(May 20, 2015)
Leon Capital Group recently entered the self-storage market, making its first acquisition in a high-yield industry. Leon partnered with Move-It Management to purchase A-A-A Storage, located at 15725 Highway 29, in Liberty Hill, Texas.
The storage facility was constructed in 2003, and consists of 460 units and 68,160 rentable square feet. Over the next six months, the property will undergo numerous capital improvements, and Move-It Management, recognized as a top operator in the storage industry, will implement its cloud-based management platform and a revamped marketing plan to drive efficiencies at the facility.
Liberty Hill is one of the fastest-growing, most desirable communities in the greater Austin metropolitan area, due in large part to its top-rated school district. The school district completed a new $61 million high school campus in 2013, and plans to add an additional elementary school in 2016 to meet the demands of the district, which has grown by more than 25 percent in the last four years.
“With our move into self-storage acquisitions and development, we are focusing on assets that are in highly sought-after, growing communities,” said Leon Capital Group founder and CEO Fernando De Leon. “Liberty Hill fits that bill, and with the expertise and track record of our partner, Move-It Management, behind the project, we anticipate this facility will generate substantial returns for our investors.”
Liberty Hill is also the site of the new 600-acre Clearwater Ranch, a master-planned community. The Lookout Group, a Houston-based firm, will develop Clearwater Ranch, with housing prices ranging from $350,000-$600,000. The completion of the 183A toll road has made the area even more attractive because of its enhanced accessibility to Austin, which is located 35 miles southeast of Liberty Hill.
The self-storage industry is one of the fastest-growing sectors in the commercial real estate industry in the U.S. With high going-in yields and low capital expenditure requirements, self-storage facilities can deliver consistent, outsized returns for investors.
Leon Capital Group plans continued growth in its self-storage platform through acquisition and development in select markets across the country, and intends to deploy $200 million in equity on self-storage opportunities, which the firm is actively seeking. Leon is working on five more self-storage transactions, which should be completed by the end of the third quarter this year.