Investment Overview

A-Alpha Self-Storage is a 41,959 rentable-square foot storage facility resting on approximately 4.16 acres in Denison, Texas. Built in stages between 1996 and 2008, the facility contains 306 non-climate drive up units, five semi-permanent shipping containers, and one office space (separate from the leasing office). Features include wide concrete driveways, wrought-iron perimeter fencing, garage-style roll up doors, security lighting, personalized key-pad gated entry, land for future storage development (approximately 0.50 acre), and a professional leasing office. The facility is also highly visible from Woodlawn Boulevard, one of the town’s most highly-trafficked roads, upon which approximately 10,000 vehicles travel each day. Located approximately 35 minutes from north Dallas, the Sherman / Denison Metropolitan Statistical Area is experiencing monumental growth from both an economic and population perspective. The primary drivers of this growth are the expansion of the Dallas North Tollway, and the development of two microchip factories that will represent more than $40 billion of invested capital into a market that, as of 2024, has a population of only 150,000. Texas Instruments, the company that produced the first integrated circuit in 1958, and a Taiwanese company (GlobalWafers) that produces silicon wafers to make the same kind of chip, have both broken ground on their projects, and estimates suggest as many as 3,000 jobs will be created as a direct result. Consequently, thousands of new residential homes and commercial projects are currently under various stages of development and construction throughout the area, including Preston Harbor Community – a master-planned development calling for more than 7,500 homes, a Margaritaville resort hotel, retail, restaurants, and a marina – which has been named the seventh largest major upcoming residential and transportation project in the United States. Although these developments have undoubtedly raised the market’s national profile in recent years, the Sherman / Denison MSA was already benefiting from the northbound migration patterns that have been fundamentally transforming the complexion of the entire Dallas market since the 1990s. To be sure, the north Dallas market’s population base (which includes the cities of Plano, Frisco, Allen, McKinney, and others) has grown by almost 3,000 percent during the past 35 years, and recent corporate relocations to the area include, among others, Toyota, McAfee, Fisher Investments, Charles Schwab, the Dallas Cowboys, and the PGA Tour. Recent developments north of the Sherman / Denison market have also contributed to the area’s explosive growth trajectory. For example, in an effort to satisfy unmet demand, the eighth largest casino in the United States, Choctaw Casino & Resort (located just 15 minutes away in Durant, Oklahoma), recently completed a $600 million expansion that includes a new 21-story, 1,000 room luxury hotel. At a purchase price of $3,200,000, a new owner will be presented with many opportunities to create value immediately upon purchase. For example, the current owners (and original developers) of A-Alpha Self Storage have operated the facility at day-to-day level for the past 30 years without the use of a management software program, a discernable marketing strategy, a functional website, and a thoughtful revenue management strategy. Furthermore, current physical occupancy levels exceeding 94 percent suggest rental rate increases for both new and existing tenants are warranted in the short term, while attractive demographic trends, outsized population growth, and unprecedented economic investment indicate the facility’s long-term viability is not only realistic, but highly probable.