Extra Closet Self Storage consists of 292 non-climate controlled, drive-up units and 20 boat/RV parking spaces for a total of 312 units and 29,500 rentable square feet. The facility’s current physical and economic occupancies are 90 percent and 83 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 192,385 individuals among 79,671 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 14.0 percent in year one and 19.5 percent in year two, and leveraged IRRs of 32.0 percent and 28.7 percent in years five and seven. A year three pro forma capitalization rate of 10.06 percent is projected.
- Substantial Upside to Increase Returns Through Efficiently Managing the Facility’s Operations
- Priced at $37/NRSF with Excellent Current and Proforma Cap Rates of 7.15 Percent and 10.06 Percent
- Cash-on-Cash Returns:
- Year One: 14.0 Percent
- Year Two: 19.5 Percent
- Leveraged IRRs:
- Year Five: 32.0 Percent
- Year Seven: 28.7 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 96,000 Residents
- Located One Fourth of a Mile from Primary Intersection Northwest 39th Expressway/MacArthur Boulevard
- Within Close Proximity to Multiple Universities and National Retailers