overview video
investment highlights
- LARGE STORAGE ASSET PLUS EXPANSION // The property has 452 units totaling 117,289 NRSF plus three acres of expansion land included.
- SOLID DAY ONE IN PLACE RETURN // The in place cap rate on a trailing 12 month basis is 5.98 percent, however, this does not include approximately $27,000 in annual rents plus annual rent escalations that the owner will lease back on a long-term basis.
- STRONG DEMOGRAPHICS // Average Household Income of $116,877 within a three-mile radius.
- VIRTUALLY ON THE SHORES OF LAKE HOUSTON // City of Houston’s primary municipal water supply and also a popular spot for boating, camping, and recreational fishing.
- NEARBY ECONOMIC DRIVERS // George Bush IAH, Lake Houston, Northeast FM 1960 Corridor
- GROWING AREA OF NORTHEAST HOUSTON // Two new residential developments are underway approximately five miles south. Also close to established suburbs such as Humble, Kingwood, and Atascocita.
property summary
Fairlake Storage and Lake Road Storage are two properties that are adjacent to one another and despite having separate books and records essentially run as one storage facility. The properties add up to 117,289 net rentable square feet of storage in Huffman, Texas, a growing northeast Houston area suburb. The asset is on approximately 10.83 acres which includes three acres of vacant expansion land at the northeast corner of the property. Fairlake Storage was initially constructed in 1998, and included several phases through 2006. Lake Road Storage was built in multiple phases between 2005 and 2007. There are 25 single-story buildings that add up to a total of 452 units including seven outdoor parking spots.
The facility has numerous amenities including but not limited to, video surveillance throughout the property, an automatic entrance gate with key code access, roll-up doors, asphalt driveways, and a full-service on-site manager’s office.
Fairlake Storage and Lake Road Storage sits in a growing area of Northeast Houston in a trade area with an average household income of close to 117,000 about 2/10 of a mile from the shores of Lake Houston. Lake Houston is the primary municipal water supply for the City of Houston, but it is also a popular spot for camping, boating, and recreational fishing. The facility sits about half a mile south of FM 1960 which has the only bridge that crosses Lake Houston in an east/west direction and connects Huffman to prominent well to do suburbs such as Humble, Atascocita, and Kingwood. The Crosby-Huffman area is growing with multiple residential neighborhoods being developed within about five miles of Fairlake Storage and Lake Road Storage. D.R. Horton has been building homes at it’s Newport Pointe development since 2023 and Centex Homes has broken ground and is about to begin construction on its newest development, Crosby Farms. Fairlake Storage and Lake Road Storage offer an investor the opportunity to acquire an asset that is between 80 and 85 percent physically occupied with land for expansion, in a growing area of Houston. The Seller, who is the original developer, intends to lease 2,980 square feet of space at an annual rate of $26,880 which is not factored into the trailing 12 months cap rate. Furthermore, by achieving an economic occupancy of 78 percent with modest rent growth and maintaining typical ancillary revenue streams, an investor could expect to see a 6.85 percent unlevered yield within 12 months.
