Jernigan Capital Inc. (JCAP), a merchant bank and advisory firm serving the self-storage industry, has filed a lawsuit against its partners on a construction project in Miami. The $17.7 million suit, filed by investment affiliate Jernigan Capital Operating Co. LLC, seeks to foreclose on the project and seize the site from MM Storage Partners LP and Storage Partners of Miami I LLC as well as loan guarantors Bruce and Jonathon Manley, according to the source.
The 111,947-square-foot storage facility is under construction at 212-234 N.E. 26th St. It’s being built by Blue Bell, Pa.-based Manley Storage Ventures, which is headed by Bruce Manley. The project is nearly complete and ready to receive a temporary Certificate of Occupancy, the source reported.
“I am aware that Jernigan has filed a foreclosure complaint, but we have not been served [with the complaint], so we can have no comment on their action,” Manley told the source.
JCAP reportedly provided a $17.7 million construction loan to Storage Partners of Miami I in 2015. The borrower failed to repay the loan by the maturity date of June 30, 2018, allowing construction liens to extend beyond 30 days, according to the lawsuit. The entire principal, plus interest, remains unpaid.
JCAP or one of its joint ventures typically holds a 49.9 percent profit interest under the lender’s customary financing transactions, according to company officials.
JCAP is a real estate investment trust listed on the New York Stock Exchange. The company 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 is externally managed by JCap Advisors LLC.
SpareFoot Storage Beat, Jernigan Capital Files to Foreclose on $18 Million Facility in Miami