can a small facility be automated and profitable?

[Shuff Mauldin]

Investment Info:

Other commercial investment investment.

Purchase price: $800,000
Cash invested: $100,000

12k ft2 Unit A class Climate Controlled Storage Facility

What made you interested in investing in this type of deal?

It was a part of an estate and one in which was well managed to an extent. They were not using dynamic pricing and that was the largest value add along with 7 acres to expand.

How did you find this deal and how did you negotiate it?

private deal through a local realtor I had relations with.

How did you finance this deal?

Local bank financing.

How did you add value to the deal?

Improved lighting, technology, advertising, added a website, implemented tenant protection, and enforced rules/fees.

What was the outcome?

TBD, but the rate increases are what I hoped to get. If valued today at a 7 cap I should pocket a 15% IRR after fees and taxes.

Lessons learned? Challenges?

Operating in a rural market with no institutional players is different. Lead volume is not what I expected but drive-by demand is greater. I have taken longer than I hoped to implement my business plan, but I'm not sure if I would have done it different. The first facility is tough. I have learned to embrace the learning and growth.