Investment Overview

The Greater Houston 5 Storage portfolio is a five-property portfolio located between Brookshire, Pattison, Waller and Hockley, TX that totals 148,745 net rentable square feet and 1,042 units. The properties are along the western and northwestern edge of the Houston MSA, approximately 40 miles from Downtown Houston. Royal Storage of Brookshire has 42,945 NRSF, 347 units and sits on approximately five acres while three miles to the north the 151 unit, 19,575 NRSF Royal Storage of Pattison operates as a satellite facility. Both Royal Storage of Brookshire (~2.32 undeveloped acres) and Royal Storage of Pattison (~2.36 undeveloped acres) have expansion land included in the opportunity. Similarly on the northwest side of the Greater Houston Area, Waller Storage Center (46,875 NRSF, 371 Units, ~0.803 undeveloped acres) acts as the hub facility for Waller Boat and RV Storage (26,400 NRSF, 60 Units, 3.58 undeveloped acres) and Hockley Storage Center (12,950 NRSF, 113 Units, ~2.96 undeveloped acres). The blended value of the expansion land was appraised at $1,800,000 (approximately $3.50 per foot). The unit mix contains climate-control, non-climate-controlled units, larger format units designed for Boats & RV’s with convenience amenities such as concrete driveways, and units with roll-up doors. The facilities are all fully fenced with security features throughout the portfolio that include automatic gates with key code access, and surveillance cameras. From new schools to new homes, to global businesses, the assets sit in the midst of one of Houston’s most exciting growth corridors. Waller High School opened a new campus in 2022 and has grown around 23 percent in the past five years. There are over 20 residential communities in some phase of development within the trade area of the portfolio. The residential sprawl is only part of the story. Companies such as Tesla, HEB, Amazon, and Costco all occupy massive distribution spaces less than two miles from Royal Storage of Brookshire. The 500,000 square foot Great 290 Distribution Center is less than a mile from Waller Storage Center and Daikin which is one of the world’s leading air conditioning manufacturers has it’s Texas Technology Park approximately three miles from Waller Storage Center that provides 4,000 jobs. Also, there are plans to expand Baethe Road which fronts Waller Boat & RV Storage and FM 2920 in front of Hockley Storage Center to four-lane thoroughfares. These well-maintained assets are owned and operated by an out of area individual who self-manages the properties and is looking to retire. The properties haven’t been operated with a high degree of sophistication over the years, for instance 2025 marked the first year that tenant insurance was mandated to customers by the owner. The physical occupancy of the portfolio was slightly over 95 percent as of June 30th, 2025, and has been highly occupied for several years. Likewise the economic occupancy of the portfolio sits at 93 percent as of June 30th, 2025. Between limited nearby competition and valuable expansion land a development play seems in order. The closest climate control storage facilities to Brookshire and Pattison are about seven miles away in the neighboring suburb of Katy. Waller Storage Center only has one competitor who offers climate control units and Hockley Storage Center’s closest competition is nearly four miles away.