VanWest Partners Closes on Fourth and Fifth Fund III Acquisitions

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Oct 20, 2022, 07:04 ET

DENVER, Oct. 20, 2022 /PRNewswire/ -- VanWest Partners, a Denver-based commercial real estate investment company, announces the acquisition of a two-property portfolio for VanWest Storage Fund III (Fund III).

The self storage acquisitions are located in Tulsa, OK and were sourced off-market through a longstanding broker relationship. The two-property portfolio consists of a 108,290 NRSF facility located at 2141 S 92nd East Avenue, Tulsa, OK 74129 and a 32,600 NRSF facility located about two miles to the north at 8950 East Admiral Place, Tulsa, OK 74115. Combined, the two properties represent over 140,000 NRSF and over 950 self storage and parking units. With physical occupancy across both locations in the mid 90s, the firm intends to bring below market rate customers to market rates, along with implementing an aggressive capital improvement plan that will include new gate and camera systems, door replacements, and roof and asphalt repairs.

Including the recent Tulsa facilities, Fund III has closed on five acquisitions representing just over $41,000,000 in total capitalization since April of 2022. "We've been looking for acquisition opportunities in Tulsa the last few years – we believe it's a solid market that has been relatively overlooked by other self storage operators, and we're excited to add these two deals to our existing asset base," says Jacob Vanderslice, Principal at VanWest Partners. "While the consumer demand for self storage remains high, we remain hyper-selective on the deals that we're buying given the rapidly changing market conditions. We expect our total capital deployment for 2022 to be about half of what it was in 2021; we only buy deals that we are extremely confident in, and we simply haven't found much this year that meets our risk-adjusted return targets. Given the amount of floating rate debt out there and resulting interest rate shock that many operators are digesting, we expect to see more buying opportunities in the coming quarters," Vanderslice shares. For Fund III investors, targeted returns are 14-16% IRR, and a 2X-2.25X investor equity multiple over a seven-year hold.

The next round of acquisitions is scheduled to close in November and includes one property in Illinois and one property in North Carolina. Both are markets where VanWest already has a large presence from acquisitions made through Fund I and Fund II. In aggregate, the two pending acquisitions will represent 82,000 net rentable square feet, 700 units, and $9,200,000 in total cost. VanWest Partners anticipates a 2–3-year deployment period for Fund III.

Fund III succeeds VanWest Storage Funds I and II, with Fund II closing at the end of 2021. Through these Funds and other vehicles, VanWest Partners has acquired or built over 40 self storage facilities, totaling more than 2.5 million square feet and 19,000 units.

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