KKR Expands Storage Footprint With Denver, Nashville Portfolio

700 Inverness Ave.

KKR has acquired three self storage facilities, totaling more than 257,270 square feet and more than 2,000 units in Denver and Nashville, Tenn. The firm completed the two separate acquisitions through its fund, KKR Real Estate Partners Americas III. 

KKR paid $21.9 million for the Nashville facility earlier this month to a private investor, Yardi Matrix shows. While, Edgemark Development sold the Denver-area properties in a portfolio transaction, for a total of $41.5 million, according to the same data provider.

Located at 700 Inverness Ave. in Nashville, Tenn., the first storage asset comprises one five-story building and 60,495 net rentable square feet with non-climate and climate-controlled units, from 25 to 300 square feet with drive-up access. As part of a largely penetrated market, the facility is near other 10 available facilities within a 3-mile radius, offering residents 9.9 net rentable square feet per capita, above the 7 national average.

320 S. Birch St.

The Denver-area properties are located at 320 S. Birch St., in Glendale, Colo., and 9839 W. 60th Ave. in Arvada, Colo., encompassing 72,141 and 60,321 net rentable square feet. The facilities include non-climate and climate-controlled units, ranging from 25 to 300 square feet with drive-up access, security features and parking available.

The Glendale facility is the only one in an underpenetrated market, with 18 facilities offering 5.4 net square feet of storage space per capita within a 3-mile radius. Meanwhile, there are 17 facilities within 3 miles of the Arvada asset, offering 8.4 net rentable square feet per capita.

Capitalizing on strong fundamentals

As the self storage market continues to show strong fundamentals, with strong rent and occupancy rates throughout the country, KKR continues to seek opportunities in strategic infill locations across the U.S. 

Currently, the firm owns 23 properties in Austin, Atlanta, Charlotte, Denver, the Inland Empire, Nashville, Orlando, Phoenix, St. Petersburg and Washington, D.C. Five of these metros are among the top-performing ones, with double-digit rent growth for standard units, above the national average.

At the beginning of the year, KKR also acquired a 117,405-square-foot facility in Charlotte, N.C., for $21.8 million.