Income Fund V & VI: Income
The experts at Self Storage Partners know a good self-storage opportunity when they see it. And, once they buy a self-storage facility, they know how to use economies of scale to lower its operating costs, raise revenues, improve service for customers, and increase cash flow to investors.
Self Storage Partners performs feasibility studies, consults, manages contracts, organizes franchises, and directs capital improvements. The company also identifies revenue streams that are untapped.
Here’s an example of how all this plays out in the real world:
The company purchased Malibu Valley Self-Storage in Las Vegas in April of 2003.
The price: $6,400,000.
The Self Storage team went to work and reconfigured the unit mix to maximize rental efficiency. They re-branded the facility as Self Storage Partners and improved the general look and traffic flow of the physical plant.
They also created two new revenues centers; they entered a billboard lease arrangement with Clear Channel and they installed a cell tower.
The Malibu Valley project has yielded 18% cash on return and the market value of the property has nearly doubled to $12,000,000
This story repeats across the entire Self Storage Partners portfolio of 55 self-storage facilities. The Golden State Income Fund V, offers investors a minimum of an 8% preferred return and usually more when the cash flow is higher. Its acquisitions are expected to increase in value by 30% to 60% in the next five years.
