Our latest Self Storage project is officially open! Holden Beach

[Clint Harris]

It's been a wild ride this year!  My partners and I started the year with what we thought was a pretty ambitious goal of trying to put $100 million of commercial real estate under management in a 2-3 year time frame.  I've already posted about the two K Mart facilities that we have purchased with the help of our investor partners, and are actively renovating and converting to Drive-In, Climate Controlled self storage, but this one is a little different, because there is finally some instant gratification!  We bought this brand new self storage facility in Holden Beach, NC, and opened the gates 6 weeks ago.  Our Pro Forma was conservatively written to onboard 15 rental units per month, and we are beyond excited that as of today we have 78 units rented in the first 6 weeks!  Very excited to be 4 months ahead of schedule, and 26% occupied in the current units.  The real Value-add for this property is the addition of Building E, which we are breaking ground on very shortly!  That takes this property from 280 up to 440 rental units, as well as an additional 2 acres of boat and RV storage being added as well.  Just like all of our projects, our goal is to double our investors money in 5 years or less, but this one has an awesome twist to it.  Because of the significant value-add, our investors start making strong Cash Flow very quickly, in fact its going to out pace the Preferred Return in no time, and then instead of selling this property, its going to be part of our Legacy Portfolio.  We will double the investors initial investments via Refi at, or before year 5, and then each investor will keep their percentage of equity, and will have an unlimited return in the form of cash flows and future cash events.  Because the value is being returned to the investors as a Refi on a property they already have ownership in, that makes this a non-taxable event, and then when there are future cash events, say another refi 10-15 years down the road, they will continue to have non-taxable cash events in the future.  With what we have currently closed and have under contract with our team, we are well over halfway to our $100 million goal of stabilized assets inside of our first year.  Our goal is to try and build a portfolio of legacy projects, and this one is a big step in the right direction!  Very excited about our past deals, and its going to be a great year ahead!

[Ronald Rohde]

Thats great to hear. SS is great for any recession too as people downsize from homes, etc.

Expansion always leave a nice option to re-invest in a proven asset too.