CRD Realty

Dear Valued Clients and Friends,

After much consideration and reflection, I have made the decision to shut down CRD Realty. It has been an incredible journey over the last 4 years in storage. It is fitting as my very last sale this year was also my first property to sell back in 2020. From the smallest property to the largest 8 figure deal, I am immensely grateful for the trust and support you have shown to me throughout those years.

I am excited to share that I will be embarking on a new chapter in my career by joining Cushman and Wakefield, one of the largest commercial brokerages in the World. In my new role, I will be working diligently within a small team to identify development tracts for a corporate client along both the East and West coasts. This opportunity allows me to leverage my expertise in a broader scope and contribute to some exciting projects on a national scale.

This decision was not made lightly, but I am confident it is the right step forward.

Thank you once again for your unwavering support and please don't hesitate to reach out!

Interested in learning more about storage and storage investment? We have a library of content we have put together over the years on our website. Check it out!

https://crdrealty.com/

Home CRD Realty specializes in self-storage, RV park & land brokerage. We want to utilize our connections, knowledge, tools and experience in order to be the most reliable resource for our clients, and drive home the best deal and experience possible for them.

Now available!

> Zavalla, TX
> 12 Units
> Built 2019

https://crdrealty.com/251-honeysuckle-boat-storage/

251 Honeysuckle - Boat Storage Secure and convenient boat storage for sale. Discover this recently built, top-quality class B boat and RV storage facility.

Now available!

> Zavalla, TX
> 20 Units
> Built 2023

https://crdrealty.com/936-storage/

Rates seem to be increasing and the development pipeline shrinking which are both good indicators for the storage industry. Take a look at our latest newsletter for information on this and more!
https://crdrealty.com/self-storage-market-update-analyzing-houston-and-san-antonio/

Self Storage Market Update: Analyzing Houston and San Antonio Stay up-to-date with the Self Storage Market in San Antonio and Houston. Get insights on rates, trends, and performance in this Mid-Year 2024 update.

We are getting ready to publish our mid year storage update. We thought this tid bit was an interesting share. It shows a net reduction in development activity across Texas from end of 2023 to mid year 2024. As development deals are halted or completed, new projects are not being started thus leading to a decrease in the pipeline. We are also seeing an overall increase in rates. This is promising news for markets that suffering from oversupply.

Coming Soon....Boat Storage Portfolio in Zavalla, TX (Sam Rayburn Lake)!

Are you looking to acquire your first storage project? Aside from reaching out to us, check out our Storage Due Diligence Acquisition Checklist here:

https://crdrealty.com/a-roadmap-to-success-due-diligence-checklist-for-buying-a-self-storage-property/

A Roadmap to Success: Due Diligence Checklist for Buying a Self-Storage Property Purchasing a self-storage property can be a lucrative investment. Use our due diligence checklist to make sure you don't miss something big!

Another great TSSA Luncheon. Enjoyed listening to the info and catching up with some folks.

We thought this was interesting to share as we get questions all the time on where cap rates are.

We took a look at 16 of the Storage deals we underwrote for Broker Opinion of Values (BOVs) in the last year to list and take to market and sell. We only ended up taking 2 of the 16 to market to sell and they did end up selling. Unfortunately the pricing expectations between what the potential Seller wanted and what we believed the market would pay were too far apart to take the others to market. Total value for these 16 deals based on our pricing is $44,325,000.00.

When looking at the graph below, you will see "In Place" and "Adjusted" Cap Rates. "In Place" is using the property's Trailing Revenue and Operating Expenses. "Adjusted" is using the properties Trailing Revenue with Adjusted Operating Expenses. We adjust expenses for potential increases in Insurance, Property Taxes, Management Fees, Payroll etc. when a new owner takes over. It is a rare occasion that we may need to adjust the expenses down as perhaps the property incurred large repairs over the course of the previous year due to some deferred maintenance the owner was taking care of.

The Cap Rates in the graph below are determined by dividing Net Operating Income (NOI) by the Purchase Price. For example, we would take the "Adjusted" NOI and divide by CRD's suggested pricing and then do the same for the Owner pricing. We then averaged the Cap Rates for each Class (A,B,C and D) and category and place in the graph below.

In summary, what this graph points out are most Seller expectations for pricing are not able to be supported by current market conditions particularly the cost of capital. On average CRD's pricing opinion was 23% below what the Seller wanted for their property.

There are still a lot of buyer's looking for deals. Unfortunately, in our experience, Seller's do not need to sell and will hold on for now.

Underwriting properties and providing Broker Opinion of Values to owners is large part of our business. We recently completed the BOV for a 2 property portfolio (Example BOV Below Not For Portfolio). Unfortunately like many of the deals we have had a chance to underwrite in the last year, our market estimate for pricing came in about 30% below what the owner wanted.

However, although we do not get to take it to market, we do get the opportunity to meet with this owner tomorrow for lunch to discuss some ways they can help improve the portfolio's income and subsequent value in order to get the price they want on the open market.

We are here to give an honest opinion and feedback. We never inflate a deal or potential returns. We strive to work in the best interest of the customer or client no matter what.