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Self-Storage Facility

Stor 4 Now

6476 Judson Rd, Longview, TX 75605

Listing Price: $6,000,000

Cap Rate
5.51%
Number of Units
422
Occupancy
85.0%
Rentable SF
69,640
Price/Rentable SF
$86.16
Year Built
1998

Investment Overview

Stor 4 Now is a 69,820 rentable-square foot storage facility resting on four separate parcels encompassing approximately 9.65 acres in Longview, Texas. Originally constructed in 1991 then later expanded in 1998, 2007, 2010, and 2020, the property contains 63 climate-controlled units, 346 non-climate drive-up units, five covered parking spaces, and eight uncovered parking spaces. The facility features an on-site manager’s residence that has never been utilized, garage-style roll-up doors, personalized key-pad gated entry and exit, perimeter fencing and lighting, billboard signage, wide concrete driveways, and approximately 4.30 acres of raw land available for expansion. Positioned at the intersection of Judson Road (upon which approximately 7,000 vehicles travel each day) and U.S. Highway 259 (whose daily traffic count exceeds 11,000), the facility benefits from the excellent visibility and accessibility its location provides. Furthermore, future expansion of the facility’s footprint will only enhance its visibility from U.S. Highway 259, Longview’s primary north/south thoroughfare. The current owners purchased the facility in early 2021, and since that time physical occupancy has increased by approximately 16 percent, monthly revenue has grown by approximately 50 percent, and rental rates for new tenants have been increased to the submarket average. With that said, upon acquisition, a new owner will be presented with a legitimate opportunity to create additional value throughout the hold period. To be sure, in an effort to increase an economic occupancy rate that as of April 2022 sits at only 60 percent, the current recently began raising a portion of the existing tenants’ effective rates closer to street rates. A rate increase will be implemented on the remaining tenants May 1st, 2022. Offered for $6,000,000, a new investor will be purchasing the stabilized asset for a year-one broker-adjusted 5.51 percent cap rate. More importantly, upon reaching 85 percent economic occupancy, a new operator will not only be positioned to capture unleveraged yields in excess of 6.69 percent, utilizing the expansion land to deliver new covered parking spaces and/or climate-controlled units appears to be a viable proposition, given that both currently feature a physical occupancy rate in excess of 95 percent.

Investment Highlights

  • Significant Opportunity for Boat/RV or Climate-Controlled Expansion
  • More than 50 Percent Year-over-Year Increase in Monthly Income
  • 90 Percent Physical Occupancy – Stabilized Cash Flow

Exclusively Listed By

Financing By

Self-Storage Facility

Stor 4 Now

Listing Price: $6,000,000

Cap Rate
5.51%
Number of Units
422
Occupancy
85.0%
Rentable SF
69,640
Price/Rentable SF
$86.16
Year Built
1998

Investment Highlights

  • Significant Opportunity for Boat/RV or Climate-Controlled Expansion
  • More than 50 Percent Year-over-Year Increase in Monthly Income
  • 90 Percent Physical Occupancy – Stabilized Cash Flow

Investment Overview

Stor 4 Now is a 69,820 rentable-square foot storage facility resting on four separate parcels encompassing approximately 9.65 acres in Longview, Texas. Originally constructed in 1991 then later expanded in 1998, 2007, 2010, and 2020, the property contains 63 climate-controlled units, 346 non-climate drive-up units, five covered parking spaces, and eight uncovered parking spaces. The facility features an on-site manager’s residence that has never been utilized, garage-style roll-up doors, personalized key-pad gated entry and exit, perimeter fencing and lighting, billboard signage, wide concrete driveways, and approximately 4.30 acres of raw land available for expansion. Positioned at the intersection of Judson Road (upon which approximately 7,000 vehicles travel each day) and U.S. Highway 259 (whose daily traffic count exceeds 11,000), the facility benefits from the excellent visibility and accessibility its location provides. Furthermore, future expansion of the facility’s footprint will only enhance its visibility from U.S. Highway 259, Longview’s primary north/south thoroughfare. The current owners purchased the facility in early 2021, and since that time physical occupancy has increased by approximately 16 percent, monthly revenue has grown by approximately 50 percent, and rental rates for new tenants have been increased to the submarket average. With that said, upon acquisition, a new owner will be presented with a legitimate opportunity to create additional value throughout the hold period. To be sure, in an effort to increase an economic occupancy rate that as of April 2022 sits at only 60 percent, the current recently began raising a portion of the existing tenants’ effective rates closer to street rates. A rate increase will be implemented on the remaining tenants May 1st, 2022. Offered for $6,000,000, a new investor will be purchasing the stabilized asset for a year-one broker-adjusted 5.51 percent cap rate. More importantly, upon reaching 85 percent economic occupancy, a new operator will not only be positioned to capture unleveraged yields in excess of 6.69 percent, utilizing the expansion land to deliver new covered parking spaces and/or climate-controlled units appears to be a viable proposition, given that both currently feature a physical occupancy rate in excess of 95 percent.

Exclusively Listed By

Financing By

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