Conversion of Vacant Kmart to Climate-Controlled Self-Storage

[Neil Henderson]

Investment Info:

Other commercial investment investment.

Purchase price: $2,500,000
Cash invested: $1,350,000

Conversion of vacant 97,500 square foot Kmart to 65,000 square feet of climate-controlled self-storage

What made you interested in investing in this type of deal?

We love converting vacant big box retail stores into climate-controlled self-storage. There is an unmet demand for climate-controlled self-storage in the immediate area. Danville is a community that is just beginning what we believe to be a growth cycle.

How did you finance this deal?

Commercial lender plus private equity

How did you add value to the deal?

We are taking a building that has been vacant for years and converting it to over 65,000 square feet of climate-controlled self-storage in the middle of a busy retail corridor.

What was the outcome?

TBD. Construction just started. Slated to open Q1 2023.

Lessons learned? Challenges?

We bought the building with existing storage plans in place but our own architect did his own design giving us almost 8,000 square feet of additional space. The new plans required we go back through permitting. Danville permitting office is overwhelmed by the volume of new permits being requested in the community.