Realty Mogul, an online marketplace that allows accredited investors to pool their money and buy shares of pre-vetted investment properties, including self-storage, recently completed its first full-cycle equity transaction. The platform partnered with Platinum Storage Group in the sale of American Mini Storage in Tucson, Ariz., to an undisclosed buyer for $2.5 million in November. The transaction provided investors a 16.8 percent return in 18 months, according to a press release.
The property was acquired in May 2014 for $1.725 million. Built in 1998 and renovated in 2005, it comprises 53,401 square feet in 458 storage units and about 60 stalls for long-term boat and RV storage.
“We have been excited about self-storage facilities as one of our investment thesis for some time, as self-storage facilities have become big business. Last year, storage rentals generated more than $22 billion in annual revenue,” said Jilliene Helman, CEO and founder of RealtyMogul.com. “To be able to provide this rate of return in a relatively short amount of time is a great accomplishment to have achieved with our partners, Platinum Storage Group.”
"We are always pleased to deliver significant returns to our investors," added Skip Elefante, CEO of Platinum Storage. "Our management team was able to execute the business plan while refining it in the face of changing market conditions, which resulted in achieving such extraordinary results within a short time. RealtyMogul.com was a strong partner for us, as we worked together to realize our vision for this property and its enhanced market value."
Realty Mogul completed the first crowdfunded self-storage transaction in December 2013. In that deal, the platform helped raise $1 million to convert an existing self-storage property in Fayetteville, N.C., to a StoreSmart Self-Storage facility.
Platinum Storage Group operates more than 50 self-storage facilities in six states. Its owned portfolio, operated primarily under the Storage Direct brand name, comprises more than 4 million square feet.
Realty Mogul gives investors tools to browse investments, conduct due diligence and invest online. Buyers have 24/7 access to an investor dashboard that allows them to see how their investments are performing.