Vacant Kmart Conversion to Self-Storage - Reidsville, NC

[Neil Henderson]

Investment Info:

Other commercial investment.

Purchase price: $1,500,000
Cash invested: $864,000

87,000 square foot vacant Kmart that is in the process of being converted to 60,000 square feet of drive-through, climate-controlled self-storage, yielding 500+ rentable units. Slated to open in September 2022. Purchased building for $1,500,000. Construction costs estimated to be $2,500,000. Total project cost $4,000,000.

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

We love converting vacant big box retail buildings to self-storage. There is a reason they built them there in the first place, and there is a reason they are prime locations for people to come back and store their stuff.

How did you finance this deal?

Commercial lender and private equity

How did you add value to the deal?

Turning a vacant building into self-storage

What was the outcome?

TBD. Construction is nearly finished. Due to open in September of 2022.

Lessons learned? Challenges?

Supply chain issues across multiple industries are not to be discounted. Supply chain delays of small parts delayed our final inspection by at least one month.