The Mele Group of Marcus & Millichap has been selected to exclusively market for sale the Norman, Oklahoma Self-Storage Opportunity. Acquisition of the self-storage portfolio represents a rare opportunity to create a significant market footprint in the thriving region of Norman, home to the University of Oklahoma. The offering consists of three self-storage facilities all within a maximum traveling distance of seven miles. With the facilities being in such close proximity, this allows for efficient management of the three assets from one centralized location. The subject offers multiple value-add opportunities, including the continuation of lease-up activity. Currently, the facility has physical and economic occupancies of 49.5 and 39.4 percent, providing an investor significant upside through the implementation of an aggressive lease-up strategy. Lowering current rental rates and increasing physical and economic occupancies to 80 and 75 percent will increase the buyer’s effective gross income from $187,062 per year to $310,043 per year, an increase of 66 percent.
Additionally, with no on-site lift at Extra Attic 1 or Extra Attic 2, an investor can discount second-floor units even further, driving up each facility’s occupancies and income. Furthermore, there is a significant opportunity to invest in facility upgrades, including painting, drive resurfacing and modern signage. Continued facility investment to market standards will allow for consistent rent growth throughout the life of the investment. Strong forward-looking projections allow an investor to capitalize on leveraged IRRs of 24.4 percent and 22.4 percent in years five and seven and cash-on-cash returns of 11.8 percent and 12.1 percent in years two and three.
Of the three self-storage facilities, the portfolio has 610 total units spanning across 62,046 rentable square feet. There is a portfolio total of 50 climate-controlled units, 539 non-climate-controlled units, 16 rental parking spaces and five suites. To ensure secure premises, the locations are equipped with fencing, walled perimeters, video surveillance, electronic gates and keypad entry. The Classen facility offers alarmed units and motion detectors for outside units. Each facility is equipped with a variety of storage options to accommodate for a wide array of business, residential and recreational storage needs.
Norman has an estimated population of over 120,000 individuals and is the county seat of Cleveland County, Oklahoma. The subject properties are situated in a flourishing community with several amenities and nationally-renowned resources and attractions. Norman was recently recognized as one of the most progressive cities in the state and the Norman Public School system was acknowledged as the top school system in Oklahoma. Currently, Norman is undergoing a downtown revitalization project which will enhance the city’s overall appeal. The Norman 2020 Plan was designed to improve infrastructure to increase population growth within the region. Norman offers multiple parks, recreational sites, national retailers and several top tier resources, including the University of Oklahoma and the National Weather Center.
- Rare Opportunity to Create a Significant Market Footprint in the Thriving Region of Norman, Oklahoma, Home to the University of Oklahoma
- Significant Upside Through the Continuation of Lease-Up Activity; the Majority of Second Level Units at Each Extra Attic Facility Have Not Been Marketed for Rent Due to Limited Accessibility
- Lowering Current Rental Rates and Increasing Physical and Economic Occupancies to 80 and 75 Percent Will Increase the Buyer’s Gross Income by 66 Percent
- Enhance Visibility and Value by Investing in Portfolio-Wide Upgrades, Including Asphault Repaving, Repainting of Unit Doors and Installing Visible Signage
- Facilities Strategically Located at a Maximum Distance of Seven Miles from One Another, Allowing for Efficient Management of the Three Assets from One Centralized Location
- Each Facility Offers Convenient Access to Many of Norman’s Dense Residential Areas with Several Renter-Occupied Units, In Addition to a Multitude of Resources and Amenities that Comprise the University of Oklahoma