A-A-A Storage is comprised of 104,388 net rentable square feet across two buildings on approximately 1.7 acres of land. The newly-built, Class A facility offers a wide-variety of storage options with 797 climate-controlled units and 20 non-climate-controlled units ranging from 16 square feet to 500 square feet for a total of 817 units in post expansion. Expansion has yielded a new office along with 126 units along Scott Street, further benefiting the investment with maximum visibility along this well-traveled thoroughfare. To ensure a secure premises, the facility is well-equipped with premium video surveillance, electronic gating, a fenced perimeter, optimal lighting, keypad access and an electronic signature payment system. The subject’s physical and economic occupancies are indicative of its brand-new lease-up phase. The facility is currently being expanded upon to accommodate the high-demand for storage within the Houston Metropolitan Area, which is one of the largest and most diverse regions in the United States.
The facility is impeccably situated in East Downtown, Houston, a revitalized district of the Houston metropolitan located less than a mile from the center of the city. A-A-A Storage is adjacent to Leeland Third Ward Train Station and one block from Interstate 45, which witnesses a heavy traffic count of over 259,000 vehicles per day. The facility will benefit immensely from a robust population exceeding 170,000 individuals within a three-mile radius, in addition to a growth rate of 1.6 percent annually from 2020 to 2023 within this same radius. A-A-A Storage is located in a dense residential zone with several developments underway and now completed; the newly-constructed EaDo Lofts and Fenix Estates directly surround the property, yielding nearly 300 units. There are over 2,100 multifamily housing units that have recently been completed within three miles of the property and over 3,000 units in a phase of planning or development, indicating the strong demand for self-storage within this heavily-populated district of Houston. The site is within close proximity to the Greater Eastwood residential area, sprawling with single-family residential homes and highly-lauded public schools. Additionally, the subject is adjacent to Houston’s High School for Law and Justice, a magnet school ranked for its high academic scores and student-to-teacher ratio. Furthermore, the facility is within a mile of the University of Houston, which boasts an enrollment over 46,000 students per year.
A-A-A Storage allows an investor the unique opportunity to acquire a new, Class A storage asset with multiple upsides in a top-10 metro area. The facility is ideally situated in a high barrier to entry market; the project required multiple years to receive approval from the city. The property has forward-looking financials with cash-on-cash returns of 9.1 percent and 13.7 in years three and four, in addition to leveraged IRRs of 16.8 percent and 20.5 in years three and four. Additionally, the subject’s growth potential is reflected in a year four proforma cap rate of 7.99 percent. An investor can increase revenue by implementing a truck rental program and bolstering the current tenant insurance platform in place. Furthermore, A-A-A Storage represents a rare advantage in obtaining a brand-new facility within a thriving downtown district of the Houston Metropolitan Area.
- Brand-New, Class A Storage Asset in a Top-10 Metropolitan Area
- Over 170,000 Individuals Within Three Miles
- 0.8 Miles from Interstate 45 With Over 259,000 Vehicles Daily
- Cash-On-Cash Returns of 9.1 Percent and 13.7 Percent in Years Three and Four
- Leveraged IRRs of 16.8 Percent and 20.5 Percent in Years Three and Four
- Projected Three-Mile Growth Rate of 1.6 Percent Annually, Surpassing the National Average
- High Barrier-to-Entry Market Requiring a Years-Long, Difficult Approval Process from the City of Houston