SecureLock Self Storage: Strategic Expansion into Self-Storage

In 2021, Tyler continued to build on Legacy’s success in cash-flowing real estate with the acquisition of SecureLock Self Storage.

The self-storage industry had proven to be a stable, recession-resistant sector with minimal overhead costs and strong customer retention rates. This acquisition aligned perfectly with Tyler’s strategy to diversify into low-risk, high-return businesses that could thrive independently of economic cycles.

The Opportunity in Self-Storage
Self-storage was an industry experiencing growth as more people sought affordable, secure storage solutions. Many of these facilities, however, were underperforming due to outdated management practices or underutilized space.

Tyler saw SecureLock as a high-potential business with a strong client base but inefficient operations. The facility was well-located, and with the right improvements, it could become a top-performing asset in Legacy’s portfolio.

SecureLock provided Tyler with the chance to capitalize on consistent demand for self-storage while implementing operational upgrades that would optimize efficiency and drive higher occupancy rates.

Creative Financing and Deal Structure
For the SecureLock acquisition, Tyler leveraged a blend of asset-based lending and seller financing to close the deal with minimal capital outlay. This deal structure allowed Legacy to acquire the business at a favorable price and reinvest immediately into operational enhancements.

Key Aspects of the Deal:

Asset-Based Lending: Tyler secured financing against the real estate value of the storage facility, giving him access to capital without compromising Legacy’s cash reserves.
Seller Financing: Part of the acquisition was financed by the seller, reducing upfront costs and allowing for a phased payment structure based on the business’s cash flow.
This approach ensured Legacy could maximize its return on investment while maintaining the necessary liquidity for future ventures.

Optimizing Operations and Profitability
Upon acquiring SecureLock, Tyler’s immediate focus was on improving operational efficiency and maximizing occupancy. Self-storage businesses generate predictable, recurring revenue, but profitability hinges on maintaining high occupancy and minimizing vacancy times between rentals.

Key Actions Taken:

Upgrading Security and Accessibility: Tyler enhanced the facility’s security features, including the addition of 24/7 video surveillance, keypad entry systems, and individual unit alarms. These upgrades not only improved the safety of stored items but also attracted new customers seeking secure, accessible storage.

Implementing a Digital Management System: Tyler introduced a cloud-based management system that allowed customers to book and pay for storage units online. This streamlined the booking process, reduced administrative costs, and improved customer satisfaction by providing a seamless user experience.

Expanding Capacity: Recognizing the opportunity for growth, Tyler invested in adding additional storage units, including climate-controlled spaces for clients with temperature-sensitive items. This expansion increased the facility’s revenue potential and attracted a broader customer base.

Local Marketing and Community Engagement: Tyler launched a local marketing campaign, partnering with nearby businesses and residential communities to increase awareness of SecureLock’s services. Special promotions and introductory offers helped fill units quickly and establish a loyal client base.

Financial Performance and Growth
The enhancements Tyler implemented led to a significant increase in occupancy rates and allowed SecureLock to operate at nearly full capacity within the first year. The facility’s revenue increased by over 40%, driven by new customers, the expanded capacity, and premium climate-controlled units.

SecureLock became a steady contributor to Legacy’s portfolio, generating predictable, high-margin cash flow while requiring minimal ongoing operational costs. The self-storage industry’s low overhead and high return potential made it an ideal asset, reinforcing Legacy’s portfolio with a stable, recession-resistant revenue source.

Why This Acquisition Mattered
The SecureLock Self Storage acquisition exemplified Tyler’s knack for spotting undervalued businesses with the potential for operational improvements. This acquisition:

Added a low-maintenance, high-margin asset to Legacy’s portfolio.
Increased Legacy’s real estate holdings and provided another reliable revenue stream.
Showcased Tyler’s ability to drive value through strategic upgrades and marketing initiatives.
By securing SecureLock Self Storage, Tyler strengthened Legacy’s cash flow diversity and established a foundation in the self-storage sector. This move aligned perfectly with his mission to build a dynamic, resilient portfolio that would thrive across economic conditions.