50 N 13th St - Lone Star Storage

Lone Star Storage is a 182-unit, 36,000 square foot facility located in Beaumont, Texas. The facility sits on approximately 2.44 acres of land. The property consists of seven single-story buildings containing 179 drive-up non-climatized units and two covered parking spaces. Amenities found at this infill location include, an onsite manager’s office, concrete drives, many units with roll-up doors, chain-link fencing with digital keycode access gate, and 24/7 video surveillance throughout the property.
Lone Star Storage sits less than two miles west of downtown Beaumont in a busy area that is in between Interstate 10 and 11th Street, which are two major arteries in this area of Beaumont. The facility sits in a trade area of nearly 58,000 people and the average household income is close to $80,000.
Lone Star Storage is a quintessential value add opportunity. The property is only around 43 percent physically occupied, but that’s a 6-percentage point increase this lease-up season. There is one building (10 units/1,000 NRSF) that needs new doors and partitions and the owner estimates a CAPEX budget of around $25,000. By achieving an economic occupancy of 85 percent at market street rates, an investor could see an End of Year Two Cap Rate of nearly 10 percent.