Package of 3 Self Storage Facilities

[Deidra Swenson]

Investment Info:

Other buy & hold investment.

Purchase price: $2,100,000
Cash invested: $350,000

We were super excited to find an opportunity to add more self storage to our portfolio. This opportunity was a gentleman looking to retire and sell off his self storage facilities as a package deal. Two of the properties were located in Northern MN and one in Northern WI. With them being spread out from each other, all of the offers he was getting were just for an individual location. Since we were willing to purchase as a package we were able to get him to come down in price, give us seller financing for the whole deal, and put less than 25% down! It was a win win for both because he wanted to reduce his tax liability and sell all three locations together and we wanted specific terms with the seller financing. The seller owned the properties since 2016 and never did any rent increases on existing customers and his market rates were below market. We've already begun to raise rents and plan to refinance and pull our down payment out of the deal within 2 years.

What made you interested in investing in this type of deal?

We wanted to continue growing our self storage portfolio.

How did you find this deal and how did you negotiate it?

Through broker relationship

How did you finance this deal?

Seller financing