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Self-Storage Facility

Galveston County Self-Storage Portfolio

10000 Emmett F Lowry Expy, Texas City, TX 77591

Listing Price: $25,000,000

Cap Rate
6.11%
Number of Units
984
Occupancy
78.0%
Gross SF
111,535
Rentable SF
111,535
Price/Rentable SF
$224.14
Year Built
2019

Investment Overview

Right Move Storage at Mainland City Centre is a 67,455 NRSF self-storage facility in Texas City, Texas, a city on the southeastern end of the greater Houston area. The unit mix consists of 545 climate-controlled units totaling 64,455 NRSF and a 3,000 square foot space that houses the administrative offices of Mainland City Centre. A small 500-foot expansion containing five 10x10 units is slated to be complete in the third quarter of 2021 and is included in the unit mix. The building was originally a JC Penney built in 1991 and was converted to a storage facility in 2019. The property sits on an approximately three-acre parcel. Right Move Storage at Mainland City Centre features numerous amenities found in modern institutional quality storage facilities including, but not limited to, a full-service manager’s office and showroom, video surveillance cameras throughout the property, several personalized key-pad entrances, and multiple covered loading/unloading areas. Mainland City Centre sits near one of the busiest and most desirable intersections in Galveston County fronting on Emmett F. Lowery Expressway near Intersate-45 (I-45) where 46,466 vehicles pass by the facility each day. Furthermore, with the proximity of I-45 Mainland City Centre is visible to an additional 49,964 vehicles every day. The property was formerly a shopping mall but has undergone a massive transformation in which around 900,000 square feet has been completely renovated over the past six years. Right Move Storage benefits from an abundance of nearby economic drivers that are also tenants at Mainland City Centre. Adjacent to Right Move Storage is TEX, a massive indoor entertainment venue, two schools, as well as First Baptist Church of Texas City with over 1,000 members. The largest World Gym in Texas has occupied the space that was a former Macy’s and is now moving into the former Sears which will make it the largest World Gym in the United States at 100,000 square feet. Additionally, there is a new “restaurant row” with six concepts (Grazia Italian Kitchen, Peking Duck, Sweet Frog Yogurt, Brick and Spoon, Big Phil’s Soul and Creole, and Pit Stop Barbecue) that are either open or under construction. There is also a Cinemark Cinema and two other restaurants, Stuttgarden Tavern and Brewchachos Tacos & Cantina. Development is also underway for an upscale bowling location that should be finished in late 2021. The owner of the storage facility is a prominent real estate developer who also owns Mainland City Centre. The aforementioned administrative offices for Karam Development which operates Mainland City Centre are included in the sale of the storage facility and the owner will sign a 20-year lease upon closing to continue operating out of the existing space. Spurring the growth in the area are numerous substantial residential developments. Lago Mar, which is less than one mile from the asset is a 2,000-acre master planned community that is projected to have around 4,000 houses and be home to around 14,000 people upon completion. While Lago Mar is the largest development, single family homes continue to be built at the Cobblestone development which is five tenths of a mile from Mainland City Centre. Also, approximately half a mile from Right Move Storage at Mainland City Centre is Central Park Square, which is the newest residential development and is anchored by Meritage Homes. Not surprisingly Right Move Storage has enjoyed a superb lease up. The facility opened in April of 2019 and is currently 99 percent leased as of July 31st, 2021. Galveston, TX a popular island destination roughly 50 miles southeast of downtown Houston on the Gulf of Mexico is home to Karam Self Storage. The unit mix consists of 439 climate-controlled units totalling 47,080 NRSF and Events @ The Tasting Room which is an elegant wedding and event venue on the top floor of the property that’s approximately 13,000 square feet. The asset was originally the historic Fallstaff Brewery built in 1905 and is a nationally recognized historic building and was converted to a storage facility in October of 2019. The property sits on an approximately 0.724-acre parcel. Karam Self Storage features numerous amenities found in modern institutional quality storage facilities including, but not limited to a full-service manager’s office and showroom, video surveillance cameras throughout the property, motion sensor hallway lighting, and multiple personalized key-pad entrances. The building is of substantial concrete construction having withstood the numerous Gulf Coast storms over the years and the first floor is approximately 8’ above the ground level. Karam Self Storage sits in an urban location of downtown Galveston, walking distance from some of Texas’ biggest festivals and events. The Strand which is a famed tourist area of downtown Galveston hosts highly anticipated events such as Mardi Gras, the Lone Star Rally, and Dickens on the Strand and is less than a half mile from Karam Self Storage. The Port of Galveston which is the 4th busiest cruise port in North America is about 5 blocks from the facility. The Port recently signed a long-term contract with Royal Caribbean for a new $100 million cruise terminal further sustaining Galveston’s standing. In addition to hosting millions of tourists each year Galveston is home to three higher educational institutions with Galveston College, Texas A&M University at Galveston, and the University of Texas Medical Branch (UTMB) all within 2 miles of Karam Self Storage. In addition to providing healthcare education UTMB is the area’s only level 1 trauma center south of Houston and Galveston is also home to Shriners Children’s Hospital. Additionally, a new Wyndham branded boutique hotel is scheduled to open in September of 2022 next door to the facility. The facility is around 85 percent occupied within about 20 months of opening in large part to the downtown surroundings and the lack of storage supply in the trade area. The facility is an ideal storage location for the numerous nearby businesses or for the 78,000 daytime employees that work within 3 miles of Karam Self Storage. Rents have been rapidly growing alongside the occupancy and with only 5.83 square feet of self-storage per capita in a 3-mile radius the rates appear to have as much strength as the buildings concrete frame. Additional revenue will come from the aforementioned Events @ The Tasting Room which occupies the top floor and is owned by the Seller. Existing ownership will sign a 20-year lease upon closing to continue operating out of the existing space.

Investment Highlights

  • Mainland City Centre Location – Texas City's Premier Entertainment Destination (Right Move)
  • 99 Percent Physical Occupancy as of July 31st (by NRSF) Prior to New 575' Expansion (Right Move)
  • Near the Intersection of I-45 and Emmett F. Lowery Expressway– Combined Daily Traffic Counts 96,430 (Right Move)
  • 64,455 NRSF | 545 Units (Right Move)
  • Under Supplied Trade Area – 5.83 NRSF Per Capita (Karam)
  • 81 Percent Physical Occupancy as of July 31st (by NRSF) (Karam)
  • Ideal Storage Location for Local Businesses - 78,727 Daytime Employees (Karam)
  • 47,080 NRSF | 439 Units (Karam)

Exclusively Listed By

Financing By

Self-Storage Facility

Galveston County Self-Storage Portfolio

Listing Price: $25,000,000

Cap Rate
6.11%
Number of Units
984
Occupancy
78.0%
Gross SF
111,535
Rentable SF
111,535
Price/Rentable SF
$224.14
Year Built
2019

Investment Highlights

  • Mainland City Centre Location – Texas City's Premier Entertainment Destination (Right Move)
  • 99 Percent Physical Occupancy as of July 31st (by NRSF) Prior to New 575' Expansion (Right Move)
  • Near the Intersection of I-45 and Emmett F. Lowery Expressway– Combined Daily Traffic Counts 96,430 (Right Move)
  • 64,455 NRSF | 545 Units (Right Move)
  • Under Supplied Trade Area – 5.83 NRSF Per Capita (Karam)
  • 81 Percent Physical Occupancy as of July 31st (by NRSF) (Karam)
  • Ideal Storage Location for Local Businesses - 78,727 Daytime Employees (Karam)
  • 47,080 NRSF | 439 Units (Karam)

Investment Overview

Right Move Storage at Mainland City Centre is a 67,455 NRSF self-storage facility in Texas City, Texas, a city on the southeastern end of the greater Houston area. The unit mix consists of 545 climate-controlled units totaling 64,455 NRSF and a 3,000 square foot space that houses the administrative offices of Mainland City Centre. A small 500-foot expansion containing five 10x10 units is slated to be complete in the third quarter of 2021 and is included in the unit mix. The building was originally a JC Penney built in 1991 and was converted to a storage facility in 2019. The property sits on an approximately three-acre parcel. Right Move Storage at Mainland City Centre features numerous amenities found in modern institutional quality storage facilities including, but not limited to, a full-service manager’s office and showroom, video surveillance cameras throughout the property, several personalized key-pad entrances, and multiple covered loading/unloading areas. Mainland City Centre sits near one of the busiest and most desirable intersections in Galveston County fronting on Emmett F. Lowery Expressway near Intersate-45 (I-45) where 46,466 vehicles pass by the facility each day. Furthermore, with the proximity of I-45 Mainland City Centre is visible to an additional 49,964 vehicles every day. The property was formerly a shopping mall but has undergone a massive transformation in which around 900,000 square feet has been completely renovated over the past six years. Right Move Storage benefits from an abundance of nearby economic drivers that are also tenants at Mainland City Centre. Adjacent to Right Move Storage is TEX, a massive indoor entertainment venue, two schools, as well as First Baptist Church of Texas City with over 1,000 members. The largest World Gym in Texas has occupied the space that was a former Macy’s and is now moving into the former Sears which will make it the largest World Gym in the United States at 100,000 square feet. Additionally, there is a new “restaurant row” with six concepts (Grazia Italian Kitchen, Peking Duck, Sweet Frog Yogurt, Brick and Spoon, Big Phil’s Soul and Creole, and Pit Stop Barbecue) that are either open or under construction. There is also a Cinemark Cinema and two other restaurants, Stuttgarden Tavern and Brewchachos Tacos & Cantina. Development is also underway for an upscale bowling location that should be finished in late 2021. The owner of the storage facility is a prominent real estate developer who also owns Mainland City Centre. The aforementioned administrative offices for Karam Development which operates Mainland City Centre are included in the sale of the storage facility and the owner will sign a 20-year lease upon closing to continue operating out of the existing space. Spurring the growth in the area are numerous substantial residential developments. Lago Mar, which is less than one mile from the asset is a 2,000-acre master planned community that is projected to have around 4,000 houses and be home to around 14,000 people upon completion. While Lago Mar is the largest development, single family homes continue to be built at the Cobblestone development which is five tenths of a mile from Mainland City Centre. Also, approximately half a mile from Right Move Storage at Mainland City Centre is Central Park Square, which is the newest residential development and is anchored by Meritage Homes. Not surprisingly Right Move Storage has enjoyed a superb lease up. The facility opened in April of 2019 and is currently 99 percent leased as of July 31st, 2021. Galveston, TX a popular island destination roughly 50 miles southeast of downtown Houston on the Gulf of Mexico is home to Karam Self Storage. The unit mix consists of 439 climate-controlled units totalling 47,080 NRSF and Events @ The Tasting Room which is an elegant wedding and event venue on the top floor of the property that’s approximately 13,000 square feet. The asset was originally the historic Fallstaff Brewery built in 1905 and is a nationally recognized historic building and was converted to a storage facility in October of 2019. The property sits on an approximately 0.724-acre parcel. Karam Self Storage features numerous amenities found in modern institutional quality storage facilities including, but not limited to a full-service manager’s office and showroom, video surveillance cameras throughout the property, motion sensor hallway lighting, and multiple personalized key-pad entrances. The building is of substantial concrete construction having withstood the numerous Gulf Coast storms over the years and the first floor is approximately 8’ above the ground level. Karam Self Storage sits in an urban location of downtown Galveston, walking distance from some of Texas’ biggest festivals and events. The Strand which is a famed tourist area of downtown Galveston hosts highly anticipated events such as Mardi Gras, the Lone Star Rally, and Dickens on the Strand and is less than a half mile from Karam Self Storage. The Port of Galveston which is the 4th busiest cruise port in North America is about 5 blocks from the facility. The Port recently signed a long-term contract with Royal Caribbean for a new $100 million cruise terminal further sustaining Galveston’s standing. In addition to hosting millions of tourists each year Galveston is home to three higher educational institutions with Galveston College, Texas A&M University at Galveston, and the University of Texas Medical Branch (UTMB) all within 2 miles of Karam Self Storage. In addition to providing healthcare education UTMB is the area’s only level 1 trauma center south of Houston and Galveston is also home to Shriners Children’s Hospital. Additionally, a new Wyndham branded boutique hotel is scheduled to open in September of 2022 next door to the facility. The facility is around 85 percent occupied within about 20 months of opening in large part to the downtown surroundings and the lack of storage supply in the trade area. The facility is an ideal storage location for the numerous nearby businesses or for the 78,000 daytime employees that work within 3 miles of Karam Self Storage. Rents have been rapidly growing alongside the occupancy and with only 5.83 square feet of self-storage per capita in a 3-mile radius the rates appear to have as much strength as the buildings concrete frame. Additional revenue will come from the aforementioned Events @ The Tasting Room which occupies the top floor and is owned by the Seller. Existing ownership will sign a 20-year lease upon closing to continue operating out of the existing space.

Exclusively Listed By

Financing By

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