Oklahoma City Self Storage

Oklahoma City Self Storage2019-09-26T11:04:40-04:00

Project Description

The Self-Storage Advisory Group of Cushman & Wakefield has been selected to exclusively market for sale the Oklahoma City Self Storage Opportunity.

$1,200,000
NRSF – 29,600

5980 NW 36th Street
Oklahoma City, OK 73122

Extra Closet Self Storage consists of 296 non-climate controlled, drive-up units and 25 boat/RV parking spaces for a total of 321 units and 29,600 rentable square feet. The facility’s current physical and economic occupancies are 78.7 percent and 66.8 percent, respectively. To ensure secure storage, the facility has perimeter-wide fencing, gated access and a 1-bedroom/1-bathroom on-site manager’s apartment. The facility has undergone multiple improvements, including the installation of an electronic gate, the continual renovation of units and exterior painting.

Situated at 5980 Northwest 36th Street, Extra Closet Self Storage witnesses traffic counts of over 14,200 vehicles daily. The facility is adjacent to a single-family residential community and two apartment complexes, the 71-unit Cameron Court Apartments and the 100-unit Hammond Manor Apartments. The area is home to a five-mile population of 194,111 individuals among 80,499 households. The area’s dense population is also reflected by the multitude of nationally-recognized retailers in the immediate vicinity, such as CVS, Walgreens, Dollar General, McDonald’s, and shopping centers anchored by Walmart, The Home Depot, Best Buy and Hobby Lobby. Several universities are also near the facility, Southern Nazarene University at a 0.5-mile distance, Southwestern Christian University at a 2.1-mile distance and Oklahoma City University at a 5.9-mile distance.

Extra Closet Self Storage represents an excellent opportunity to acquire a cash-flowing, quality self-storage facility in the northwest suburbs of the Oklahoma City Metropolitan Statistical Area, a top 50 MSA. Acquisition of the asset offers the potential to increase returns by maximizing management efficiencies, increasing occupancies and installing an effective marketing presence. These upsides are paired with attractive cash-on-cash returns of 12.9 percent in year one and 17.1 percent in year two, and leveraged IRRs of 31.5 percent and 35.8 percent in years five and six. A year two pro forma capitalization rate of 9.80 percent is projected.

Investment Highlights:

  • Substantial Upside to Increase Returns Through Efficiently Managing the Facility’s Operations
  • Priced at $40.54/NRSF with Excellent Current and Proforma Cap Rates of 6.40 Percent and 9.80 Percent
  • Cash-on-Cash Returns:
    • Year One: 12.9 Percent
    • Year Two: 17.1 Percent
  • Leveraged IRRs:
    • Year Five: 35.8 Percent
    • Year Seven: 31.5 Percent
  • Growth Potential Through Strengthening the Facility’s Marketing Platform, Increasing Economic Occupancies and Subsequently Raising the Rental Rates Below Market Average
  • Strategically Situated in Oklahoma City’s Metro Area, a Top U.S. MSA and the Most Populous MSA in the State
  • Three-Mile Population of Over 97,000 Residents
  • Located One Fourth of a Mile from Primary Intersection Northwest 39th Expressway/MacArthur Boulevard
  • Within Close Proximity to Multiple Universities and National Retailers
  • Sign CA to View Offering Memorandum

  • Confidentiality and Buyer Registration Agreement

    Cushman & Wakefield U.S., Inc. ("Broker") has been retained as the exclusive advisor and broker regarding the sale of the property known as Oklahoma City Self Storage.

    To receive an Offering Memorandum ("Offering Memorandum") please read, sign and return this completed Confidentiality Agreement to Broker. The Offering Memorandum has been prepared by Broker for use by a limited number of parties and does not purport to provide a necessarily accurate summary of the property or any of the documents related thereto, nor does it purport to be all-inclusive or to contain all of the information which prospective Buyers may need or desire. All projections have been developed by Broker and designated sources and are based upon assumptions relating to the general economy, competition, and other factors beyond the control of the Seller and therefore are subject to variation. No representation is made by Broker or the Seller as to the accuracy or completeness of the information contained herein, and nothing contained herein shall be relied on as a promise or representation as to the future performance of the property. Although the information contained herein is believed to be correct, the Seller and its employees disclaim any responsibility for inaccuracies and expect prospective purchasers to exercise independent due diligence in verifying all such information. Further, Broker, the Seller and its employees disclaim any and all liability for representations and warranties, expressed and implied, contained in or omitted from the Offering Memorandum or any other written or oral communication transmitted or made available to the Buyer. The Offering Memorandum does not constitute a representation that there has been no change in the business or affairs of the property or the Owner since the date of preparation of the Offering Memorandum. Analysis and verification of the information contained in the Offering Memorandum are solely the responsibility of the prospective Buyer. Additional information and an opportunity to inspect the property will be made available upon written request to interested and qualified prospective Buyers.

    By accepting the Offering Memorandum, you agree to indemnify, defend, protect and hold Seller and Broker and any affiliate of Seller or Broker harmless from and against any and all claims, damages, demands, liabilities, losses, costs or expenses (including reasonable attorney's fees, collectively "Claims") arising, directly or indirectly from any actions or omissions of Buyer, its employees, officers, directors or agents.

    By accepting the Offering Memorandum, you acknowledge that you are a principal and not an agent of or acting on behalf of any other party in connection with the acquisition. Buyer acknowledges that it is aware that any Agent/Broker other than Cushman & Wakefield, must be compensated by Buyer as Cushman & Wakefield is not cooperating on fees. Furthermore, Buyer acknowledges that it has not had any discussion regarding this Property's Sale with any other broker or agent other than Broker or an agent/broker properly identified through this registration process, including but not limited to, resolutions of incomplete, conflicting or duplicate registrations. Buyer shall indemnify and hold Seller and Broker harmless from and against any claims, causes of action or liabilities, including, without limitation, reasonable attorney's fees and court costs which may be incurred with respect to any claims for other real estate commissions, broker's fees or finder's fees in relation to or in connection with the Property to the extent claimed, through or under Seller.

    The Seller and Broker each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the Property and/or to terminate discussions with any entity at any time with or without notice. The Seller shall have no legal commitment or obligations to any entity reviewing the Offering Memorandum or making an offer to purchase the Property unless a written agreement for the purchase of the Property has been fully executed, delivered, and approved by the Seller and its legal counsel, and any conditions to the Seller's obligation thereunder have been satisfied or waived.

    The Offering Memorandum and the contents, except such information which is a matter of public record or is provided in sources available to the public, are of a confidential nature. By accepting the Offering Memorandum, you agree that you will hold and treat it in the strictest confidence, that you will not photocopy or duplicate it, that you will not disclose the Offering Memorandum or any of the contents to any other entity (except to outside advisors retained by you, if necessary, for your determination of whether or not to make an offer and from whom you have obtained an agreement of confidentiality) without prior written authorization of the Seller or Broker, and that you will not use the Offering Memorandum or any of the contents in any fashion or manner detrimental to the interest of the Seller or Broker.

    No employee of seller or at the subject property is to be contacted without the written approval of the listing agents and doing so would be a violation of this confidentiality agreement.