Joint venture company invests in Raleigh self-storage project
January 17, 2017 by Mark
Jernigan Capital Inc., an advisory firm and bank that serves the self-storage community, has invested almost $9 million in a self-storage development project in Raleigh, North Carolina. The investment was made by Jernigan through its joint venture arm, Storage Lenders I LLC, in which it partners with Heitman Capital Management LLC, and another unidentified partner. The planned storage facility is a multi-story structure and will be located in the Brier Creek area. It will offer 756 rental units totaling 65,110 square feet of rentable space.
The developer on the project is Phillips Development & Realty LLC of Tampa, Florida. This is the first time Jernigan Capital and Phillips have jointly invested on a self-storage venture.
The inception of the joint venture occurred last March, when Heitman committed $35 million to the effort. However, Heitman’s contribution was contingent upon another $75 million being realized from a co-investment. The funds were contributed in April, and came from a public-pension plan. The money will be used to develop self-storage projects.
Jernigan provides financing to private operators, owners, and developers of self-storage projects. It offers financing for acquiring existing facilities, building them from the ground up, redeveloping them, or refinancing them.
Projects like this can benefit if developers and financiers work with brochure printers to develop illustrated booklet to market to potential users.