River Rock Capital Partners, an alternative asset-management firm, has agreed to purchase Enterprise Self-Storage in Fayetteville, N.C., for $1.7 million. The property at 2812 Enterprise Ave., near downtown, was built in 2006. The eight-building facility comprises 46,500 square feet of storage space in 285 units.
The acquisition includes approximately $600,000 in equity financing from outside investors, which River Rock plans to raise through a new online platform that will allow accredited investors to review and make direct investments to the company’s real estate projects. Contributors will be able to access each property’s tax and financial documents through a secure dashboard. The platform was created by Investor Management Services LLC, a developer of software for commercial real estate owners.
River Rock is planning property improvements to boost occupancy and rental rates, according to a press release. The facility will be managed by Extra Space Storage Inc., a self-storage real estate investment trust.
“Self-storage is a business with low development and construction costs, high cash flow, and low break-even occupancy when compared to other real estate asset types. The sector experienced one of the lowest declines of any other real estate asset class during the last downturn,” said Dan Hughes, CEO and president of River Rock. “This was mainly driven by the strong fundamental demand drivers for storage and somewhat limited supply. Investors—both lenders and equity investors—find this very attractive as the underlying dynamics continue to fuel the sector’s success. With a past performance history and upward trending occupancies and rental rates, we expect self-storage to remain an attractive asset class for some time to come.”
River Rock Capital Partners serves institutional and private equity firms. Since 2012, it has invested more than $800 million in value-add real estate.
Headquartered in Salt Lake City, Extra Space owns or operates 1,347 self-storage properties in 36 states; Washington, D.C.; and Puerto Rico. The company’s properties comprise approximately 900,000 units and 101 million square feet of rentable space.
Investor Management Services is a member of the QuietStream Financial family of commercial real estate services and technology companies. Its platform features document management, electronic-document execution, investor communications and dashboards, and live customer service.