Property details
Texas Self Storage Investment Opportunity, Southwest Region
Property Description
Texas Self Storage Investment Opportunity
Storage developer is approaching the end of the equity raise for a Texas Self Storage Facility.
$10,000,000.00 raise of which they have $3,000,000.00 left.
Minimum investment $303,000.00
Each $303,000 investment represents a 2.00% stake in the entire property.
Cash, IRA/401K, 1031 exchange eligible.
IRR 20.39%
Targeted Equity Multiple 2.38
5 year estimated NOI, (net operating income) for investors $130,343.01 based on the minimum investment amount.
5 year total return $720,543.77 based on the minimum investment and a 5% cap rate.
Years 1 and 2 have a minimum guaranteed 5% rate of return.
Annual rate paid quarterly.
This Texas storage facilyty will be a 95,000 net rentable sq ft facility consisting of a 500-unit, one-story facility.
This Facility will sit on +/- 4.5 acres in an extremely high-demand area, 35 miles from the downtown of a major Texas MSA city.
At a cost of over $12.1 million to develop, the property will be constructed in two phases.
Average construction times to build self-storage sites are estimated to be 6-7 months to complete a facility of this size in today’s market.
Phase 1 will consist of 60,000 net rentable sq ft and 10,000 sq ft of RV & boat storage.
In Phase 2, the developer will take the 10,000 sq ft of RV & boat storage and add to it to increase the storage space by 35,000 sq ft for a total of 95,000 net rentable sq ft.
Because construction & lease-up times can be unpredictable, partners in this project will receive a preferred return of 5% annually (paid Quarterly), during the first two years of participation. The developer considers this the “construction and lease-up period”.
During operations, the partnership will receive 100% of the profit until the partnership has received 100% of its initial investment back or until the time of sale, whichever comes first.
Additionally, there will be no construction loan until phase 2.
In an effort to be conservative, the developer's proforma is projected based on the facility being 90% stabilized during year 4.
Even though they estimate the lease-up time to be quicker, they are using this time frame for the proforma and should allow them to exceed expectations.
Construction is scheduled to begin in late spring/early summer 2023.
Images
Highlights
- Status:
- Available
- Price:
- $303,000
- PSF:
- $3
- Cap Rate:
- 20.39%
Property Information
- Building Size:
- 95,000 sq.ft.
- Property Type:
- Storage Properties
- Industry Type:
- Self Storage - Mini Storage
- Units/Spaces:
- 500
- Year Built:
- 2023
- Land Area:
- 4.50 acres
- Purchase Tenure:
- Fee Simple
Existing financing information
- N/A
The information contained herein contains confidential and/or privileged material. Any review, retransmission, dissemination or other use of, or taking of any action in reliance upon, this information by persons or entities other than the intended recipient will be prohibited. The information contained herein has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about the accuracy or completeness of the information. As a buyer, it is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this property to you depends on factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. We have no knowledge of this offering other than the information received from Seller or their representatives. We are neither your agent or an agent for the seller. We will not participate in the negotiation of the purchase price or attend the showing of this property. As a buyer, you will be required to indemnify us and hold us harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this property.