Investment Overview

Homer Mini Storage is a 28,603 net rentable square foot self-storage facility located in Lufkin, Texas. The property sits on 2.85 acres of land and consists of 222 non-climate control units. The facility has 17 single story buildings and includes amenities including, but not limited to video surveillance throughout the property, a manager’s office, and a gated entry with keycode access. Situated approximately 120 miles north of Houston, Lufkin is the is the retail and medical hub of a 12-county region in Piney Woods of east Texas. Lufkin is the county seat of Angelina County, and the local economy benefits from several strong industries such as timber manufacturing, food products, and aerospace and defense. The property fronts on US Highway 69 which is a main highway through east Texas connecting Beaumont to Tyler and the facility benefits from daily traffic counts of nearly 14,000. Priced at a day one cap rate of 7.08 percent the asset should provide an investor with stable cash flow along with meaningful upside. The owner is a husband-and-wife couple that manage the facility remotely and they haven’t raised the rental rates in over a year. Despite having the lowest prices in the trade area occupancy is hovering around 73 percent. In addition to utilizing more sophisticated property management strategies, there’s approximately 3/4 acre of expansion room in the rear of the property that could generate additional revenue. Furthermore, the Seller is willing to consider financing the asset for a highly qualified purchaser. By raising rents slightly closer to market standards (Street Rates are currently 10 percent - 40 percent below market) and reducing economic vacancy to 20 percent a purchaser could see a 7.76 percent property tax adjusted unlevered yield within 12 months.