Self-Storage Facility

Bargain Storage Two Property Portfolio

11539 Canemont St, Houston, TX 77035

Listing Price: $4,250,000

Cap Rate
4.93%
Number of Units
454
Occupancy
81.70%
Gross SF
69,757
Rentable SF
69,757
Price/Rentable SF
$60.93
Year Built
1982

Investment Overview

The Bargain Storage two Property Portfolio is a 69,757 net rentable square foot self storage facility located in Houston, Texas. The two properties are about one half mile from one another and sit on a combined 3.84 acres with 18 metal framed single story buildings and consist of 454 drive-up non-climate storage units. Included in the square footage are 68 portable units that were delivered in 2019. The property at 11539 Canemont was built in two phases between 1974 and 1982 and has 205 units and 37,308 NRSF and the property at 12151 Ormandy was built in 1981 and has 247 units and 32,449 NRSF. There are also two outdoor parking spots. Both properties feature numerous amenities including, but not limited to, video surveillance throughout the property, concrete driveways, and perimeter wrought iron fencing. The Canemont location has a full-service on-site manager’s office and both locations have a residence. The Ormandy location is operated as an unmanned facility. The locations are in a densely populated area of southwest Houston with around 150,000 people estimated to live within three miles of the properties. The Bargain Storage Ormandy location is visible from US Highway 90A (S. Main Street) with traffic counts of nearly 67,000 vehicles. There is a marquee sign at the Ormandy and the owner rents sign space from the adjacent shopping center that is on the frontage. Additionally there is an easement that allows the owner to construct a sign on US 90A. US 90A is a primary thoroughfare connecting the southwestern Houston suburbs and primary Fort Bend County cities such as Sugar Land, and Missouri City to major inner-loop destinations like NRG Stadium, The Texas Medical Center, and Downtown not to mention an uninterrupted route to Loop 610. The access to Houston’s interior that these locations provide is also highlighted by one of the hottest industrial areas in the city at the corner of US 90A and Beltway 8 (Sam Houston Tollway). The properties are also about 1.5 miles from the Fort Bend Parkway Toll Road which is another major connector serving the heavily populated eastern portion of Fort Bend County. The owner purchased the Canemont location in October of 2018 and the Ormandy location in May of 2019 from unsophisticated self-storage operators and has quickly improved operations. As of August 1st, 2020, the Bargain Storage Portfolio was approximately 82 percent physically occupied which is a far cry from the combined 65 percent occupancy that was in place at the time the 2nd facility was purchased. Gross monthly revenues have increased in-step from $24,350 to $38,579 over the same time frame. Despite the rapid financial improvement there is still ample upside as achieved rental rates for non-climate assets are still about 2/3 of submarket norms. Increased rent growth and occupancy should be fueled by the area’s low supply which is less than 5.5 square feet per capita in a three-mile radius. Additionally, ownership has spent around $1,000,000 on CAPEX and portable units since the Canemont facility was purchased. New lighting, painting, a modernized camera system, extensive door repairs, drainage, and paving were some of the notable improvements. Also, about 10 percent of the CAPEX budget was used for remodeling the aforementioned on-site apartments. The property is performing ahead of projections, but these are the only two assets the Seller has left in Houston and they are looking to consolidate their focus to markets where they already have significantly greater scale. Thus, ownership is willing to sell early and leave most of the profit for the next buyer.

Investment Highlights

  • Enormous Upside – Rental Rates Approximately 2/3 of Submarket
  • Under Supplied Trade Area – 5.35 Square Feet of Storage Per Capita
  • 66,539 Daily Traffic Counts – Visibility on Major Corridor US Highway 90A
  • Densely Populated Southwest Houston Location – 3 Mile Population Around 150,000
  • 454 Drive Up Non-Climate Units - 69,757 NRSF
  • Approximately $1,000,000 Spent on CAPEX and New Portable Units Since October 2018
  • Perimeter Wrought Iron Fencing with Key Code Access
  • Full-Service Management Office and Residences

Exclusively Listed By

Self-Storage Facility

Bargain Storage Two Property Portfolio

Listing Price: $4,250,000

Cap Rate
4.93%
Number of Units
454
Occupancy
81.70%
Gross SF
69,757
Rentable SF
69,757
Price/Rentable SF
$60.93
Year Built
1982

Investment Highlights

  • Enormous Upside – Rental Rates Approximately 2/3 of Submarket
  • Under Supplied Trade Area – 5.35 Square Feet of Storage Per Capita
  • 66,539 Daily Traffic Counts – Visibility on Major Corridor US Highway 90A
  • Densely Populated Southwest Houston Location – 3 Mile Population Around 150,000
  • 454 Drive Up Non-Climate Units - 69,757 NRSF
  • Approximately $1,000,000 Spent on CAPEX and New Portable Units Since October 2018
  • Perimeter Wrought Iron Fencing with Key Code Access
  • Full-Service Management Office and Residences

Investment Overview

The Bargain Storage two Property Portfolio is a 69,757 net rentable square foot self storage facility located in Houston, Texas. The two properties are about one half mile from one another and sit on a combined 3.84 acres with 18 metal framed single story buildings and consist of 454 drive-up non-climate storage units. Included in the square footage are 68 portable units that were delivered in 2019. The property at 11539 Canemont was built in two phases between 1974 and 1982 and has 205 units and 37,308 NRSF and the property at 12151 Ormandy was built in 1981 and has 247 units and 32,449 NRSF. There are also two outdoor parking spots. Both properties feature numerous amenities including, but not limited to, video surveillance throughout the property, concrete driveways, and perimeter wrought iron fencing. The Canemont location has a full-service on-site manager’s office and both locations have a residence. The Ormandy location is operated as an unmanned facility. The locations are in a densely populated area of southwest Houston with around 150,000 people estimated to live within three miles of the properties. The Bargain Storage Ormandy location is visible from US Highway 90A (S. Main Street) with traffic counts of nearly 67,000 vehicles. There is a marquee sign at the Ormandy and the owner rents sign space from the adjacent shopping center that is on the frontage. Additionally there is an easement that allows the owner to construct a sign on US 90A. US 90A is a primary thoroughfare connecting the southwestern Houston suburbs and primary Fort Bend County cities such as Sugar Land, and Missouri City to major inner-loop destinations like NRG Stadium, The Texas Medical Center, and Downtown not to mention an uninterrupted route to Loop 610. The access to Houston’s interior that these locations provide is also highlighted by one of the hottest industrial areas in the city at the corner of US 90A and Beltway 8 (Sam Houston Tollway). The properties are also about 1.5 miles from the Fort Bend Parkway Toll Road which is another major connector serving the heavily populated eastern portion of Fort Bend County. The owner purchased the Canemont location in October of 2018 and the Ormandy location in May of 2019 from unsophisticated self-storage operators and has quickly improved operations. As of August 1st, 2020, the Bargain Storage Portfolio was approximately 82 percent physically occupied which is a far cry from the combined 65 percent occupancy that was in place at the time the 2nd facility was purchased. Gross monthly revenues have increased in-step from $24,350 to $38,579 over the same time frame. Despite the rapid financial improvement there is still ample upside as achieved rental rates for non-climate assets are still about 2/3 of submarket norms. Increased rent growth and occupancy should be fueled by the area’s low supply which is less than 5.5 square feet per capita in a three-mile radius. Additionally, ownership has spent around $1,000,000 on CAPEX and portable units since the Canemont facility was purchased. New lighting, painting, a modernized camera system, extensive door repairs, drainage, and paving were some of the notable improvements. Also, about 10 percent of the CAPEX budget was used for remodeling the aforementioned on-site apartments. The property is performing ahead of projections, but these are the only two assets the Seller has left in Houston and they are looking to consolidate their focus to markets where they already have significantly greater scale. Thus, ownership is willing to sell early and leave most of the profit for the next buyer.

Exclusively Listed By

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