Analysis of Investments

Self-Storage Portfolio 4

Inland

Inland Self Storage Portfolio 4 is an investment into 9 self storage properties. These properties are located in Amarillo, Plainview, and Lubbock Texas. The operator of these facilities is Metro Storage LLC, which is a privately held real estate company that specializes in self storage facilities.

Investment Highlights

  • Yr. 1 Cash-on-Cash 5.50%
  • Initial Occupancy 77.54%
  • Est. Time Horizon 10 years YEARS
  • Current Cash Flow
  • Yr. 1 Cap Rate to Investor 5.54%
  • Investor Purchase Price $58,255,741
  • Total Offering Size $26,755,741

Loan Information

The loan is a total of $31,500,000 and is from Barclays Bank PLC. The term is for a total of 10 years with the first 5 years being interest only. When amortization begins it is based on a 30 year schedule. The interest rate is fixed at a rate of 4.93%.

  • Yr. 1 DSCR 2.0
  • Loan-to-Offering 54.07%
  • Hold Period DSCR 2.22

Tenant Information & Lease Terms

The portfolio has a total of 9 properties in Texas. 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

  • N/A

Key Risks to Consider

  • The cap rate to investors is low (5.54%) and is lower than the average of comparable properties (6.41%).

  • The appraisal states that the local area is currently over supplied which may lead to the property occupancy and rental rates being negatively affected.

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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