Skip to main content

Self-Storage Facility

Hughes Springs Storage Units

189 FM250, Hughes Springs, TX 75656

Listing Price: $2,300,000

Cap Rate
8.01%
Number of Units
260
Occupancy
85.0%
Rentable SF
54,100
Price/Rentable SF
$42.51
Year Built
2019

Investment Overview

Hughes Springs Storage Units is a 54,100 rentable-square foot facility resting on approximately nine-acres in Hughes Springs, Texas. Built in 2019, the property includes 240 drive-up units, and 20 fully-enclosed boat/RV spaces. Features include perimeter fencing and lighting, a gated entrance, wide driveways, and convenient access from Farm-to-Market 250.

The offering is part of a larger facility known as WD Storage. The current owner primarily uses WD Storage to service an unrelated personal business that services the outdoor amusement park industry, and the 260-unit portion of the property identified on page 13 is the only portion of that real estate currently offered for purchase herein. Additionally, the seller has no plans to build any storage in the future and intends to sign a non-compete clause with a prospective buyer.

The property currently benefits from the excellent visibility and accessibility provided by its strategic location on FM 250 – one of Hughes Springs’ primary east/west thoroughfares – and a new owner actually has the right to install more signage on the FM 250 frontage should they choose to do so.

Offered for $2,300,000, a new investor will be purchasing the stabilized asset below its replacement cost for $42.51 per rentable square-foot. Based on the seller’s actual 2023 year-end income and expenses, that equates to an 8.30 percent cap rate. Additionally, for a qualified buyer, the seller is willing to finance the acquisition for five years at a 5 percent interest rate, a 70 percent loan-to-value, and a 25-year amortization schedule – thus helping a new operator achieve cash-on-cash returns in excess of 10 percent immediately upon purchase.

Investment Highlights

  • Attractive Seller-Financing – 5% Interest, 70% LTV, 25-Year Amortization
  • Opportunity for Future Expansion
  • Little to No Capital Expenditures Required – 2019 Construction
  • Stabilized Cash Flow – 94% Physical Occupancy
  • Mom & Pop Owner-Operated by Original Developer
  • No Website, Marketing Strategy, or Revenue Management Currently

Exclusively Listed By

Financing By

Self-Storage Facility

Hughes Springs Storage Units

Listing Price: $2,300,000

Cap Rate
8.01%
Number of Units
260
Occupancy
85.0%
Rentable SF
54,100
Price/Rentable SF
$42.51
Year Built
2019

Investment Highlights

  • Attractive Seller-Financing – 5% Interest, 70% LTV, 25-Year Amortization
  • Opportunity for Future Expansion
  • Little to No Capital Expenditures Required – 2019 Construction
  • Stabilized Cash Flow – 94% Physical Occupancy
  • Mom & Pop Owner-Operated by Original Developer
  • No Website, Marketing Strategy, or Revenue Management Currently

Investment Overview

Hughes Springs Storage Units is a 54,100 rentable-square foot facility resting on approximately nine-acres in Hughes Springs, Texas. Built in 2019, the property includes 240 drive-up units, and 20 fully-enclosed boat/RV spaces. Features include perimeter fencing and lighting, a gated entrance, wide driveways, and convenient access from Farm-to-Market 250. The offering is part of a larger facility known as WD Storage. The current owner primarily uses WD Storage to service an unrelated personal business that services the outdoor amusement park industry, and the 260-unit portion of the property identified on page 13 is the only portion of that real estate currently offered for purchase herein. Additionally, the seller has no plans to build any storage in the future and intends to sign a non-compete clause with a prospective buyer. The property currently benefits from the excellent visibility and accessibility provided by its strategic location on FM 250 – one of Hughes Springs’ primary east/west thoroughfares – and a new owner actually has the right to install more signage on the FM 250 frontage should they choose to do so. Offered for $2,300,000, a new investor will be purchasing the stabilized asset below its replacement cost for $42.51 per rentable square-foot. Based on the seller’s actual 2023 year-end income and expenses, that equates to an 8.30 percent cap rate. Additionally, for a qualified buyer, the seller is willing to finance the acquisition for five years at a 5 percent interest rate, a 70 percent loan-to-value, and a 25-year amortization schedule – thus helping a new operator achieve cash-on-cash returns in excess of 10 percent immediately upon purchase.

Exclusively Listed By

Financing By

MM Texture Background
MM Textured Background Lower