MS Value-Add Portfolio

The MS Value-Add Portfolio consists of four properties located in Northern Mississippi. The properties are comprised of 84,675 NRSF. It contains 492 units including 56 climate-controlled units and 436 non-climate units. The portfolio is currently 59% physically occupied and economic occupancy lags immensely, at 45%, offering upside through the remaining lease-up as well as rental rate adjustments. The property was recently purchased and rehabilitated by the current owner, who began moving new tenants in at the start of this fiscal year. Current management of the assets is being provided by a non-storage management group. Asking rates are well below the market and no advertising of rentable units has been implemented since new ownership took over.

This portfolio offers an investor immediate scale and a strong presence in the Tupelo MSA, and the opportunity to revive management and boost lease-up activity. With four separate properties located within 20 miles of each other, a new operator will have a strong footprint in this growing market and can cater to multiple surrounding communities. Current achieved rents are tracking at $4.06/SF annually which is severely below the market. At current projections, the portfolio will be fully stabilized in Year 3 and the expected NOI will be south of $300k/year.