Stor-N-Lok Storage and Interstate Secure Storage
Colorado Springs, Colorado
Thank you for taking the time to review this exceptional opportunity we are excited to offer to you.
We are happy to share our latest “purchase and improve” for long-term cash flow self-storage acquisition. In our search for properties that are in “working order” and have a strong propensity for predictable growth and long-term cash flow, we have found two properties that fit the plan. They are presently owned by a group of apartment owners from San Diego, CA. Their venture into self-storage has not fulfilled their expectations and we are in a purchase agreement with them that looks very favorable for us.
With the implementation of proven office practice(s) and attention to physical maintenance, this property shows great potential for a new operator who has a system of turning similar properties around. For example, Internet Sales and Technology drive a huge part of our current business. The existing web sites for the properties (handled by 3rd party operators) are extremely difficult to navigate and have no “call to action” resulting in lost revenue. Evidence of poor maintenance is everywhere. Mounds of gravel have been deposited by several years of rainwater and snow-melt and gutters that do not move the water properly. Weeds run rampant. The billboard sign for Interstate Secure Storage has deteriorated to a point of embarrassment. Both properties share a moving truck but it is in dire need of a facelift…from the paint to the interior to the engine compartment to the tires. A true working pride does not seem to be associated with the management practices.
The properties hover at an economic occupancy of 80% or less in a marketplace where other quality operations are seeing great demand and a 90%+ occupancy. There have been no rent increases in the past two years as reported by the managers. With a concentrated capital investment and a systematized management and maintenance program both properties should hum.
Our total investment (land, improvements to management of the physical property cash flow and good will) is less than $57.00 per square foot of rentable space including our planned improvements. Based on comparable properties that have sold in Colorado, this is a very favorable. With our similar past projects we have seen stability and asset value growth in this type of property. Stor-N-Lok is located directly outside the main gate to one of the world’s premier leading posts, Fort Carson (home to nine divisions) and seven other surrounding military installations that take advantage of the huge demand by soldiers and their families moving in and out. This is in addition to the general public storing their “stuff”, personal vehicles and recreational toys.
The outline and overview that follows will offer you a basis for evaluating the properties and the potential. We cannot offer a guarantee but we can offer the current market and our past performance.
There are so many small improvements that will take these self-storage properties to new heights…such as …
- Placing a U-Haul truck with prominent visibility while we partner in shared revenue and branding power
- New, bright, shiny signage that celebrates new management, owners, and renovated facilities
- Overhaul of the offices that will distinguish ourselves as the leader in service that includes a clean, safe, secure self storage environment
- Directional signage
- Technology to include online purchasing, communications, and search engine optimization
- New name, logos, branding, and employee uniforms
- New marketing to target the clientele that we will be serving (Ft. Carson, hospitals, local businesses, colleges, outdoor storage that services toys and RV’s for winter storage.
As you can see, the list goes on and on of the possibilities to create a winner of this project and we look forward to having you join us for the journey. I will be contacting you to inform you of the website that we are creating which will give you a more detailed picture of the properties.
Thanks for allowing me to share this opportunity with you.
Sincerely,
Kenny
Ken Otterman