Investment Overview

The Sunshine Self Storage Portfolio represents three separate storage facilities in Norman, Oklahoma, a suburb of Oklahoma City, and home to the University of Oklahoma. Combined, the portfolio contains 543 units and 61,305 rentable-square feet of storage space. Each facility features personalized key-pad gated entry, perimeter fencing and lighting, 24-hour video surveillance cameras, and paved driveways. The diverse unit mix comprises 54 climate-controlled units, 344 non-climate drive up units, 143 non-climate second story units, and two retail spaces on triple net leases that expire for another five years. The University of Oklahoma, home to more than 35,000 students, is a Research-1: Doctoral University – an elite designation given by the Carnegie Foundation for the Advancement of Higher Education recognizing institutions that have “very high research activity” – a designation only 5 percent of the degree-granting institutions in the U.S. have ever been awarded. In addition, despite the historical relevancy of OU’s athletic program, its recent move to the Southeastern Conference (SEC) – a transition officially completed on July 1, 2024 – has raised the institution’s national profile in unprecedented ways. To be sure, the university has seen four consecutive record-breaking freshman classes, and the freshman class in 2024 was more than 10 percent higher than that of 2023. Additionally, the SEC’s lucrative media rights deal with ESPN and ABC will provide OU with an estimated $50-70 million annually, and high-profile matchups against powerhouse football programs like Alabama and Georgia will drive higher ticket sales, increased attendance, and greater demand for merchandise and licensing deals. The school’s move to the SEC appears to be positively impacting the local real estate market as well. A number of mixed-use developments are underway throughout the local trade area, including the $1.2 billion Rock Creek Entertainment District – formally approved by the city council in September 2024 – which will feature a mixed-use master planned community with residential, retail, and hospitality opportunities. Additional developments include Sooner Village, the Armstrong Bank Consolidation Project, Liberty Point, and Bob Moore Farms North. The current owners of the Sunshine Self Storage Portfolio purchased the facilities in 2019, and for over a decade their physical occupancy has remained consistently healthy at approximately 85-95 percent – despite the fact that they live in California and only visit the facilities on rare occasions. In fact, year-ending 2024 gross rental revenue was approximately 220 percent higher than it was in 2019 when they purchased the assets, and year-over-year revenue has grown at average of 44 percent during their tenure (without the use of a third-party management company). Offered for $6,000,000, the portfolio is available for purchase at a 6.62 percent cap rate based on the seller’s actual year-ending 2024 financials, and it is reasonable to assume – given the submarket’s existing, rapid growth trajectory – a new operator will be able to systematically raise rents throughout their hold period as well.