spillway self storage

Grandstone is pleased to present Spillway Self Storage, a stabilized self-storage facility located in San Leon, Texas, just 31 miles from Downtown Houston. The property includes 94 non-climate-controlled units, 3 covered parking spaces, and 24 uncovered parking spaces, totaling 11,105 net rentable square feet on a 1.39-acre parcel.

The facility is currently 90% physically occupied and 72% economically occupied, reflecting a solid in-place tenant base with additional room for operational efficiencies and rental growth. Located in a coastal community with 30,000 residents and an average household income of $109,000 within a five-mile radius, Spillway benefits from high demand and low supply saturation.

At a purchase price of $900,000 ($81.04 per square foot), Year 1 pro forma projects a cap rate of 7.53%, with a 5-year levered IRR of 21.5% and 2.40x equity multiple. The property shows consistent NOI growth, climbing from $67,766 in Year 1 to $82,728 in Year 5, with a potential sale price of $1.2 million by the end of the hold period.

Rent comparables show higher pricing at nearby facilities, indicating potential for rate increases. The property’s location, existing occupancy, and upside potential through revenue optimization make Spillway Self Storage an attractive opportunity for investors seeking cash flow with long-term appreciation.