Investment Overview

Bin 741 Storage is a 56,900 rentable-square foot Class-A self-storage facility located just outside the city limits of Forney, Texas (Dallas MSA). The facility, which rests on two adjacent parcels encompassing a total of approximately 4.37 acres, was originally constructed in 2017, and then later expanded in both 2021 and 2023. Facility amenities include a state-of-the-art manager’s office and leasing showroom, personalized key-pad gated entry for cars and recreational vehicles, wide concrete driveways, 44 video surveillance cameras, perimeter fencing and lighting, and multiple parking spaces for prospective tenants. The current unit mix consists of 188 climate-controlled units, 272 non-climate drive-up units (approximately 30 percent of which were delivered in April 2023), and 30 uncovered parking spaces (the uncovered parking spaces rest on approximately 0.7 acres of raw land that could be used for future expansion of the climate-controlled and/or non-climate drive-up units). As compared to most other investment vehicles (i.e., equities, fixed-income, etc.), when it comes to income-producing commercial real estate, historical data and trends can be uncommonly reliable predictors of future performance. With this in mind, it should be noted that the facility’s five-mile trade area grew by 400 percent between 2000 – 2020, by 65 percent between 2010 - 2020, and will continue to grow another 20 percent by 2027. To accommodate the forthcoming surge in demand, more than 25,000 single-family and multi-family units within a seven-mile radius of the facility will be delivered in the next five years. In fact, Megatel Homes recently announced their plans to develop Bellagio Lagoon – an $800 million residential project located less than one mile from Bin 741 Storage (see pages 11-12 for more detailed information). A variety of commercial, industrial, and public projects will also catalyze future development throughout the trade area. The most visible industrial project is undoubtedly the massive Amazon distribution complex (the facility’s footprint will likely exceed 1.2 million rentable square feet) that is being built approximately 2.5 miles from Bin 741 Storage. And in terms of public projects, Forney Independent School District voters in May 2022 approved a $1.29 billion bond referendum to construct six new schools. For these reasons, Bin 741 Storage’s impressive historical lease-up trajectory should continue its unabated upward march as the 80 non-climate drive-up units delivered in April 2023 are absorbed. Because the facility is strategically positioned between Interstate-20 (0.6 miles to the south) and State Highway 80 (2.2 miles to the north) nearly 10,000 vehicles travel past it each day – representing but one of the many factors that have contributed to the facility’s historically high occupancy levels. It should also be noted that the demographic profile of Forney’s rapidly growing population base features a median household income exceeding $100,000 annually. When the above facts are considered alongside what may be the most compelling aspect of the acquisition opportunity – the fact that the seller is willing to finance the acquisition under loan terms that include a 4.50 percent interest rate, a 65 percent loan-to-value ratio, and a 30-year amortization schedule (see page nine for more information), at a purchase price of $11,000,000, Bin 741 Storage represents a unique opportunity to capture compelling yields with an institutional-grade asset in the fastest growing county in the entire United States.