Analysis of Investments

Self-Storage Portfolio 1

Inland

Inland Self Storage Portfolio 1 is an investment into 17 different self storage facilities located in three different states. Between the 17 properties there re 7,238 storage units and 358 car spots.

Investment Highlights

  • Yr. 1 Cash-on-Cash 5.00%
  • Initial Occupancy 90.70%
  • Est. Time Horizon None YEARS
  • Current Cash Flow
  • Yr. 1 Cap Rate to Investor 5.39%
  • Investor Purchase Price $102,864,432
  • Total Offering Size $49,364,432

Loan Information

The loan is for a total of $53,500,000 and is from Barclays Bank. The term is for a total of 10 years with the first 4 years being interest only. The interest rate is fixed at a rate of 4.874%. The loan is cross-collateralized across the entire portfolio.

  • Yr. 1 DSCR 2.08
  • Loan-to-Offering 52.01%
  • Hold Period DSCR 2.14

Tenant Information & Lease Terms

The portfolio has a total of 17 properties across 3 states. Each of the properties is operated by a single private company.
Metro Storage is a privately held company that has over 54,000 units at 98 properties in 12 states. Leases are signed on a month to month basis and residential tenants make up about 70% of the tenant mix.

Key Positives

  • The population averages across the portfolio are high. The average population in the 5-mile radius is 148,000 and this is projected to grow in line with the national average growth rate of 1% annually.

  • The operator of the self-storage facilities is Metro Storage. They have a total of $6 Billion of Assets Under Management which allows them to operate efficiently under economies of scale.

Key Risks to Consider

  • The cap rate to investors is low (5.07%).

Investment Sponsor Information

Inland

The Inland Real Estate Group of Companies, Inc. ("Inland"), is an industry leader and one of the nation's largest commercial real estate and finance organizations. As a business incubator, we specialize in creating, developing and supporting Inland member companies that provide commercial real estate-related services and alternative investment funds, including limited partnerships, institutional funds and non-listed and listed REITs.

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