Transparency is one of our core values.

Investors will have access to our secure investor portal, where they can view distributions, investment documents, and property updates.

Beginning approximately three months after closing, investors can expect:

Monthly cash distributions (subject to available cash flow)

Monthly property updates

Financial reports

Occupancy and operational performance

Progress on the business plan

Annual tax documents, including Schedule K-1s

Our goal is to keep investors informed so they always understand how their investment is performing and what we're doing to create long-term value.

Can I review the underwriting and financial projections?

Absolutely. Transparency is important to us. We have prepared a detailed underwriting model with conservative assumptions, including projected returns, operating expenses, financing, and our value-add strategy.

Click the link below to review our conservative underwriting and pro forma projections.

👉 View the Underwriting & Pro Forma

Owner-Operated by Experienced Self-Storage Professionals

The General Partners of NXTGEN Storage Amarillo will actively manage the property with the support of a part-time on-site manager. Rather than relying on a third-party management company, our team will oversee revenue management, marketing, customer service, accounting, and capital improvements remotely.

This owner-operated model enables faster decision-making, greater accountability, and direct alignment with our investors. Because we are both the owners and operators, our success depends on executing the business plan, improving operations, and creating long-term value.

A preliminary engineering-based cost segregation analysis indicates that a significant portion of the property's depreciable basis is expected to qualify for accelerated first-year depreciation under current tax law.

While final results will depend on the completed cost segregation study and applicable tax laws at the time the property is placed into service, we anticipate substantial first-year depreciation benefits for investors.

Because the property is financed with long-term debt, an investor's depreciation allocation may exceed their initial cash contribution. Actual allocations will vary based on ownership percentage, financing, final study results, and each investor's individual tax circumstances.

We recommend all investors consult with their CPA or tax advisor to understand how these benefits apply to their specific situation.

This acquisition checked all the boxes we look for in a self-storage investment.

The property is approximately 98% physically occupied, providing immediate cash flow, while also offering meaningful upside through operational improvements and revenue optimization. It also benefits from an exceptional location immediately adjacent to Ron Hoover RV & Marine, one of the largest family-owned RV dealerships in Texas, creating a steady source of demand.

Combined with attractive seller financing and our operational expertise, we believe this property presents an outstanding opportunity to create long-term value for our investors.

Our business plan is focused on increasing the property's value through operational excellence rather than major construction.

Planned improvements include:

Smart unit technology

Revenue optimization

Professional self-management

Enhanced marketing

Improved customer experience

Tenant protection program

Expense optimization

Operational efficiencies

Our objective is to increase Net Operating Income while continuing to provide excellent service to our tenants.

The seller financing on this property is one of its greatest strengths.

The loan features approximately 69% loan-to-value financing, a 4.5% fixed interest rate, and three years of interest-only payments. These favorable terms improve early cash flow, reduce financing risk, and allow more capital to remain invested in growing the property's value rather than servicing debt.

Securing financing on these terms in today's lending environment provides a meaningful advantage for our investors.

Like all commercial real estate investments, this opportunity involves risk. While we have carefully underwritten the property and developed a conservative business plan, no investment is without uncertainty.

Primary risks include:

Changes in local or national economic conditions

Occupancy fluctuations

Unexpected operating or maintenance expenses

Delays in executing the business plan

Market conditions affecting the timing or value of a future sale

Our focus is on mitigating these risks through conservative underwriting, experienced management, disciplined operations, and maintaining appropriate reserves.

However, investors should understand that returns are not guaranteed and should invest with a long-term perspective.

The approximately 3% going-in cap rate reflects the property's current in-place Net Operating Income (NOI)—not its earning potential.

While Stater's Acres is approximately 98–99% physically occupied, it is only 43% economically occupied. The property has not benefited from many of the revenue management practices common in today's self-storage industry, including:

Legacy rental rates that have not kept pace with the market

No online rentals or online payments

Outdated property management software

Minimal ancillary income

Existing revenue-producing units currently occupied by the seller's business

As a result, the current NOI understates what we believe the property can produce under professional management.

Our business plan focuses on increasing NOI through proven operational improvements—not by assuming aggressive occupancy growth or speculative market appreciation.

Why a 7% Exit Cap?

We believe a 7% exit cap rate is a conservative underwriting assumption.

By Year 5, we expect the property to reflect a stabilized operation with modern technology, market-based pricing, diversified revenue streams, and improved operational efficiency. Applying a higher exit cap rate than our entry cap helps account for market uncertainty and avoids relying on cap rate compression to achieve projected returns.

In other words, our projected returns are driven primarily by NOI growth, not by assuming buyers will pay a higher valuation multiple in the future.

This conservative approach is intended to create a margin of safety while providing a more realistic estimate of long-term investment performance..

We aren't investing because of a 3% cap rate. We're investing because we believe this combination of operational upside and seller financing creates a risk-adjusted opportunity that would be difficult to reproduce with a conventional acquisition.

Yes. Stater's Acres is already a cash-flowing business with approximately 98–99% physical occupancy and a loyal customer base built over more than 20 years.

The opportunity isn't that the property lacks demand—it's that the business has not been optimized for revenue.

Following the passing of Carroll Stater in 2023, the property continued to be operated by the family while they focused on other businesses, careers, and ultimately the sale of the property. During that time, maintaining the facility and serving existing customers remained the priority, while many of the operational strategies common in today's self-storage industry were never implemented.

As a result:

Rental rates have remained below market.

Revenue management has been limited.

Customers cannot rent or pay online.

Legacy property management software is still in use.

Ancillary revenue streams have not been implemented.

Several existing storage units are occupied by the seller's business and are not included in current underwriting.

We view this as an operational opportunity rather than a leasing challenge. The property already demonstrates strong customer demand; our business plan is centered on modernizing operations, increasing revenue, and improving the customer experience while building upon the exceptional foundation the Stater family created.

Our business plan is designed around creating long-term value through disciplined operations rather than relying solely on market appreciation.

Over the anticipated five-year hold period, we plan to increase the property's value by implementing revenue optimization strategies, enhancing the customer experience, improving operational efficiencies, and maximizing net operating income. As the property's performance improves, so does its value.

At the appropriate time, we will evaluate the market and pursue the option that we believe provides the greatest return for our investors.

This may include:

Selling the property to another investor or institutional buyer

Refinancing the property and returning a portion of investor capital while continuing to own the asset

Extending the hold period if market conditions indicate that doing so would maximize investor returns

Our objective is not simply to sell after a predetermined number of years, but to make the decision that creates the greatest long-term value for our investors.