Investment Overview

Premium Storage stands out as the premier boat and RV storage facility in southeast Tarrant County. Encompassing 49,271 rentable-square feet across approximately 4.17-acres in Mansfield, Texas, the facility offers a diverse range of amenities that include but are not limited to: 12 climate-controlled self-storage units, 107 covered parking spaces, and 46 uncovered parking spaces. Sizes range from 50 to 575 rentable-square feet, and the facility’s best-in-class physical construction includes standing-seam metal roofs, perimeter fencing and lighting, and gravel driveways. Enhanced security measures such as wrought iron perimeter fencing, personalized key-pad gate access, comprehensive camera surveillance, and automated remote leasing technology provide tenants with a level of convenience and security no other competing facility with a three-mile radius has been able to replicate up to this point. Strategically situated in Mansfield, the facility, built in 2007 and expanded in 2017 and 2023, has consistently maintained a physical occupancy rate exceeding 90 percent and an economic occupancy rate exceeding 85 percent for almost two decades. Nevertheless, current street rates at Premium Storage remain approximately 30 percent below market when compared to the nearest competitor offering similarly-sized units. Following an unprecedented three-year run between 2019 – 2021, recreational vehicle sales at the national level declined precipitously in response to the end of the Covid-19 pandemic. Interestingly, 2023 boat/RV sales volume in Texas decreased by a much smaller amount, and at a much slower rate, than almost every other market in the US. To be sure, the state’s pro-business political climate, relatively low cost-of-living, and incredibly resilient labor market continues to attract new residents, corporate relocations, and commercial investment. When this is considered against the backdrop of a boat/RV storage development market that experienced negligible supply-side growth between 2022 – 2023, at a price of only $2,450,000, year-one unleveraged broker-adjusted returns of approximately 6.50 percent appear reasonably achievable. Further aligning street rates with the submarket average could potentially yield unleveraged pro forma yields exceeding 8.90 percent, and the conversion of the 46 uncovered parking spaces into enclosed parking space substantiate the legitimacy of the projected Year One – Year Five gross revenue figures.