Jernigan Capital Inc., a merchant bank and advisory firm serving the self-storage industry, has invested $61.7 million in five multi-story development projects in Florida, Georgia, Louisiana and Texas. All the projects are in the proposal stage. Together, they comprise 458,000 net rentable square feet in more than 5,000 units, according to a press release. Each is expected to break ground this year with completion dates scheduled for late 2017 through the third quarter of 2018.
The company has invested $17.5 million in a facility slated for the Buckhead area of Atlanta. The property would comprise 85,000 net rentable square feet in 1,104 units. The site is just off Peachtree Road N.E., near the junction of Interstates 75 and 85. Construction is expected to begin in August, with a target completion during the third quarter next year. The project is a co-investment with Memphis, Tenn.-based Storage Development Partners LLC, which will serve as developer. This is the first co-investment project between the two companies, the release stated.
Jernigan Capital also has invested $10 million in a facility in Fort Lauderdale, Fla. The property would comprise 79,000 net rentable square feet in 768 units. Construction is expected to begin during the second quarter and be complete by roughly the same time next year. The project is a co-investment with developer Storage Builders II LLC in Orlando, Fla. This will be the fourth project on which the companies have co-invested.
The third project will be a 133,000-square-foot facility in Houston, near the junction of Interstate 10 and the Sam Houston Toll Way. Jernigan Capital has invested $13.6 million in the asset, which will contain 1,401 units. Construction is expected to begin in May, with a scheduled completion date during the fourth quarter. This will be the bank’s first co-investment project with Houston-based developer Brittmoore SS Investment LLC.
Jernigan Capital has also invested $12.5 million in a facility in Metairie, La., a suburb of New Orleans. The asset would comprise 90,000 net rentable square feet in 1,000 units. The building site is in a shopping area near the junction of Interstate 10 and N. Causeway Boulevard. Construction is expected to begin in May, with a scheduled completion during the second quarter of 2018. The project is a co-investment with Pensacola, Fla.-based Abrams Construction Group, which will serve as developer. This is the first co-investment project between the two companies.
The fifth project will be a 71,000-square-foot facility in Orlando, Fla. The asset would comprise 790 units on East Colonial Drive, less than three miles from the University of Central Florida. Jernigan Capital has invested $8.1 million in the asset. Construction is expected to begin in May, with a target completion by the end of the second quarter next year. This will be the bank’s first co-investment project with local developer Structure Development LLC.
Jernigan Capital has made $105.6 million in self-storage development investments this year. It has formed co-investment partnerships with 23 different developers in 19 markets, according to the release.
Jernigan Capital is a commercial real estate finance company that provides financing to private developers, operators and owners of self-storage facilities. It offers financing for acquisition, ground-up construction, major redevelopment or refinancing. The firm intends to be taxed as a REIT and is externally managed by JCap Advisors LLC.