We are excited to share a major milestone in our portfolio— the successful sale of APS Glenmont, located in Glenmont, NY, for a total sale price of $5 million. This sale not only signifies a great achievement but also provides strong returns for our investors.
Transaction Overview:
- Acquisition Date: December 2021
- Acquisition Price: $3,800,000
- Sale Date: September 2024
- Sale Price: $5,000,000
- Hold Period: 33.5 months
- Project Internal Rate of Return (IRR): 20.5%
- Project Equity Multiple (EM): 1.58x
After accounting for the mortgage payoff and New York State tax withholding, we netted over $1.925 million in proceeds, with $630,000 representing gross profit. Additionally, we returned $1.53 million in investor capital, delivering a solid financial result for our stakeholders.
Operational Improvements
The success of this transaction stems from a series of strategic operational enhancements. First, we invested $110k into capital improvements that included modernizing the facility, upgrading security systems, and improving overall curb appeal. These changes attracted a higher caliber of tenants, significantly boosting the facility’s value.
We also expanded our marketing efforts, focusing on digital marketing and hyper-localized SEO strategies to increase the facility’s visibility and customer base. These efforts led to higher occupancy rates and allowed us to secure premium rental rates, further boosting the property’s profitability.
In addition to physical upgrades, we installed remote management systems to streamline operations and reduce overhead. Automated systems, such as remote locks and self-service kiosks, enhanced tenant convenience and improved operational efficiency. To optimize revenue, we deployed advanced revenue management software that adjusted rental rates based on real-time demand and market conditions, driving a substantial increase in Net Operating Income (NOI) and the facility’s overall value.
Conclusion
This sale highlights the importance of strategic improvements, targeted marketing, and innovative management in driving high returns on self-storage investments. We are proud of the value we created and the strong returns provided to our investors.
If you're interested in exploring similar opportunities in the self-storage sector, now is the time to learn more about how we can help grow your investments.
Stay tuned for future updates, and feel free to contact our investor relations team to discuss how you can benefit from the stability and growth offered by self-storage investments.
Next Steps: Interested To Learn More or Invest In Commercial Real Estate?
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