DXD Capital breaks ground on Carrollton self-storage project

DXD Capital has started work on a 975-unit, climate-controlled self-storage facility in Carrollton, Texas, with leasing expected to begin next summer. The project expands DXD Capital’s Texas Triangle footprint and adds new supply in a fast-growing Dallas-Fort Worth submarket with older existing inventory.

Why it matters: - The Carrollton project adds modern, climate-controlled storage in a supply-constrained DFW submarket. - DXD Capital is targeting an area with strong population density, household formation and access to major highways. - More than half of the self-storage inventory in the trade area is over 30 years old, creating demand for newer space.

What happened: - DXD Capital broke ground on a Class A self-storage facility at 2453 Lacy Lane in Carrollton, Texas. - The development will include 975 climate-controlled units and 95,350 net rentable square feet. - The three-story building will total 125,959 gross square feet. - DXD Capital said the project is its fourth ground-up development in the Texas Triangle. - The facility is expected to begin leasing next summer.

The details: - Extra Space Storage will operate the facility. - Reliable Commercial Construction is serving as general contractor. - Dallenbach-Cole Architects designed the project. - The site sits near Interstate 35, the George Bush Turnpike and the Lyndon B. Johnson Freeway. - DXD Capital said the location offers strong accessibility and visibility within a high-growth submarket. - Scott Hughes, managing director of construction at DXD Capital, said Carrollton fits the firm’s focus on dense submarkets with strong household growth and barriers to new supply. - Hughes also said the project reflects DXD Capital’s partnerships with its construction lender and Reliable Construction.

Between the lines: - DXD Capital is continuing to lean into data-driven development in markets where newer inventory can stand out quickly. - The choice of Extra Space Storage as operator suggests the company is pairing development with a national brand to support leasing and operations. - The project extends DXD Capital’s broader push across the U.S. self-storage market, not just Texas.

What's next: - Construction will continue ahead of the planned leasing start next summer. - DXD Capital will likely look to add more ground-up projects in similarly supply-constrained markets. - The Carrollton facility will join DXD Capital’s portfolio of 35 ground-up developments and one seven-facility portfolio acquisition across the U.S.

The bottom line: - DXD Capital is betting that older self-storage stock and strong Dallas-area fundamentals will support a new Class A facility in Carrollton.