This coastal community is home to about 35,000 year-round residents; however, the population swells significantly during the summer months as visitors flock to the area to enjoy laidback, waterfront living. There are many second homes and timeshares peppered throughout the region. While Dare County, the region that encompasses the Outer Banks, is the largest county in North Carolina by total area, only 24.5% of that area is land.
Additionally, the Outer Banks is known for its preservation of natural beauty. The community has strict zoning laws which forbid boardwalks as well as noisy theme parks and also prevent high-rise hotels from obscuring ocean views. The sparsity of land coupled with a strong, tourist-bolstered economy and firm zoning laws creates a built-in demand for self-storage in this market.
The first property is located in Nags Head. Located at 209 W 8th St, the property has excellent visibility as it is situated near popular restaurants and a bait and tackle store. It is located along N Croatan Highway, the major roadway that connects the barrier islands, which sees nearly 30,000 vehicles per day. Built in 1985, 1989, and 1994, the clean, well-maintained facilities offer 72,680 square feet of space and are situated on 7.08 acres. Its 499 total units are currently 92.6% physically occupied while economic occupancy is 82.5%.
The second property is located in Kitty Hawk, a quiet coastal town with a 461-acre maritime forest reserve called Kitty Hawk Woods. Situated right along the reserve just off N Croatan Highway, the self-storage facility is only a short drive from Point Harbor on the mainland. Built in 2004, the 37,110 square feet serves the community with 256 rentable units that are 86.7% physically occupied and 88.8% economically occupied.
This sale presents a unique opportunity to acquire two leading self-storage properties in a local market with limited competition, predominantly comprising mom-and-pop owners. The portfolio’s scale and strategic positioning within its submarket will give buyers significant operating leverage. Buyers have the potential to acquire over $1.3 million in NOI, with material untapped future rental rate upside.