What This Includes

Our Self Storage Facilities service helps investors source self storage properties for 1031 exchange replacement. This service is designed for property owners seeking climate-controlled storage facilities, drive-up storage units, and self-storage complexes that qualify as like-kind replacement property under IRS rules.

We coordinate with Qualified Intermediaries and qualified escrow companies to source self storage facilities nationwide within the 45-day identification deadline and ensure acquisitions close within the 180-day period. Self storage facilities offer attractive fundamentals for 1031 exchanges, including recession-resistant demand, high occupancy rates, and scalable operations that provide stable cash flows with minimal management requirements.

Our self storage facility sourcing includes market analysis, occupancy evaluation, facility condition assessment, and competitive positioning review. We help Albuquerque, NM investors understand that self storage facilities must be held for productive use in trade or business or for investment to qualify for like-kind exchange treatment. Our process covers single-facility operations, multi-facility portfolios, and both climate-controlled and non-climate-controlled storage.

We evaluate self storage facilities based on location demographics, occupancy rates, pricing strategy, facility condition, and market competition. Our team ensures all self storage facilities are properly vetted for operational performance, financial metrics, and growth potential before identification.

What We Deliver

Nationwide self storage facility identification and sourcing

Occupancy analysis and revenue evaluation

Facility condition and operational assessment

Market demographics and competition analysis

Coordination with Qualified Intermediaries and qualified escrow companies

Identification letter drafting and delivery support

Timeline management for 45-day and 180-day deadlines

Property inspection and due diligence coordination

FAQs about Self Storage Facilities

What types of self storage facilities qualify for 1031 exchanges?

Albuquerque, NM investors can identify climate-controlled storage facilities, drive-up storage units, single-story storage complexes, and multi-story self-storage buildings as self storage replacement properties, provided they are held for productive use in trade or business or for investment. Self storage facilities must be used primarily for storage purposes to qualify. We help Albuquerque, NM investors identify self storage facilities that meet IRS requirements and investment objectives.

What identification rules apply to self storage facility replacement properties?

Self storage facility replacement properties for Albuquerque, NM investors must be identified within 45 days of closing on the relinquished property using one of three IRS identification rules: the three-property rule (up to three properties of any value), the 200-percent rule (any number of properties as long as total value doesn't exceed 200% of relinquished property value), or the 95-percent rule (acquire at least 95% of identified properties' total value). We help Albuquerque, NM investors choose the right identification rule for self storage facility identification.

What happens if I receive boot when acquiring self storage facility replacement properties?

If Albuquerque, NM investors receive boot (cash or non-like-kind property) when acquiring self storage facility replacement properties, that boot amount is taxable in the year of the exchange. Boot can occur if replacement property value is less than relinquished property value, if debt relief exceeds new debt, or if cash is received. We help Albuquerque, NM investors structure self storage facility acquisitions to minimize boot and coordinate with tax advisors.

What occupancy and operational requirements apply to self storage facilities?

Self storage facility replacement properties for Albuquerque, NM investors should have established operations with verifiable occupancy and revenue to qualify as like-kind property. Properties must be operational at identification. We help Albuquerque, NM investors evaluate occupancy rates, revenue per unit, operating expenses, and facility condition to ensure self storage facilities meet IRS requirements and investment standards.

Can self storage facilities be located anywhere in the United States?

Yes, Albuquerque, NM investors can identify self storage facility replacement properties anywhere in the United States, as all 50 states qualify for like-kind exchange purposes. We help Albuquerque, NM investors identify self storage facilities nationwide, focusing on markets with strong population growth, limited competition, and demographic trends that support long-term self storage demand.

Self Storage Facilities