Investment Overview

Premium Storage is a facility spanning 11,920 rentable-square feet that rests on approximately 0.75-acres in Shawnee, Oklahoma. Housing 100 drive-up units, and 18 Boxwell semi-permanent units that range in size from 50 to 200 rentable-square feet, the property features sturdy metal buildings with garage-style roll-up doors and standing seam metal roofs. Security features include chain-link fencing, a personalized key-pad gate system, perimeter fencing, and comprehensive camera surveillance, which compliments the facility’s automated remote leasing technology, and its spacious driveways. Strategically positioned in the heart of Shawnee, the facility, initially constructed in 1995 and expanded in 2023, has performed exceptionally well from a historical perspective, with occupancy levels consistently exceeding 90 percent throughout the past 15 years. Shawnee, a vital part of the Oklahoma City Metro area, thrives on its natural gas and wind energy sectors, ranking among the nation's top 10 markets for energy production. However, the region is actively diversifying its economic landscape by fostering growth in medical and information technology industries. With the metro area's population projected to surge by 4.8 percent over the next five years—more than double the national average—the area is an undoubtedly enticing investment landscape. Presently, the facility maintains a robust 94 percent physical occupancy and 87 percent economic occupancy, and there is an opportunity to create value by implementing modest rental rate increases. In fact, the trade area (three-mile radius) has benefited from a nearly 6 percent increase in rental rates over the past 12 months, while the state and national levels have lagged at less than 1 percent and 2 percent respectively. At a purchase price of $1,250,000, a slight escalation of the facility’s existing effective rates would generate broker-adjusted returns of approximately 6 percent by the end of year-one. Moreover, aligning street rates with the submarket average could further bolster returns, potentially yielding unleveraged pro forma yields surpassing 7.77 percent during the hold period (assuming the facility’s current 87 percent economic occupancy rate remains static during that same time frame). At its core, the Premium Storage facility presents an enticing investment proposition, underpinned by robust performance metrics and promising avenues for value enhancement within Shawnee's thriving economic landscape.