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Self-Storage Facility

Trojan Self Storage

610 Church Ave, Troy, TX 76579

Listing Price: $9,000,000

Cap Rate
1.85%
Number of Units
580
Occupancy
98.0%
Rentable SF
87,480
Price/Rentable SF
$102.88
Year Built
1997

Investment Overview

Trojan Self Storage, located in Troy, Texas, is an owner-managed facility that, in March 2021, contained 68,370 rentable square-feet dispersed amongst five individual parcels totaling approximately 13.98 acres. The current owner built the facility in four stages, and it features a manager’s office, video surveillance, garage-style roll-up doors, personalized key-pad entry/exit gates, and perimeter fencing/lighting throughout. At that time, Trojan Self Storage contained 404 non-climate drive-up units, 28 covered parking spaces, 33 uncovered parking spaces, and 2 warehouse units. The facility consistently maintained a physical occupancy rate of at least 95 percent since the first phase was constructed 25 years ago, so in late April 2022 the first portion of the property’s fifth expansion phase was delivered – which increased the total number of covered parking spaces to 50. Demand for those newly-added covered parking spaces proved to be so robust, 75 percent of them were pre-leased before the expansion was actually completed. Accordingly, it is anticipated 100 percent of the facility’s covered parking spaces will be occupied before June 2022. The second portion of the fifth expansion phase is currently underway, and upon completion in September/October 2022, an additional 67 non-climate drive-up units, and an additional 24 uncovered parking spaces, will have been added to the mix. It should be noted that the current owner will fund to completion the fifth expansion phase even if the closing date occurs before those units have been formally delivered to market. Once the fifth phase is complete, the facility will contain 471 non-climate drive-up units, 50 covered parking spaces, 57 uncovered parking spaces, and two warehouse units – equating to 87,480 rentable square feet in total. Upon acquisition a new operator will also take possession of a newly-built (December 2021) self-serve car wash located at the Trojan Self Storage “satellite” location less than a half mile from the primary site. Approximately 15 percent of the facility’s non-climate drive-up units also reside at the satellite location, whose presence next to Troy High School on the most heavily-trafficked road in Troy brings significant brand awareness to the local marketplace. At a price of $9,000,000, a new owner will not only be acquiring a facility that has been economically stabilized for many years, but approximately 3.50 acres of unimproved land as well – land which a new owner will almost certainly want to expand upon in the near future due to the facility’s location in the heart of the Interstate-35 corridor (Trojan Self Storage is located less than 1/10th of a mile to the immediate west of Interstate-35). The Interstate-35 corridor runs north/south through Texas, and it includes the Dallas-Fort Worth Metroplex, Waco, Temple (Troy), Austin, and San Antonio. This particular stretch of Texas is in the early stages of an explosive growth cycle the likes of which have not been seen since the 1950’s. Because of this, investors in search of sustainable yield are becoming increasingly drawn to markets like Troy, which stand to be permanently transformed by this influx of new residents. To be sure, within a one-mile radius of Trojan Self Storage, a variety of new single-family, multi-family, and commercial developments are either under construction, or in various stages of development/approval. More specifically, to the immediate west of the facility lies Cottonwood Creek, a D.R. Horton single-family residential community set for delivery in late 2022. The first phase of this development will contain 227 lots – 100 percent of which have been pre-sold as of March 2022. Adjacent to Cottonwood Creek sits phase one of the Turtle Creek planned development which, upon completion, will contain 348 single-family homes (phase two of the Turtle Creek development is currently in the preliminary planning stage). Less than a quarter of a mile from Trojan Self Storage, adjacent to the northbound lanes of Interstate-35 lies the College Park Development – a three phase project that will ultimately include 234 single-family lots, and 71 multi-family townhome lots. Adjacent to the College Park Development rests the new Elm Ridge Addition, which will contain 82 duplex lots within an approximate 20-acre tract. The Enclave of Troy is another single-family residential development in pre-development, and it is located approximately one mile away from Trojan Self Storage on the east side of Interstate-35 (directly across the street from the 5th parcel included in this offering (see Aerial Map for details)). More than 270 single-family residences are planned for the approximate 88-acre site. When the historical operating performance of the facility is contextualized against the backdrop of a Texas market experiencing tremendous population growth, as well as a local trade area in which Trojan Self Storage street rates are approximately 40 percent below market (eight miles) despite the fact that no other self-storage facility of note exits within a five-mile radius, the leveraged and unleveraged pro forma returns identified herein actually provide nothing more than a partial illustration of the long-term cash-flow and value creation opportunities available to a new owner upon acquisition.

Investment Highlights

  • Significant Upside Potential - Street Rates (April 2022) Approximately 40 Percent Market Averages (8-Mile Radius)
  • Value-Add Opportunity - Approximately 3.50 Acres of Expansion Land Available
  • No Competing Storage Facilities Within 5-Mile Radius

Exclusively Listed By

Financing By

Self-Storage Facility

Trojan Self Storage

Listing Price: $9,000,000

Cap Rate
1.85%
Number of Units
580
Occupancy
98.0%
Rentable SF
87,480
Price/Rentable SF
$102.88
Year Built
1997

Investment Highlights

  • Significant Upside Potential - Street Rates (April 2022) Approximately 40 Percent Market Averages (8-Mile Radius)
  • Value-Add Opportunity - Approximately 3.50 Acres of Expansion Land Available
  • No Competing Storage Facilities Within 5-Mile Radius

Investment Overview

Trojan Self Storage, located in Troy, Texas, is an owner-managed facility that, in March 2021, contained 68,370 rentable square-feet dispersed amongst five individual parcels totaling approximately 13.98 acres. The current owner built the facility in four stages, and it features a manager’s office, video surveillance, garage-style roll-up doors, personalized key-pad entry/exit gates, and perimeter fencing/lighting throughout. At that time, Trojan Self Storage contained 404 non-climate drive-up units, 28 covered parking spaces, 33 uncovered parking spaces, and 2 warehouse units. The facility consistently maintained a physical occupancy rate of at least 95 percent since the first phase was constructed 25 years ago, so in late April 2022 the first portion of the property’s fifth expansion phase was delivered – which increased the total number of covered parking spaces to 50. Demand for those newly-added covered parking spaces proved to be so robust, 75 percent of them were pre-leased before the expansion was actually completed. Accordingly, it is anticipated 100 percent of the facility’s covered parking spaces will be occupied before June 2022. The second portion of the fifth expansion phase is currently underway, and upon completion in September/October 2022, an additional 67 non-climate drive-up units, and an additional 24 uncovered parking spaces, will have been added to the mix. It should be noted that the current owner will fund to completion the fifth expansion phase even if the closing date occurs before those units have been formally delivered to market. Once the fifth phase is complete, the facility will contain 471 non-climate drive-up units, 50 covered parking spaces, 57 uncovered parking spaces, and two warehouse units – equating to 87,480 rentable square feet in total. Upon acquisition a new operator will also take possession of a newly-built (December 2021) self-serve car wash located at the Trojan Self Storage “satellite” location less than a half mile from the primary site. Approximately 15 percent of the facility’s non-climate drive-up units also reside at the satellite location, whose presence next to Troy High School on the most heavily-trafficked road in Troy brings significant brand awareness to the local marketplace. At a price of $9,000,000, a new owner will not only be acquiring a facility that has been economically stabilized for many years, but approximately 3.50 acres of unimproved land as well – land which a new owner will almost certainly want to expand upon in the near future due to the facility’s location in the heart of the Interstate-35 corridor (Trojan Self Storage is located less than 1/10th of a mile to the immediate west of Interstate-35). The Interstate-35 corridor runs north/south through Texas, and it includes the Dallas-Fort Worth Metroplex, Waco, Temple (Troy), Austin, and San Antonio. This particular stretch of Texas is in the early stages of an explosive growth cycle the likes of which have not been seen since the 1950’s. Because of this, investors in search of sustainable yield are becoming increasingly drawn to markets like Troy, which stand to be permanently transformed by this influx of new residents. To be sure, within a one-mile radius of Trojan Self Storage, a variety of new single-family, multi-family, and commercial developments are either under construction, or in various stages of development/approval. More specifically, to the immediate west of the facility lies Cottonwood Creek, a D.R. Horton single-family residential community set for delivery in late 2022. The first phase of this development will contain 227 lots – 100 percent of which have been pre-sold as of March 2022. Adjacent to Cottonwood Creek sits phase one of the Turtle Creek planned development which, upon completion, will contain 348 single-family homes (phase two of the Turtle Creek development is currently in the preliminary planning stage). Less than a quarter of a mile from Trojan Self Storage, adjacent to the northbound lanes of Interstate-35 lies the College Park Development – a three phase project that will ultimately include 234 single-family lots, and 71 multi-family townhome lots. Adjacent to the College Park Development rests the new Elm Ridge Addition, which will contain 82 duplex lots within an approximate 20-acre tract. The Enclave of Troy is another single-family residential development in pre-development, and it is located approximately one mile away from Trojan Self Storage on the east side of Interstate-35 (directly across the street from the 5th parcel included in this offering (see Aerial Map for details)). More than 270 single-family residences are planned for the approximate 88-acre site. When the historical operating performance of the facility is contextualized against the backdrop of a Texas market experiencing tremendous population growth, as well as a local trade area in which Trojan Self Storage street rates are approximately 40 percent below market (eight miles) despite the fact that no other self-storage facility of note exits within a five-mile radius, the leveraged and unleveraged pro forma returns identified herein actually provide nothing more than a partial illustration of the long-term cash-flow and value creation opportunities available to a new owner upon acquisition.

Exclusively Listed By

Financing By

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