Location Summary

• The subject property is located in Fort Mill, South Carolina. Fort Mill is a sub-market of the Charlotte MSA and located approximately 20 miles to Charlotte's Uptown district. Given Fort Mill’s proximity and access via interstate and rail to Charlotte, quality of life, and stellar schools, it has become a highly-coveted suburb of the Queen City. In addition to its previous success as a manufacturing and distribution hub, Fort Mill has found recent growth in the financial and health services markets, attracting the headquarters of the Lash Group and the regional headquarters of LPL Financial, along with an estimated 5,000 employees between them, to the new $500 million dollar Kingsley Development located less than a mile south of the asset. Filling out the Kingsley Town Center are 238 new apartments, 150,000 square feet of retail, and two hotels with an additional 480 acres primed for future development. Just across Interstate 77 lies Baxter Village, a 1,033 acre development with over 1,400 homes, 250,000 square feet of retail and office space, and ample civic uses to attract residents and tenants. The synergy of the Kingsley and Baxter Village developments has transformed Hwy 160 into a dominate retail and office corridor, attracting single- and multi-family, developments to the market. While the Fort Mill self-storage market has recently doubled with three new facilities within a short time span, the strong absorption in the new developments coupled with high barrier-to-entry has physically stabilized all assets to a market occupancy rate of 80.5% in a short period. With strict zoning ordinances and very few buy-right opportunities in the corridor, the existing facilities have an unmatched potential for growth. The strong demand from population and job growth coupled with the high barrier-to-entry generate an exceptional opportunity to push rental rates with a lack of local competition. With the favorable market fundamentals, below-market existing rates, and lack of new supply, investors are positioned to capitalize on this exceptional new Class A opportunity in a fast-growing, stable region.
• Storage Capital Advisors, LLC has been retained as the exclusive sales representative for this Extra Space Storage facility, located in Fort Mill, SC. This investment represents an Institutional quality asset in Charlotte’s fastest-growing sub-market, with the 2nd fastest population growth in the state and a unique opportunity for value creation. The US Census reported a record population growth in the Town of Fort Mill of 16% in 2017 according to the Charlotte Regional Business Alliance, which is no surprise considering South Carolina and York County’s continued focus on attracting business with generous incentive packages and excellent school systems. This Extra Space Storage asset presents an investor with a unique opportunity to acquire an income-producing asset in a high barrier-to-entry market with limited competing new supply. The asset provides an investor with a Physical Occupancy of 82% with proven lease up and rental rate growth. Additionally, the property features an attractive opportunity to increase in-place tenant rents, previously slowed by an increase in supply that has now stabilized. Current rents are up to 30% below market rates, with an expected average increase potential of $4.50 PSF. Situated only 18 miles southwest of Charlotte’s Uptown District, Fort Mill, and York County have grown into a primary suburb for employees in Uptown, the southern Charlotte markets of South Park and Ballantyne, and Fort Mill itself. As the Charlotte MSA has grown by 62% over the last 18 years, so has its suburbs, and Fort Mill has taken advantage of that growth by providing incentives for office development that drive residential and retail growth in turn. As a result, York County has experienced a year over-year overall employment growth of 6.8% and a 40.3% year over-year growth in professional and business services employment as the state and local incentives attract corporate and regional headquarters and distributions for numerous companies to relocate to the area, such as LPL Financial, the Lash Group, Shutterfly, Sunbelt Rentals, Ross Stores, Wells Fargo Home Mortgage, Domtar and Stanley Black and Decker.