The owners of Reading Storage in Reading, Pennsylvania, have expanded their real estate portfolio to include the In Town Motel, a laundromat, a tattoo parlor and a tax-preparation service. Co-owner and managing partner Ryan McFadden has become known locally as an entrepreneur who buys and restores well-known city properties. His portfolio also includes a barber shop and salon, a daycare center, residences and small warehouses, according to the source.
McFadden toured the motel without intending to buy it, but became more interested after finding it in good shape and well-run. The 16-room property at 1635 Centre Ave. rents rooms by the week and has a resident manager. Though he initially had trouble getting financing, McFadden found a lender who also saw the business’ upside.
“It’s completely full,” McFadden told the source. “There’s a wait list. They’re basically efficiency apartments. There’s been people there for 10 years, but the first bank didn’t care as soon as they heard the word ‘motel.’ I found a bank that would work with me and saw the value.”
The $965,000 deal included the adjoining commercial businesses, including a vacant restaurant attached to the motel for which McFadden is seeking a tenant. He intends to pursue some property upgrades, including lighting, signage and carpeting, which should take about a year.
“I just can’t sit on something and run it into the ground or watch it decay,” McFadden said. “My business partners would probably like me to not spend so much on repairs and improvements, but I just can’t see torn up sidewalks—can’t look at it. So, when we buy a property, we usually dump a bunch of money into it quickly right from the start, so it’s self-sufficient for years to come.”
Founded in 2012, Reading Storage operates more than 30 locations comprising 750 units and vehicle-storage spaces. The company’s central office is at 500 N. 13th St.
Source:
Reading Eagle, Self-Storage Business Owner Buys Reading Motel, Commercial Spaces
