KKR Buys $22M Charlotte Storage
Despite the nationwide slowdown in rent growth, Charlotte recorded double-digit increases year-over-year in November.
KKR has paid $21.8 million for Johnstons Corners, a 117,405-square-foot self storage facility in Charlotte, N.C. A partnership between Abacus Capital, WDM Family Enterprises and Big Cypress Capital sold the property through their Headwaters Operating Platform. CubeSmart was tapped to manage the facility.
Developed in phases between 2019 and 2021, the facility at 10609 Johnston Road offers a mix of climate- and non-climate-controlled units across two five-story buildings. Storage spaces range from 16 to 400 square feet. Amenities include round-the-click access, contactless renting, digital surveillance and drive-up access options for larger units.
The property is part of the retail corridor at the intersection of Johnstons Road and Highway 51. There are 13 facilities within a 3-mile radius, representing 13.6 net square feet per capita, almost double the national penetration rate, Yardi Matrix data shows.
In December last year, KKR launched Alpha Self Storage properties, an investment platform aimed at building a portfolio of assets in high performing markets. The platform started with a $300 million seed portfolio, consisting of 16 facilities KKR had purchased prior to launching the new model. In accordance with the outlined strategy, the company’s newest acquisition is in one of the nation’s best-performing self storage markets.
In the 12 months ending in November, Charlotte registered no drop in rent gains, despite the nationwide rent deceleration trend. Street rates for 10×10 non-climate-controlled units were up 13 percent, while rates for the same-size climate-controlled units registered a 15 percent increase, almost double the national average rent for both unit types, a recent Yardi Matrix report shows.
The metro was second only to Atlanta when it comes to rent growth, but with an average asking rate of $97 per 10×10 non-climate-controlled unit, Charlotte is also one of the most affordable self storage markets.