Barings and Canvass Capital Announce $250M Self-Storage Joint Venture
Three North Carolina Properties Acquired, First New Development to Break Ground in Hilton Head, SC
Barings, one of the world’s largest diversified real estate investment managers, announced today that it has entered into a joint venture agreement with real estate investment management firm Canvass Capital LLC (“Canvass”) to acquire and develop self-storage properties throughout the Southeastern United States.
The joint venture seeks to invest up to $250 million of equity into the self-storage space over the next several years.
Barings and Canvass have closed on the acquisition of three self-storage assets in the Lake Norman region, north of Charlotte, NC, comprised of multiple buildings totaling 1,129 units across 163,000 rentable square feet (“rsf”) on more than 16 acres. Plans for the portfolio include the select expansion of additional climate-controlled buildings and covered RV and boat storage, and various capital, technological and sustainability-focused improvements.
The joint venture has also acquired a 3.82-acre site in Hilton Head, SC for the development of a new self-storage facility, with plans to break ground this fall on two buildings containing a combined 1,231 self-storage units and totaling nearly 150,000 rsf.
“We are excited to enter into this strategic partnership with Canvass Capital and target the high-growth self-storage market,” said John Ockerbloom, Head of U.S. Real Estate Equity at Barings. “The Lake Norman assets and Hilton Head development will be Barings’ first self-storage assets in the Eastern U.S. We’ve identified a number of additional assets in the Southeast, currently under contract and scheduled to close in the near future, with value-add upside, expansion, or ground-up development potential which will offer attractive risk-adjusted return opportunities for our clients.”
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 expansion of self-storage on excess land, retail conversions and upside from technological and operational efficiencies present long-term growth potential.
Consistent with Barings’ commitment to sustainability, the development and repositioning of self-storage assets will also present the Barings team with opportunities to incorporate ESG-specific features and enhancements including solar paneling and additional energy efficiencies.
“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 of Canvass Capital.
Barings is a $371+ billion* global investment manager sourcing differentiated opportunities and building long-term portfolios across public and private fixed income, real estate, and specialist equity markets. With investment professionals based in North America, Europe and Asia Pacific, the firm, a subsidiary of MassMutual, aims to serve its clients, communities and employees, and is committed to sustainable practices and responsible investment. Learn more at www.barings.com.
*Assets under management as of March 31, 2022
About Canvass Capital LLC
Canvass Capital LLC (“Canvass”) is a real estate private equity firm focused on generating attractive risk-adjusted returns for its investors in individual assets and platform investments across cycles and over the long term. Canvass seeks to invest in real estate-enabled operating businesses where value can be created through active asset management and by maximizing efficiencies in the operating business component. Canvass’ portfolio includes medical office, self-storage, mixed-use and industrial amongst other alternative real-estate investment types. In addition, Canvass provides preferred equity on third-party projects. For more information on Canvass Capital LLC, please visit: www.canvasscap.com.