Houston Heights
The propertyconsists of 250 self storage units in a gentrifying residential area. There are no other storage facilities in a 1-mile radius. At purchase, occupancy was 85% despite no advertising. Most importantly, the property has several strategic right-of-way easements crossing adjacent properties that provide strategic value for future developers.
The strategy is to maintain high occupancy through active web presence and lead generation, increase rates, and improve customer satisfaction through online bill pay and online reservation systems. Position property for sale to developer who can build for highest and best use.
Initial investment was $1.14mm with a 3 week close; market value isestimated over$1.6mm.
Northwest Houston –SH249
This propertyhas 215 self storage units, an on-site resident manager and numerous long-time residents. The highest and best use for this property is self storage.
The strategy for this facility is to improve economic occupancy from70% at time of acquisition to the mid 80% level, increase discipline in past-due collection, and maintain expense and capital discipline.
Initial investment was $675k, with a close in less than one month, and estimated current value is greater than $1 million
Austin-North Lamar
These two properties consistof 92 self storage units in a high-density submarketwith occupancy above 90%. At the time of acquisition, the properties had monthly rates thatwere 30 to 40 percent below market.
The strategy is to upgrade customer experience through better lighting and online reservations and bill pay and maintain high occupancy through active web presence and lead generationwhile raising prices back to market rates.
Initial investmentwas $600k; since acquisition BCRE has raised ratesby 15% and occupancy remains above 90%; rates on existing customers continue to be well-below market and will be increased to match new rates over time.
Regal- Self Storage
This propertyhas 215 self storage units, an on-site resident manager and numerous long-time residents. The highest and best use for this property is self storage.
The strategy for this facility is to improve economic occupancy from70% at time of acquisition to the mid 80% level, increase discipline in past-due collection, and maintain expense and capital discipline.
Initial investment was $675k, with a close in less than one month, and estimated current value is greater than $1 million