BROOMFIELD — A company in Broomfield is looking to change the way people store their items, by launching luxury storage units, where customers can buy rather than rent their units.
Off-Site Garages Broomfield Ltd. raised more than $2.5 million in a private placement with investors, many of whom have participated in past projects with the company, said chief executive Mike Ard.
That money will go to buying a premium piece of land on U.S. Highway 36 near the Wadsworth bridge in Broomfield, which costs about $1.7 million. The remaining funds will go to construction costs, as will construction financing, Ard said.
The plan is to begin construction on the three storage buildings, which will total 54 units that average 1,100 square feet each, later this summer. Construction on the first building should be completed in March, Ard said, and the total project is expected to be built by this time next year.
So far, about 20 percent of the units have already been reserved. Ard attributes that to the company’s unique business model.
Rather than rent storage units, Ard’s customers purchase them. While they’re more expensive — between $125,000 to $235,000 per unit — clients have the benefit of being able to resell or rent out units themselves.
“A lot of people want to own and want the real estate investment,” Ard told BizWest. “Rather than spend a monthly fee to rent, they can own something. The pride of ownership sets this facility apart.”
Other aspects that set it apart are the amenities. In addition to climate-controlled units with electricity, heat, water and large easy-to-access garage stores, Off-Site Garages has a clubhouse, with restrooms and catering kitchen for customers to use.
“It’s a condominium set-up,” Ard said. “We have a clubhouse to provide a sense of community and let people gather with similar interests.”
Ultimately, the units may be more investment, but they also let clients build up equity.
“The pride of ownership is what makes it successful,” he said.
The units are ideal for those who might have a car collection or RV that they don’t want to store in the elements, as well as for businesses who might need extra storage.
In raising the funding for the project, Ard said one point of pride was in who his investors were. Of Off-Site Garages’ 18 private placement partners, about 15 are returning owners from previous sites the company built, back while it was doing business as Garagetown.
“It’s nice when people have faith in you,” Ard said. “Our customers want to continue with us by investing in us.”