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The Deal

• Location: Newland, North Carolina
• Purchase Price: $1,275,000
• Deal Type: 506 (b)
• Size: 7,125 rentable square feet
• Age: Built in 2023
• Financing: SBA 7(a) loan through Live Oak Bank with equity raised from private investors
• Current Gross Income: Approximately $155,000–$160,000 annually at acquisition, based on 94% economic occupancy
• Expected Gross Income: $180,000+ annually through revenue management, lease-up of owner-used units, and ancillary income
• Projected Cap Rate: 7.50%

Operational Plan

When Rolling Rook Capital assumed operational and asset management responsibility in mid-2025, EZ Storage was already a strong physical asset. The facility was newly constructed, highly occupied, and positioned as the only climate-controlled storage option within its immediate trade area. The opportunity was not physical repositioning, but operational refinement and economic optimization.

The operational strategy focused on automation, revenue discipline, and scalable oversight.

EZ Storage already utilized modern self-storage management software, enabling online leasing, automated payments, and digital access control. Our approach was to fully lean into these systems, reducing friction for customers while keeping operating overhead intentionally lean. A third-party phone platform allows us to all be notified when a guest inquiry comes in, ensuring professional coverage without requiring full-time on-site staff.

On-site oversight is maintained through a part-time local manager who conducts routine inspections, addresses minor maintenance issues, and serves as a physical presence when required. This hybrid model allows the facility to operate efficiently while maintaining security, cleanliness, and responsiveness.

From a revenue standpoint, several clear levers were identified. Units previously occupied by ownership for operational use were transitioned back into income-producing inventory. Ancillary revenue streams, including administrative fees and tenant insurance, were formalized and standardized. Rental rates are actively monitored and adjusted based on occupancy trends, seasonality, and competitive pricing rather than remaining static.

The result is an operation designed to run consistently and predictably, with systems in place that support long-term scalability rather than reactive management.

The Market

EZ Storage operates in a structurally undersupplied market. Within a five-mile radius, it is the only climate-controlled self-storage facility, a critical distinction in a region defined by high humidity, significant rainfall, and wide seasonal temperature swings. In this environment, climate control is not optional, it is essential for protecting stored goods.

Demand is supported by several overlapping drivers. Avery County benefits from a stable employment base, a tourism economy generating approximately $51 million annually, and proximity to Appalachian State University, located roughly 20 miles away. Seasonal residents, short-term rental owners, students, and local businesses all contribute to consistent, year-round storage demand.

The facility’s rapid lease-up following its 2023 opening and sustained 94%+ physical occupancy demonstrate both market depth and product-market fit. Broader self-storage fundamentals further support the thesis: the asset class remains recession-resilient, benefits from month-to-month lease flexibility, and requires comparatively low ongoing maintenance.

In markets like Newland, execution matters more than speculation. Limited new supply, high barriers to entry for climate-controlled product, and steady local demand create an environment where disciplined operations can drive durable performance.

Financing

The acquisition was structured with a conservative, long-term capital stack designed to support operational stability rather than short-term financial engineering. Senior debt was obtained through a 25-year SBA 7(a) loan with an initial interest-only period, providing flexibility during the early stages of ownership. Equity capital was raised from private investors to fund the down payment, closing costs, and operating reserves.

This financing approach aligns with Rolling Rook Capital’s philosophy that capital structure should support execution, not dictate it. Adequate reserves, long-term amortization, and conservative leverage allow the business to focus on operational improvements, steady cash flow growth, and risk mitigation.

Investor returns are driven by a combination of stabilized income, revenue optimization, and long-term appreciation, with exit optionality through refinancing or sale once the asset has fully matured.

Conclusion

EZ Storage reflects Rolling Rook Capital’s core investment approach: acquire assets with strong fundamentals, apply disciplined operations, and allow execution to drive returns.

By taking over asset management and strategic oversight in 2025, we transitioned EZ Storage from a well-built facility into a professionally operated platform designed for consistency and scalability. Through automation, targeted revenue management, and market-aligned decision-making, the property is positioned to remain a high-performing asset within a resilient sector.

This deal is not about chasing trends or relying on aggressive assumptions. It is about building durable, income-producing assets that perform across market cycles, and EZ Storage stands as a clear example of that philosophy in practice.