Virtus Real Estate Capital, an Austin, Texas-based private equity firm, has purchased Nichols Hills Self-Storage in Nichols Hills, Okla., in a joint venture with Advantage Self Storage, a real estate development and property management firm based in McKinney, Texas. The property comprises 59,400 square feet in 404 units.
Built in 2005, the facility at 2900 N.W. Grand Blvd. will be operated by Advantage Self Storage. This is the companys first facility in the Oklahoma City area.
We are excited about moving into the Oklahoma City market, said Rick Jones, president and CEO of Advantage Self Storage. With Virtus, we are also actively looking for additional acquisition opportunities to build a portfolio in [the area].
"With its dynamic growth and diverse economy, Oklahoma City is a target market for Virtus," added Scott Humphreys, acquisitions manager for Virtus. The infill location of Nichols Hills Self-Storage, in a highly desirable submarket of Oklahoma City, makes this one of the best self-storage properties in the area.
The deal marks the first joint acquisition between Virtus and Advantage.
Founded in 1996, Advantage Self Storage has developed more than 20 storage facilities in the Dallas and Fort Worth market and is looking to add to its portfolio through new development and acquisitions. The company currently owns or manages a portfolio comprising 1.36 million rentable square feet in 10,000 storage units.
Since its inception in 2003, Virtus has acquired more than $2 billion in commercial real estate assets, including more than $100 million in self-storage. The companys strategy is to acquire commercial niche properties that serve the high-growth segments of the U.S. population, including medical offices, self-storage, senior living and student housing.