Investment Overview

The Castlerock Storage Portfolio includes two complementary East Texas facilities located 15 minutes apart and totaling 122,760 rentable-square-feet across 851 units. Castlerock Storage – Mineola serves as the anchor asset with nearly 80 percent of the rentable area, on-site management, and a broad unit mix, while Castlerock Storage – Lindale functions as a modern satellite along one of the region’s strongest commercial corridors. Both properties are exceptionally well maintained, maintain stable occupancy, and offer a rare opportunity to acquire scale in a high-demand, under-supplied East Texas market. Mineola offers 96,900 rentable-square-feet across climate-controlled units, drive-up units, office/warehouse suites, and uncovered parking. Built in 1998 and expanded in 2021, the facility has a long performance history and limited competition from modern, professionally managed peers. The site benefits from proximity to Lake Fork—one of Texas’s most visited recreational lakes—where tournaments, weekend homeowners, and boat users drive steady demand for storage. Storage development in Wood County has been virtually nonexistent in recent years, constrained by construction costs, zoning, and the lack of institutional developers. Meanwhile, residential growth continues to expand the customer base. Current occupancy at Mineola is 86 percent (77 percent economic), providing near-term upside through rate adjustments, concession tightening, and enhanced digital marketing. Lindale adds 25,860 rentable-square-feet and sits directly on US-69 with daily traffic exceeding 14,500 vehicles. Built in 2017 and expanded in 2018, it is clean, modern, and efficient to operate at 85 percent occupancy. Lindale captures demand from strong residential growth and school district migration and serves as a natural feeder for the larger Mineola operation. Both facilities are owned by a West Coast investor and have been well maintained, yet they would benefit from more hands-on, institutional-style management—dynamic pricing, optimized tenant-insurance programs, and stronger digital infrastructure. Rate increases already underway are projected to lift revenue roughly 10 to 15 percent portfolio-wide within the next year, while additional upside remains through enhanced marketing and professional oversight. At the portfolio’s asking price of $11,000,000, buyers can achieve a 7.14 percent year-one cap rate with meaningful upside still ahead. A new operator could reasonably expect steady, incremental revenue growth driven by built-in rent increases, sustained market demand from ongoing residential expansion, and the absence of meaningful new supply—all of which point to durable long-term performance and continued NOI growth.