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Self-Storage Facility

Storage Depot

6320 College St, Beaumont, TX 77707

Listing Price: $8,400,000

Cap Rate
5.15%
Number of Units
507
Occupancy
82.4%
Gross SF
59,120
Rentable SF
59,120
Price/Rentable SF
$142.08
Year Built
2002

Investment Overview

Storage Depot is a 59,020 net rentable-square foot facility resting on three adjacent parcels encompassing approximately 5.17 acres in Beaumont, Texas – just 50 miles east of Houston. The facility was built in 2002 and is comprised of 506 climate-controlled units ranging in size from 20 to 300 rentable square feet. The facility features a manager’s office, garage-style roll up doors, personalized key-pad gated entry, video surveillance, and perimeter fencing & lighting. There is also an approximately 1,000-square foot home on the south end of the property where the manager resides. The facility benefits from the excellent visibility that its strategic position along U.S Route 90 provides, upon which approximately 32,000 vehicles travel each day. Two of the parcels included in the offering are currently unimproved and present a new operator with an opportunity to expand the facility. New climate-controlled and/or conventional drive-up units on the approximately 2.07 acres of unimproved land could be constructed, but the current owner developed plans to build an additional 108 covered boat/RV spaces that would likely add almost $18,000 to the monthly gross potential rent (see page 23). That expansion plan was previously approved by the City of Beaumont, but a new owner would need to re-submit should they choose to use said plans (see Broker for details). Storage Depot was one of only a few facilities in the Beaumont market not to flood during Hurricane Imelda in 2019 and Hurricane Harvey in 2017. The best-in-class quality construction of the facility proved beneficial in each instance, as physical occupancy spiked to 100 percent in the aftermath of each storm. Storage Depot in is also benefiting from the continued commercial development taking place around the facility. New projects near the facility include the Laurel Vista Apartments (69 multifamily units), Retreat West Beaumont (98 multifamily units), and 5 Under Golf – a new state-of-the-art entertainment complex featuring high-tech gaming, a full service restaurant and bar, live music, corporate and social event spaces and more. The maturation of the trade area has undoubtedly contributed to facility’s revenue gains and substantiates the legitimacy of the expansion potential. To be sure, annualized rental revenues through September 2021 project an approximate two percent increase compared to year-end 2020, and rental revenues have been increasing at an average year-over-year rate of approximately 2.5 percent since 2015. When these deal attributes are contextualized against the backdrop of a Beaumont market that possesses the 5th largest port in the United States, what is likely soon to be the largest oil refinery in the US (ExxonMobil), and a number of other positive macro-economic trends, Storage Depot presents a new operator with a legitimate opportunity for value creation and capital appreciation throughout the hold period and upon exit. To that end, a new operator must assume the existing CMBS loan, but upon doing so at a fixed interest rate of 3.915 percent with a maturity date of September 2030, at a purchase price of $8,400,000 the stabilized asset will be capable of delivering cash-on-cash yields approaching 11 percent post-expansion.

Investment Highlights

  • Class-A Institutional Quality Asset
  • 93.31 Percent Physical Occupancy – Stabilized Cash Flow
  • Opportunity for Expansion – Seller has Plans for 108 Covered Boat/RV Units

Exclusively Listed By

Financing By

Self-Storage Facility

Storage Depot

Listing Price: $8,400,000

Cap Rate
5.15%
Number of Units
507
Occupancy
82.4%
Gross SF
59,120
Rentable SF
59,120
Price/Rentable SF
$142.08
Year Built
2002

Investment Highlights

  • Class-A Institutional Quality Asset
  • 93.31 Percent Physical Occupancy – Stabilized Cash Flow
  • Opportunity for Expansion – Seller has Plans for 108 Covered Boat/RV Units

Investment Overview

Storage Depot is a 59,020 net rentable-square foot facility resting on three adjacent parcels encompassing approximately 5.17 acres in Beaumont, Texas – just 50 miles east of Houston. The facility was built in 2002 and is comprised of 506 climate-controlled units ranging in size from 20 to 300 rentable square feet. The facility features a manager’s office, garage-style roll up doors, personalized key-pad gated entry, video surveillance, and perimeter fencing & lighting. There is also an approximately 1,000-square foot home on the south end of the property where the manager resides. The facility benefits from the excellent visibility that its strategic position along U.S Route 90 provides, upon which approximately 32,000 vehicles travel each day. Two of the parcels included in the offering are currently unimproved and present a new operator with an opportunity to expand the facility. New climate-controlled and/or conventional drive-up units on the approximately 2.07 acres of unimproved land could be constructed, but the current owner developed plans to build an additional 108 covered boat/RV spaces that would likely add almost $18,000 to the monthly gross potential rent (see page 23). That expansion plan was previously approved by the City of Beaumont, but a new owner would need to re-submit should they choose to use said plans (see Broker for details). Storage Depot was one of only a few facilities in the Beaumont market not to flood during Hurricane Imelda in 2019 and Hurricane Harvey in 2017. The best-in-class quality construction of the facility proved beneficial in each instance, as physical occupancy spiked to 100 percent in the aftermath of each storm. Storage Depot in is also benefiting from the continued commercial development taking place around the facility. New projects near the facility include the Laurel Vista Apartments (69 multifamily units), Retreat West Beaumont (98 multifamily units), and 5 Under Golf – a new state-of-the-art entertainment complex featuring high-tech gaming, a full service restaurant and bar, live music, corporate and social event spaces and more. The maturation of the trade area has undoubtedly contributed to facility’s revenue gains and substantiates the legitimacy of the expansion potential. To be sure, annualized rental revenues through September 2021 project an approximate two percent increase compared to year-end 2020, and rental revenues have been increasing at an average year-over-year rate of approximately 2.5 percent since 2015. When these deal attributes are contextualized against the backdrop of a Beaumont market that possesses the 5th largest port in the United States, what is likely soon to be the largest oil refinery in the US (ExxonMobil), and a number of other positive macro-economic trends, Storage Depot presents a new operator with a legitimate opportunity for value creation and capital appreciation throughout the hold period and upon exit. To that end, a new operator must assume the existing CMBS loan, but upon doing so at a fixed interest rate of 3.915 percent with a maturity date of September 2030, at a purchase price of $8,400,000 the stabilized asset will be capable of delivering cash-on-cash yields approaching 11 percent post-expansion.

Exclusively Listed By

Financing By

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