VanWest Partners has acquired two properties for its Storage Fund III. The self storage acquisitions are located in Tulsa, Oklahoma, and consist of a 108,290 square foot facility located at 2141 S 92nd East Avenue in Tulsa and a 32,600 square foot facility at 8950 East Admiral Place. These two properties portfolio have a total of over 950 self storage and parking units.
This acquisition brings the portfolio of properties up to five, which represents total capitalization of over $41M in this fund since April of 2022.
“We’ve been looking for acquisition opportunities in Tulsa the last few years – we believe it’s a solid market that has been relatively overlooked by other self storage operators, and we’re excited to add these two deals to our existing asset base,” says Jacob Vanderslice, principal at VanWest Partners.
VanWest plans to aggressively invest in major upgrades to these new properties, including adding extra security features and performing capital repairs. However, the real estate investment firm remains hyper-selective in its choice of acquisitions.
“We expect our total capital deployment for 2022 to be about half of what it was in 2021,” said Vanderslice. “We only buy deals that we are extremely confident in, and we simply haven’t found much this year.”
Tulsa’s storage market is driven by demand
Supported by strong demand, Tulsa’s storage street rates have been growing. The current cost for a 10×10 non-CC storage unit is $82/month, a 2.5% increase y-o-y. Meanwhile, national street rates have increased by 0.8%, according to Yardi Matrix data.
Availability-wise, Tulsa’s current 4.88 million square feet total inventory gives it an average of 8.7 square feet per capita. Local inventory is currently increasing, though at a slower pace than national trends, with almost 40,000 square feet expected to be delivered by the end of 2022.