Jernigan Capital Joint Venture Opens Self-Storage Facility in Raleigh, NC

Update 7/4/18 – PDR has completed construction on its four-story self-storage facility at 7710 Alexander Town Blvd. in Brier Creek. The climate-controlled building features two elevators. It will be managed by CubeSmart, a self-storage real estate investment trust and third-party management firm, according to a press release. PDR and Jernigan have since co-invested in four other projects.

A grand-opening celebration was held on June 13. The event included facility tours and a ribbon-cutting ceremony, with participation from contractors, facility staff, investors, PDR employees and vendors. It also included a social hour with light snacks and refreshments.

PDR chose Brier Creek based on the long-term prospects of the Raleigh market, the release stated. The property is accessible from Highway 70.

Headquartered in Tampa, Fla., PDR is a real estate and development company. Its services include acquisition, construction, construction management, development, financing, product supply and property management for the multi-family and self-storage industries. PDR has 18 projects under development in four states.


1/5/17 – Jernigan Capital Inc., a merchant bank and advisory firm serving the self-storage industry, has invested $8.9 million in a Raleigh, N.C., self-storage development project. The investment was made through Storage Lenders I LLC, the company’s joint venture with real estate investment firm Heitman Capital Management LLC and an unidentified institutional partner. The multi-story facility will be built in the Brier Creek community and comprise 65,110 net rentable square feet in 756 units, according to a press release.

Tampa, Fla.-based Phillips Development & Realty LLC will serve as the developer. This is the first self-storage project in which both Jernigan Capital and Phillips have co-invested, the release stated.

The joint venture was launched last March with a $35 million commitment from Heitman. The investment firm’s contribution was contingent on a $75 million institutional co-investment, which was contributed in April by a public-pension plan. The $122.2 million capitalization is intended for self-storage development.

During a November earnings call, Jernigan Chief Operating Officer John Good indicated the firm had executed nine term sheets totaling $88.9 million, on which the company expected to close before the end of 2016, according to the source.

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.

Sources:
PE Hub Network, Jernigan Invests in a Raleigh, North Carolina Storage Development Project
Triangle Business Journal, Brier Creek Storage Facility Lands Development Cash From Memphis Investor

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