We bought another KMart! $31.5 million in assets closed this year

[Clint Harris]

We closed on our second KMart a couple weeks ago, this one is in Danville, VA, 1.3 miles from the new $550 million casino thats under construction right now and opening in Q1 2024, big things happening in that town! Here is the quick summary. The property is an old KMart that has been empty for quite a while, 97,500 sf, purchase price and construction cost total $5.5 million. We are converting this property to a Drive-In, Climate Controlled self storage facility with 680 units with a unit density mix determined by the feasability study. Our conservative analysis puts the stabilized NOI with below market rents and occupancy at $938k, and at a 6 Cap, the bank puts a stabilized value on the facility of $12.5 million! Very happy with this project, and very grateful for our Nomad Capital team! Can't wait to be paying out cash flows soon, and then cutting some very nice checks to our investors in a few years! Very thankful for this BP community, and all that we have been able to learn over the past few years from so many people willing to share. On to the next!!!

Clint Harris

Nomad Capital

[Russ B.]

Based on the waiting list we currently have at another location across the street (this is an expansion rather than a whole new operation), it will fill as quick as the spots open. In addition, we've been bulking up on staff and training the most senior ones to take over as leads and directors (for those who have the state-required education). The idea is that our existing facilities serve as leadership factories for new ones, to help drive quality and consistency.

There's a horrible shortage of child care in the area, and we're also the nicest facility.. so families are fighting to get in there.

On top of all that, they just built a giant gated resi development right behind building #1, with an entrance a few hundred feet away, and there's talk of a bunch more apartments going in behind building #2.

It sounds like a business owner's dream, but it's actually a bit too much - alleviating this shortage will enable other businesses to grow in the area, which in turn helps us.