Updated almost 2 years ago on .
Self Storage Equity Investment Opportunity
Opportunity Overview:
I am seeking forward-thinking equity investors to join a syndicated equity investment in a promising self-storage facility in the Midwest. This investment opportunity offers the potential for downside protected returns while maintaining opportunity for meaningful value creation over the next 5-10 years. My underwriting suggests a base case with high teens equity IRR and an upside case with a low twenties IRR.
Key Investment Highlights:
- Competitive Pricing: Current units are priced 10% below the market average, providing an immediate opportunity to increase rates and boost returns.
- Market Leadership: We are the largest provider of self storage within a 5-mile radius—three times larger than any competitor—and the exclusive provider of climate-controlled AC units, offering significant price discovery potential.
- Strong Occupancy Rates: Occupancy has consistently been in the high 80s, and recent expansions in late 2023, including 17 additional units, reflect the growing demand.
- Expansion Potential: There is a strategic opportunity to introduce car/RV parking services and potentially double the capacity in the future, pending market absorption tests.
- Attractive Entry Cap Rate: In place entry cap rate of 9% leaves room for cap rate compression given comps of similar size have traded for 6-8% cap rates in the last 12 months
Investor’s Role and Benefits:
As the principal investor, I will be contributing my own equity and personally guaranteeing the investment, underscoring my commitment and confidence in the project’s success. We are looking to round out the approximately $400K equity needed with contributions from a select group of investors. Each investor is invited to contribute to this equity pool and in turn, will receive proportional shares of the returns.
Ideal Candidate:
I am interested in partners who are willing to put meaningful effort into underwriting the opportunity and vetting me the principal. Ideal candidates should be prepared to contribute their equity checks in the next 60-75 days to join this opportunity.
Next Steps:
If you are interested in exploring this unique investment opportunity, please leave your email address in the comments below or send a direct message to initiate a discussion and to receive the material I have prepared on the opportunity.
Contact Information:
Please provide your contact details to receive a comprehensive investment memorandum and further engagement details.
Background on the principal:
View my background below