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Self-Storage Facility

Odessa Storage Center

6825 Faudree Rd, Odessa, TX 79765

Listing Price: $1,900,000

Cap Rate
6.67%
Number of Units
186
Occupancy
70.0%
Gross SF
26,800
Rentable SF
26,800
Price/Rentable SF
$70.90
Year Built
2016

Investment Overview

Odessa Storage Center is a 26,800 net rentable square foot self-storage facility located in Odessa, Texas. The property was constructed in 2016 and consists of 186 units. There are 108 climate control units (14,000 NRSF) and 78 non-climate units (12,800 NRSF) The facility has 4 storage buildings and a separate manager’s office space outside of the entrance gate.   Odessa Storage Center offers amenities including, but not limited to video surveillance throughout the property, an automated security gate with keycode access, roll up doors, asphalt driveways, and a manager’s office.   The facility is located on Faudree Road approximately a mile north of State Highway 191 with daily traffic counts of approximately 10,000. State Highway 191 is a main thoroughfare that connects Midland and Odessa, and this area of the city has seen numerous single family and multi-family residential communities recently developed. Situated in the Permian Basin which is the “Heart of American Oil Country”, Odessa and Midland are the hub region for West Texas. Odessa Storage Center is positioned less than 3 miles from the University of Texas Permian Basin campus, which is home to around 7,000 students, completed a $55 million engineering building in 2019, and fields teams in 16 intercollegiate sports. Another nearby area of interest within 3 miles of the facility is the Odessa Country Club. The average household income in the trade area is over $120,000.   The asset is currently around 85 percent physically occupied but only around 50-55 percent economically occupied. The ownership group is an out of state partnership who purchased the property in late 2018. The group hired a professional management company (RPM Storage Management) at the beginning of 2021 and has seen revenue increase by approximately 60 percent since the transition. By continuing to maximize efficiencies and reduce vacancy to 30 percent an end of year one unlevered return of over 6.5 percent could be achieved.

Investment Highlights

  • High Income Area: 1 Mile Average Household Income $175,547 | 3 Mile Average Household Income $148,065
  • Visibility on Faudree Road - Traffic Counts 9,581
  • 2016 Construction – 58 Percent of the Units are Climate Control - $70.90/NRSF
  • Improved Performance With Professional Management: Year Over Year Physical Occupancy Up 50 Percent | Year Over Year Occupancy Up 60 Percent
  • Amenities Such as Roll Up Doors, Asphalt Drives, a Security Gate with Keycode Access and an On-Site Managers Office
  • Numerous New Single Family and Multi-Family Developments Nearby
  • Within 3 Miles of University of Texas Permian Basin Campus and Odessa Country Club

Exclusively Listed By

Self-Storage Facility

Odessa Storage Center

Listing Price: $1,900,000

Cap Rate
6.67%
Number of Units
186
Occupancy
70.0%
Gross SF
26,800
Rentable SF
26,800
Price/Rentable SF
$70.90
Year Built
2016

Investment Highlights

  • High Income Area: 1 Mile Average Household Income $175,547 | 3 Mile Average Household Income $148,065
  • Visibility on Faudree Road - Traffic Counts 9,581
  • 2016 Construction – 58 Percent of the Units are Climate Control - $70.90/NRSF
  • Improved Performance With Professional Management: Year Over Year Physical Occupancy Up 50 Percent | Year Over Year Occupancy Up 60 Percent
  • Amenities Such as Roll Up Doors, Asphalt Drives, a Security Gate with Keycode Access and an On-Site Managers Office
  • Numerous New Single Family and Multi-Family Developments Nearby
  • Within 3 Miles of University of Texas Permian Basin Campus and Odessa Country Club

Investment Overview

Odessa Storage Center is a 26,800 net rentable square foot self-storage facility located in Odessa, Texas. The property was constructed in 2016 and consists of 186 units. There are 108 climate control units (14,000 NRSF) and 78 non-climate units (12,800 NRSF) The facility has 4 storage buildings and a separate manager’s office space outside of the entrance gate.   Odessa Storage Center offers amenities including, but not limited to video surveillance throughout the property, an automated security gate with keycode access, roll up doors, asphalt driveways, and a manager’s office.   The facility is located on Faudree Road approximately a mile north of State Highway 191 with daily traffic counts of approximately 10,000. State Highway 191 is a main thoroughfare that connects Midland and Odessa, and this area of the city has seen numerous single family and multi-family residential communities recently developed. Situated in the Permian Basin which is the “Heart of American Oil Country”, Odessa and Midland are the hub region for West Texas. Odessa Storage Center is positioned less than 3 miles from the University of Texas Permian Basin campus, which is home to around 7,000 students, completed a $55 million engineering building in 2019, and fields teams in 16 intercollegiate sports. Another nearby area of interest within 3 miles of the facility is the Odessa Country Club. The average household income in the trade area is over $120,000.   The asset is currently around 85 percent physically occupied but only around 50-55 percent economically occupied. The ownership group is an out of state partnership who purchased the property in late 2018. The group hired a professional management company (RPM Storage Management) at the beginning of 2021 and has seen revenue increase by approximately 60 percent since the transition. By continuing to maximize efficiencies and reduce vacancy to 30 percent an end of year one unlevered return of over 6.5 percent could be achieved.

Exclusively Listed By

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