Self-storage operator Reliant Real Estate Management LLC has launched a $75 million equity fund, Reliant Self-Storage Fund III, through RealCrowd, a real estate crowdfunding platform. The fund will target value-add and stabilized self-storage acquisitions in Colorado and the Southeast. It’s already purchased 13 properties, with a plan to increase that number to as many as 20, according to the source.
The fund will focus on value-add opportunities in secondary and tertiary markets, targeting properties with room for expansion as well as those in need of better lease-up management and ancillary income, the source reported. Reliant intends to hold onto the Fund III portfolio for six years before looking to sell to a publicly traded real estate investment trust or institutional buyer.
The RealCrowd platform allows users to invest directly with the sponsor rather than act as an intermediary, according to the crowdfunding website. The minimum investment for Fund III is $50,000, with a target internal rate of return of 12%.
Reliant operated its first equity fund from May 2019 to March 2020, while its second ran from April 2020 to October 2021, according to an investment summary posted on the company website. The $50 million Fund II was also available to investors through RealCrowd.
Established in 2010 and based in Roswell, Georgia, Reliant operates 55 facilities in several states, primarily under the brands Midgard and Storesmart Self Storage.
Benzinga, RealCrowd Launches New Offering For A Self-Storage Fund With Value-Add Strategy
Reliant Real Estate Management, Our Investments
RealCrowd, Reliant Self-Storage Fund III