multi
Listing Agency:
Keller Williams Realty
(910) 256-0021
Listed By:
Trina Thomas · License #239842
Source:
Crexi
Added: Mar 8
Changed: Aug 8
Last Checked: Jul 24 at 11:34AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Keller Williams Realty
Investment Insights
Based on property information with market context.
This self-storage facility in Carolina Beach, North Carolina, presents a coastal investment opportunity. The property features 237 units, totaling approximately 25,720 square feet of rentable storage space, and has been family owned and operated for over 20 years. The facility consists of 8 storage buildings with units of various sizes. It is fully fenced and secured with video surveillance cameras and is not located in a flood zone. The property is strategically positioned near residential neighborhoods and local businesses, benefiting from strong storage demand driven by population growth, seasonal visitors, and second-home owners in the Carolina Beach and Pleasure Island area. The location offers visibility and convenient access on and off the island. The property includes an on-site management office with a reception area, along with a one-bedroom apartment upstairs complete with appliances. This allows an owner/operator the opportunity to live on site and manage the facility, or lease the apartment to generate additional rental income. The facility serves the growing Pleasure Island market.
Key Highlights
- Income‑producing self‑storage facility in a high‑demand coastal location (Carolina Beach/Pleasure Island, NC).
- 237 units totaling ±25,720 SF of rentable storage space.**
- Value‑add potential through rental rate adjustments and operational improvements.
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$262,325
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
8.07%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$5,246,500
$5.2M
Cap Rate 7%
$3,747,500
$3.7M
Cap Rate 9%
$2,914,722
$2.9M
Market Conditions
NOI Build-Up for 25,720 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$401.2K $15.60/SF
− Vacancy
−$26.5K −$1.03/SF
EGI
$374.8K $14.57/SF
− OpEx
−$112.4K −$4.37/SF
NOI
$262.3K $10.20/SF
Area
New Hanover County, NC
Vacancy
6.60%
Lease Rate
$15.60 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$5,246,500
Cap Rate 7%
$3,747,500
Cap Rate 9%
$2,914,722
Alternative Uses
Best Use
Industrial
$3.75M
$3.28M – $4.37M
NOI $262,325 @ 7.0% cap · market cap 8.07%
Second Best
Self Storage
$3.56M
$3.11M – $4.15M
NOI $248,860 @ 7.0% cap · market cap 7.66%
Theoretical Best
Office A
$8.35M
$7.30M – $9.74M
NOI $584,347 @ 7.0% cap · market cap 17.98%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
469
Businesses Nearby
Explore this area
Business Placement
Demographics for 28428, NC
6,848
Population
6,268
Households
1.1
Avg Household Size
51
Median Age
48%
College-Educated
98%
High-School Grad
5.2 sq mi
ZIP Area
1,317
Density / Sq Mi
$87,670
Median Household Income
$41,138
Median Earnings
$1,515
Median Rent
$490,100
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Self storage facility - 237-unit self-storage facility in Carolina Beach, North Carolina.
Where is this self storage facility located?
The property is located at 517 Lewis Dr Carolina Beach, NC.
What is the asking price?
The asking price for this property is $3,250,000.
What are key features of this property?
This property features: Income‑producing self‑storage facility in a high‑demand coastal location (Carolina Beach/Pleasure Island, NC).; 237 units totaling ±25,720 SF of rentable storage space.**; Value‑add potential through rental rate adjustments and operational improvements.
