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Self-Storage Facility

Alpha Storage Centers

2920 Avenue F, Arlington, TX 76011

Listing Price: $3,750,000

Cap Rate
6.67%
Number of Units
290
Occupancy
75.0%
Gross SF
88,107
Rentable SF
88,107
Price/Rentable SF
$42.56
Year Built
1961

Investment Overview

Alpha Storage Centers is an 88,107 rentable-square foot self-storage facility and warehouse resting on approximately 3.42 acres in Arlington, Texas (Dallas-Fort Worth). The split-level building was originally constructed in 1961 then partially converted to climate-controlled storage in 2018. The upper level comprises 289 climate-controlled units encompassing 36,075 rentable-square feet of storage, and it features garage-style roll up doors, 24-hour video surveillance cameras, professional manager’s office and showroom, fire sprinklers, and personalized key-pad entry. The lower level contains 52,032 rentable-square feet of warehouse space that is currently leased to JMV Transportation, a shipping and logistics company. JMV Transportation is in in the second year of their five-year lease term, so a new operator will have the ability to convert the entirety of the building to climate-controlled storage in the future should they desire to do so. The property benefits from its strategic location near one of the most heavily trafficked corridors in the entire metroplex wherein Interstate 30, the George Bush Turnpike, and Highway 360 converge - approximately 15 miles from both downtown Dallas and downtown Fort Worth. Population in the submarket has exploded over the past 10 years, bolstered by the presence of AT&T Stadium (home of the Dallas Cowboys), Globe Life Field (home of the Texas Rangers), as well as Six Flags Over Texas. Furthermore, both visibility and accessibility to the facility will significantly improve in the future, as the Texas Department of Transportation recently approved Proposition 1 funding toward the new $233 million direct connect I-30/SH 360 interchange located near Alpha Self Storage. The project started in Spring 2016 and is estimated for completion in 2022. The project will provide a fully directional interchange at I-30 and SH 360 and will include the reconstruction and widening of the Six Flags Drive bridge over I-30 from two lanes to five lanes (three southbound lanes and two northbound lanes). The bridge will improve access to Six Flags Over Texas and the greater commercial area by extending Six Flags Drive north to Avenue H. Offered for $3,750,000, a new investor will be purchasing the asset at replacement cost ($42.56 per rentable-square foot) for a year one broker-adjusted 6.67 percent cap rate. Furthermore, by continuing the facility’s current lease-up trend and raising tenants to the street rates (which are still below submarket averages), pro forma unleveraged returns above eight percent are achievable.

Investment Highlights

  • 6.67 Percent Year One Cap Rate (Broker-Adjusted)
  • Opportunity to Convert Warehouse Space to Storage
  • 60 Percent Economic Occupancy – Upside Potential

Exclusively Listed By

Financing By

Self-Storage Facility

Alpha Storage Centers

Listing Price: $3,750,000

Cap Rate
6.67%
Number of Units
290
Occupancy
75.0%
Gross SF
88,107
Rentable SF
88,107
Price/Rentable SF
$42.56
Year Built
1961

Investment Highlights

  • 6.67 Percent Year One Cap Rate (Broker-Adjusted)
  • Opportunity to Convert Warehouse Space to Storage
  • 60 Percent Economic Occupancy – Upside Potential

Investment Overview

Alpha Storage Centers is an 88,107 rentable-square foot self-storage facility and warehouse resting on approximately 3.42 acres in Arlington, Texas (Dallas-Fort Worth). The split-level building was originally constructed in 1961 then partially converted to climate-controlled storage in 2018. The upper level comprises 289 climate-controlled units encompassing 36,075 rentable-square feet of storage, and it features garage-style roll up doors, 24-hour video surveillance cameras, professional manager’s office and showroom, fire sprinklers, and personalized key-pad entry. The lower level contains 52,032 rentable-square feet of warehouse space that is currently leased to JMV Transportation, a shipping and logistics company. JMV Transportation is in in the second year of their five-year lease term, so a new operator will have the ability to convert the entirety of the building to climate-controlled storage in the future should they desire to do so. The property benefits from its strategic location near one of the most heavily trafficked corridors in the entire metroplex wherein Interstate 30, the George Bush Turnpike, and Highway 360 converge - approximately 15 miles from both downtown Dallas and downtown Fort Worth. Population in the submarket has exploded over the past 10 years, bolstered by the presence of AT&T Stadium (home of the Dallas Cowboys), Globe Life Field (home of the Texas Rangers), as well as Six Flags Over Texas. Furthermore, both visibility and accessibility to the facility will significantly improve in the future, as the Texas Department of Transportation recently approved Proposition 1 funding toward the new $233 million direct connect I-30/SH 360 interchange located near Alpha Self Storage. The project started in Spring 2016 and is estimated for completion in 2022. The project will provide a fully directional interchange at I-30 and SH 360 and will include the reconstruction and widening of the Six Flags Drive bridge over I-30 from two lanes to five lanes (three southbound lanes and two northbound lanes). The bridge will improve access to Six Flags Over Texas and the greater commercial area by extending Six Flags Drive north to Avenue H. Offered for $3,750,000, a new investor will be purchasing the asset at replacement cost ($42.56 per rentable-square foot) for a year one broker-adjusted 6.67 percent cap rate. Furthermore, by continuing the facility’s current lease-up trend and raising tenants to the street rates (which are still below submarket averages), pro forma unleveraged returns above eight percent are achievable.

Exclusively Listed By

Financing By

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