Featured Toy BoxSM
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The idea for Toy BoxSM Condos came about in mid-2003. The concept was relatively new to the storage industry at the time and was entirely new to the Midwest area.
Mike Erickson and Mike Morse envisioned condominium storage units for high end RVs, boats and collector cars. Their thoughts grew from discussions on two topics: 1) Vacant industrial space that could possibly be used as rental space for bulk storage of recreational vehicles and boats, and 2) A small development of condominium “sheds” for personal storage that Mike Morse had seen in the Okoboji resort area of Iowa.
While the bulk RV storage idea proved to not be feasible, the idea of building industrial-type buildings and subdividing them into individual condominium storage units for large vehicles had some appeal. The partners felt they could build better quality units in greater numbers than the Okoboji project and sell them for a profit in the Des Moines market.
In mid-2003, not many Toy BoxSM-style projects were in existence. There are still only a few active developers of such projects. The partners studied all the projects they could find, talking with the developers about what mistakes were made and what seemed to work well.
Pro forma forecasts were developed illustrating the financial feasibility of such a project. These studies helped to set parameters for financing, costs and pricing.
The partners developed a demographic profile of Toy BoxSM Condo purchasers and arrived at an understanding of the geographic area, depth of market, and pace of sales for a successful Toy BoxSM project.
Construction on the first ten Toy BoxesSM began in August of 2003 and was completed in late January 2004. The first sale was completed on February 1, 2004.
In March of 2005, with all but one of the initial ten units spoken for, the decision was made to move ahead with another phase of ten units on the same site. These units sold at about the same pace, and in late 2006, Phase III and Phase IV were begun simultaneously.
Every unit sold has met the partners’ original profitability target. Price discounts have not been necessary. Expenses have generally been within anticipated budgets.
There have been unit re-sales since the beginning of the Des Moines project. The owners that sold their units each sold for more than the original cost of their units, although the cost of extensive user finish in one pair of units was not fully recovered.
Toy BoxSM Development Company creates Toy BoxSM Condo projects in metropolitan markets around the Midwest. The plan is to operate from three to five Midwestern project phases in various stages of development and marketing at all times during the next ten years.
Several Midwest markets have already been studied, and preliminary site selection has been done.
Other similar concepts, such as Toy Box LiteSM and Tool BoxSM Condos are under study.
In addition to the direct development of Midwestern projects, Toy BoxSM Storage Condos, LLC offers a package of services, including market evaluation, site selection, analysis, planning, documentation, development assistance, and marketing for parties interested in developing Toy BoxSM Condo-branded projects in areas outside the Midwest.
It is anticipated that the initial new market project for Toy BoxSM Development Company will begin in mid-2008, with a third project beginning in late 2008.