Redwood Storage operates under the customer facing brand OneGuard Self Storage. While we utilize REIT level website & booking software, competitive Google and Sparefoot advertising, and generate content weekly for our properties in the form of blogs, Facebook, and Google My Business posts, our most differentiated and valuable offering is our remote management team which enables us to run facilities for up to 50% less than our competitors.
While today we exclusively operate our own facilities, we will be offering 3rd party management in late 2023 starting with an externally owned 80k sqft climate controlled facility.
Redwood Storage owns a 30,000 sqft drive up storage facility in the center of historic downtown Woodstock, GA, an affluent growing suburb of Atlanta.
Redwood Storage acquired this asset on-market, brokered by Meridian Storage Group. We were able to work with the seller on unique seller financing terms to both reduce our purchase price by $1M off of ask and secure a 4.25% interest rate seller note fixed for 20 years.
This property is a value add deal, and as of January 2023 is in the process of stabilization. We took the property over at 60% occupancy and are targeting a stabilized occupancy of 85% at asking rates of around $0.90/sqft.
If you have a hairy deal and/or the seller would like to hold a note for retirement, please get in touch.
Redwood Storage owns two properties within 0.25 miles of each other, totaling 50,000 sqft of drive up self storage, in Toccoa, GA.
Redwood Storage acquired these assets from two separate sellers, off market, for a combined $2,325,000. The portfolio currently yields over $21,000 in net income per month, effectively a 10.5% yield on all in cost. With a 4% interest rate loan, we are achieving gross cash-on-cash returns in excess of 18% and cash-on-cash + principal returns of over 27%.
We purchased these properties with a simple strategy: replace on-site managers with off-site, conduct basic cosmetic and security improvements, establish a tenant protection program, and increase tenant rents to market levels. Over the first 6 months of ownership, we increased gross revenue from $20,000 to over $30,000 per month.
At a 6% cap rate, this property is worth approximately $4.2m. However, we are currently expanding one of the properties and leasing up a few vacant units, and do not believe that we have yet achieved the maximum value of our investment.
Redwood Storage is currently under contract to build over 140,000 sqft of climate controlled self storage across the Southeast. We have partnered with two separate national self storage developers to bring our projects to reality.
We focus on sites near new rooftops, with great road visibility, and in markets with great supply / demand imbalances. The site pictured below is situated on a road seeing over 30k vehicles per day, across from a Publix and Starbucks, and the market sees almost no self storage vacancy, with 10x10 climate-controlled units renting for over $229/unit.
We focus on projects for which we believe that we can achieve a 9-10% yield on cost at stabilization.
We build mostly climate controlled where it's humid, and mostly drive up where it's not.