StorageOK 4 - Property

Self Storage Investment Opportunity

INVESTMENT HIGHLIGHTS

Institutional quality portfolio in the Tulsa MSA, a top 55 market
Great blend of stabilized and lease up properties with room for expansion
Strong demographics with outstanding growth
Progressive design and amenities offered

GENERAL DESCRIPTION

The StorageOK Portfolio is a 263,172 rentable square foot (including 12,400 RSF of parking) institutional portfolio consisting of four (4) properties and located in the Tulsa, OK, MSA, a top 55 market. The assets are currently self-managed with the capability for further expansion to capitalize on the rapid lease up and explosion in population growth within the trade areas. The newly built and expanded properties have cutting edge amenities to accelerate the lease up period and command top of market rents and desirable customers. These assets provide a great entrance opportunity into Tulsa for a new market participant or accretive scale for existing operators.

The opportunity provides further upside through a combination of realistic, achievable strategies:

Continuation of aggressive tenant insurance sales strategy (sold approximately $36,000 total in 2021 across the almost 1,323 unit portfolio)
• Continued lease up of the recently built and expanded projects (Trojan 2, 51st Street and Boardwalk)
• Revenue management of existing tenants
• Short-term and long-term expansion of Trojan 2

Considering the immediate scale, attractive in-place yield with realistic room for improvement, high barriers to entry based on market rental rates and soaring construction costs, this is a compelling institutional quality portfolio.

StorageOK - 51st St - Tulsa
51st Street Storage is a mixed-use, in-fill project consisting of retail, “man cave’s”, traditional and climate-controlled self-storage units. It is in the heart of Tulsa near one of the highest trafficked intersections in the city and some of the nicest, most established neighborhoods in Tulsa. This project has consistently enjoyed higher than 90% occupancy for the original self-storage, retail and office warehouse units (which were converted to “man cave’s”) for several years and has seen good lease up velocity since adding the climate-controlled storage buildings and the “man cave’s” in 2020/2021.

The property consists of the following building improvements, which were all constructed between 1978, 1980, 2020 and 2021:

• 23,800 rentable square feet of traditional, non-climate controlled mini storage units, ranging from 10x10’s to 10x30’s
• 30,760 rentable square feet of newly built climate-controlled storage units, included drive up climate-controlled units, ranging in size from 5x5’s to 10x25’s
• 25,200 rentable square feet of man cave, office warehouse space, ranging in size from 10x60 to 20x70. These units come with base level tenant improvement finished including stained concrete floors, fireplace, full bathroom and kitchenette. The units are on individual gas and electrical meters and pay a flat fee for water/sewer. See Rent Roll.
• 10,150 rentable square foot of restaurant and retail space. See Rent Roll.
• The 51st Street improved property is zoned Commercial High Density (CH), Commercial General (CG), PUD-764-A and sits on approximately one parcel totaling 5.57 acres of land (242,629 square feet) located on 51st Street and Vandalia, respectively. There’s unimproved land on Vandalia being inventoried for storage expansion/overflow parking with the remaining 1 acre +/- of land being carved off and retained by the Seller.

StorageOK - Boardwalk - Bixby
Boardwalk Storage contains 441 storage units within 63,162 rentable square feet (see detailed unit mix report), excluding parking, on the first and second floors. The first-floor storage and enhanced units opened at the end of 2020 and the 2nd floor (with elevator) opened in October 2021. The first floor has achieved 53% Physical Occupancy thru the middle of September, with typical lease up discounting. Boardwalk has an on-site office and significant amenities to differentiate itself from other facilities in the market and capitalize on the growing trade area.

Boardwalk Amenities Boardwalk was built with progressive design concepts incorporating the below amenities to capitalize on the rapidly expanding trade area and neighboring Class A, Boardwalk apartments, which have the highest rents in Oklahoma, and are planning a phase 2, which will add --- units to finish out that project:

• Four single room offices built-out for rentals
• Wine storage room with rental lockers
• Cigar lounge with rental lockers
• Dog wash basin Outdoor seating area with wine/storage patrons
• Warm, shell space on the 2nd floor on the main building, which can be built out with additional climate-controlled storage units or rented for other ancillary uses
• Enhanced (“man cave”) units with window HVAC and multiple electrical outlets on their own sub-metered electric

StorageOK - Trojan I - Jenks
Trojan 1 is a stabilized mini storage facility located in the heart of some of the nicest subdivisions in Jenks, an affluent suburb of Tulsa, and has enjoyed a consistent occupancy exceeding 90%, since it be built in 2000. It has 351 units and is 45,080 rentable square feet along with an on-site manager office, apartment and cell tower providing additional income of $10,500 per year.

Trojan 1 implemented mandatory tenant insurance for tenants in the 4th Q of 2020, which has resulted in 80% + tenant insurance penetration and raised rents across the board in Q2 of 2021. With the strong demographics and storage supply/demand fundamentals within the surrounding trade area, there’s great opportunity for further rate increases and aggressive revenue management.

Trojan 1 and Trojan 2 are located within 3/4 of a mile and allow for the use of one, full-time manager to service both locations and provide additional scale for both assets.

StorageOK - Trojan II - Jenks
Trojan contains 244 units within 58,845 rentable square feet, including 6,240 rentable square feet of parking, 12,460 rentable square foot of expansion underway and is managed together with Trojan 1. The property opened in January of 2021 and has realized a rapid lease up YTD, without the typical lease up discounting. Trojan 2 has an on-site office and significant land remaining for long-term and short-term expansion to capitalize on the growing trade area and scaling up the property.

Trojan 2 Amenities
Trojan 2 was built with progressive design concepts including the below amenities

• Four shipping containers built out for office space rentals
• One shipping container built for wine-storage lockers • Outdoor seating area with wine/storage patrons
• Shipping container with drive thru, on a pad site under lease with a local, popular coffee shop
• Enhanced units with window HVAC units and multiple electrical outlets on their own sub-metered electric

Trojan 2 Expansion
In the short-term, there’s an existing 12,460 SF concrete pad (see drone video) on-site being used for open parking, which is currently being expanded with construction anticipated to be completed in 2022 Q1. This will generate an estimate additional $91,000 in Potential Rental Income annually. For long-term expansion plans, there’s the ability to add approximately 8,000 to 10,000 RSF of additional storage to fully maximize the potential of the asset in the areas currently used for open parking..