Higley & Thomas RV & Boat Storage: Prime Development Opportunity in Mesa, AZ

Higley & Thomas RV & Boat Storage offers a high-upside, fully entitled development opportunity in East Mesa—one of the most active and supply-constrained RV storage markets in the U.S. With strong fundamentals, strategic freeway exposure, and significant profit potential, this project is ideal for both developers and long-term investors.

Property Overview

• Location: Higley Rd & Thomas Rd, Mesa, AZ
• Asset Type: RV & Boat Storage Development
• Site Size: ~14 Acres
• Planned Units: ~640–650 Units
• Zoning: Industrial (Fully Entitled)
• Status: Shovel-Ready Development

Key Features of The Property

• Fully Entitled: Ready for immediate construction, significantly reducing development risk and timeline.
• Optimized Layout: Mix of covered and uncovered units designed to maximize revenue and serve multiple customer segments.
• High Visibility: Direct frontage along Loop 202 (Red Mountain Freeway) with over 60,000 vehicles per day.
• Excellent Accessibility: Full diamond interchange at Higley Rd, ensuring easy access for RVs, boats, and trailers.

Strategic Location Advantages

• Freeway Connectivity: Immediate access to Loop 202 and major transportation corridors.
• Convenient Access: Designed for large vehicles with easy ingress and egress.
• High Traffic Exposure: Strong daily traffic enhances long-term visibility and branding potential.

Market Demand Drivers

• Strong RV Market: Arizona is one of the top RV ownership markets in the U.S.
• Seasonal Population Growth: Large retiree and “snowbird” population drives consistent demand.
• Outdoor Lifestyle: Year-round recreation supports storage needs.
• Nearby Attractions: Proximity to Salt River, Usery Mountain Park, Apache Lake, and Roosevelt Lake.
• Growing Population: Mesa population exceeds 500,000, with 1.5M within a 30-minute radius.

Proximity to Major Employers

• Nearby Employers: Boeing, Northrop Grumman, Amazon, Mitsubishi Advanced Chemical Materials, MD Helicopters
• Economic Strength: High-income workforce supports demand for premium storage solutions.

Investment Highlights

• Shovel-Ready Development: Fully entitled project enables immediate construction and faster revenue generation.
• Strong Cash Flow Potential: Stabilized NOI projected between $1.7M – $2.2M.
• High Visibility Location: Loop 202 frontage ensures strong exposure and long-term desirability.
• Value-Add & Exit Upside: Projected valuation between $33M – $39M based on cap rate scenarios.
• Below-Market Pricing: Acquisition at ~$10.66/SF vs. ~$13.37/SF market average, creating built-in equity.

Financial Overview

• Total Project Cost: ~$11.06M
• Projected Annual Revenue: ~$3.2M
• Stabilized NOI: ~$1.98M
• Vacancy Assumption: ~7%
• Operating Expenses: ~20%

Exit Scenarios

• 6.0% Cap Rate: ~$33M Valuation
• 5.5% Cap Rate: ~$36M Valuation
• 5.0% Cap Rate: ~$39M Valuation

Development Strategy Options

• Build & Hold: Generate long-term cash flow with ~18% yield on cost.
• Build & Sell (Preferred): Stabilize and exit within 3–5 years with $22M–$28M profit potential.
• Entitlement Flip: Enhance plans and sell to an operator for $5M–$7M profit without construction risk.

Conclusion

Higley & Thomas RV & Boat Storage represents a rare opportunity to develop a fully entitled, high-demand storage asset in one of the fastest-growing markets in the U.S. With strong market fundamentals, multiple exit strategies, and significant upside potential, this project is well-positioned to deliver exceptional returns for investors.