Property Overview
This expansive self-storage facility, acquired in February 2019, features 89,901 square feet of climate-controlled storage space on a 209,960 square foot site. With a purchase price of $4 million (excluding land), this modern facility represents a significant investment in the growing self-storage sector. The property includes numerous specialized components typical of self-storage facilities, including climate control systems, security features, and storage unit configurations.
| Property Type | Self-Storage Facility |
| Purchase price(less land) | $4,052,325 |
| Building sqft | 89,901 |
| Entire site sqft | 209,960 |
| Data acquired | February 2019 |
| Tax year study applied | 2019 |
| Tax rate | 37% |
| Present value rate of return | 8% |
| Bonus depreciation | 80% |
Building Allocation After Study
Cost Segregation Study Benefits
CSSI’s engineering-based analysis identified approximately $1.17 million in assets qualifying for accelerated depreciation through 5- and 15-year property classifications. The study generated immediate tax savings of $413,025 in the first year, utilizing 80% bonus depreciation. The long-term financial impact is substantial, with a net present value of $336,704 over 10 years and potential future value of invested savings exceeding $3.2 million. This case study demonstrates how self-storage facilities can particularly benefit from cost segregation due to their unique construction features and specialized systems.
Financial Benefits Achieved
| Immediate Tax Savings | $ 413,025 |
| NPV Over 10 Years | $336,704 |
| NPV Over Remaining Life of Property | $275, 126 |
| Future Value of Invested Savings | $3,216,239 |