Investment Overview

Marcus & Millichap is pleased to exclusively represent the owners of the Premium Storage Portfolio, a two-property offering located in Houston, Texas. Together, the facilities contain 57,875 rentable-square feet of conventional mini storage space distributed across 526 units that are situated on approximately 4.83-acres of land (two total parcels). Prospective owners will be drawn to the portfolio’s impressive physical features, which include garage-style roll-up doors, 24-hour video surveillance, personalized key-pad gated entry, and perimeter fencing and lighting. In addition, the health of the Houston economy continues to attract investors seeking stable, risk-adjusted returns, and an opportunity for capital appreciation in an otherwise volatile global investment market. The facilities are owned and remotely managed by a private investment firm in Dallas, and tenants execute leases via telephone, the facilities’ websites, or the kiosks that reside within each of the facilities’ professional leasing offices. Priced at $7,750,000, investors could expect to achieve unleveraged, broker-adjusted returns of approximately 6.07 percent by the end of year-one. With that said, when the facilities’ historical performance metrics are considered alongside the submarkets’ favorable demographic profiles, stable competitive landscapes, and a growing population base, the potential for future value creation through revenue-enhancement becomes virtually self-evident. Both facilities are located within submarkets that are extremely attractive from a supply/demand perspective. To be sure, the three-mile radius surrounding the Sierra Ranch facility features only 4.57 rentable-square feet of storage supply-per-capita, and the West Bellfort location’s three-mile ratio lies at only 8.86 rentable-square feet per capita. These unusually low supply metrics have undoubtedly contributed to the current owner’s ability to raise the facilities’ respective rental rates by six and 9.46 percent during the previous 12-month period ending April 2024. These figures are approximately 5.81 percent higher than the Texas state average (0.19 percent), and 5.82 percent higher than the national average (0.18 percent), underscoring the facilities’ inherent resiliency and future growth potential.