What It Costs to Build a 135-Door Luxury Storage Facility

An inside look at our 100k sq ft luxury storage project: land, soft costs, hard costs, and how we turn it into monthly income

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“What does it actually cost to build a luxury self storage facility?”

Today, I’m going to break down one of our recent Mega MAK Storage projects:

→ 135 doors
→ 109,000 sq ft of rentable space
→ Built on 8 acres

I’ll walk you through:

• Land costs and why location still matters

• The soft costs most people overlook

• A full hard cost breakdown (down to the dollar)

• The business plan and projected returns

Let’s dive in.

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The Land: 8 Acres with Built-In Marketing

This facility sits on 8 acres in Hartford, South Dakota, a bedroom community with space to build and 100,000+ cars driving by daily.

We paid $1,050,000 for the land.

It’s not urban infill. But that’s the point.

These projects don’t pencil in dense cities. We build in high-visibility locations off major interstates where you can get exposure and acreage.

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Soft Costs: The Line Items You Can’t Ignore

You don’t pour concrete until the soft costs are dialed in.

Here’s what we budgeted:

• Architectural Plans – $15,000
  Custom layouts for heated units, cold storage, and condo shops

• Engineering & Survey – $65,000
  Drainage, grading, stormwater retention, slopes — all the stuff that keeps inspectors happy

• Property Taxes & Insurance (During Build) – $19,000
  Yes, you start paying even before you collect a dollar in rent

• Developer Fee (5%) – $360,000
  Paid to ourselves, but often reinvested to stay aligned with LPs

• Legal & Accounting – $15,000
  Entity docs, partnership structure, SEC compliance — don’t cut corners here

• Holding Reserves (Construction + Lease-Up) – $80,000
  Keeps the lights on and pays the bills during lease-up

• Signage & Branding – $15,000
  Your brand is your lead gen. Don’t skimp. It’s your 24/7 billboard.

• Contingency (1%) – $75,000
  This one was lean — we had tight plans and no major surprises

• Financing & Carry Costs (24 months) – $470,000
  This covers construction interest, utilities, and the time it takes to stabilize

💸 Total Soft Costs: ~$1.1 million

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Hard Costs: Where Construction Experience Pays Off

We’ve been building for years, and it shows in how we control costs without cutting corners.

Here’s what it cost to build 109,000 square feet:

• General Requirements – $445,000
  Management, porta-potties, dumpsters, site trailers — the overhead nobody sees

• Concrete (Interior) – $685,000
  We love concrete. Low maintenance, high durability, better for long-term ownership

• Framing, Wood, Plastics, Steel – $3.3 million
  Biggest line item on the project. Materials, labor, and steel structure erection

• Plumbing – $176,000
  Only installed in the 11 condo shop units

• HVAC (Heated Units) – $339,000
  Climate control for premium tenants

• Electrical – $815,000
  Every unit is powered — lighting, outlets, overhead doors

• Excavation & Earthwork – $530,000
  Digging ponds, site leveling, stormwater infrastructure

• Exterior Concrete (Driveways + Flatwork) – $670,000
  Doesn’t directly produce revenue — but makes tenant experience seamless

• Utilities – $240,000
  Water, sewer, storm — only needed in condo shops and sitewide drainage

• Sales Tax on Materials – $135,000
  Uncle Sam doesn’t forget to bill you

🔨 Total Hard Costs: ~$7.4 million

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Total Project Cost: ~$9.8 million

When I started in construction, I couldn’t imagine a $10M project. Now we’re building them repeatedly — with systems, partners, and brand equity.

But none of this happened overnight.

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Projected Returns: The Boring Math That Makes Money

Here’s what we’re projecting post-stabilization:

• Top-Line Revenue: ~$1.5 million / year

• Operating Expenses: ~$350,000

• NOI: ~$750,000

• Debt Service: ~$550,000

• Cash Flow: $150–200K/year

Built at a 7.5% cap rate, this deal pencils, even with today’s interest rates.

When we can borrow under the cap rate, we create positive leverage. That’s when development becomes a wealth flywheel.

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Final Thoughts

Storage is boring. That’s what I like about it.

It’s simple. It’s scalable. And when built right, it cash flows for decades.

Eight years ago, I couldn’t even imagine building a project like this. Now we’re helping partners across the country do the same — bringing the Mega MAK brand and systems into new markets.

If you’re curious how these deals come together or want to partner on a project, DM me “storage” on LinkedIn to learn more.

See you next week,
Marc Kuhn