- NEW CLASS “A” ASSET // Phase Two Construction December 2021 – Phase One Completed 2019
- RAPID LEASE UP // 70 Units Rented in Two Months of Phase 2 Being Opened
- DENSELY POPULATED TRADE AREA // 128,190 Three Mile Population
- ONLY GROUND UP MINI-STORAGE FACILITY CONSTRUCTED IN TRADE AREA SINCE 2006 // Most of the Competing Properties Were Constructed Prior to 2000
- 61,030 NRSF – 578 UNITS
- TRAFFIC COUNTS ON WALTERS ROAD // 12,864 VPD
- GEORGE BUSH IAH AND NUMEROUS OTHER MAJOR NEARBY EMPLOYMENT AND ECONOMIC DRIVERS
- CLOSEST COMPETING SELF-STORAGE FACILITY IS 1.84 MILES AWAY
Storage Authority is a 61,030 net rentable square foot self-storage facility located in Houston, Texas. The property sits on approximately four acres of land and has four single-story self-storage buildings. Approximately half of the facility was constructed in 2019 and then a second phase was completed in December of 2021. There are a total of 578 units and the average unit size is 105.58 square feet. The property has an attractive stucco façade along with many amenities commonly found in Class “A” self-storage facilities. There is a gated entry with a digital keypad or customers can use the hands-free Storage Genie app to access the facility. There is also a spacious full-service on-site management office, 24/7 video surveillance throughout the facility, concrete driveways, and units with roll up doors.
Storage Authority sits in a densely populated area of North Houston near the intersection of the Sam Houston Tollway and Interstate 45 and has around 130,000 people living within three miles. In addition to the two major freeways being convenient for commuters there are numerous economic drivers within five miles of the facility with the most noteworthy being George Bush Intercontinental Airport which probably doesn’t need an introduction but is one of the 50 busiest airports in the world. Additionally, major companies such as Amazon, Lowe’s Home Improvement, Coca Cola, and Sysco have large operations nearby. Storage Authority fronts on Walters Road with traffic counts of nearly 13,000. Approximately 7/10 mile north of the facility on Walters Road is Fallbrook Church which is a popular “Mega Church” with over 10,000 members. There is also an Amazon Hub Locker at the facility which has helped the facility gain visibility.
The second phase of construction has already seen 70 units rented within two months of getting an occupancy permit which isn’t all that surprising considering the first phase of the facility leased up to over 90 percent within 11 months. The property is the newest and the first “ground up” mini-storage facility constructed since 2006 in the trade area. Roughly 2/3 of the competing properties within three miles of Storage Authority were built prior to 2000. Despite being in a lease up situation asking rents are $1.59 and management is only offering minimal short-term discounts to new customers. With the low nearby supply and strong rental rate conditions the trade area offers a purchaser could see an unlevered cap rate of nearly five and a half percent within two years and an approximate 17.4 percent levered five year IRR.