Overview video
investment highlights
- MANAGEMENT UPSIDE POTENTIAL // The facility is owned and operated by a local individual who has little involvement in the property. There is no property website, and the manager splits their time between running the storage facility and another property for the owner.
- EXPANSION POTENTIAL // The facility is offered with an additional ~2.5 acres for future development. A new owner could roughly double the size of the facility or utilize the extra land for vehicle parking.
- PROXIMITY TO TWO UNIVERSITIES // The facility is situated less than one mile from The University of Houston – Victoria and Victoria College. The two colleges have a combined student population of +/- 12,200 students.
- FACILITY AMENITIES // Onsite managers office, concrete drives, roll-up doors, chain-link fencing with digital keycode access gate, and video surveillance throughout the property.
- VICTORIA, TEXAS // Nicknamed “The Crossroads” as it is the regional hub for around 250,000 people. Victoria is within a two-hour drive from Houston, San Antonio, Austin, and Corpus Christi.
property summary
Airline Storage is a 377-unit, 48,775 square foot facility located in Victoria, Texas. The facility sits on approximately 5.79 acres of land, of which roughly 2.5 acres are undeveloped. The property consists of six single-story buildings containing 172 climate-controlled units and 205 drive-up non-climate-controlled units. Airline Storage has many amenities commonly found in “Class A” self-storage facilities. These include an onsite managers office, concrete drives, roll-up doors, chain-link fencing with digital keycode access gate, and 24/7 video surveillance throughout the property.
Airline Storage sits on Beauvoir Street at the corner of East Airline Road and North Ben Jordan Street. The combined daily traffic counts for Airline Road and Ben Jordan Street are 27,974 vehicles per day. The facility is centrally located within the city of Victoria and is less than a mile away from the two local universities, University of Houston-Victoria and Victoria College, which currently boast a combined student population of +/- 12,200 students. Airline Storage provides these students and local residents a convenient place to store their belongings in an established part of town.
Victoria is the largest city and the county seat of Victoria County and the regional hub for a seven-county retail trade area of over 250,000 people. Manufacturing, healthcare, petrochemical operations, and education are some of the employment drivers that are convenient to Airline Storage customers. The Caterpillar Excavator Manufacturing Facility, Port of Victoria, and the Victoria Airport are minutes away from the facility. The area also generates billions of dollars in petrochemical revenues from companies like Dow, Formosa and Alcoa which collectively employ more than 3,000 residents.
At under $65 per net rentable square foot, Airline Storage offers an in-place yield of 6.35 percent on an unlevered basis. About 25% of the property was constructed within the last 18 months and there appears to be considerable upside through increasing physical occupancy on the newly constructed units and capturing ancillary income streams such as tenant insurance. The additional ~2.5 acres of land provide the ability to roughly double the size of the facility or offer customers uncovered outdoor parking. The current owner is a local individual that has limited involvement in the property. In addition, there is no property website, and the manager splits their time between running the storage facility and another property for the owner.
As of May 2024, physical occupancy is approximately 82% by units and 80% by area.
