HOUSTON, Nov. 2, 2015 /PRNewswire/ -- Stack-It Storage, Inc. (STAK) announces that it has closed the acquisition of the Company's initial operating facility in the self-storage business. In this transaction, the Company acquired a fully operational self-storage facility with approximately 22,000 net rentable square feet located in Huffman, Texas, for a purchase price of $1,500,000. The seller was a private company. The facility is owned by a newly-formed subsidiary of the Company and will be operated under the brand name of "Stack-It Storage."
The acquired facility is located in close proximity to Lake Houston, a major water reservoir and aquatic recreational area, and presently consists of 202 non-climate controlled self-storage units situated on approximately 2.57 acres of land. It was originally constructed in stages from 1996 to 2004 and current occupancy of the self-storage units is approximately 95%. Within the existing land tract, Stack-It Storage believes that there is sufficient capacity to substantially expand the facility and the Company is currently investigating the feasibility of constructing up to 20,000 square feet of additional climate controlled storage space.
Acquisition cost of the Lake Houston storage facility was largely financed via a secured term loan from a commercial bank. The loan is structured with interest only payable on a monthly basis for the first two years of the loan. Beginning in the third year, such 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.
About Stack-It Storage, Inc.
Stack-It Storage, Inc. is a small-cap public company based in Houston, Texas. We are engaged in the acquisition and operation of existing self-storage facilities within the continental US. We utilize professional management and financial practices to enhance the value of our self-storage facilities.
Statements contained in this press release with respect to the future are forward-looking statements. These statements reflect management's reasonable judgment with respect to future events. Forward-looking statements involve risks and uncertainties. Actual results could differ materially from those anticipated as a result of various factors, including cyclical or other downturns in demand, significant pricing competition, unanticipated additions to industry capacity, and the timing and number of additional acquisitions made by the Company. Forward-looking statements are based on currently available information, and we assume no obligation to update any such statements. Please refer to the Company's annual report on Form 10-K for the year ended December 31, 2014 filed with the Securities and Exchange Commission.
SOURCE Stack-It Storage, Inc.