Investment Overview

Academy Mini Storage is a 42,660 rentable-square foot storage facility containing 234 drive-up units, 19 fully-enclosed parking units, and 72 uncovered parking spaces on approximately 6.30 acres (one parcel) in Little River-Academy, Texas – a small community located within the Interstate-35 Corridor just five miles south of Temple and six miles west of Interstate-35. The I-35 Corridor runs north/south through Texas, and it includes the Dallas-Fort Worth Metroplex, Waco, Temple, 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, long-term yield are becoming increasingly drawn to secondary markets like Little River-Academy, which stand to be permanently transformed by this influx of new residents. The facility, originally built in 2003 and 2004, boasted an approximate 96 percent physical occupancy rate (excluding uncovered parking spaces) prior to the delivery of a 52-unit (drive-up and fully-enclosed parking units), 21,160 rentable-square foot expansion in November 2022. If the facility’s current lease up trajectory holds true to form, a new owner can reasonably expect to bring the entire facility up to 95 percent physical occupancy by July 2024. For this reason, the seller has already drawn up plans calling for another 19 fully-enclosed parking units (10,260 rentable-square feet) that could be added at a time of the buyer’s choosing (but are reflected in End Year-Two of the financial projections contained herein). The legitimacy of such a proposition is significantly enhanced when one considers not only the facility’s historical lease-up success, but also the fact that the Little River-Academy ISD is nearing completion of a new high school that will be located adjacent to Academy Mini Storage (to the north). Scheduled to open in Fall 2024, the high school will accommodate more than 800 students, and its construction is a direct byproduct of the aforementioned population gains that continue to benefit communities along the I-35 Corridor. Conventional wisdom holds that facilities located near schools tend to out-perform the competition (particularly in smaller markets like Little River-Academy) because the slow-moving traffic creates a heightened level of brand-awareness that would otherwise be unattainable. To that end, should a new owner decide to construct the 19 fully-enclosed units referenced above (Building 8 – page 19), additional acreage that could be used for future expansion will also convey at closing. When combined with the fact that the current owner is willing to finance the acquisition at terms that are significantly more attractive than what is currently available in the open market, the long-term cash-flow and value creation opportunities identified in the Offering Memorandum’s financial projections (page 26) become uniquely visible – particularly when viewed against the b