Latest Self Storage Project

[Henry Clark]

Investment Info:

Other commercial investment investment.

Cash invested: $3,100,000

Developed new Self Storage location from ground up. 339 units with traditional 10 x 10/15/20 units and also 12 x 20/30/40 units. Currently in Rent up Phase at 28% occupancy.

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

Our 8th location. Market demand is good in this area.

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

Working with Realtor and found 8 acres that fit within zoning rules.

How did you finance this deal?

Construction loan with existing bank relationship. Transferring to an SBA loan.

How did you add value to the deal?

Ground up development

What was the outcome?

Rent up phase. Site turned out great.

Lessons learned? Challenges?

Confirm utilities. Had a fire hydrant on the property, but it was private. Had to install our own main water line.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

One off deal.

[Henry Clark]

@ above

Will hold.  Have 8 locations in 5 towns/Cities.  Enjoy developing properties, or buying if the price is right.  We now have about a 40 mile area "cornered", thus we have started raising prices since the customer base won't travel 60 to find a cheaper spot.  That is why for Storage, I like to build/buy in a general area, just one more value add position to achieve.

We self manage.  See our youtube on our website.  Through my phone and the self service process we have, we cover all locations.  Could automate further and may in the future to where I don't take the calls.  But, I like having a sense of the market which you get from the calls.  You don't get that via a Call center.  This is important during the Rent up Phase, if you need to adjust something.

$3.1mm.  I might have filled out the form incorrectly. SBA Loan 10% collateral. We put up $310,000.  $200 of the $310 is from leveraging our paid off Storage locations.  Firm believer in OPM in Real Estate to leverage our gains.  If we did just our money, we could not have grown so fast without selling off other assets which we want to keep.