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JHM Hotels Launches TD Self Storage Enterprise in the Southeast

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JHM Hotels, an independent hotel developer and operator primarily in the Southeast, has launched TD Self Storage Enterprise LLC to develop and acquire storage assets in the region. The company has already built five self-storage facilities in Florida and South Carolina, with a sixth planned for Greenville, S.C., according to the source. TD will initially concentrate on opportunities in the Midwest and Southeast, with eventual expansion to California, Texas and other U.S. markets. Its goal is to amass an owned portfolio of more than 100 storage properties.

JHM decided to launch the self-storage venture to diversify its portfolio. “It’s not recession-proof, but it’s as close as you can get to being recession-proof,” Roger Burgin, TD’s senior vice president of business development and acquisitions, told the source.

The company will focus on major metropolitan markets “that warrant new development” as well as opportunities to purchase “cash-flowing properties with expansion and/or other value-added opportunities,” company officials said in a press release. “In either case, we devote our energy and focus to properties we believe offer significant cash flow, revenue growth and long-term capital-appreciation opportunities.”

The TD strategy is to find property or existing assets with 50,000 people living within three miles, 150,000 people residing within five miles and a rental market comprising 30 percent apartments, Burgin told the source. The company requires an area with an annual median household income of at least $50,000, and its ideal markets will have fewer than 8 square feet of self-storage per capita.

TD will look to acquire either class-A climate-controlled facilities or underperforming assets that offer room for expansion as well as opportunities to increase revenue and occupancy while reducing expenses, the release stated. Its ground-up developments will focus on “multi-story, climate-controlled properties designed to be respectful of the local architecture and viewed as an amenity to the community.”

Its design philosophy will also integrate hotel and hospitality sensibilities, including children’s play areas, food and beverage kiosks, hotel-inspired lobbies, private office spaces, comfortable waiting rooms, and WiFi, Burgin said.

The company has selected CubeSmart, a self-storage real estate investment trust and third-party management firm, to operate its portfolio, the source reported.

Based in Greenville, S.C., JHM Hotels has acquired and developed hotels throughout the United States for 44 years. The company currently owns and operates 38 hotels in seven states, according to its website. Its brands include Hilton, Hyatt, Marriott and Westin. The company’s affiliate, JHM Restaurant Group, owns several high-end restaurants.

Sources:

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