Climate Expansion and Lease Up
Climate Expansion and Lease Up
This case study highlights the expansion and lease-up of a Class A boat, RV, and traditional self-storage facility located along TX-71 in the rapidly growing Spicewood and Lake Travis corridor outside Austin, Texas. The facility features concrete drives, steel construction, wide aisles, and gated keypad access. Originally built in 2001 and expanded in 2016, the property serves a strong recreational storage market supported by Lake Travis activity and sustained residential growth.
Hinze Capital acquired the asset with a defined value-add strategy centered on expanding rentable area and materially increasing the climate-controlled offering, which existed but was undersized relative to demonstrated market demand. The new climate-controlled building was delivered on December 1, 2024.
While the facility already offered climate-controlled units, the product mix was insufficient to capture the premium segment of the local market. The majority of inventory was weighted toward traditional, boat, and RV storage, leaving unmet demand from tenants seeking higher-end, temperature-controlled options.
To fully realize the asset’s revenue potential and strengthen its competitive position, the property required a targeted capital expansion coupled with disciplined pricing and repositioning of the overall unit mix.
Trove executed a strategic value-add plan focused on expanding climate capacity, optimizing pricing, and elevating market positioning. Key initiatives included:
- Acquiring the property with a clear plan to materially increase climate-controlled inventory through new construction
- Managing the ground-up development of a new climate-controlled building, delivered on December 1, 2024, adding significant rentable area and reinforcing the facility’s Class A profile
- Implementing a premium pricing strategy for the expanded climate product to maximize revenue per square foot
- Refining rent-increase programs across traditional, boat, and RV inventory to better reflect strong local demand and market comparables
- Updating the property’s marketing and positioning to emphasize expanded climate inventory, the strategic TX-71 location, and superior Class A amenities
- Expanded total net rentable square feet from 93,196 to 110,135, increasing climate-controlled space from 24.2 percent of total inventory to 51.6 percent
- Increased gross potential rent from $100,186 to $151,105, representing a 50.8 percent increase driven by climate expansion and disciplined rate optimization
- Leased new climate inventory from zero to 65 percent occupancy within ten months, validating strong submarket demand and supporting continued pricing power
“Trove balanced thoughtful growth with disciplined execution. Their approach allowed us to expand into premium climate storage, improve overall pricing, and compete effectively with national operators while maintaining the character of the property.”