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Self-Storage Facility

Azco Center Point Storage

11400 Farm to Market Rd 730 N, Azle, TX 76020

Listing Price: $3,300,000

Cap Rate
5.24%
Number of Units
276
Occupancy
98.9%
Rentable SF
37,228
Price/Rentable SF
$88.64
Year Built
2000

Investment Overview

Azco Center Point Storage is a 37,228 rentable-square foot storage facility located on three non-contiguous parcels totaling approximately 8.09 acres in Azle (Fort Worth), Texas. The majority of the facility’s 239 non-climate drive-up units were constructed in 2000 on Farm-to-Market Road 730, and the remainder were built in 2021 on a parcel located directly across the street from the original site. The third parcel – containing three retail spaces, four covered parking spaces, and 30 uncovered parking spaces – is also located on FM 730 approximately one mile to the north of the other two parcels. Upon purchase, a new operator will be presented with a few different opportunities to add value throughout the hold period. The most apparent of which likely comes in the form of rental rate escalation, as the current “mom and pop” owner/operators have never raised rates on existing tenants. This explains the discrepancy between the property’s impressive physical occupancy of almost 99 percent and its comparatively low economic occupancy of approximately 62 percent. The trade area’s attractive demographic profile and the competition’s impressive physical occupancy rates suggest existing tenants could easily absorb the contemplated rent increases. To be sure, within a three-mile radius, average household income exceeds $100,000 annually, the population base has grown more than 20 percent since 2010, and the average physical occupancy at competing facilities exceeds 95 percent. Value creation and income growth can also be realized via physical expansion. In fact, the parcel located across the street from the original site already contains four concrete slabs upon which approximately 8,500 rentable square feet of storage could be added. Furthermore, the third parcel located approximately one mile to the north of the other two features approximately 1.50 miles of raw land which could also be used for expansion. Based on the facility’s close proximity to Lake Worth and Eagle Mountain Lake, a new owner would likely want to seriously explore using this raw acreage to expand the facility’s boat/RV footprint. The third opportunity for value creation is undoubtedly management related. The current owners do not use any management software, they have no online presence whatsoever, and the few dollars they spend on marketing each year are dedicated to severely antiquated platforms like yellow page ads and local charity sponsorship. At a price of $3,300,000, a new operator will not only be in position to generate above-market unleveraged yields within the first year, but also realize appreciation of invested capital throughout the entirety of the hold period.

Investment Highlights

  • Immediate Expansion Opportunity – Concrete Slabs Poured for Approximately 8,500 RSF of Non-Climate Drive Up Storage
  • "Mom & Pop" Owned and Managed by Original Developers
  • Never Raised Rates on Existing Tenants
  • 99 Percent Physical Occupancy
  • Attractive Demographics – Average Household Income Exceeds $100,000 in Submarket

Exclusively Listed By

Self-Storage Facility

Azco Center Point Storage

Listing Price: $3,300,000

Cap Rate
5.24%
Number of Units
276
Occupancy
98.9%
Rentable SF
37,228
Price/Rentable SF
$88.64
Year Built
2000

Investment Highlights

  • Immediate Expansion Opportunity – Concrete Slabs Poured for Approximately 8,500 RSF of Non-Climate Drive Up Storage
  • "Mom & Pop" Owned and Managed by Original Developers
  • Never Raised Rates on Existing Tenants
  • 99 Percent Physical Occupancy
  • Attractive Demographics – Average Household Income Exceeds $100,000 in Submarket

Investment Overview

Azco Center Point Storage is a 37,228 rentable-square foot storage facility located on three non-contiguous parcels totaling approximately 8.09 acres in Azle (Fort Worth), Texas. The majority of the facility’s 239 non-climate drive-up units were constructed in 2000 on Farm-to-Market Road 730, and the remainder were built in 2021 on a parcel located directly across the street from the original site. The third parcel – containing three retail spaces, four covered parking spaces, and 30 uncovered parking spaces – is also located on FM 730 approximately one mile to the north of the other two parcels. Upon purchase, a new operator will be presented with a few different opportunities to add value throughout the hold period. The most apparent of which likely comes in the form of rental rate escalation, as the current “mom and pop” owner/operators have never raised rates on existing tenants. This explains the discrepancy between the property’s impressive physical occupancy of almost 99 percent and its comparatively low economic occupancy of approximately 62 percent. The trade area’s attractive demographic profile and the competition’s impressive physical occupancy rates suggest existing tenants could easily absorb the contemplated rent increases. To be sure, within a three-mile radius, average household income exceeds $100,000 annually, the population base has grown more than 20 percent since 2010, and the average physical occupancy at competing facilities exceeds 95 percent. Value creation and income growth can also be realized via physical expansion. In fact, the parcel located across the street from the original site already contains four concrete slabs upon which approximately 8,500 rentable square feet of storage could be added. Furthermore, the third parcel located approximately one mile to the north of the other two features approximately 1.50 miles of raw land which could also be used for expansion. Based on the facility’s close proximity to Lake Worth and Eagle Mountain Lake, a new owner would likely want to seriously explore using this raw acreage to expand the facility’s boat/RV footprint. The third opportunity for value creation is undoubtedly management related. The current owners do not use any management software, they have no online presence whatsoever, and the few dollars they spend on marketing each year are dedicated to severely antiquated platforms like yellow page ads and local charity sponsorship. At a price of $3,300,000, a new operator will not only be in position to generate above-market unleveraged yields within the first year, but also realize appreciation of invested capital throughout the entirety of the hold period.

Exclusively Listed By

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