Introduction...The uncomplicated world of self-storage recently became the most desirable way to invest in commercial real estate.
- One Fort Worth owner had is property 95% leased when a buyer came along and asked if he’d sell. The owner estimated his property value to be $4,000,000. When the offer arrived at $5,500,000 the owner said, “SOLD!”
- Another owner had accumulated 20 smaller properties in Texas and New Mexico. He was very happy with the management and the cash flow. Until a California investor wanted to jump into the market and offered $25,000,000. Again, this owner “SOLD!”
Why so much interest in self-storage…In the past apartments were considered the most desired way to invest in real estate. However, there are many good reasons to branch out.
Self-storage has proven to be recession proof. During boom times we buy more stuff to store. During contraction when we are downsizing, we tend to store our extra stuff rather than sell it.
In a recent issue of the Self-Storage Insider, we reported…The Commercial Mortgage Backed Securities (CMBS) self-storage loans funded over the past 10 years have the lowest default rate of all property types at less than 1 percent.
In conclusion…Do you have self-storage in your portfolio? If not, let us give you more insider information by contacting us at firstname.lastname@example.org.