Real estate investment-management firms Barings LLC and Canvass Capital LLC have formed a joint venture (JV) to acquire and develop self-storage in the Southeast. The partnership has already purchased three facilities in the area around Lake Norman, North Carolina, as well as a development site in Hilton Head, South Carolina. The companies intend to invest up to $250 million of equity over the next several years, according to a press release. Canvass operates the SafeNest Storage platform.
The North Carolina facilities comprise 163,000 rentable square feet in 1,129 units. Built on more than 16 acres, the sites will be expanded through the addition of climate-controlled buildings and covered boat/RV storage. The JV will also pursue capital improvements including technology investments and sustainability enhancements, such as solar panels and other energy-efficiency projects, the release stated.
In Hilton Head, the companies intend to build a new self-storage facility on the 3.8-acre site. It’ll comprise about 150,000 rentable square feet in 1,231 units. The project is expected to break ground this fall.
The JV has additional properties under contract that offer either value-add expansion opportunities or new-development potential, according to John Ockerbloom, head of U.S. Real estate equity for Barings. “We are excited to enter into this strategic partnership with Canvass Capital and target the high-growth self-storage market,” he said. “The Lake Norman assets and Hilton Head development will be Barings’ first self-storage assets in the eastern U.S.”
“Partnering with a global real estate leader like Barings reinforces our creative approach to investing and strengthens our reach across the capital structure,” said Pete Campbell, managing partner for Canvass.
“Barings has strong conviction in the opportunities available in the fragmented self-storage property sector. The sector’s variety and mix of demand drivers has exhibited strong resiliency through economic cycles, particularly during the pandemic as self-storage needs increased,” the release stated. “The expansion of self-storage on excess land, retail conversions, and upside from technological and operational efficiencies present long-term growth potential.”
Barings is a global investment manager that specializes in building long-term portfolios across diversified markets including public and private fixed income, real estate, and specialist equity. A subsidiary of MassMutual Financial Group, the company has more than $371 billion in assets under management.
Based in Charlotte, Canvass is a real estate private-equity firm with interests in industrial, medical-office, mixed-use, self-storage and other property types. SafeNest operates 16 locations in the Carolinas.
Source: PR Newswire, Barings and Canvass Capital Announce $250M Self-Storage Joint Venture