Rockies Portfolio - Operational Value-Add in Proven Front Range Corridors

The RockiesPortfolio consists of two self-storage assets totaling 98,675 NRSF (776 units) located along Colorado’s I-25 corridor in Castle Rock and Colorado Springs.

Both submarkets are supply-constrained with competing facilities consistently maintaining 90%+ occupancy, supported by strong population growth and, in Castle Rock, a $165k+ median household income base.

Current Performance vs. Market
The portfolio is currently operating at approximately 81% occupancy, below market levels. This variance is not driven by demand, but by prior ownership’s limited operational infrastructure.

Identified Operational Gaps

• No formal revenue management system
• Limited digital marketing and demand capture
• Lack of centralized leasing and collections
• Inefficient unit merchandising (particularly climate-controlled product)

Execution Plan
Operations have been transitioned to institutional platforms with defined roles:

• Castle Rock (CubeSmart)
  Implementation of REIT-level pricing algorithms, national call center support, and optimized merchandising to align with high-income commuter demand.
• Colorado Springs (FreeUp Storage – Spartan platform)
  Deployment of 24/7 online leasing, centralized collections, and streamlined tenant acquisition processes to drive occupancy before rate optimization, with 100% leased industrial flex space providing a stable cash flow floor alongside the storage upside.

Business Plan
The strategy is focused on:

• Closing the occupancy gap to market levels
• Aligning pricing with institutional benchmarks
• Expanding NOI through operational efficiencies rather than market appreciation

Investment Thesis
This is an execution-driven opportunity within established, high-demand corridors where market fundamentals are already proven. The primary value creation lever is operational improvement, not speculative growth.