Investment Overview

Marcus & Millichap is pleased to present an exclusive opportunity to acquire Tulsa Storage Units & Parking, a premier self-storage facility located in Tulsa, Oklahoma. The property features a diverse mix of 205 units, including 133 non-climate-controlled units, two covered parking spaces, 68 uncovered parking spaces, and two leased residential spaces. The facility is comprised of metal standing seam roofs, a leasing office connected to a 1,000 square-foot manager’s residence, perimeter fencing and lighting, a key-pad gate system, 24-hour camera surveillance, and automated remote leasing technology. Compared to most secondary markets in Oklahoma, Tulsa, driven by its diverse industrial and technological sectors, continues to attract substantial economic investment. Notably, in May 2023, Enel Green Power announced the largest economic development project in Oklahoma’s history. With an investment exceeding one-billion dollars, Enel is establishing a solar panel manufacturing facility at the Tulsa Port of Inola, expected to generate 1,000 permanent jobs by 2025, with potential for further expansion. Additionally, the American Heartland Theme Park, a two-billion-dollar development, is projected to create around 4,000 jobs, drawing significant tourism to the area. Moreover, Tulsa’s designation as a Tech Hub by the U.S. Economic Development Administration is anticipated to add 56,000 tech-related jobs over the next decade, further strengthening the local economy. These developments, alongside Tulsa’s established aerospace, energy, and manufacturing sectors, reinforce the region's status as a compelling area for investment. As of September 2024, 36 percent of the facility’s tenants are paying rental rates below the current street rate, resulting in a monthly variance of $868, or $10,410 annually. A new investor will have the opportunity to capture this additional revenue by raising existing tenants up the current street rates. Separately, the property has the potential for future expansion by converting the 56 uncovered parking spaces into non-climate-controlled storage units, which could yield an estimated $0.50 increase in rent per square-foot in addition to the current $0.29 per square-foot. This could translate into an approximate $10,200 monthly or $122,400 annual increase in rental income, presenting a significant value-add opportunity. Although these projections are not currently reflected in the pro-forma operating statement, they represent substantial potential for future revenue growth. For these reasons, at a purchase price of $2,500,000, Tulsa Storage Units & Parking could deliver attractive, unleveraged, broker-adjusted returns of approximately 7 percent by the end of Year One and 8.51 percent by Year Five. This property offers an ideal opportunity for investors seeking stable returns with the potential for further income growth through value-adding enhancements and market rate adjustments.