3200 Leary Ln
Victoria, TX 77901
Victoria, TX 5 Self Storage Portfolio · Specialty Property For Sale · 165,611 SF

The Victoria, TX Self Storage Portfolio is a five-property, 165,611 net rentable square foot self-storage portfolio packed within a 4-mile radius. Victoria, TX is the hub of an area of Texas referred to as the “The Crossroads” because its location is centrally located within about 100 miles from Austin, Houston, San Antonio, and Corpus Christi. The facilities have a combined 1,288 units (1235 drive up non-climate storage and 53 climate control units). The portfolio represents a sizeable share of the self-storage units in the area. Two of the Properties are currently branded under the trade name Modular Storage and the other three are called Drop It and Lock It. The property has many different amenities including, but not limited to a gated entry with digital keypads, three full service on-site management offices, and one residence. There are asphalt and concrete driveways and units with roll up doors. Three of the properties are on the south side of Victoria within about a mile of one another including two that are 400’ apart. The other two facilities are on the north side of town and within one mile of each other offering numerous management efficiencies. All of the properties have over 45,000 people within a 3- mile radius. This investment offers an investor the opportunity to acquire an independently operated, under managed self-storage portfolio with below-market rents. Professional management could significantly enhance the property’s performance. There’s currently a website for the Drop It and Lock It properties, but not the Modular Storage properties. By attaining an effective rental income of around $0.55/foot (well below market norms) and implementing a tenant insurance program an investor could achieve a pro-forma return of around 9.24 percent on an all cash basis. Further upside could come from expanding on the extra acreage that is currently being used for outdoor parking at the Guy Grant location. Victoria is the largest city and the county seat of Victoria County. It’s also the regional hub for a seven-county area known as the “Golden Crescent” which serves a retail trade area of over 250,000 people. About a mile from the two northern facilities is Victoria Mall which offers 678,996 square feet of retail shopping and dining and houses major retailers such as Dillard’s JCPenney, Best Buy, and more. The city is also home to 2 colleges, a two-year public school in Victoria College and the University of Houston Victoria (UHV) a four-year public school. The schools have a combined enrollment of 12,500 students and are located under a mile away from two properties in the southern area of the portfolio. An expansion of the University of Houston Victoria is also in the works. The university has finalized a deal that will transform Ben Wilson Street into the heart of UHV as a new library/student center and residence hall will open on the east side and a new science and technology building on the west side. Also in close proximity to the portfolio lies an enormous economic driver in Caterpillar Inc. This facility which employs over 950 residents is used to build excavators. The Golden Crescent area also generates billions of dollars in petrochemical revenues from companies like Formosa and Alcoa. They collectively employ more than 3,000 residents and just finished a $5 billion expansion adding more than 340 jobs in the area. As of September 1st, 2019, economic occupancy for the portfolio is around 66 percent.