Red Oak Capital Holdings, LLC, provided capital for the acquisition and conversion of a vacated Kmart store in Englewood, Ohio.
The $5.5 million bridge loan will allow the borrower, United Storage 360, LLC, to acquire the property in the Dayton, Ohio, MSA and convert it into an Extra Space Storage-branded self-storage facility.
The loan will allow the sponsor to redevelop the roughly 85,000-square-foot existing building that was constructed in 1975 into a modern 60,000-square-foot self-storage facility containing 546 units.
The site at 360 W. National Road, northwest of Dayton, is surrounded by industrial uses along with multifamily complexes and single-family residential developments. The sponsor plans to exit Red Oak’s bridge loan with permanent financing or a sale following completion of renovations, which are scheduled for late 2023.
In addition to the conversion of the building, plans include reducing excess parking at the site, creation of out-parcels for future development, adding landscape islands in parking areas, replacing pole light fixtures with LED lighting and erecting new pylon signage for Extra Space Storage. The building will be improved with a new entrance façade, constructing management offices adjacent to the main entry, repainting the overhead doors of former auto service center for drive-up storage and adding fencing around the former garden center for boat and RV storage.
