Update 1/5/22 – HPI Real Estate Services & Investments has closed funding for its third self-storage investment fund. Fund III will initially pursue development and select acquisition opportunities in Florida, Nevada and Texas, according to a press release.

“With a strong follow-on investment from existing Fund I investors, we were fortunate to be significantly oversubscribed for Fund III from our initial fund size of $50 million,” Erickson said. “The pipeline is strong, with six sites under contract and the first closing occurring at the end of December.”

HPI’s previous funds include investments in Bradenton, Florida; Houston and San Antonio, Texas; and Las Vegas. With the closing of Fund III, the company has $195 million in self-storage investments under management, including two Opportunity Zone funds, the release stated.

12/7/20 – Commercial real estate firm HPI Real Estate Services & Investments has launched HPI Storage Fund II to target self-storage acquisitions. The $44 million equity fund completed two all-cash deals in November, buying facilities in Lantana, Fla., and Las Vegas comprising a total of 151,901 net rentable square feet, according to the source.

The Lantana property at 420 N. 4th St. comprises 72,901 square feet. The Las Vegas site opened in August and comprises 79,000 square feet. The latter was backed by an individual, non-institutional investor who intends to hold the asset long term. “We have closed two deals in the second fund, both all-cash, and we will continue to do so for the foreseeable future,” Jonathan Vollinger, director of storage acquisitions, told the source.

In 2018, HPI launched HPI Storage Fund I, a $30 million equity fund focused on self-storage development in partnership with Hugh Horne. At the time of launch, the partners envisioned building more than 20 facilities by 2023. To date, HPI Horne Storage has 11 self-storage facilities across four states that are either in lease-up or under construction, the source reported.

HPI believes self-storage offers stable, long-term benefits for investors. “We have been focused on self-storage as a defensive asset class compared to other asset classes, such as office or retail or some of the other real estate ventures. We like it long term,” said Jon Erickson, strategic investment partner. “We like the stable cash flows that we get from self-storage.”

“There are markets we perceive as rebound markets, markets that have gotten a lot of press about new supply, suffered a lot of rental decline because of supply, but are strong long-term bets,” Vollinger said. “We think these markets are starting to sort themselves out as far as supply and demand.”

Headquartered in Austin, Texas, HPI Real Estate is a full-service commercial real estate firm with additional offices in Dallas, Houston and San Antonio. The company has more than 28 years of experience as an owner, investor and manager of commercial real estate, according to its website.

Source:
SpareFoot Storage Beat, HPI Real Estate Kicks Off Second Self-Storage Fund With Two All-Cash Deals