Bear Creek Boat & RV Storage #2

FESCH.TV INFORMIERT:

Bear Creek Boat & RV Storage #2 is a 292,604 NRSF Boat/RV storage facility located in Katy, TX on the far west side of Greater Houston. The property sits on approximately 15.42 acres of land and has 12 single story buildings consisting of 635 drive up non climatized units and 5 outdoor parking spaces. The facility has amenities including but not limited to, video surveillance throughout the property, an automatic entrance gate with key code access, swing doors and roll-up doors, asphalt and concrete driveways, and an on-site manager’s office. The Seller has recently completed CAPEX items such as installing a new gate entry system and a pump for the water well. The property was initially constructed in phases between 1999 and 2002 and then underwent an approximate 130,000 NRSF expansion between 2015 and 2017.

One of the most attractive components of the facility is its busy west Houston location. The property has approximately 1,000’ of frontage on W. Little York Road which is a primary Houston thoroughfare stretching from Katy at its westernmost point to Humble once it turns into Little York. The facility sees around 25,000 vehicles per day travel in front of it. Bear Creek Boat & RV Storage #2 is also approximately ¼ mile from the intersection of Barker-Cypress Road which is another major access point connecting I-10 to US 290. There are around 180,000 people living within 3 miles of the facility and the population is expected to rise to nearly 204,000 by 2026. The customer base comes predominantly from within a 10-mile area where the population is over 908,000. The average household income is over $92,000 and makes Bear Creek Boat & RV Storage #2 a popular spot for recreational users and area businesses that don’t need a large storage area, but don’t require office space. The facility is in the Bear Creek area of Houston and is convenient to several major employment centers including the energy corridor which is about 7 miles away.

The owner is an out of area partnership who self manages the asset. Bear Creek Boat & RV Storage has some of the lower street rates in its submarket and is currently achieving rents around $4.75. As of June 2022, the property is nearly 100 percent physically occupied with just one vacancy out of the 640 spaces. The property has been highly occupied throughout the seller’s time of ownership and was basically fully occupied within 6 months of each expansion phase. By nudging achieved rents upwards and making slight operational modifications such as implementing a tenant insurance program an investor could see 5.26 percent end of year one unlevered yield.