investment highlights
- ATTRACTIVE SELLER FINANCING // 70 Percent Loan-to-Value (LTV) | Approximately 1/3 of the loan balance is in the form of an assumable 25 year fully amortizing SBA loan at 6.1 percent. The remaining 2/3 of the loan balance will be seller carry for an interest only five-year term, at a rate of five and a half percent.
- HUNTSVILLE, TX // Stable economy due to major nearby employers | Home to Sam Houston State University, Texas State Prison System, and Texas Department of Criminal Justice. Texas Monthly named Huntsville home to a recession proof industry.
- PROXIMITY TO SAM HOUSTON STATE UNIVERSITY // Stow Stuff Storage I is located less than a mile from the university | Stow Stuff Storage II is located approximately two miles from the university.
- GROWING POPULATION // There are approximately 38,000 people living within three miles of the facilities and that count is expected to grow by 5.1 percent in five years.
- STOW STUFF STORAGE I // Features a gated entry with key-code access and 24-hour video surveillance. The facility consists of 212 traditional drive-up units for a total of 19,500 NRSF and sits on +/- 1.67 acres.
- STOW STUFF STORAGE II // Features a gated entry with key-code access, a full-service on-site manager’s office with an onsite residence, roll up doors, and 24-hour video surveillance. The facility consists of 260 traditional drive-up units for a total of 35,400 NRSF and sits on +/- two acres.
property overview
The Stow Stuff Storage portfolio is a two-property portfolio located in Huntsville, TX that totals 54,900 net rentable square feet. Stow Stuff Storage I & II are two miles apart from each other and approximately 70 miles north of Downtown Houston. Combined, the two properties consist of 472 traditional drive-up units. Stow Stuff Storage I has 212 units and sits on approximately 1.67 acres while Stow Stuff Storage II has 260 units and sits on roughly 2 acres of land. Stow Stuff Storage I features chip & seal driveways, a mix of swing and roll-up doors, an automatic gate with key code access, and surveillance cameras throughout the property. Stow Stuff Storage II features a combination of chip & seal and asphalt driveways, roll-up doors, an automatic gate with key-code access, a full-service on-site manager’s office with an onsite residence, and 24-hour video surveillance.
Situated along Interstate 45 roughly an hour and fifteen minutes north of Houston, Huntsville serves as the county seat of Walker County. In addition to being the county seat, Huntsville has been home to Sam Houston State University (SHSU) for more than 140 years. The University boasts more than 21,000 students annually and competes in seventeen NCAA Division I sports as a member of Conference USA. Stow Stuff Storage I is located less than a mile from the school and Stow Stuff Storage II is located roughly two miles away. SHSU offers undergraduate and graduate degrees and the university’s role in the study of criminology is fitting due to Huntsville’s importance within the Texas Department of Criminal Justice (TDCJ). Huntsville serves as the headquarters for the TDCJ, the state agency that operates the Texas State Prison System which is the largest in the United States. As of 2022, the largest employer in Huntsville is the TDCJ with 6,744 employees and an annual budget of 3.6 billion dollars. The Texas Department of Criminal Justice is the only major state agency not headquartered in Austin, the state capital. Robert Draper of Texas Monthly described Huntsville as the “company town” of the TDCJ and that the industry was “recession-proof.”
This well-maintained asset is owned and operated by a local couple who self-manage the property and are looking to retire. The physical occupancy of the portfolio is around 85 percent with an economic occupancy of 80 percent. Street rents for the portfolio are roughly 20 percent below the five-mile average. The seller is willing to finance the properties at a 70 percent Loan-to-Value (LTV). Approximately 1/3 of the loan balance is in the form of an assumable 25 year fully amortizing SBA loan at 6.1 percent. The remaining 2/3 of the loan balance will be seller carry for an interest only five-year term, at a rate of five and a half percent.
