The Mandate
A first-time RV and boat storage sponsor with an operating self-storage portfolio in the Phoenix MSA engaged Feasibility Study Consultant to prepare a third-party feasibility study supporting a SBA 7(a) financing request for a project located in Maricopa County, Arizona. Total project capitalization fell within the $3M-$5M band. The capital provider, a regional SBA preferred lender, required documentation consistent with current program review standards. The analytical question put to the team: Could Phoenix West Valley household growth and registered-vessel counts absorb 108 covered RV and boat stalls at the proposed monthly rate within a 24-month lease-up.
Engagement Scope
- Primary market area defined as a 10-mile drive-time
- Comparable supply set of 9 properties
- Demand model framework: registered-vehicle and household-based stall demand model
- Financial projection horizon: 10 years
- Site inspection completed; operator interviews where applicable
- Primary data collection through field reconnaissance and third-party market data
Methodology Applied
Primary Market Area
The PMA was defined as a 10-mile drive-time from the subject site, calibrated to the demand catchment behavior typical of rv & boat storage assets in Arizona. The boundary captured the population, employment, and competitive supply base relevant to the subject's operating thesis.
Supply and Demand Reconciliation
The comparable supply set comprised 9 properties operating within the PMA or in directly substitutable submarkets. Demand was modeled using a registered-vehicle and household-based stall demand model approach over a 10 years horizon. The reconciliation tested whether incremental supply, including the subject, could be absorbed within the projection window without compromising stabilized occupancy assumptions.
Capture Rate Calibration
The subject's capture rate was calibrated against the absorption capacity of the PMA. The analysis concluded that PMA absorption capacity exceeded subject build-out by a factor of 1.7 across the projection window, with a stabilized capture rate of 4.1%.
Exhibit 1: Comparable Supply Set, Arizona PMA
[Table or chart rendered in delivered report.]
Exhibit 2: Demand Projection Summary, 10 years Horizon
[Table or chart rendered in delivered report.]
Exhibit 3: Subject Capture Rate vs. PMA Absorption Capacity
[Table or chart rendered in delivered report.]
Analytical Conclusions
- West Valley registered RV and boat counts grew 14% over the trailing 24 months against limited covered-stall supply.
- Comparable covered facilities cleared $180 to $240 monthly rates with 92% stabilized occupancy.
- Subject reached 88% physical occupancy at month 22 of the projected lease-up curve.
- Stabilized 7(a) DSCR of 1.38x cleared the lender's 1.25x review threshold.
Deliverable
The delivered report ran 118 pages with 26 exhibits distributed across nine analytical sections, plus appendices documenting comparable supply data, demographic inputs, and financial projection assumptions. The document was prepared to the documentation standards of the regional SBA preferred lender. The corresponding SBA 7(a) review framework guided exhibit selection and supporting documentation.