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Fort Worth storage portfolio for sale for $23M
Seller pitching income growth based on reversal of ‘charitable’ policies.
Two self-storage facilities in the Fort Worth, Texas suburbs of Burleson and Joshua are now on the market for $23 million, offering investors avenues for income that were deliberately set aside by its current “sentimental” owner.
The properties, which currently operate under the brand Burleson Storage, have a combined square footage of 121,667 square feet, according to a listing from Marcus & Millichap. The assets were built in 2018 and 2019 and have a total of 900-climate-controlled units and 12 non-climate drive-up units.
The Burleson property, located at 243 Elk Drive, is located across the street from the local high school and is surrounded by retailers such as Walmart Supercenter, Target and Home Depot. The Joshua property has similar surroundings. It is across the street from a local high school and sits next door to a shopping center.
The owner of the properties is Burleson Storage, LLC, property records show. The entity is managed by Bruce Basden and Michael Erinakes, according to Texas Comptroller filings. According to the listing, the current owners have operated the facilities with “charitable” policies.
“The current owner never raises rates on existing tenants, rarely applies late fees to consistently delinquent tenants, and deliberately chooses to keep street rates approximately 26 percent below the blended market average even though both Burleson Storage and Joshua Storage, the two nicest facilities in their submarket, are almost 100 percent physically occupied, the listing read.
“A new operator could easily revise the highly accommodative managerial policies that (for sentimental reasons related primarily to the seller’s deep-rooted ties to the local community) currently obscure the path toward economic stabilization.”
Marcus & Millichap’s Danny Cunningham, one of the agents in charge of listing, said that Burleson Storage may use the funds from a sale to finance more acquisitions. “He has taken these two facilities to a point where we think he can take advantage of the current market conditions on a sale then use the proceeds to build a few more in Dallas-Fort Worth,” he said.
The two properties, which are about five miles apart, sit along TX-74, which connects the two towns. The portfolio has an occupancy rate of 97 percent.