Self Storage Investment Firm VanWest Partners Reaches Over $80 Million in Total Capitalization for Fund III

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Jul 21, 2023, 07:01 ET

DENVER, July 21, 2023 /PRNewswire/ -- VanWest Partners (VanWest), a Denver-based commercial real estate investment company specializing in self storage, announces the tenth and eleventh acquisitions for VanWest Storage Fund III (Fund III). Following these acquisitions, the Fund represents over $80M in total capitalization, including more than 5,500 units and approximately 895,000 NRSF. Other recent acquisitions in 2023 include Fund III's King's Mountain, NC location which closed in February, and an acquisition in Green Bay, WI which closed in June.

The Fund's most recent acquisitions are located in Cheyenne, WY and are the firm's first acquisitions in the Wyoming market. The two properties total 823 self storage and parking units and 140,289 net rentable square feet. VanWest aims to improve the operational performance of the facilities by growing physical occupancy, reducing operating expenses and increasing rents, which are currently substantially under market rates. The two facilities will be re-branded to ClearHome Self Storage – Cheyenne and operated by VanWest's in-house management company, ClearHome Self Storage.

Jacob Vanderslice, a principal at VanWest Partners, believes Cheyenne is an attractive growth market. "These are our first self storage acquisitions in Wyoming, and we're thrilled to be in the market after looking at deals there the last several years. Just up the road from our home market in Denver, we like the economic fundamentals and the business-friendly environment that Cheyenne offers. The economy is vibrant, with a diverse mix of military, light manufacturing and agriculture. There is generally a lack of higher quality self storage options, and we're happy to serve a new customer base with these two acquisitions."

Vanderslice adds the firm expects to continue seeing more opportunities along with an increasingly volatile investing landscape. "We're thrilled to see 12% NOI growth across the Fund III's nine facilities, with most of our asset base being acquired in Q2 and Q3 of 2022. We expect to see more attractive pricing discounts for new acquisitions relative to last year, but the uncertainty that lies ahead demands a cautious approach as we evaluate new deals to add to the Fund's portfolio."

Fund III , which launched in April 2022, is a $150 MM fund that invites accredited investors to participate in the acquisition of value-add self storage properties throughout the U.S. VanWest anticipates a 2–3-year deployment period for Fund III with targeted returns of 14-16% IRR and a 2X-2.25X investor equity multiple over a seven-year hold.

Preceding Fund III, VanWest acquired 23 self storage facilities through Funds I and II. Performance for these funds has exceeded predictions and expectations. As of Q2 2023, Fund I had 16 consecutive quarterly distributions totaling over $7 MM to investors, and Fund II has had eleven consecutive quarterly distributions totaling over $6 MM to investors since Q1 of 2021.

About VanWest Partners

VanWest Partners is an opportunistic real estate investment firm specializing in self storage and urban infill repositioning. We target a full range of investment opportunities from development to fully stabilized assets in primary, secondary, and tertiary markets with strong fundamentals and an opportunity to add value through both revenue and expense optimization. Accredited investors are invited to participate in value-add self storage throughout the continental US. Learn more at www.VanWestPartners.com.

SOURCE VanWest Partners