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Self-Storage Facility

Hwy 380 Self Storage

1019 Agape Ct, Caddo Mills, TX 75135

Listing Price: $3,100,000

Cap Rate
4.91%
Occupancy
75.0%
Gross SF
51,520
Rentable SF
51,520
Price/Rentable SF
$60.17
Year Built
2009

Investment Overview

Hwy 380 Self Storage is a 51,520 rentable-square foot storage facility resting on two adjacent parcels encompassing approximately 6.62 acres in Caddo Mills, Texas – 30 miles northeast of Dallas. The facility is comprised of 262 non-climate drive-up units ranging in size from 100-200 square feet, 11 uncovered parking spaces, and 16 covered boat/RV spaces (14 of which were delivered in October 2021). The rest of property was built in two phases beginning in 2009 and culminating in late 2017. Facility features include a manager’s office, garage-style roll-up doors, two personalized key-pad gated entrances, perimeter fencing and lighting, insulated roofs, and approximately 2.48 acres of raw land for future storage expansion. The facility also benefits from the excellent visibility and accessibility its strategic location on Highway 380 provides, upon which approximately 12,000 vehicles travel each day. The current owner is a first-time storage operator who purchased the facility in late 2019, just before the COVID-19 pandemic shut down the United States economy. Despite the challenges associated with the pandemic and first-time ownership, the owners increased the property’s physical occupancy from 16 percent to 77 percent (excluding the brand-new covered boat/RV units) while managing the facility remotely without the presence of an on-site manager. Factoring in the recent expansion, physical occupancy now sits at approximately 68 percent, and the multitude of attractive demographic trends present in the property’s submarket suggest an experienced operator will be able to lease the currently vacant units with relative ease. To be sure, the population within a five-mile radius surrounding the facility has grown approximately 35 percent since 2010 and is projected to increase an additional 16 percent in the next five years. Furthermore, the average household income within the trade area is approximately $98,000. Offered for $3,100,000, a new investor will be purchasing the asset for a year one 4.91 percent cap rate. More importantly, unleveraged returns approaching 6.50 percent are achievable by increasing facility occupancy and rental rates to submarket standards. On average, Hwy 380 Self Storage rates are 23 percent below their competitors’ rates. After achieving stabilization, future expansion of the raw land will allow a new operator to add additional value throughout the hold period and upon exit.

Investment Highlights

  • 68 Percent Physical Occupancy – Upside Potential
  • Rental Rates Below Submarket Averages
  • All Tenants Pay with Credit Card or Direct Deposit

Exclusively Listed By

Self-Storage Facility

Hwy 380 Self Storage

Listing Price: $3,100,000

Cap Rate
4.91%
Occupancy
75.0%
Gross SF
51,520
Rentable SF
51,520
Price/Rentable SF
$60.17
Year Built
2009

Investment Highlights

  • 68 Percent Physical Occupancy – Upside Potential
  • Rental Rates Below Submarket Averages
  • All Tenants Pay with Credit Card or Direct Deposit

Investment Overview

Hwy 380 Self Storage is a 51,520 rentable-square foot storage facility resting on two adjacent parcels encompassing approximately 6.62 acres in Caddo Mills, Texas – 30 miles northeast of Dallas. The facility is comprised of 262 non-climate drive-up units ranging in size from 100-200 square feet, 11 uncovered parking spaces, and 16 covered boat/RV spaces (14 of which were delivered in October 2021). The rest of property was built in two phases beginning in 2009 and culminating in late 2017. Facility features include a manager’s office, garage-style roll-up doors, two personalized key-pad gated entrances, perimeter fencing and lighting, insulated roofs, and approximately 2.48 acres of raw land for future storage expansion. The facility also benefits from the excellent visibility and accessibility its strategic location on Highway 380 provides, upon which approximately 12,000 vehicles travel each day. The current owner is a first-time storage operator who purchased the facility in late 2019, just before the COVID-19 pandemic shut down the United States economy. Despite the challenges associated with the pandemic and first-time ownership, the owners increased the property’s physical occupancy from 16 percent to 77 percent (excluding the brand-new covered boat/RV units) while managing the facility remotely without the presence of an on-site manager. Factoring in the recent expansion, physical occupancy now sits at approximately 68 percent, and the multitude of attractive demographic trends present in the property’s submarket suggest an experienced operator will be able to lease the currently vacant units with relative ease. To be sure, the population within a five-mile radius surrounding the facility has grown approximately 35 percent since 2010 and is projected to increase an additional 16 percent in the next five years. Furthermore, the average household income within the trade area is approximately $98,000. Offered for $3,100,000, a new investor will be purchasing the asset for a year one 4.91 percent cap rate. More importantly, unleveraged returns approaching 6.50 percent are achievable by increasing facility occupancy and rental rates to submarket standards. On average, Hwy 380 Self Storage rates are 23 percent below their competitors’ rates. After achieving stabilization, future expansion of the raw land will allow a new operator to add additional value throughout the hold period and upon exit.

Exclusively Listed By

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