Update 11/4/15 – Stack-It Storage Inc. has closed the acquisition of its initial operating facility in the self-storage industry. It will be owned by a newly-formed subsidiary of the company and operated under the brand Stack-It Storage.
The purchase was largely financed via a secured term loan from a commercial bank, according to a company press release. The loan is structured as interest-only, payable on a monthly basis for the first two years. Beginning in the third year, payments will also include a monthly principal component based on a 25-year amortization. The loan matures at the end of the third year with two one-year extension periods available at the election of the bank, the release stated.
9/2/15 – Stack-It Storage Inc., a Houston-based self-storage business, has entered a contract to purchase its first operating facility. The unidentified property is in Huffman, Texas, and comprises 22,000 net rentable square feet in 202 storage units. It will be acquired for $1.5 million. The publicly traded company, formerly known as Caprock Oil Inc., expects the deal to close by Oct. 15, according to a press release.
The facility is on 2.57 acres, near the Lake Houston reservoir and recreation area. It was constructed in multiple phases between 1996 and 2004, and had 94 percent occupancy at the time of the purchase agreement. Stack-It believes there’s room to expand the facility and is considering a project that would add up to 20,000 square feet of climate-controlled space to the property.
"We are delighted to be making our initial acquisition in the self-storage business at Lake Houston. It is well suited to meet our criteria of solid current operations and potential for future development,” said Steven Mikel, president and CEO. “Once we complete and integrate the Lake Houston acquisition, we plan to continue our growth strategy that is expected to result in the acquisition of multiple self-storage facilities in the coming months and years."
Stack-It formally changed its stock issuing name from Caprock Oil on July 23, according to the Financial Industry Regulatory Authority. Caprock Oil operated in the exploration and production business and, through its wholly owned subsidiaries, owns working interests in properties in Alabama, Louisiana and Texas. When the company began its transition to self-storage, it indicated it would maintain its interests in a group of residual oil and gas properties, according to a stock profile on “The New York Times.”
Stack-It is a “small-cap” public company based in Houston. As it moves into the self-storage industry, the company intends to acquire and operate existing facilities within the continental United States, according to the release. “As a registered public company for over 10 years, Stack-It is well positioned to take advantage of recent regulatory rules in order to raise new equity to underpin its transition into the self-storage business,” company officials said.