FM 3405 - Investment Positions Only

Capitalize on Austin's remarkable expansion with this exclusive passive investment opportunity in one of the fastest-growing regions in the nation. Direct Equity Source offers a compelling chance to invest in its FM 3405 self-storage and business park project, strategically located in Georgetown, Texas.
This investment starts at a minimum of $200,000 and is structured to be 1031 Exchange compatible (note: this is not an outright property sale). The project features an 85,000-square-foot self-storage facility, developed in two phases. Construction of Phase 1, totaling 35,000 square feet, began in September 2024 and is on track to open for leasing in Q2 2025. Equity raised during Phase 1 will fund Phase 2 entirely through debt, achieving a loan-to-cost ratio of 70% for the completed project.
Future growth is also planned, with a 100,425-square-foot business park adjacent to the self-storage facility. Phase 1 of the business park will feature 68,000 square feet of flex office/warehouse space, offering bays between 3,000 and 5,000 square feet. Pre-leasing for this phase is expected to begin in 2025.
Georgetown, named the fourth-fastest growing US city in 2023, is ideally positioned to support this venture. The surrounding 5-mile radius has experienced a 40% population surge since 2020, driven by affluent commuters with an average household income of $141,000. These residents contribute $487 million in annual consumer spending, creating a prime market for both self-storage and flex space solutions. Easy access to Ronald Reagan Boulevard and Highway 183 enhances the project’s appeal, while the area's growing retail and dining hubs further support its strategic location. Direct Equity Source has already seen the benefits of this growth as its other Austin metro are fully leased, and the trade rate of local self-storage projects indicates the market’s demand for assets like this.