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January 10, 2024

12 Min Read
10 Federal Continues to Raise Funds, Acquire and Sell Self-Storage Properties

Update 1/10/24 – 10 Federal’s fourth fund, 10FSSAC4, raised more than $16 million during the fourth quarter and recently completed its 12th and 13th acquisitions. The capital infusion will be used to make additional purchases in strategic markets, according to a press release.

“We are immensely pleased with the trust from our valued investor base, reaching a cumulative capital raise of $96 million since the offering’s inception in December 2022,” said Andrew Capranos, president. “The confidence and commitment from our investors empower us to pursue our pioneering vision and carry out our expansion strategies.”

The fund’s most recent purchases were two properties in Greeneville, Tennessee, and Seguin, Texas, bringing 10 Federal’s operating portfolio to 80 self-storage facilities across 14 states.

7/14/23 – 10 Federal’s fourth fund, 10FSSAC4, raised more than $27 million during the second quarter and recently completed its seventh acquisition. The capital infusion will be used to make additional purchases in strategic markets, according to a press release.

“We are delighted to have raised over $27 million in the second quarter, reaching a total capital raise of $60 million for the year,” Minsley said. “These funds enable us to continue executing on our growth strategy and further expand our portfolio in key markets.”

The fund’s most recent purchase was a three-property portfolio in Spartanburg, South Carolina, raising the number of facilities its acquired to 11.

10 Federal’s operating portfolio now comprises more than 75 self-storage properties across 14 states.

4/13/23 – 10 Federal’s fourth fund, 10FSSAC4, has made its sixth acquisition, having purchased the three-property ASAP Storage portfolio in Temple and Villa Rica, Georgia. The facilities comprise 96,000 rentable square feet in 664 units and 70 vehicle-storage spaces. Built across 15 acres, the properties have room for expansion, according to a press release.

“The acquisition of the ASAP Storage portfolio is an exciting addition to our self-storage portfolio,” Minsley said. “We are confident in our ability to create value by improving occupancy and rental rates through our proven technology-driven approach.”

10FSSAC4 has raised $32 million in equity between Dec. 15 and April 1.

10 Federal also added three executives to its leadership team. Trent Erickson was appointed vice president of accounting. He has more than 20 years of experience in public accounting, financial reporting and business operations. Kris Gunther was hired as vice president of human resources, and Brian Oakley was named vice president of technology. Oakley has more than 15 years of experience in technology strategy, development and operations, the release stated.

2/14/22 – 10 Federal’s fourth fund, 10FSSAC4, completed an equity round by raising $11.2 million in investment, bringing its total to more than $22 million. The self-storage acquisition fund is open to accredited investors with a minimum infusement of $25,000. It’s next round is scheduled to close on April 1.

1/31/23 – 10 Federal has launched a fourth acquisition company, 10 Federal Self Storage Acquisition Co. 4 LLC (10FSSAC4), through which it intends to raise $100 million of equity investment for real estate purchases. The new venture has already raised $10.9 million and acquired three facilities: two in Houston and one in North Carolina. It has another five properties in its pipeline, according to a press release.

10 Federal’s second fund, 10FSSAC2, sold four more self-storage properties in December for $8.1 million. To date, the fund has sold 27 of its 28 assets, the release stated.

9/7/22 – 10 Federal’s second fund, 10FSSAC2, sold 19 self-storage properties to a publicly traded investment firm. It also sold four properties in February. The fund has five facilities remaining in its portfolio that the company also intends to liquidate, according to a press release.

10 Federal expects to launch its fourth fund, 10FSSAC4, during the fourth quarter this year, with a goal of raising $100 million, the release stated.

4/28/22 – 10 Federal has closed its third fund, 10FSSAC3, after expanding it to $45 million in February. The company reached its target from 372 investors, according to a filing with the SEC. It expects to launch a fourth acquisition fund targeting $100 million as early as this summer. “We’ve been putting points on the scoreboard,” Minsley told the source.

6/18/21 – 10 Federal’s third fund, 10FSSAC3, has acquired two self-storage Georgia facilities. The company closed on All American Self Storage in McDonough on May 26. The facility at 848 Dailey Mill Road contains 161 units. It closed on Attics Self Storage in Newnan on June 9. The property at 554 Corinth Road comprises 234 units, but 10 Federal intends to add 92 more. 10FSSAC3 has also identified several other properties for its acquisition pipeline, according to a press release.

Between January and June, average store revenue increased 21.9% within the 10FSSAC1 portfolio and 24.6% in the 10FSSAC2 portfolio. Both funds have shown “tremendous” growth in net operating income, the release stated.

5/25/21 – 10 Federal has launched a third acquisition company, 10 Federal Self Storage Acquisition Co. 3 LLC (10FSSAC3), through which the company intends to raise another $30 million of equity investment for real estate purchases. 10FSSAC3 has already raised more than $7.4 million from 128 investors, according to a May 14 filing with the Securities and Exchange Commission.

The equity securities offering is expected to last more than a year. There is no minimum investment amount, according to the filing.

1/6/21 – 10 Federal’s second fund, 10FSSAC2, has completed its equity round with an oversubscribed amount of $32 million. It closed on two self-storage acquisitions in Columbia, Mo., in November and a three-property portfolio in McDonough, Ga., in December. In total, the fund made 26 property acquisitions comprising more than 7,500 storage units, according to a press release.

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:
PR Newswire, 10 Federal Surpasses $96 Million in Capital Raise, Expands 4th Self-Storage Offering
PR Newswire, 10 Federal Raises an Additional $27 Million in Q2 for 4th Self Storage Offering, Bringing Total Capital Raised to $60 Million
PR Newswire, Self-Storage Innovator 10 Federal Raises $32mm, Adds Sixth Asset to Fund Portfolio, and Three Executive Leaders in Recent Expansion Move
PR Newswire, 10 Federal’s 4th Self Storage Offering Raises an Additional $11.2 Million Pushing Total Capital Raised to Over $22 Million
PR Newswire, 10 Federal's 2nd Self Storage Offering Sells 4 More Self Storage Assets
PR Newswire, 10 Federal Self Storage Sells 19 Properties
Triangle Business Journal, Raleigh Real Estate Investor Raises $45M. Next Goal Could Hit $100M
PR Newswire, 10 Federal Self Storage Acquisition Company 3 LLC raises $7.4 million in 18 days; Acquires 2 self-storage facilities
WRAL TechWire, Raleigh Based 10 Federal Raises $7.4M From 178 Investors for New Acquisition Company
Securities and Exchange Commission, Form D 10 Federal Self Storage Acquisition Co 3 LLC
PR Newswire, 10 Federal Self Storage Acquisition Company 2 LLC Oversubscribes Its Offering Goal of $30 Million in Equity and Closes Its Equity Raise at $32 million; Acquires 5 Additional Self-Storage Facilities
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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