We would like to invite you to explore what we feel is an exceptional offering in one of the most sought-after areas in cash flow real estate today, Self-Storage.
Our discovery of two self-storage properties came through two years of concentrated market analysis and searching. As an example, the Denver market over the last few years has exploded. Properties have soared in value both in the commercial sector and in residential offerings. Multiple offers on the Front Range have become commonplace and the rate at which people are moving into the state is unsurpassed by any time in the modern history of Colorado.
Stor-N-Lok and Interstate Secure Storage are two mature self-storage facilities located 11 miles apart in the ever-popular location of Colorado Springs in the heart of the Colorado Rockies. Stor-N-Lok is on the south side of the city and Interstate is on the north. The two assets have a combined total of 115,655 net rentable square feet and contain 939 rental storage units. The properties are presently rented above 80% occupancy and are financially stable.
Located in zoning which attracts the self-storage customer, the land mass is a combined total of 8.43 acres. There is a generous mix of large and small storage units in addition to RV, trailer, and auto (outdoor storage) to accommodate the demand for customers who love recreation and their toys. Both facilities have on-site managers who reside on the property in a live/work situation. Both properties are located within one minute of Interstate 25 – the heartbeat of the north/south corridor. This provides access for Coloradans ands visitors to reside, commute, shop, and conduct business via this key artery of transportation.
Occupancy will be improved which will drive bottom line income. There are several factors to improve results, which is why these two properties caught our attention. The current websites for either property lack a search engine optimization function hindering new customers from finding the facilities directly. Only costly third-party Internet sites list the facilities, a poor use of resources. Second, new management will create a technology-based marketing approach for securing customers. Finally, along with new management and improved marketing, physical improvements and new branding will set the stage for developing a broader customer base that will be attracted to the facility simply because of a more upbeat, clean, and modern feel and design. Our motto, “clean, safe, secure self-storage” has proven to be what customers desire when committing to a relationship in storing their goods.
The pages that follow will offer a financial and physical overview of these two properties we are acquiring over the next 30 days with an in-depth explanation of this opportunity.
The financial plan will show a cash-on-cash return (defined as disbursements per year plus loan pay down/reductions) similar to our other Front Range Self Storage facilities. This is in excess of 10% to the limited partners. Although they can be considerable in all projects, to keep projections simple, this offer does not include any proposal of equity appreciation or tax savings from this venture.
Our goal in projects like this one continues to be long-term cash flow. The return is not guaranteed, but our previous track record gives us confidence in the expectations you will see in our information. The photo gallery shows both properties and areas as they are today.