Self-Storage Portfolio 6
Inland
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Investment Highlights
Overview
The portfolio will be comprised of 10 self-storage complexes in Wisconsin, Tennessee, Missouri, Kentucky, and Illinois. The properties were built in either 1979 or 2006. Combined, there is a total of 2,289 units which makes up 335,515 square feet of rentable space.
- Year 1 Cash Flow 5.00%
- Initial Occupancy 85.48%
- Est. Time Horizon None
- Yr 1. Cap Rate to Investors 5.46%
- Investor Purchase Price $26,663,786
- Total Offering Size $26,663,786
Loan Information
The offering is all-cash and won't be using financing.
- Yr. 1 DSCR 0.0
- Loan-to-Value 0.00%
- Hold Period DSCR None
Key Benefits
Diversification of 10 different complexes across 5 states.
All cash offering eliminates the risk of defaulting.
The sponsor has used reasonable underwriting assumptions.
Key Risks
A low CAP rate to investors.
Collectively, the rents are +9.5% higher than the market average.
Cut backs on non-essential spending during recessions hurts self storage during downturns.
Red Dot has a right to first offer on the properties they’re managing. This could hinder a timely exit by the trust.
Most of the complexes are in areas without high population growth or large population, which is where self storage performs best.
About Inland
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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.