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Self-Storage Facility

Affordable Storage

19238 TX-62, Orange, TX 77630

Listing Price: $1,550,000

Cap Rate
6.12%
Number of Units
146
Occupancy
75.3%
Gross SF
23,340
Rentable SF
23,340
Price/Rentable SF
$66.41
Year Built
2005

Investment Overview

Affordable Storage is a 23,340 rentable-square foot storage facility resting on approximately four acres in Orange, TX. Built in 2005, the facility is comprised of 125 climate-controlled units, 8 covered boat/RV units, and 13 uncovered parking spaces. Features include garage-style roll up doors, personalized key-pad gated entry, 24-hour video surveillance cameras, wide concrete driveways, and on-site manager’s office with full bath that could be utilized as a manager’s residence. The property also benefits from the excellent visibility and accessibility provided by its strategic location on Texas State Highway 62, upon which approximately 14,000 vehicles travel each day. Orange, TX is situated on the border of Texas and Louisiana, approximately 15 miles east of Beaumont. Southeast Texas, and Orange in particular, has long benefited from its exposure to the oil refinery industry. Despite recent political announcements touting a national departure from fossil fuels, some of the biggest names in the energy sector are doubling down on their position in the region. To be sure, in 2019, Chevron Phillips Chemical announced initial desires to build a $5.6 billion multi-unit ethylene plant on a 1,700-acre tract near Texas 87 and Foreman Road in Orange – less than 3 miles from Affordable Storage. While the Covid-19 pandemic momentarily cast doubts over the project’s short-term viability, Chevron Phillips Chemical is prepping the land for future development as of May 2021. According to Jessica Hill, executive director of the Orange County Economic Development Corporation, CPC has already spent $60 million on land costs alone, and eventual plant construction would create as much as 10,000 construction job opportunities. All signs point to continued long-term economic growth for Orange. Offered for $1,550,000, a new investor will be purchasing the asset at a 6.12 percent year-one cap rate, broker-adjusted. While Affordable Storage has performed well historically, the current owner has admittedly neglected some of his day-to-day managerial responsibilities in lieu of other commitments. As such, opportunity abounds for a new operator to not only increase occupancy – approximately 80 percent physical and 75 percent economic as of May 2021 – but also to expand the property and increase rental rates that are currently below submarket averages.

Investment Highlights

  • Currently Owner-Operated
  • Rental Rates Below Submarket Averages
  • Opportunity for Future Expansion – More than Two Acres

Exclusively Listed By

Self-Storage Facility

Affordable Storage

Listing Price: $1,550,000

Cap Rate
6.12%
Number of Units
146
Occupancy
75.3%
Gross SF
23,340
Rentable SF
23,340
Price/Rentable SF
$66.41
Year Built
2005

Investment Highlights

  • Currently Owner-Operated
  • Rental Rates Below Submarket Averages
  • Opportunity for Future Expansion – More than Two Acres

Investment Overview

Affordable Storage is a 23,340 rentable-square foot storage facility resting on approximately four acres in Orange, TX. Built in 2005, the facility is comprised of 125 climate-controlled units, 8 covered boat/RV units, and 13 uncovered parking spaces. Features include garage-style roll up doors, personalized key-pad gated entry, 24-hour video surveillance cameras, wide concrete driveways, and on-site manager’s office with full bath that could be utilized as a manager’s residence. The property also benefits from the excellent visibility and accessibility provided by its strategic location on Texas State Highway 62, upon which approximately 14,000 vehicles travel each day. Orange, TX is situated on the border of Texas and Louisiana, approximately 15 miles east of Beaumont. Southeast Texas, and Orange in particular, has long benefited from its exposure to the oil refinery industry. Despite recent political announcements touting a national departure from fossil fuels, some of the biggest names in the energy sector are doubling down on their position in the region. To be sure, in 2019, Chevron Phillips Chemical announced initial desires to build a $5.6 billion multi-unit ethylene plant on a 1,700-acre tract near Texas 87 and Foreman Road in Orange – less than 3 miles from Affordable Storage. While the Covid-19 pandemic momentarily cast doubts over the project’s short-term viability, Chevron Phillips Chemical is prepping the land for future development as of May 2021. According to Jessica Hill, executive director of the Orange County Economic Development Corporation, CPC has already spent $60 million on land costs alone, and eventual plant construction would create as much as 10,000 construction job opportunities. All signs point to continued long-term economic growth for Orange. Offered for $1,550,000, a new investor will be purchasing the asset at a 6.12 percent year-one cap rate, broker-adjusted. While Affordable Storage has performed well historically, the current owner has admittedly neglected some of his day-to-day managerial responsibilities in lieu of other commitments. As such, opportunity abounds for a new operator to not only increase occupancy – approximately 80 percent physical and 75 percent economic as of May 2021 – but also to expand the property and increase rental rates that are currently below submarket averages.

Exclusively Listed By

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