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Self-Storage Facility

Storage King USA Mesquite

4809 N Belt Line Rd, Mesquite, TX 75150

Listing Price: Request For Offer

Number of Units
553
Occupancy
88.2%
Rentable SF
73,990
Year Built
2006

Investment Overview

Storage King USA Mesquite is Class-A facility located in the Dallas-Fort Worth Metroplex containing 73,990 rentable-square feet distributed amongst 553 total units on a 4.01-acre parcel. For the past six calendar years (2018 – 2023) the stabilized asset has achieved an average physical occupancy rate that exceeds 91 percent – a byproduct of the facility’s prime location, its institutional-quality construction, and its best-in-class suite of amenities and services (climate-controlled units, ground-level interior units, drive-up units, and a FedEx/UPS/USPS business center). The facility has 500 feet of street frontage and dual-directional access along North Belt Line Road – a six-lane regional collector with daily traffic counts exceeding 36,000 vehicles. Approximately 50,000 residents live (and only three competitors currently operate) within two miles of the facility, resulting in a supply/demand ratio that is approximately 33 percent lower than the 2023 D-FW Metroplex market average at 8.39 rentable-square feet per capita. Storage King USA Mesquite was built in 2006 and is secured by a fortress-style masonry wall, and the facility boasts 24-hour video surveillance, concrete drives, prominent signage, a wrought iron electronic key-pad gate system, and a two-story leasing office/manager’s residence.

Storage King USA Mesquite’s recent financial performance has been nothing short of remarkable, as the facility’s effective gross rental income grew at an average monthly rate of 0.7 percent over the past two years – equating to an approximate 17 percent total gain in effective gross rental income between December 2021 and December 2023, all while maintaining an average physical occupancy rate of 93 percent during that same timeframe. The legitimacy of this achievement is substantiated when one also considers the fact that the facility’s nearest competitor (Storage 365), a 162,690 rentable-square foot, institutional-quality asset located on the Interstate-30 frontage road less than 0.50 miles away, was delivered approximately six months after Storage King USA Mesquite began operating the facility in November 2021. The facility’s financial performance is also a byproduct of the growth the city of Mesquite is experiencing. Over the past 10 years the city has seen more growth and traffic than it has in the past 30 years. A host of new housing, retail and industrial developments have been coming to the city, bringing with it economic growth, a larger skilled workforce, and new tax dollars. Mesquite’s biggest incoming residential development, Solterra, has been deemed its “crown jewel” – with 3,900 houses and 300 townhomes on 1,530 acres of land. Additionally, between 2022 and 2023 total commercial valuation increased from $4.7 billion to $5.5 billion, 4,000 people were added to the labor force, and unemployment decreased by 0.5 percent.

For the past 15 years (and particularly within the past two calendar years), Storage King USA Mesquite has not only proven to be a highly resilient asset, it has actually thrived in the face of both macro-market and micro-market conditions that could have disrupted daily operations at properties that were constructed to lower standards, have a less attractive location, and whose local trade area is not as well positioned to withstand the threat of new competition moving forward (i.e., over-supplied RSF per capita). The facility’s attributes and historical performance do much to support the financial projections contained herein – which, at a purchase price of $14,100,000, equate to an unleveraged broker-adjusted return of 6.17 percent year-one, 6.60 percent by the end of year-three, and 8 percent by year-five.

Investment Highlights

  • Dec.23 – Jan.24 Gross Potential Rent Increase of Apx. 27%
  • Five-Year Interest-Only CMBS Financing Available (See Broker for Details)
  • Potential to Convert Interior Units to Climate-Controlled Units (Apx. 20% of Rentable Sq Ft)
  • Avg. Year-over-Year Effective Gross Rental Income Growth Rate of Apx. 7% (Jan.22 – Jan.24)
  • Apx. 55% Avg. Year-Over-Year Decrease in Rent Concessions (Jan.22 – Jan.24)
  • Only 8.39 Rentable Sq Ft per Capita w/in 2-Mile Radius of Facility

Exclusively Listed By

Financing By

Self-Storage Facility

Storage King USA Mesquite

Listing Price: Request For Offer

Number of Units
553
Occupancy
88.2%
Rentable SF
73,990
Year Built
2006

Investment Highlights

  • Dec.23 – Jan.24 Gross Potential Rent Increase of Apx. 27%
  • Five-Year Interest-Only CMBS Financing Available (See Broker for Details)
  • Potential to Convert Interior Units to Climate-Controlled Units (Apx. 20% of Rentable Sq Ft)
  • Avg. Year-over-Year Effective Gross Rental Income Growth Rate of Apx. 7% (Jan.22 – Jan.24)
  • Apx. 55% Avg. Year-Over-Year Decrease in Rent Concessions (Jan.22 – Jan.24)
  • Only 8.39 Rentable Sq Ft per Capita w/in 2-Mile Radius of Facility

Investment Overview

Storage King USA Mesquite is Class-A facility located in the Dallas-Fort Worth Metroplex containing 73,990 rentable-square feet distributed amongst 553 total units on a 4.01-acre parcel. For the past six calendar years (2018 – 2023) the stabilized asset has achieved an average physical occupancy rate that exceeds 91 percent – a byproduct of the facility’s prime location, its institutional-quality construction, and its best-in-class suite of amenities and services (climate-controlled units, ground-level interior units, drive-up units, and a FedEx/UPS/USPS business center). The facility has 500 feet of street frontage and dual-directional access along North Belt Line Road – a six-lane regional collector with daily traffic counts exceeding 36,000 vehicles. Approximately 50,000 residents live (and only three competitors currently operate) within two miles of the facility, resulting in a supply/demand ratio that is approximately 33 percent lower than the 2023 D-FW Metroplex market average at 8.39 rentable-square feet per capita. Storage King USA Mesquite was built in 2006 and is secured by a fortress-style masonry wall, and the facility boasts 24-hour video surveillance, concrete drives, prominent signage, a wrought iron electronic key-pad gate system, and a two-story leasing office/manager’s residence. Storage King USA Mesquite’s recent financial performance has been nothing short of remarkable, as the facility’s effective gross rental income grew at an average monthly rate of 0.7 percent over the past two years – equating to an approximate 17 percent total gain in effective gross rental income between December 2021 and December 2023, all while maintaining an average physical occupancy rate of 93 percent during that same timeframe. The legitimacy of this achievement is substantiated when one also considers the fact that the facility’s nearest competitor (Storage 365), a 162,690 rentable-square foot, institutional-quality asset located on the Interstate-30 frontage road less than 0.50 miles away, was delivered approximately six months after Storage King USA Mesquite began operating the facility in November 2021. The facility’s financial performance is also a byproduct of the growth the city of Mesquite is experiencing. Over the past 10 years the city has seen more growth and traffic than it has in the past 30 years. A host of new housing, retail and industrial developments have been coming to the city, bringing with it economic growth, a larger skilled workforce, and new tax dollars. Mesquite’s biggest incoming residential development, Solterra, has been deemed its “crown jewel” – with 3,900 houses and 300 townhomes on 1,530 acres of land. Additionally, between 2022 and 2023 total commercial valuation increased from $4.7 billion to $5.5 billion, 4,000 people were added to the labor force, and unemployment decreased by 0.5 percent. For the past 15 years (and particularly within the past two calendar years), Storage King USA Mesquite has not only proven to be a highly resilient asset, it has actually thrived in the face of both macro-market and micro-market conditions that could have disrupted daily operations at properties that were constructed to lower standards, have a less attractive location, and whose local trade area is not as well positioned to withstand the threat of new competition moving forward (i.e., over-supplied RSF per capita). The facility’s attributes and historical performance do much to support the financial projections contained herein – which, at a purchase price of $14,100,000, equate to an unleveraged broker-adjusted return of 6.17 percent year-one, 6.60 percent by the end of year-three, and 8 percent by year-five.

Exclusively Listed By

Financing By

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