A-A-A Storage

A-A-A Storage2020-03-19T14:44:49-04:00

Project Description

The Self Storage Advisory Group of Cushman and Wakefield has been exclusively selected to offer for sale A-A-A Storage in the heart of Houston, Texas.

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NRSF – 104,388

1927 Scott Street
Houston, TX 77003

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.

Investment Highlights:

  • 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
  • Sign CA to View Offering Memorandum

  • Confidentiality and Buyer Registration Agreement

    Cushman & Wakefield U.S., Inc. ("Broker") has been retained as the exclusive advisor and broker regarding the sale of the property known as A-A-A Storage.

    To receive an Offering Memorandum ("Offering Memorandum") please read, sign and return this completed Confidentiality Agreement to Broker. The Offering Memorandum has been prepared by Broker for use by a limited number of parties and does not purport to provide a necessarily accurate summary of the property or any of the documents related thereto, nor does it purport to be all-inclusive or to contain all of the information which prospective Buyers may need or desire. All projections have been developed by Broker and designated sources and are based upon assumptions relating to the general economy, competition, and other factors beyond the control of the Seller and therefore are subject to variation. No representation is made by Broker or the Seller as to the accuracy or completeness of the information contained herein, and nothing contained herein shall be relied on as a promise or representation as to the future performance of the property. Although the information contained herein is believed to be correct, the Seller and its employees disclaim any responsibility for inaccuracies and expect prospective purchasers to exercise independent due diligence in verifying all such information. Further, Broker, the Seller and its employees disclaim any and all liability for representations and warranties, expressed and implied, contained in or omitted from the Offering Memorandum or any other written or oral communication transmitted or made available to the Buyer. The Offering Memorandum does not constitute a representation that there has been no change in the business or affairs of the property or the Owner since the date of preparation of the Offering Memorandum. Analysis and verification of the information contained in the Offering Memorandum are solely the responsibility of the prospective Buyer. Additional information and an opportunity to inspect the property will be made available upon written request to interested and qualified prospective Buyers.

    By accepting the Offering Memorandum, you agree to indemnify, defend, protect and hold Seller and Broker and any affiliate of Seller or Broker harmless from and against any and all claims, damages, demands, liabilities, losses, costs or expenses (including reasonable attorney's fees, collectively "Claims") arising, directly or indirectly from any actions or omissions of Buyer, its employees, officers, directors or agents.

    By accepting the Offering Memorandum, you acknowledge that you are a principal and not an agent of or acting on behalf of any other party in connection with the acquisition. Buyer acknowledges that it is aware that any Agent/Broker other than Cushman & Wakefield, must be compensated by Buyer as Cushman & Wakefield is not cooperating on fees. Furthermore, Buyer acknowledges that it has not had any discussion regarding this Property's Sale with any other broker or agent other than Broker or an agent/broker properly identified through this registration process, including but not limited to, resolutions of incomplete, conflicting or duplicate registrations. Buyer shall indemnify and hold Seller and Broker harmless from and against any claims, causes of action or liabilities, including, without limitation, reasonable attorney's fees and court costs which may be incurred with respect to any claims for other real estate commissions, broker's fees or finder's fees in relation to or in connection with the Property to the extent claimed, through or under Seller.

    The Seller and Broker each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the Property and/or to terminate discussions with any entity at any time with or without notice. The Seller shall have no legal commitment or obligations to any entity reviewing the Offering Memorandum or making an offer to purchase the Property unless a written agreement for the purchase of the Property has been fully executed, delivered, and approved by the Seller and its legal counsel, and any conditions to the Seller's obligation thereunder have been satisfied or waived.

    The Offering Memorandum and the contents, except such information which is a matter of public record or is provided in sources available to the public, are of a confidential nature. By accepting the Offering Memorandum, you agree that you will hold and treat it in the strictest confidence, that you will not photocopy or duplicate it, that you will not disclose the Offering Memorandum or any of the contents to any other entity (except to outside advisors retained by you, if necessary, for your determination of whether or not to make an offer and from whom you have obtained an agreement of confidentiality) without prior written authorization of the Seller or Broker, and that you will not use the Offering Memorandum or any of the contents in any fashion or manner detrimental to the interest of the Seller or Broker.

    No employee of seller or at the subject property is to be contacted without the written approval of the listing agents and doing so would be a violation of this confidentiality agreement.