Investment Overview

Eason Storage is a 39,265 rentable-square foot storage facility resting on two adjacent parcels totaling approximately 4.78-acres in Canton, Texas. The 229-unit facility was built in 2000 and later expanded in 2017. It is comprised of 20 climate-controlled units, 208 non-climate drive up units, and a rental house. Features include garage-style roll up doors, paved driveways, pitched roofs, personalized key-pad gated entry, perimeter fencing and lighting, and 24-hour video surveillance cameras. The rental house is currently utilized as a VRBO, but has previously been occupied by long-term tenants at $1,250 per month. Submarket research suggests it could be leased for closer to $2,000 per month. Canton, Texas is renowned for hosting its monthly trade day event referred to as “First Mondays”, which has taken place since the 1850’s. Now regarded as the world’s largest flea market, First Monday Trade Days see up to 100,000 tourists, vendors, and shoppers flock to the city Thursday through Sunday before the first Monday of each month. It is the main driving force behind the city’s identity and local economy, and the event makes Canton an ideal location for a self-storage facility. Eason Storage is one such beneficiary, as the facility has enjoyed historically high occupancy levels since its inception. Additionally, the property benefits from the excellent visibility and accessibility provided by its strategic location on FM 17 approximately ¼ mile from Interstate-20 (almost 40,000 vehicles per day). Offered for $2,700,000, a new investor will be purchasing the stabilized asset for a 6.95 percent cap rate on the seller’s actual income and expenses. Furthermore, multiple avenues for revenue growth exist – the most visible of which include increasing below-market effective rates on existing tenants by approximately 20 percent to reflect current submarket standards, implementing a tenant insurance program, and constructing additional boat/RV and/or climate-controlled storage at the back of the property. Despite the value-creation opportunities above, the offering becomes even more compelling when one takes into consideration the attractive seller-financing (available to qualified investors on a case-by-case basis) options the current owner is willing to consider. Preliminary terms include a maximum loan-to-value ratio of 70 percent, a 5 percent interest rate calculated on a 25-year amortization schedule, and a five-year maturity date.