Spartan Enters 13th State With White Sulphur Springs Acquisition
We are excited to announce our acquisition of the White Sulphur Springs property in West Virginia, marking our entry into our 13th state and expanding our footprint in the growing self-storage market. This strategic acquisition aligns with our ongoing mission to expand our portfolio and deliver exceptional self-storage investment opportunities in underserved markets. Located at 362 Mountain Avenue, the White Sulphur Springs project is a conversion of an existing warehouse into a 40,500-square-foot self-storage facility, perfectly positioned for rapid development and strong market performance.
Why White Sulphur Springs? A High-Demand Self-Storage Market
This acquisition represents a unique opportunity in a West Virginia self-storage market with substantial unmet demand. With no immediate competition or new development pipeline in the area, our analysis shows strong rent potential at approximately $18 per square foot, making it an ideal location for self-storage investors. The combination of low supply, high demand, and a growing need for storage space creates a highly favorable market dynamic that enhances the projected returns of this investment. Our entry into West Virginia underscores our commitment to identifying and capitalizing on high-potential self-storage markets that offer solid growth prospects.
A Rapid Conversion and Flip for Self-Storage Investors
This project is structured as a conversion-to-flip with a clear, strategic exit plan tailored to self-storage investors. By targeting East Coast buyers seeking less competitive investment opportunities in self-storage, we aim to secure a buyer before construction is completed, minimizing holding costs and maximizing returns. The unique lease agreement with the seller covers all carrying costs, eliminating the need for rent payments during construction and further mitigating downside risk. This arrangement allows us to postpone significant capital outlay until post-sale, ensuring a favorable financial framework throughout the project—ideal for self-storage investors looking for high-yield opportunities.
Risk Mitigation and Strategic Planning in the Self-Storage Market
Risk mitigation remains at the core of our White Sulphur Springs self-storage project strategy. Our approach includes a fixed purchase price of $1.5 million and a lease structure that absorbs the seller’s carrying costs, providing a buffer against potential market fluctuations in the self-storage sector. This structure not only reduces financial exposure but also positions the project for a swift, profitable exit as market conditions align with our planned timeline. Our strategy emphasizes strong risk management, making this an attractive self-storage investment in West Virginia.
A Commitment to Value Creation in Self-Storage Investments
At Spartan, we pride ourselves on building value through strategic, data-driven investments in self-storage. The White Sulphur Springs acquisition aligns perfectly with our vision to provide investors with unique opportunities in emerging self-storage markets while maintaining our commitment to risk mitigation and capital efficiency. As we continue to expand our footprint across the United States, this project exemplifies our dedication to pursuing growth opportunities that benefit both our investors and the communities we serve.
With the White Sulphur Springs acquisition, we look forward to enhancing our self-storage portfolio and delivering on our promise to improve lives through real estate investments. This project not only marks our first self-storage facility in West Virginia but also sets the stage for future growth in this emerging market. Stay tuned for further updates as we progress through construction and move toward a successful project completion.
For more information about our latest self-storage investment opportunities, please reach out to our Investor Relations team at investors@spartan-investors.com.
