Investment Overview

FreeUp Storage North Richland Hills is a 21,910 rentable-square foot storage facility resting on approximately 1.34 acres in North Richland Hills, Texas. Built in 1976, the facility contains four climate-controlled units, 101 non-climate units, 34 indoor units, six large commercial warehouse units, and three uncovered parking spaces. Features include garage-style roll up doors, perimeter fencing, personalized key-pad gated entry, and concrete driveways. The facility’s historical physical occupancy rate of 85 percent is also a byproduct of its infill location near the intersection of Rufe Snow Drive and of Boulevard 26, upon which more than 9,000 and 16,100 vehicles travel each day, respectively. Nestled in the heart of the Dallas-Fort Worth Metroplex, North Richland Hills offers residents a wide range of family-friendly recreational attractions, including the NRH20 Family Water Park, and its “sister” Peppa Pig Theme Park (located on approximately 14 acres adjacent to NRH20, and scheduled to open in early 2025). A wide variety of business hubs and industries, ranging from technology to healthcare, call North Richland Hills “home”, and the city is set to enhance its appeal with upcoming developments such as the NRH Town Center, which will feature new retail, dining, housing, and entertainment options. A variety of new residential, commercial, and infrastructure developments are currently underway as well. As an example, in February 2024 the Trinity Railway Express – a commuter rail line servicing the DFW Metroplex – opened its 10th station less than two-miles away from FreeUp Storage North Richland Hills. The Trinity Lakes station represents the first phase of a 1,600-acre mixed-use project that developers intend to make the “premier location for East Fort Worth residents to live, work, and play”. Two hundred acres of the proposed would be devoted to high-density mixed use featuring an urban waterfront that will serve patrons with an outdoor dining and entertainment experience unmatched in the DFW Metroplex. Offered for $1,450,000, a new investor will be purchasing the stabilized asset below replacement cost at only $66.18 per rentable-square foot. While current submarket trends suggest there is significant room to systematically grow revenues and occupancy over the next ten years, perhaps the most appealing aspect of the offering is the opportunity to cure the operational inefficiencies current ownership has been unable to address since acquiring the facility approximately three years ago. To be sure, the current owners operate more than 60 facilities across the country, and their “hands-on” management strategy is designed for larger facilities (ideally above 50,000 rentable-square feet). More specifically, FreeUp Storage North Richland Hills currently operates at an 86 percent income to expense ratio. Submarket data indicates a facility of this size could be managed (with or without on-site management) at an expense ratio closer to 40-50 percent of gross income, resulting in an approximately $60,000 increase in the net operating income.