Rougemont Storage
Self Storage | 5.09% CAP | 395 Units
Marketing description
Grandstone Investment Sales exclusively presents Rougemont Storage, a self-storage renovation opportunity located at 8927 Mile Branch Road, Rougemont, NC. The property features 395 units across 47,535 NRSF on an expansive 21.54-acre lot. Operating at 92.31% physical and 89.62% economic occupancy, the facility presents a significant value-add opportunity to increase revenue through targeted operational improvements and ancillary income streams. Optimizing economic occupancy and implementing tenant insurance and ancillary fee programs provides a clear path to maximizing facility performance. The asset is projected to generate approximately $411,788 in Year 1 NOI, supporting the stabilized yield on cost and highlighting the property's near-term operational upside potential.
The investment offers a compelling valuation profile with a $7,500,000 acquisition price ($157.78 per NRSF). Additionally, the 21.54-acre lot and 30 dedicated uncovered parking spaces provide a distinct advantage for capturing regional RV and boat storage demand driven by nearby lakes. The local market benefits from steady demographics, an affluent residential base, and a contracting construction pipeline, with regional deliveries forecast to decline by 15% in 2025. This offering presents a unique opportunity to capitalize on climate-controlled storage advantages and realize strong returns through strategic management and operational upgrades.
Investment highlights
- The asset benefits from strong in-place and market-supported rental rates, with the facility acquired at a $7.5M purchase price reflecting a 73.98% entry basis. Pricing is supported by solid underlying demand in the Rougemont submarket and limited competitive climate-controlled supply within the trade area.
- Rougemont Storage presents clear upside with projected Year 1 NOI of approximately $411,788 reflecting meaningful value-add execution from increased economic occupancy and ancillary income growth.
- The property is located within close proximity to Durham, a major regional demand driver supported by Duke University, Duke Health System, and strong employment growth, enhancing long-term tenant demand fundamentals.
- Ownership has indicated openness to seller financing, offering potential flexibility in deal structuring and the ability to optimize capital stack efficiency for qualified buyers.
- The local construction pipeline is contracting, with regional deliveries forecast to decline 18% in 2026. Under-construction inventory is under 0.5% of total stock, positioning the asset to push rates upward.
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