United Storage 360 LLC has received a $5.5 million bridge loan from Red Oak Capital Holdings for the acquisition and conversion of a vacated Kmart Store in Englewood Ohio. The property will be transformed into a 60,000-square-foot self storage facility and will operate under the Extra Space Storage brand.
Red Oak provided a 12-month loan under its Opportunistic Bridge Program, allowing the borrower to repurpose the 85,000-square-foot former retail facility. The borrower plans to exit the bridge loan with permanent financing or a sale once the renovations are completed in late 2023.
READ ALSO: Self Storage Rents Decline, Demand Stays Firm
The redevelopment of the property was already underway at the beginning of the year. According to the Dayton Daily News, the developer proposed the project last year and the rezoning of the site was approved in November 2022. The property, which was originally built in 1975, has been vacant since 2016, when the Kmart store closed.
Plans for a self storage facility
The building will be converted into 546 climate-controlled units, ranging from 24 to 400 square feet. Plans for the transformation process include reducing the parking site, creating parcels for future development, adding LED lighting, management offices and fencing around the former garden center for boat and RV storage. Amenities for Extra Space Storage include loading docks, covered loading bay, video surveillance and electronic gate access.
The facility is taking shape at 360 W. National Road, 15 miles northwest of downtown Dayton, and close to Interstate 70. The site is near residential communities and retail facilities. As of June, the Dayton market had a supply pipeline of 13 properties in various stages of development, set to add 664,426 square feet to the existing inventory, Yardi Matrix data shows.
Similar conversion projects were delivered early this year. Inland Private Capital Corp., in partnership with Devon Self Storage, completed the conversion of a former Kmart into a 91,787-square-foot storage property in Allentown, Pa. Similarly, U-Haul opened a self storage facility in Fort Walton Beach, Fla., that used to be a former J.M. Fields and Kmart store.
