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10 Federal Acquisition Company Continues to Raise Funds, Acquire Self-Storage Properties

Update 6/2/20 – 10 Federal’s first fund, 10FSSAC1, sold the second property from its original 10-facility portfolio to an unidentified buyer for $2.475 million. The company acquired the property at 1308 South Point Road in Belmont, N.C., about three years ago for $1.3 million.


4/17/20 – 10FSSAC2 received another $8.6 million of equity investment, bringing the fund’s total to more than $24.5 million since July. In all, 263 investors have contributed, bringing 10 Federal to within less than $5.5 million of reaching its $30 million goal, according to a filing with the Securities and Exchange Commission. The company has acquired eight self-storage facilities since launching the fund.


1/31/20 – 10FSSAC2 received another round of equity investment on Jan. 1, which it used to buy a four-property Capitol Storage LLC portfolio in Springfield, Ill., and an unnamed self-storage asset in Dallas. The acquisitions bring the number of 10 Federal properties in the 10FSSAC2 portfolio to 13, according to a press release. The properties will be converted to 10 Federal’s unmanned, automated platform.

10FSSAC2 has now raised $15.9 million of its $30 million goal. 10FSSAC1 and 10FSSAC2 each had an 8 percent annualized distribution on Dec. 31.


8/5/19 – 10FSSAC2 has closed on its first three self-storage acquisitions. The properties in Charlotte, N.C.; Columbia, S.C.; and Elgin, Ill.; will be converted to 10 Federal’s unmanned platform. The fund has raised more than $7.6 million through crowdfunding, existing investor relationships and foreign syndicate partnerships with the assistance of partner Mainstay Global, according to a press release.

The company’s first fund, 10FSSAC1, will issue a second-quarter distribution equal to an 8 percent annual rate of return, the release stated.


6/25/19 – 10 Federal has partnered with investment firm Mainstay Global to help raise capital from investors based in China and the United States. Mainstay has offices in both nations and provides marketing solutions for “foreign-direct investment,” according to a press release.

"We are excited to have Mainstay as a capital-raising partner," said Clifton Minsley, co-founder of 10 Federal. "Their global reach and proven track record provide a strong springboard to achieve our current capital raising goal."

"Our partnership with 10 Federal underscores our commitment to provide our clients with innovative and diverse investment opportunities. We are delighted to be their partners," added Dandan Zou, CEO of Mainstay. "The advanced technology that they're implementing in the self-storage industry is going to be a real game-changer."

Headquartered in Austin, Texas, Mainstay is a private-equity firm with a focus on commercial real estate. Its services include assisting companies raise foreign capital and facilitating overseas business opportunities, the release stated.


6/3/19 – 10 Federal Storage LLC, which operates 30 self-storage facilities in the Carolinas and Virginia, sold one of its locations this month and launched its second storage-acquisition company to raise equity and expand its portfolio.

On May 20, 10 Federal sold its Wilmington, N.C., facility for $4.3 million. It acquired the property through its first acquisition company in April 2018 for about $3.3 million. 10 Federal Self Storage Acquisition Company 1 LLC (10FSSAC1) was closed to investors on Nov. 1, according to the 10 Federal website.

10 Federal Self Storage Acquisition Company 2 LLC (10FSSAC2) was established on May 13 with a goal of raising $30 million from investors, according to a press release. As of May 29, 10FSSAC2 had raised nearly $4.5 million in commitments. The funds will be used to increase 10 Federal’s self-storage footprint and convert acquisitions to the company’s automated management platform, the released stated.

Founded in 2010 and based in Raleigh, N.C., 10 Federal is a diversified real estate company that also operates multi-family properties. Its self-storage portfolio of owned and managed properties comprises more than 850,000 net rentable square feet. Integrating technology into its operation is a core tenet of the business, according to the company website.

Sources:
Watauga Democrat, 10 Federal Self-Storage Completes Sale of 2nd Asset in 1st Self-Storage Offering Realizing a 3.1x Equity Multiple and 54% IRR
Securities and Exchange Commission, Form D
WRAL TechWire, Raleigh Startup 10 Federal Self Storage Raises Another $8.6M, Has 260+ Investors
PR Newswire, 10 Federal Self Storage Acquisition Company 2, LLC Hits $15.9 Million in Capital Raising & Closes on 5 More Self Storage Properties
Capitol Storage, Website
Yahoo Finance, 10 Federal Self-Storage Breaks Escrow on 2nd Self Storage Acquisition Platform, Raises $7,615,000 in Equity & Closes on 3 Self Storage Properties
PR Newswire, 10 Federal and Mainstay Global Announce Self-Storage Capital Raising Alliance
Yahoo Finance, 10 Federal Self-Storage Completes Sale of 1st Asset in 1st Offering at 65% IRR, Launches $30 million 2nd Offering

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