Investment-management firm Inland Private Capital Corp. (IPCC) has closed Self-Storage Qualified Opportunity Fund LLC and Self-Storage Qualified Opportunity Fund II LLC after raising more than $252 million from investors. The funds are pursuing acquisitions as well as redevelopment and conversion projects in Qualified Opportunity Zones (QOZs) in high-density, underserved markets, according to a press release.
The first fund has purchased nine properties in Georgia, Michigan, Missouri, New Jersey, Pennsylvania and Wisconsin. In addition, the two funds together have 12 properties in their acquisition pipelines, which will complete the capital deployment of both, the release stated.
IPCC will continue its longstanding relationship with Devon Self Storage Holdings LLC on project development and property management. Devon, which operates 86 self-storage facilities nationwide, has long managed multiple self-storage facilities in IPCC’s portfolio. In 2020, the two companies expanded their relationship to redevelop and operate storage properties in QOZs nationwide.
“[Affiliate] Inland Real Estate Acquisitions LLC and Devon have been incredibly successful at uncovering high-quality, undervalued real estate opportunities,” said Keith Lampi, president and chief operating officer of IPCC. “The dislocation that has occurred in sectors such as big-box retail presents an opportunity to reimagine and repurpose existing properties, with the dual objectives of creating an economic benefit to the communities that these properties serve and providing the potential for attractive risk-adjusted returns to investors.”
IPCC’s national self-storage portfolio of 153 properties comprises 73,414 units. In November, the company sold 34 facilities to real estate investment trust and management company National Storage Affiliates Trust for $265 million. Comprising 2.1 million square feet across four states, the locations were packaged in three IPCC-sponsored Delaware statutory trust programs.
“We continue to maintain a bullish outlook on the long-term performance potential of the self-storage sector, which has been propelled by an acceleration in tenant demand, driving growth in rental rates, occupancy and investment performance,” Lampi said. “The sector’s historical resiliency to market cycles, its strong performance during the COVD-19 pandemic, and the opportunity it presents for future rent growth, are expected to position the funds to deliver long-term performance in a late-cycle, inflationary economic environment.”
Based in Oak Brook, Illinois, IPCC is a sponsor of real estate securities and a part of the Inland Real Estate Group of Cos. Inc., which is comprised of independent legal entities. The company specializes in multiple-owner, tax-focused, private-placement investments as well as QOZ investments nationwide. It manages a diverse portfolio of more than $10 billion across several asset classes spanning 43 states.
Source: Daily Herald, Inland Developing Self-Storage Businesses