HPI Horne Storage, a joint venture between HPI Real Estate Services & Investments and self-storage developer Hugh Horne, plans to build a national portfolio across eight to 12 markets nationwide. The company has raised more than $30 million through its HPI Storage Fund I, intending to fund up to 10 projects. The company envisions developing more than 20 facilities in the next three to five years, according to the source.
The joint venture is currently building a 134,000-square-foot facility in San Antonio and has sites secured in Houston as well as Orlando and Tampa, Fla., said Jon Erickson, strategic investment partner for HPI. It’s also negotiating sites in Dallas, Denver and Los Angeles, the source reported.
The group has projected development costs of about $10 million, with up to $3.5 million of equity, though those figures could be much higher for potential locations in California and New York. “Therefore, we are looking to build a national portfolio of institutional assets that will be attractive to larger institutional buyers,” Erickson told the source. “This opportunity was solidified through the partnership with Hugh Horne.”
Horne is CEO and president of Horne Developments Inc. and Horne RPC Storage I L.P. Prior to launching his own companies, he held several executive roles at Public Storage Inc., Storageworld LP and Storage Spot Inc.
“Broadly speaking, we think of sufficient demand in the context of high occupancies and increasing rents,” Erickson said. “San Antonio, along with all the markets we are pursuing in Florida, Colorado, California and others, provides a market with strong population growth, increasing rental rates and in-place rental rates that warrant new construction.”
The company could potentially commit all the capital it’s raised thus far by the end of September, according to the source.
Headquartered in Austin, Texas, HPI Real Estate is a full-service commercial real estate firm with additional offices in Dallas and San Antonio. The company has more than 25 years of experience as owners, investors and managers of commercial real estate, according to its website.
Commercial Property Executive, Q&A: HPI, Hugh Horne Debut New Player in Self-Storage