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Self-Storage Facility

iStor Self Storage

1021 Ovilla Rd, Waxahachie, TX 75167

Listing Price: $8,000,000

Cap Rate
3.55%
Number of Units
386
Occupancy
90.1%
Gross SF
61,750
Rentable SF
61,750
Price/Rentable SF
$129.55
Year Built
2015

Investment Overview

iStor Self Storage is a “Class A” single-story facility located in the rapidly-growing Midlothian / Waxahachie submarket of the Dallas-Fort Worth Metroplex. Built to institutional-grade standards between 2015 and 2020, the property features 61,750 rentable-square feet of storage space distributed amongst 298 non-climate drive-up units, and 88 climate-controlled units. Resting upon one parcel approximately 11.45 acres in size, the owner-operated facility is approximately 98 percent physically occupied, and approximately 90 percent economically occupied as of September 2021. The facility’s steady lease-up trajectory recently prompted the current owner to begin dirt work on a sixth expansion phase. With that said, roughly half of the total acreage lies outside the city limits of Waxahachie and remains unimproved – thus providing a new owner with the ability to virtually double size of the facility’s existing footprint upon acquisition. The expansion opportunity is legitimized when it is contextualized against the backdrop of a trade area that is currently experiencing tremendous growth from a population and commercial development perspective. To be sure, a number of high-profile projects poised to transform the landscape of the Midlothian / Waxahachie submarket are in various stages of development. Jerry Jones, the owner of the Dallas Cowboys, recently announced his purchase of a 120-acre tract less than one mile away from iStor Self Storage at the southwest corner of Interstate-35E and U.S. Highway 287. Mr. Jones’ development company, Blue Star Land, has partnered with Dallas-based Lincoln Property to develop the tract. The mixed-use project will consist of urban-residential, industrial, e-commerce, retail, and commercial sites. The industrial portion of the tract will encompass approximately 70 acres, approximately 15 acres on the south side of the tract will be dedicated to multi-family construction, and the remaining highway frontage will be allocated for retail usage. The developers were attracted to the site’s visibility and access from two different highways, and they have already received zoning approval for the project. Separately, Dallas-based Hanover Property recently announced the builder line-up for its $950,000,000 master-planned development in Midlothian, called BridgeWater. Located less than three miles away from iStor Self Storage to the west, the 966-acre development will bring 2,000 single-family homes, 160 townhomes, 26 acres of commercial property, and 42 acres of industrial real estate to the area. Development of BridgeWater’s first phase is already underway and will include 470 residential lots. In fact, Hanover executive Ben Luedtke recently commented “We’re releasing more lots in this first phase than we originally anticipated based on the high market demand”. To facilitate the submarket’s rapid growth, a variety of state-funded infrastructure projects are either in the construction or planning phase. The expansion of FM 664 into a divided four-lane multi-directional road (TxDOT project number 105101060) will prove particularly transformative as it will significantly enhance accessibility and visibility to a rapidly growing population base. With that said, the opportunity for value-creation is not limited exclusively to physical expansion of the facility’s footprint or improvements to the surrounding infrastructure. The current owner, a local Waxahachie resident, has been historically reticent to raise rents despite market conditions that clearly warrant it. To be sure, the facility was constructed using a combination of open and closed cell foam insulation and three Ground Source Climate Master 30EER Geothermal HVAC units that not only provides the operator with significant savings on utility bills, it provides tenants with a level of comfort during the hot Texas summers not available at competing facilities. Additionally, the facility has three propane Generac back-up generators capable of powering the entire facility in the event of a power outage, and 57 cameras have been installed using fiber optic cables to reduce the probability of a lightning strik

Investment Highlights

  • Purchase Price - $8,000,000
  • 98.06% Physical Occupancy (September 2021)
  • 90.07% Economic Occupancy (September 2021)

Exclusively Listed By

Self-Storage Facility

iStor Self Storage

Listing Price: $8,000,000

Cap Rate
3.55%
Number of Units
386
Occupancy
90.1%
Gross SF
61,750
Rentable SF
61,750
Price/Rentable SF
$129.55
Year Built
2015

Investment Highlights

  • Purchase Price - $8,000,000
  • 98.06% Physical Occupancy (September 2021)
  • 90.07% Economic Occupancy (September 2021)

Investment Overview

iStor Self Storage is a “Class A” single-story facility located in the rapidly-growing Midlothian / Waxahachie submarket of the Dallas-Fort Worth Metroplex. Built to institutional-grade standards between 2015 and 2020, the property features 61,750 rentable-square feet of storage space distributed amongst 298 non-climate drive-up units, and 88 climate-controlled units. Resting upon one parcel approximately 11.45 acres in size, the owner-operated facility is approximately 98 percent physically occupied, and approximately 90 percent economically occupied as of September 2021. The facility’s steady lease-up trajectory recently prompted the current owner to begin dirt work on a sixth expansion phase. With that said, roughly half of the total acreage lies outside the city limits of Waxahachie and remains unimproved – thus providing a new owner with the ability to virtually double size of the facility’s existing footprint upon acquisition. The expansion opportunity is legitimized when it is contextualized against the backdrop of a trade area that is currently experiencing tremendous growth from a population and commercial development perspective. To be sure, a number of high-profile projects poised to transform the landscape of the Midlothian / Waxahachie submarket are in various stages of development. Jerry Jones, the owner of the Dallas Cowboys, recently announced his purchase of a 120-acre tract less than one mile away from iStor Self Storage at the southwest corner of Interstate-35E and U.S. Highway 287. Mr. Jones’ development company, Blue Star Land, has partnered with Dallas-based Lincoln Property to develop the tract. The mixed-use project will consist of urban-residential, industrial, e-commerce, retail, and commercial sites. The industrial portion of the tract will encompass approximately 70 acres, approximately 15 acres on the south side of the tract will be dedicated to multi-family construction, and the remaining highway frontage will be allocated for retail usage. The developers were attracted to the site’s visibility and access from two different highways, and they have already received zoning approval for the project. Separately, Dallas-based Hanover Property recently announced the builder line-up for its $950,000,000 master-planned development in Midlothian, called BridgeWater. Located less than three miles away from iStor Self Storage to the west, the 966-acre development will bring 2,000 single-family homes, 160 townhomes, 26 acres of commercial property, and 42 acres of industrial real estate to the area. Development of BridgeWater’s first phase is already underway and will include 470 residential lots. In fact, Hanover executive Ben Luedtke recently commented “We’re releasing more lots in this first phase than we originally anticipated based on the high market demand”. To facilitate the submarket’s rapid growth, a variety of state-funded infrastructure projects are either in the construction or planning phase. The expansion of FM 664 into a divided four-lane multi-directional road (TxDOT project number 105101060) will prove particularly transformative as it will significantly enhance accessibility and visibility to a rapidly growing population base. With that said, the opportunity for value-creation is not limited exclusively to physical expansion of the facility’s footprint or improvements to the surrounding infrastructure. The current owner, a local Waxahachie resident, has been historically reticent to raise rents despite market conditions that clearly warrant it. To be sure, the facility was constructed using a combination of open and closed cell foam insulation and three Ground Source Climate Master 30EER Geothermal HVAC units that not only provides the operator with significant savings on utility bills, it provides tenants with a level of comfort during the hot Texas summers not available at competing facilities. Additionally, the facility has three propane Generac back-up generators capable of powering the entire facility in the event of a power outage, and 57 cameras have been installed using fiber optic cables to reduce the probability of a lightning strik

Exclusively Listed By

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