APS Burlington : How we added $2.5M in Value

In this video, I’ll show you how we used our M.A.S.M. acquisition strategy to increase the value of this storage facility from $3.1 million to over $5.6 million.

This facility, built in 1986, covers 28,020 square feet with 270 units on 2.78 acres of land. We saw a value-add opportunity through better management and marketing. After years of cold calling, we acquired the property for $3.1 million—just over $100 per square foot.

Results

So, how much returns did we generate for investors on this deal?

Through operations, we managed to increase the asset's income significantly without requiring major capital expenditures.

Here’s a breakdown of the financial impact:

•              Income increased from $419,011.41 to $538,831.86

•              Expenses decreased from $275,997.86 to $204,659.38

•              Net operating income doubled from $143,013.55 to $334,172.48

This boosted the property's value from $3.1 million to over $5.6 million. We have not sold the property, but at today’s value if we sold that would result in a 76% IRR and 2.54 Equity Multiple, which is an amazing result. 

The real success we achieved is the fact that we refinanced the property with a CMBS Lender; we were able to return all the investor capital in the deal, get off recourse financing, and lock in fixed interest-only terms for 5 years. The property will still cash flow after the new debt servicing between $60-$80k annually. 

In conclusion, this case study is a perfect example of how our MASM strategy, combined with operational improvements, can drive significant value in real estate investments. Stay tuned for more case studies and insights.