EXPANSION RICHFIELD
- Purchased in May 2022 from single owner operator. The asset was not being managed properly and had additional land for develop. Research and knowing the local storage market indicated that climate controlled self-storage was needed in the market. Our in-house construction team (Storage Construction Management) delivered a beautiful 20,000 sqft climate controlled building in less than 8 months providing us the ability to increase the long term profitability of our investment. We love investing in deals like this one because there is already a cash flow from the existing operations, typically there are very limited challenges in getting new storage built and the construction time line is compressed allowing for us to provide quicker cash flow to our investors.
- We enhanced the customer experience in other areas as well. Since our ownership we have added many features that were previously not available to customers. Contactless rentals and reservations allowing customers to move in without any human interaction and enhanced lighting and security features.
- Purchase Price: $3.5 Million
- Capex Budget: $1.6 Million
- Total Capitalization: $5.1 Million
- Strategy: Facility was 85% occupied upon purchase with additional land to expand. Increase the SQFT and add climate controlled units.
- Project Size: 37,800 NRSF / 262 Units
- Capital Partners: Friends/Family/Syndication
- Revenue Since Purchase: Up 30.2%
- Occupancy: 80% (still in lease up)
- Project Size Post Expansion: 54,800 NRSF / 408 Units
- Value Creation: ~$2.0M since purchase
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