Kilgore Storage and Retail
SELLER FINANCING NOW AVAILABLE | 36,300 SF Storage & Retail Opportunity in East Texas
Marketing description
Kilgore Storage and Retail represents a unique opportunity to acquire a hybrid retail / self-storage asset with multiple income streams and a clear path to value creation. The property is easily visible from its location on US-259, one of Kilgore’s primary commercial corridors, upon which more than 43,000 vehicles travel per day.
Originally constructed as a traditional strip center in 1994, a portion of the interior was converted into climate-controlled self-storage in 2024 – creating a diversified revenue profile that combines stable retail income with storage upside. The property currently includes 158 storage units totaling approximately 20,887 rentable-square feet, alongside retail suites positioned along the frontage of the asset, bringing the total rentable-square footage of the asset to 36,301.
Current occupancy of the storage component (approximately 70 percent) leaves room for lease-up; and in-place rental rates remain below comparable facilities in the market, supporting continued revenue growth through improved operations and rate management. In addition, the property includes a vacant building that provides further upside potential, whether through storage expansion, additional retail leasing, or repositioning based on investor strategy.
Offered at approximately $50 per rentable-square foot, the asset presents an attractive basis relative to its replacement cost, particularly for climate-controlled product with strong frontage. Overall, the investment offers a balanced profile—anchored by retail income with meaningful upside driven by the storage component.
Investment highlights
- Attractive seller financing available: 6% interest rate (interest only), 40% down payment, and 5-year term
- Approximately 70% physical occupancy provides immediate lease-up opportunity
- In-place rental rates below comparable facilities, supporting continued rate growth
- Clear path to increased NOI through improved operational, marketing, and revenue management practices
- Vacant building offers additional upside through storage expansion or repositioning
- Offered at approximately $50/SF—well below replacement cost for climate-controlled product
- Anchored by established local tenants, including Hope's Closet, which serves as a key traffic driver to the center
- Strong frontage along US-259 with traffic counts exceeding 43,000 vehicles per day
- Historically operated by local, mom-and-pop ownership with opportunity for more professional management
- Opportunity to convert existing leases from gross to triple-net structure, reducing expense burden and increasing NOI
- Potential to mark rents to market over time and enhance tenant mix
- Complementary relationship between retail and storage uses enhances overall asset performance
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