Real estate investment management companies 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 Lake Norman, North Carolina area, as well as a development site in Hilton Head, South Carolina. The companies intend to invest up to $250 million in equity over the next few years, according to a press release. Canvass leverages the SafeNest storage platform.
North Carolina facilities include 163,000 leasable square feet in 1,129 units. Built on over 16 acres, the sites will be expanded with the addition of air-conditioned buildings and a covered boat/RV storage. The joint venture will also pursue capital improvements, including technology investments and sustainability improvements, such as solar panels and other energy efficiency projects, the statement said.
In Hilton Head, the companies intend to build a new self-storage facility on the 3.8-acre site. It will include approximately 150,000 leasable square feet in 1,231 units. The project should come out of the ground this fall.
The joint venture has additional properties under contract that offer either value-added expansion opportunities or new development potential, according to John Ockerbloom, head of US real estate equities for Barings. “We are delighted 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 United States”
“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 of Canvass.
“Barings is convinced of the opportunities available in the fragmented self-storage real estate sector. The variety and mix of industry demand drivers have shown strong resilience through economic cycles, particularly during the pandemic, as self-service storage needs have increased,” the statement read. . “The expansion of self-storage on excess land, retail conversions, and technological and operational efficiencies present long-term growth potential.”
Barings is a global investment manager specializing in building long-term portfolios across diversified markets, including public and private fixed income, real estate and specialty stocks. A subsidiary of MassMutual Financial Group, the firm manages over $371 billion in assets.
Charlotte-based Canvass is a real estate private equity firm with interests in industrial, medical office, mixed-use, self-storage and other types of properties. SafeNest operates 16 locations in the Carolinas.
Source: PR Newswire, Barings and Canvass Capital Announce $250 Million Self-Storage Joint Venture