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Self-Storage Facility

Plan-It Storage

520 Blake St, Denton, TX 76208

Listing Price: $18,000,000

Cap Rate
3.35%
Number of Units
1,146
Occupancy
52.6%
Gross SF
148,845
Rentable SF
148,845
Price/Rentable SF
$120.93
Year Built
2012

Investment Overview

Plan-It Storage is a “Class-A” institutional-quality facility located in Denton (Dallas-Fort Worth Metroplex), Texas. The first phase was delivered in 2012, and the facility has been expanded several times since. Six buildings house 148,845 rentable square feet of space divided between 651 climate-controlled units located on the ground level, 171 climate-controlled units located on the second floor, 182 climate-controlled units located on the third floor, 138 non-climate-controlled drive-up units, and four uncovered parking spaces. The entire facility is located on one parcel of land approximately 6.02 acres in size. There is no additional room to expand the facility, but the original developers had the foresight to bring amenities to a trade area previously unfamiliar with such features. These include standing seam roofs, individual alarms for each unit, dozens of state-of-the-art security cameras, high intensity lighting, perimeter fencing, personalized key-pad entrance/exit gates, online payment capabilities, and a kiosk so that tenants may rent a unit during non-business hours. Those are but a few of the attributes that make Plan-It storage the singular choice for self-storage consumers in the greater Denton area. Consistent with the developer’s original vision, it is those very same amenities that have been brought to the most recent expansion of Plan-It Storage, which occurred in late 2018. Importantly, the entire facility’s gross rental collections continue to improve. Year-to-date rent collections through the month of July 2021 are approximately 38 percent higher than they were at this point one year ago, and the facility is collecting 17 percent more per occupied-square-foot on an annualized basis than it was 12 months ago. These accomplishments clearly demonstrate the legitimacy of the yield opportunity available to a new buyer upon stabilization. In fact, many of the demand-drivers that have accelerated the facility’s final lease-up period have only recently come to fruition. Importantly, one of the thoroughfares providing access to Plan-It Storage was recently expanded from two to four lanes in 2020. As the City of Denton has grown (63 percent since 2000), congestion along Mayhill Road increased significantly. Plan-It Storage can be accessed directly via Mayhill Road, and the $57,000,000 expansion project has drastically improved the facility’s visibility and accessibility. Residential development will also play an important role in the final lease-up of the facility. To be sure, two of the biggest developers in Texas have partnered with each other to develop a master-planned community that would bring more than 15,000 single-family residential units, along with more than 5,000 multifamily units, to Denton. In June of 2019, the Denton City Council approved a detailed proposal from representatives with Hillwood Properties and Stratford Land. The master-planned community of Hunter Ranch and Cole Ranch will encompass roughly 6,300 acres and bring 15,000 new homes to the City of Denton, boosting Denton’s housing stock by nearly 50 percent once the project is to be approved. A special taxing district will be created to help the developers recoup some portion of the estimated $485,000,000 in estimated up-front costs for the installation of public infrastructure. A June 2021 article in the Denton Record-Chronicle suggests construction may begin within the next year. Developers are being drawn to the Denton success story for reasons having little to do with unique, one-time-only, tax incentives. To be sure, between the years 2013 and 2018, the county saw net in-migration of 96,000 people – the third-highest total for a county in the United States. Denton’s low cost of living is also one of the attributes drawing interest in the area. As an example, the average Denton resident spends 3.8 percent of their yearly income on housing. Compare this to the national average of 15.1 percent and it becomes easier to see why the population has grown at such a robust pace. The Denton lifestyle is also an attractive draw. That lifestyle is largely cultivated by the more than 38,000 students who are enrolled at The University of North Texas. The public research university is renowned for many of its programs, including a medical school, business school, and an internationally-known college of music. Plan-It Storage certainly benefits from its proximity to the University of North Texas, but perhaps even more critical is the fact that it is located near the city’s biggest high school, Denton Ryan. The Class 5A school is located less than one half-mile away from Plan-It Storage, and its more than 2,300 students, teachers, administrators, and parents regularly use Mayhill Road as a thoroughfare. Close proximity to a school has historically been seen as a major driver of demand for self-storage units due largely to the level of convenience it provides the citizens who may live within the school district (the expansion of Mayhill Road will only increase exposure and demand for units at Plan-It Storage). From a competitive perspective, no other facility within a five-mile radius compares to Plan-It Storage when it comes to the quality of construction, service, and amenities offered to tenants. When this fact is contextualized against the backdrop of a trade area that has experienced consistent rent growth since 2012, it becomes clear that Plan-It Storage will have no trouble raising the rental rates upon stabilization of the facility’s existing economic potential. At a price point of $18,000,000 a new operator will be purchasing a truly institutional quality asset capable of yielding a cash-on-cash return of more than 10 percent upon economic stabilization of the current rental rates.

Investment Highlights

  • Class-A Institutional Quality Asset
  • 28% Population Growth in Submarket since 2010
  • Collections 38% Higher in July 2021 than July 2020
  • Significant Expansion to Mayhill Road Completed 2020
  • Average Household Income Exceeds $100,000 in 3-mile Radius

Exclusively Listed By

Financing By

Self-Storage Facility

Plan-It Storage

Listing Price: $18,000,000

Cap Rate
3.35%
Number of Units
1,146
Occupancy
52.6%
Gross SF
148,845
Rentable SF
148,845
Price/Rentable SF
$120.93
Year Built
2012

Investment Highlights

  • Class-A Institutional Quality Asset
  • 28% Population Growth in Submarket since 2010
  • Collections 38% Higher in July 2021 than July 2020
  • Significant Expansion to Mayhill Road Completed 2020
  • Average Household Income Exceeds $100,000 in 3-mile Radius

Investment Overview

Plan-It Storage is a “Class-A” institutional-quality facility located in Denton (Dallas-Fort Worth Metroplex), Texas. The first phase was delivered in 2012, and the facility has been expanded several times since. Six buildings house 148,845 rentable square feet of space divided between 651 climate-controlled units located on the ground level, 171 climate-controlled units located on the second floor, 182 climate-controlled units located on the third floor, 138 non-climate-controlled drive-up units, and four uncovered parking spaces. The entire facility is located on one parcel of land approximately 6.02 acres in size. There is no additional room to expand the facility, but the original developers had the foresight to bring amenities to a trade area previously unfamiliar with such features. These include standing seam roofs, individual alarms for each unit, dozens of state-of-the-art security cameras, high intensity lighting, perimeter fencing, personalized key-pad entrance/exit gates, online payment capabilities, and a kiosk so that tenants may rent a unit during non-business hours. Those are but a few of the attributes that make Plan-It storage the singular choice for self-storage consumers in the greater Denton area. Consistent with the developer’s original vision, it is those very same amenities that have been brought to the most recent expansion of Plan-It Storage, which occurred in late 2018. Importantly, the entire facility’s gross rental collections continue to improve. Year-to-date rent collections through the month of July 2021 are approximately 38 percent higher than they were at this point one year ago, and the facility is collecting 17 percent more per occupied-square-foot on an annualized basis than it was 12 months ago. These accomplishments clearly demonstrate the legitimacy of the yield opportunity available to a new buyer upon stabilization. In fact, many of the demand-drivers that have accelerated the facility’s final lease-up period have only recently come to fruition. Importantly, one of the thoroughfares providing access to Plan-It Storage was recently expanded from two to four lanes in 2020. As the City of Denton has grown (63 percent since 2000), congestion along Mayhill Road increased significantly. Plan-It Storage can be accessed directly via Mayhill Road, and the $57,000,000 expansion project has drastically improved the facility’s visibility and accessibility. Residential development will also play an important role in the final lease-up of the facility. To be sure, two of the biggest developers in Texas have partnered with each other to develop a master-planned community that would bring more than 15,000 single-family residential units, along with more than 5,000 multifamily units, to Denton. In June of 2019, the Denton City Council approved a detailed proposal from representatives with Hillwood Properties and Stratford Land. The master-planned community of Hunter Ranch and Cole Ranch will encompass roughly 6,300 acres and bring 15,000 new homes to the City of Denton, boosting Denton’s housing stock by nearly 50 percent once the project is to be approved. A special taxing district will be created to help the developers recoup some portion of the estimated $485,000,000 in estimated up-front costs for the installation of public infrastructure. A June 2021 article in the Denton Record-Chronicle suggests construction may begin within the next year. Developers are being drawn to the Denton success story for reasons having little to do with unique, one-time-only, tax incentives. To be sure, between the years 2013 and 2018, the county saw net in-migration of 96,000 people – the third-highest total for a county in the United States. Denton’s low cost of living is also one of the attributes drawing interest in the area. As an example, the average Denton resident spends 3.8 percent of their yearly income on housing. Compare this to the national average of 15.1 percent and it becomes easier to see why the population has grown at such a robust pace. The Denton lifestyle is also an attractive draw. That lifestyle is largely cultivated by the more than 38,000 students who are enrolled at The University of North Texas. The public research university is renowned for many of its programs, including a medical school, business school, and an internationally-known college of music. Plan-It Storage certainly benefits from its proximity to the University of North Texas, but perhaps even more critical is the fact that it is located near the city’s biggest high school, Denton Ryan. The Class 5A school is located less than one half-mile away from Plan-It Storage, and its more than 2,300 students, teachers, administrators, and parents regularly use Mayhill Road as a thoroughfare. Close proximity to a school has historically been seen as a major driver of demand for self-storage units due largely to the level of convenience it provides the citizens who may live within the school district (the expansion of Mayhill Road will only increase exposure and demand for units at Plan-It Storage). From a competitive perspective, no other facility within a five-mile radius compares to Plan-It Storage when it comes to the quality of construction, service, and amenities offered to tenants. When this fact is contextualized against the backdrop of a trade area that has experienced consistent rent growth since 2012, it becomes clear that Plan-It Storage will have no trouble raising the rental rates upon stabilization of the facility’s existing economic potential. At a price point of $18,000,000 a new operator will be purchasing a truly institutional quality asset capable of yielding a cash-on-cash return of more than 10 percent upon economic stabilization of the current rental rates.

Exclusively Listed By

Financing By

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