An Investment Opportunity
DES Storage
Income Fund, LLC
A diversified investment fund targeting self-storage & office
/warehouse light industrial development in high-growth markets.
Direct Equity Source, LLC
is thrilled to announce the DES Storage Income Fund!
Key Highlights of the investment opportunity include:
The Fund offers investors the opportunity to participate in the development of an identified and diversified portfolio of up to 30 unique self-storage and office/warehouse flex properties with an experienced and successful Operator.
The Operator will contribute a minimum of 8% of the total equity capital of the Fund and guarantees all property-level debt.
The Fund also offers a fixed 12% annual dividend. The Fund’s strategy is to acquire, develop, lease up, and sell properties in high-growth markets to provide attractive returns to investors.
Our primary Operator/Developer has over 32 years of experience and a history of providing an average internal rate return to investors of 19-29%.
The operator has developed and exited 90 properties, over 6,000,000 rentable square feet, and created over $450,000,000 in value of exited projects.
The Self-Storage Industry
Growing demand for
storage units
High occupancy
rates
Resilience during
economic downturns
According to Grandview Research, the self-storage industry in the United States is projected to grow at an annualized rate of 5.9% over the five years from 2025 to 2030. The demand for self-storage has been growing steadily over the past decade as people accumulate more possessions and living spaces become smaller.
According to Grandview Research, the self-storage industry in the United States is projected to grow at an annualized rate of 5.9% over the five years from 2025 to 2030. The demand for self-storage has been growing steadily over the past decade as people accumulate more possessions and living spaces become smaller.
Self-storage has proven to be resilient during economic downturns. According to the National Association of Real Estate Investment Trusts (NAREIT), the self-storage sector had an average annual total return of 17.43% from 1994 to 2019, compared to 10.18% for the S&P 500 index. During the Great Recession, self-storage REITs outperformed all other real estate sectors.
Favorable
demographics
Institutional
Investment
The aging of the baby boomer generation has led to an increased demand for storage units as baby boomers downsize. In addition, millennials and Generation Z are increasingly using self-storage as they transition into adulthood and today represent approximately 27% of self-storage customers. As a result, demand for self-storage facilities has continued to exceed supply and, on average, existing storage facilities increased in value by approximately 133% during the 10-year period from 2012 to 2022.
There has been a significant increase in the acquisition of existing facilities by institutional investors over the last 5-8 years. This influx of institutional capital has driven premium values for well-located and well-built properties.
Office/Warehouse Flex Business Parks
Office/Warehouse Overview
Office/warehouse flex space combines office and warehouse spaces in single story buildings. Its versatility supports a wide range of uses including companies in the construction, home services, manufacturing, e-commerce, logistics and medical industries. Its wide range of users provides a larger population of potential tenants, and therefore supports quick lease up, stable economics and strong cash flows.
Increased demand for e-commerce
The COVID-19 pandemic accelerated the shift towards e-commerce, which has increased demand for office/warehouse flex space. According to CBRE, e-commerce sales are projected to reach $1.5 trillion by 2026, which will continue to drive demand for warehouse space.
Rising demand for last-mile delivery
The growth of e-commerce has also increased the need for last-mile delivery. This has led to increased demand for office/warehouse flex space that are located in urban areas, which are closer to customers.
High occupancy rates
The office/warehouse flex space sector has maintained historically high occupancy rates. According to JLL, the national vacancy rate for this sector was 3.9% in the first quarter of 2025, which is lower than the overall industrial vacancy rate of 6.3%. This indicates a strong demand for this type of space.
Resilience during economic downturns
Office/warehouse flex space have proven to be resilient during economic downturns. According to NAREIT, industrial REITs had an average annual total return of 11.28% from 1994 to 2019, which is higher than the overall REIT average of 9.87%. During the COVID-19 pandemic, industrial REITs outperformed other REIT sectors.
The Fund will develop office/warehouse flex space on land adjacent to its self-storage facilities when market conditions, demand, and property size allow. Developing both property types on one site allows site and infrastructure costs to be shared and improves the overall cost efficiency of development.
Portfolio & Performance
Strategy Comparison
The Operator’s 30-year history and 90 exited projects have been analyzed in four groups to show performance across various strategies and economic periods.
(Pre 2011 and Post 2011 are grouped by syndication date. The 2008/2009 group represents all projects
syndicated before 2009 which were still being held during 2009 and after.)
Averages weighted by project equity *Net of fees/promote
Direct Equity Source -Properties
Green Valley Self-Storage
6445 Green Valley Drive, Cibolo, TX 78108
Green Valley Business Park
6445 Green Valley Drive, Cibolo, TX 78108
Palmetto Self-Storage
2419 85th Street E, Palmetto, FL 34221
Rosharon Self Storage
144 S Pine Street, Rosharon, TX 77583
FM 3405 Self Storage
4651 FM Road 3405, Georgetown, TX 78633
FM 3405 Business Park
4651 FM Road 3405, Georgetown, TX 78633
Lago Vista Self Storage
4902 Lohmans Ford Road, Lago Vista, TX 78645
Lago Vista Business Park
4902 Lohmans Ford Road, Lago Vista, TX 78645
US 183 Self Storage
9111 U.S. Hwy 183 South, Austin, TX 78747
US 183 Business Park
9111 U.S. Hwy 183 South, Austin, TX 78747
Buda Self Storage
12818 Wright Road, Buda, TX 78610
Buda Business Park
12818 Wright Road, Buda, TX 78610
Hutto Self Storage
1169 County Road 108, Hutto, TX 78634
Hutto Business Park
1169 County Road 108, Hutto, TX 78634
Blake Manor Self Storage
18100 Blake Manor Road, Manor, TX 78653
Hwy 281 Self Storage
20303 U.S. Hwy 281 South, San Antonio, TX 78264
Hutto Self Storage
14531 FM 529, Houston, TX 77095
Gastonia Self Storage
3032 West Franklin Blvd, Gastonia, NC 28052
Gastonia Business Park
3032 West Franklin Blvd, Gastonia, NC 28052
Storelocal Walla Walla
2548 East Isaacs Avenue, Walla Walla, WA 99362
Storelocal York County
1534 Filbert Hwy York, South Carolina 29745
Storelocal York County
3342 Filbert Hwy York, South Carolina 29710
Disclaimer
The information contained herein is provided to you on a confidential basis at your request for informational purposes only and may not be relied on in any manner as legal, tax or investment advice or an offer to sell or a solicitation of an offer to buy securities. A private offering of securities will only be made pursuant to a confidential private placement memorandum (the “PPM”), which will be furnished to qualified investors on a confidential basis at their request for their consideration in connection with such offering. No person has been authorized to make any statement concerning the securities offered other than as set forth in the PPM and any such statements, if made, may not be relied upon. An investment in private securities involves significant risks, including the potential loss of the entire investment. Before deciding to invest, prospective investors should pay particular attention to the risk factors contained in the PPM. Investors should also have the financial ability and willingness to accept the risk characteristics of an investment in the securities being offered thereby.
MAGNOLIA RIDGE CAPITAL LLC
1005 Terminal Way Ste 270
Reno, NV 89502
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