2172 E LOOP 340 Waco TX 76705-3445

Below Replacement Cost Basis with Expansion Optionality – Offered at approximately $61.59 per rentable-square foot, the acquisition cost is materially below today’s development cost, while the 5.12-acre site provides visible highway frontage and land for future expansion once stabilized.

Manageable Supply Fundamentals Supporting Stabilization – Less than 6.5 SF per capita within three miles (approximately 10 SF within five miles), combined with approximately 88% average occupancy among three comparable facilities within a 10-mile radius (TractIQ, January 2026), supports continued lease-up without competing in an oversupplied trade area.

Demonstrated Post-Expansion Lease-Up Momentum – Since the 2023 expansion, physical occupancy has improved from approximately 53% to 67% (January 2026) despite suboptimal remote third-party management, indicating proven demand and additional absorption capacity.

Clear Operational Upside from Management Reset – Remote third-party oversight has resulted in below-market rents, elevated concessions, and inconsistent revenue management — creating a defined path to improved occupancy and revenue under focused, local operational control.

Mark-to-Market Rental Rate Opportunity – Comparable facilities achieve materially higher street rates across key unit sizes, particularly 10x10, 10x15, and climate-controlled units, providing embedded revenue upside prior to full stabilization.

Attractive Near-Term Yield Expansion – Stabilization to 75%–85% economic occupancy supports projected cap rate expansion from approximately 7.3% in Year One to 8.8% in Year Two without assuming aggressive rent growth.