Location: Deep Ellum, TX
For Sale Website:
The attached spreadsheet model is for Deep Ellum Self Storage located in Deep Ellum, TX. It is currently listed for sale at $2,700,000. This model includes a pro forma income statement and balance sheet for the storage units, based on market assumptions in the area, and an analysis of the costs of capital and internal rate of return. The model allows variables to be changed for all major inputs of the computations, and includes citations for assumed values in the models.
With the chosen values, the storage units would have a weighted average cost of capital of 6.88%, and an internal rate of return equal to 6.92%. In determining the internal rate of return, we assumed a liquidation of assets at the end of eight years. The returns on the building and land are adjustable at management’s discretion to meet the needs of investors.
We believe the listing price of $2,700,000 is reasonable because the internal rate of return of 6.92% nearly matches the weighted average cost of capital at 6.88%. This is assuming a structure of 80% debt and 20% equity.