Investment Overview

Advantage Storage is an institutional quality 45,200 rentable-square foot facility located in Lovington, New Mexico that was built between 2016 – 2020. Resting on one parcel, the facility features 59 climate units and 204 drive-up units distributed between seven single-story metal buildings that feature standing seam roofs, garage-style roll up doors, and brick / stucco cosmetic accents. The property also includes wrought iron perimeter fencing, concrete drives, a formal leasing office, manager’s residence, and 24/7 video surveillance. The subject property is the only “Class-A” facility in the entire Lovington market, and it’s positioned on one of the town’s most highly trafficked residential / commercial thoroughfares. Lovington is located less than 25 miles from the Texas border only an hour and a half away from both Midland/Odessa and Lubbock. The 81 percent economically occupied facility has been generating a predictable income stream for years, but multiple opportunities for value creation remain. To be sure, despite a local trade area featuring only 6.29 square-feet of storage space per capita (five-miles), and an average market occupancy rate exceeding 90 percent, Advantage Storage’s drive-up street rates remain approximately 8 percent below market (see Broker for details). Additionally, the management company’s revenue algorithm appears to have dislodged itself from actual market demand. Despite maintaining a stabilized physical occupancy rate for years, and despite the fact Advantage Storage is the most recently-delivered storage property in Lovington, many of the facility’s current street rates are at least 20 percent below what existing tenants have been willing to pay for years. Lastly, current ownership recently spent approximately $175,000 laying asphalt for 47 more uncovered parking spaces that will begin leasing mid-August 2026. At a purchase price of $5,180,000 a new operator will be acquiring a facility capable of generating unlevered yields approaching 7 percent Year One, while a realistic set of revenue assumptions illuminate a pathway exceeding 9 percent Year-Five returns detailed in the pro forma.