Grandstone Investment Sales exclusively presents Rougemont Storage, a self-storage renovation
opportunity located at 8927 Mile Branch Road, Rougemont, NC. The property features 390 units
across 46,950 NRSF on an expansive 21.54-acre lot. Operating at 92.31% physical and 73.98%
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 $391,456 in
Year 1 NOI, supporting a stabilized yield of 5.49% on cost and highlighting the property’s nearterm
operational upside potential.
The investment offers a compelling valuation profile with a $7,500,000 acquisition price ($159.74
per NRSF) and a projected $8,000,000 disposition price after a 5-year hold. Additionally, the
21.54-acre lot and 50 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
- STRONG RENTAL RATES
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. - UPSIDE THROUGH CONTINUED LEASE UP
Rougemont Storage presents clear upside through continued lease-up and stabilization, with projected Year 1 NOI of approximately $391,456 reflecting meaningful value-add execution from increased economic occupancy and ancillary income growth.
- PROXIMITY TO DURHAM
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. - OWNER OPEN TO SELLER FINANCING
Ownership has indicated openness to seller financing, offering potential flexibility in deal structuring and the ability to optimize capital stack efficiency for qualified buyers. - LIMITED NEW SUPPLY
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.
Brian Brockman | Bang Realty-North Carolina Inc | bor@bangrealty.com | License: 298998
