KKR acquired three self-storage facilities, totaling over 257,270 square feet and over 2,000 units in Denver and Nashville, Tennessee. The company made 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. Whereas, 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, Tennessee, the first storage asset includes a five-story, 60,495 net leasable square foot building with non-air-conditioned, air-conditioned units ranging from 25 to 300 square feet with drive-up access. As part of a broadly penetrated market, the facility is in close proximity to 10 other available facilities within a 3-mile radius, providing residents with 9.9 net leasable square feet per capita, above the national average of 7.
Denver area properties are located at 320 S. Birch St., Glendale, Colorado, and 9839 W. 60th Ave. in Arvada, Colorado, covering 72,141 and 60,321 net leasable square feet. Amenities include non-air-conditioned, air-conditioned 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 Arvada’s asset, offering 8.4 net leasable square feet per resident.
Capitalize on solid fundamentals
As the self-storage market continues to show strong fundamentals, with strong rent and occupancy rates nationwide, KKR continues to pursue opportunities in strategic infill locations across the United States
Currently, the company has 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 best performing, with double-digit rent growth for standard units, higher than the national average.
Earlier this year, KKR also acquired a 117,405 square foot facility in Charlotte, North Carolina for $21.8 million.