Investment Overview

Clear Lake Storage is a 24,120 net rentable square foot self-storage facility located in Webster, Texas as southeastern suburb of Greater Houston. The property sits on approximately 1.75 acres of land consisting of 5 single story buildings that house 143 units. The property was constructed in 1977. Clear Lake Storage features several amenities including concrete driveways, roll up doors, a manager’s office, and a gated entrance with digital keypad access. The units are all drive up non-climate with roll up doors. Clear Lake Storage fronts on Old Galveston Road (State Highway 3) and features daily traffic counts of 20,366. The trade area around Clear Lake Storage boasts a 3-mile population of 78,191 and a potential tenant base that earns north of $104,000. Furthermore, this busy area of Clear Lake is seeing considerable economic growth highlighted by Edgewater which is a 538-acre master planned community from Johnson Properties. The development which is approximately 3 miles south of Clear Lake Storage will add approximately 2,600 new residents to Webster. The project includes single and multi-family properties, a marina, hotel, and retail shops. In addition to Edgewater, Flyway is another mixed-use project that is currently under construction also nearby. This 80-acre mixed-use retail area will be anchored by Great Wolf Lodge and will include multiple nationally recognized retailers. Clear Lake Storage is professionally managed by Right Move Storage and offers an opportunity to purchase a plug and play asset at around a 5.6 percent in-place cap rate and below $55/NRSF. The in-place cap rate includes payroll for a full-time onsite manager along with a 3rd party management fee. By gently raising rates and increasing occupancy (currently at around 80 percent) the end of year unlevered return projects to be north of 6 percent. Alternatively at under 25,000 NRSF the asset is a prime candidate to be managed remotely which could offer significant savings to an investor.