Self-Storage Facility

The Storage Place

4809 N Belt Line Rd, Mesquite, TX 75150

Listing Price: $10,000,000

Cap Rate
5.01%
Number of Units
553
Occupancy
92.8%
Gross SF
73,990
Rentable SF
73,990
Price/Rentable SF
$135.15
Year Built
2006

Investment Overview

The Storage Place is a “Class A” institutional-quality facility located in Mesquite, TX (D-FW Metroplex) that was constructed in 2006, rests on approximately 4.01 acres of land, and consists of 553 total units. Climate-controlled units, ground level interior units, drive-up units, and a full business and shipping center offering Fed-ex, UPS and USPS are services provided to tenants. The facility is secured by a fortress-style masonry wall, and the buildings possess brick veneer accents, metal construction with garage-style roll-up doors, and standing-seam metal roofs. The Storage Place provides dual directional access via a curb cut and excellent exposure with 500 feet of frontage on North Belt Line Road – a six lane regional collector with traffic counts exceeding 36,000 vehicles daily. The 73,990 rentable square foot facility is comprised of seven storage buildings, and a two-story office / residence. Amenities offered at The Storage Place include exterior lighting, 24-hour video surveillance, concrete drives, prominent signage, and a wrought iron electronic key-pad gate system. No competitive facilities are currently located within a one-mile radius of the facility and the nearest competitor is almost two miles away. Approximately 100,000 people reside within a three-mile radius of the facility, and more than 220,000 reside within a five-mile radius. At a purchase price of $10,000,000 a new operator will be purchasing an asset that has been performing at a high level for years – one capable of delivering a broker-adjusted unleveraged 5.01 percent return, year-one. The facility is also approximately 88 percent physically occupied and approximately 93 percent economically occupied as of October 2020. Given the tenancy’s historical willingness to absorb rate increases, as well as the presence of a healthy trade area from a supply/demand perspective, a new operator can reasonably expect to successfully push rates throughout the hold period. To be sure, effective rates per occupied square foot have consistently remained at healthy levels ($1.10 per month based on annualized January 2020 – October 2020 collections), and the facility’s rent collections have grown at an average rate of 3.5 percent annually since reaching stabilization roughly ten years ago, suggesting economic stabilization of the pro-forma gross potential income will allow a new operator to achieve unleveraged pro-forma returns exceeding 6 percent.

Investment Highlights

  • Institutional "Class A" Facility
  • Current Effective Rate per Occupied Square Foot: $1.10
  • No Existing Competitors within 1-Mile Radius

Exclusively Listed By

Self-Storage Facility

The Storage Place

Listing Price: $10,000,000

Cap Rate
5.01%
Number of Units
553
Occupancy
92.8%
Gross SF
73,990
Rentable SF
73,990
Price/Rentable SF
$135.15
Year Built
2006

Investment Highlights

  • Institutional "Class A" Facility
  • Current Effective Rate per Occupied Square Foot: $1.10
  • No Existing Competitors within 1-Mile Radius

Investment Overview

The Storage Place is a “Class A” institutional-quality facility located in Mesquite, TX (D-FW Metroplex) that was constructed in 2006, rests on approximately 4.01 acres of land, and consists of 553 total units. Climate-controlled units, ground level interior units, drive-up units, and a full business and shipping center offering Fed-ex, UPS and USPS are services provided to tenants. The facility is secured by a fortress-style masonry wall, and the buildings possess brick veneer accents, metal construction with garage-style roll-up doors, and standing-seam metal roofs. The Storage Place provides dual directional access via a curb cut and excellent exposure with 500 feet of frontage on North Belt Line Road – a six lane regional collector with traffic counts exceeding 36,000 vehicles daily. The 73,990 rentable square foot facility is comprised of seven storage buildings, and a two-story office / residence. Amenities offered at The Storage Place include exterior lighting, 24-hour video surveillance, concrete drives, prominent signage, and a wrought iron electronic key-pad gate system. No competitive facilities are currently located within a one-mile radius of the facility and the nearest competitor is almost two miles away. Approximately 100,000 people reside within a three-mile radius of the facility, and more than 220,000 reside within a five-mile radius. At a purchase price of $10,000,000 a new operator will be purchasing an asset that has been performing at a high level for years – one capable of delivering a broker-adjusted unleveraged 5.01 percent return, year-one. The facility is also approximately 88 percent physically occupied and approximately 93 percent economically occupied as of October 2020. Given the tenancy’s historical willingness to absorb rate increases, as well as the presence of a healthy trade area from a supply/demand perspective, a new operator can reasonably expect to successfully push rates throughout the hold period. To be sure, effective rates per occupied square foot have consistently remained at healthy levels ($1.10 per month based on annualized January 2020 – October 2020 collections), and the facility’s rent collections have grown at an average rate of 3.5 percent annually since reaching stabilization roughly ten years ago, suggesting economic stabilization of the pro-forma gross potential income will allow a new operator to achieve unleveraged pro-forma returns exceeding 6 percent.

Exclusively Listed By

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