Property Details
Stabilized Occupancy  Stabilized Cashflow  Below Market Rents  NOI Growth 
Asset Profile
Value Add

2 Property Portfolio Self-Storage - Martinsville, VA

Martinsville, VA

Self-Storage Property
5050 Storage Partners Charlotte, NC
5050 Storage Partners
  • IRR 16.56%
  • Equity Multiple 2.49x
  • Hold Period 7Y
  • Minimum Investment $25K
  • Year 1 Cash on Cash 9.2%
  • Stabilized Cash on Cash 10.2% in Y3
  • First Distribution Dec 2020
  • Distribution Frequency Quarterly
  • Co-Investment 10%
  • Preferred Return 10%
  • Investor Profit Share 70%
  • Asset Profile Value Add
  • Loan-to-Value 68.2%
  • Current Occupancy 95%

About this Property

"95% occupied self-storage facility. Below replacement cost, below market rents, and currently being operated as a unmanned location. This portfolio offers immediate scale in the market."

- D. Brent Wright Jr., 5050 Storage Partners

 

Address 3395 Greensboro Rd
1780 Old Chatham Rd
Square Footage 56,910 sq. ft.
# of Units 438 Storage Units
6 Parking Spots
Year Built 1980
Year Renovated 2002
Current Occupancy 95%
Market Occupancy 92+%
Current Average Rents $7.98/Sq. Ft.
Average Market Rents $9.41/Sq. Ft.
Purchase Price $3,700,000
Price/Sq. Ft. $65.01/Sq. Ft.
Stabilized Loan to Value 56.5%

Top Questions

All answers are provided by the sponsor, 5050 Storage Partners, or its representatives.

 

Why are you buying these properties?

D. Brent Wright Jr., 5050 Storage Partners:

  1. "Stabilized cash flows and 95% occupied."
  2. "Smaller markets tend to have less new & sophisticated competition."
  3. "Limited ancillary income is being sold ie: Locks, Boxes, Insurance, etc.."
  4. "Greensboro Rd is the best located asset in the market."
  5. "Below replacement cost."
  6. "Additional untapped revenue by renting the apartment and small commercial space that is currently 100% vacant."
  7. "Rates are currently below the market."
  8. "Fits into the broader narrative of consolidating properties in smaller markets. The second offering listed on the RealCrowd platform is 14 miles away."

 

What are the most important aspects of this investment opportunity for the investors?

D. Brent Wright Jr., 5050 Storage Partners: "This property has a long history of high occupancy. By implementing technology the property will be able to provide a 21st-century rental experience for new and existing customers. Investing in technology will reduce paperwork, management headaches, and increase efficiencies. The going-in cap rate is 7.6%. The projected end of year one yield is 9.2%. The average length of stay is 4.3 years which is almost 3x the industry average. This property has a very stable customer base. On the surface, Martinsville appears to be a stagnant market. However, the market has gained over $730 million in new investments since 2010. The talented workforce and low cost of doing business continue to attract employers to the region."

 

What is your investment strategy/business plan?

D. Brent Wright Jr., 5050 Storage Partners: "The investment strategy is focused on four parts:"

  1. "Increase rents on existing customers to drive higher cash flow. There will be curb appeal enhancements that the tenants will immediately experience."
  2. "Currently, the facilities are being operated as unmanned locations. 5050 Storage Partners will staff the main location with onsite management. 5050 Storage Partners will also provide a kiosk and website that allows for contactless and 24 hr. rentals. This will enhance the customer's rental experience. It will also provide a different experience than the other competitors as they are predominately also unmanned locations."
  3. "Drive ancillary products (insurance, locks, boxes, etc.) Continue to find other properties in a 75 mile that fits the investment strategy to create a portfolio. A portfolio sale would be attractive and expand the buyer pool once it is time to sell. By implementing the top three initiatives the total value creation is expected to be over $1.0mm by year 3."
  4. "Pool together other assets like the other RealCrowd offering, increase value, and refinance into better terms on the debt by year 3."

 

How has COVID-19 impacted your business plan?

D. Brent Wright Jr., 5050 Storage Partners: "COVID-19 has had very little to no impact on this location. The self-storage business as a whole has performed well through COVID-19. Self-storage is the third-best performing asset class (behind data centers and industrial) during COVID-19. The biggest positive during COVD-19 is that self-storage has been deemed as an essential business. There have only been a few cases in select cities where storage businesses could not remain open. The business plan has remained the same."

 

What are the risks and how are you mitigating those risks?

D. Brent Wright Jr., 5050 Storage Partners:

  1. "New development: Mitigation risk on new development can be difficult. The best mitigation is well-located real estate, and this property checks that box."
  2. "A second wave of COVID-19: Pricing increases & tenant eviction will be placed on pause if the state of Virginia goes back into a state of emergency. Cleaning up delinquent accounts and increasing pricing is going to be very important with in the first 90 days."
  3. "Real estate & debt markets: The 7-year term with no pre-pay or disposition fees with a fixed rate of 4.55% allows for greater flexibility on choosing the best time to exercise a sale at the best price."

 

NOTE: All answers provided by the sponsor, 5050 Storage Partners, or its representatives.

About this Property

"95% occupied self-storage facility. Below replacement cost, below market rents, and currently being operated as a unmanned location. This portfolio offers immediate scale in the market."

- D. Brent Wright Jr., 5050 Storage Partners

 

Address 3395 Greensboro Rd
1780 Old Chatham Rd
Square Footage 56,910 sq. ft.
# of Units 438 Storage Units
6 Parking Spots
Year Built 1980
Year Renovated 2002
Current Occupancy 95%
Market Occupancy 92+%
Current Average Rents $7.98/Sq. Ft.
Average Market Rents $9.41/Sq. Ft.
Purchase Price $3,700,000
Price/Sq. Ft. $65.01/Sq. Ft.
Stabilized Loan to Value 56.5%

Top Questions

All answers are provided by the sponsor, 5050 Storage Partners, or its representatives.

 

Why are you buying these properties?

D. Brent Wright Jr., 5050 Storage Partners:

  1. "Stabilized cash flows and 95% occupied."
  2. "Smaller markets tend to have less new & sophisticated competition."
  3. "Limited ancillary income is being sold ie: Locks, Boxes, Insurance, etc.."
  4. "Greensboro Rd is the best located asset in the market."
  5. "Below replacement cost."
  6. "Additional untapped revenue by renting the apartment and small commercial space that is currently 100% vacant."
  7. "Rates are currently below the market."
  8. "Fits into the broader narrative of consolidating properties in smaller markets. The second offering listed on the RealCrowd platform is 14 miles away."

 

What are the most important aspects of this investment opportunity for the investors?

D. Brent Wright Jr., 5050 Storage Partners: "This property has a long history of high occupancy. By implementing technology the property will be able to provide a 21st-century rental experience for new and existing customers. Investing in technology will reduce paperwork, management headaches, and increase efficiencies. The going-in cap rate is 7.6%. The projected end of year one yield is 9.2%. The average length of stay is 4.3 years which is almost 3x the industry average. This property has a very stable customer base. On the surface, Martinsville appears to be a stagnant market. However, the market has gained over $730 million in new investments since 2010. The talented workforce and low cost of doing business continue to attract employers to the region."

 

What is your investment strategy/business plan?

D. Brent Wright Jr., 5050 Storage Partners: "The investment strategy is focused on four parts:"

  1. "Increase rents on existing customers to drive higher cash flow. There will be curb appeal enhancements that the tenants will immediately experience."
  2. "Currently, the facilities are being operated as unmanned locations. 5050 Storage Partners will staff the main location with onsite management. 5050 Storage Partners will also provide a kiosk and website that allows for contactless and 24 hr. rentals. This will enhance the customer's rental experience. It will also provide a different experience than the other competitors as they are predominately also unmanned locations."
  3. "Drive ancillary products (insurance, locks, boxes, etc.) Continue to find other properties in a 75 mile that fits the investment strategy to create a portfolio. A portfolio sale would be attractive and expand the buyer pool once it is time to sell. By implementing the top three initiatives the total value creation is expected to be over $1.0mm by year 3."
  4. "Pool together other assets like the other RealCrowd offering, increase value, and refinance into better terms on the debt by year 3."

 

How has COVID-19 impacted your business plan?

D. Brent Wright Jr., 5050 Storage Partners: "COVID-19 has had very little to no impact on this location. The self-storage business as a whole has performed well through COVID-19. Self-storage is the third-best performing asset class (behind data centers and industrial) during COVID-19. The biggest positive during COVD-19 is that self-storage has been deemed as an essential business. There have only been a few cases in select cities where storage businesses could not remain open. The business plan has remained the same."

 

What are the risks and how are you mitigating those risks?

D. Brent Wright Jr., 5050 Storage Partners:

  1. "New development: Mitigation risk on new development can be difficult. The best mitigation is well-located real estate, and this property checks that box."
  2. "A second wave of COVID-19: Pricing increases & tenant eviction will be placed on pause if the state of Virginia goes back into a state of emergency. Cleaning up delinquent accounts and increasing pricing is going to be very important with in the first 90 days."
  3. "Real estate & debt markets: The 7-year term with no pre-pay or disposition fees with a fixed rate of 4.55% allows for greater flexibility on choosing the best time to exercise a sale at the best price."

 

NOTE: All answers provided by the sponsor, 5050 Storage Partners, or its representatives.

Offered By

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Assets Under
Management

Currently
$0 No assets reported
Exited
$69.5MM less than 10 assets
Portfolio LTV
71%  
Historical
Realized Returns

Total IRR
30.6%  
Equity Multiple
2.59x  
Annual Cash
N/R  
Years Of
Experience

As Principals
10+ years  
In Business
2 years  
Size
2 Staff  
* All information is reported by 5050 Storage Partners as of 8/24/2020.
Assets Under
Management

Currently
$0 No assets reported
Exited
$69.5MM less than 10 assets
Portfolio LTV
71%  
Historical
Returns

Total IRR
30.6%  
Equity Multiple
2.59x  
Annual Cash
N/R  
Years Of
Experience

As Principals
10+ years  
In Business
2 years  
Size
2 Staff  
* All information is reported by 5050 Storage Partners as of 8/24/2020.

Financials

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Offering Financial

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Location Details

Martinsville, VA

D. Brent Wright Jr., 5050 Storage Partners: "The property has excellent traffic counts. Over 26,000 vehicles per day, the facility can achieve excellent visibility to potential renters. From a visibility standpoint, it is one of the better-located assets in the market. Henry County and the town of Martinsville boast a strong workforce due to the New College Institute. The unemployment rate pre & post-COVID is below the U.S. average. Blue Ridge Regional Airport and Regan National were the only two airports in Virginia to receive the latest FAA grant. Due to the knowledgeable workforce, Henry County has experienced just under $130.0 million in new or expanding businesses over the last 2.5 years."

Documents

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Offering Agreement Documents

Frequently Asked Questions

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