DXD Capital has begun work on a new 1,163-unit self storage facility in Las Vegas, after acquiring a 2.1-acre parcel for the development last September. The firm secured $9.7 million in construction financing from Washington Federal Bank, Yardi Matrix data shows.
Slated for completion in the second quarter of 2023, the three-story project is slated to include interior loading areas, elevators and a glass storefront. Arco Murray was retained as the general contractor, with Studio Level 1 providing design services for the project. Public Storage will manage the new facility.
Located at 9580 W. Flamingo Ave., the property will be one of the 20 available within a 3-mile radius. The property will be next to Bruce Woodbury Beltway, offering easy access to the main areas of the city.
The project is part of DXD Self Storage Fund I, which closed at $53 million and targets ground-up Class A self storage developments. The company has two other developments under construction, one in Phoenix and another one in Las Vegas. Currently, the fund includes 12 investments across Florida, New Jersey and Rhode Island, as well as a newly announced investment in Honolulu in partnership with InSite Property Group.
Self storage continues to prosper in Las Vegas
Due to migration toward the Sun Belt, most markets in this region are showing strong fundamentals. Las Vegas, with properties under construction or in the planning stages accounting for 17.4 percent of existing stock in May, had the second-largest new-supply pipeline among the top 31 metros that Yardi Matrix monitors.
Currently, there are 12 facilities under construction in Las Vegas, which will add more than 1.1 million square feet to the existing inventory once completed, according to the same data provider. Other 33 projects were in the planning stages at the beginning of July.