Direct Equity Source Invests in AAA Self-Storage Portfolio

Real estate private-equity firm Direct Equity Source has established a strategic partnership with self-storage developer and operator AAA Storage. Direct Equity is now the single largest investor in AAA’s Growth Fund I, which intends to add eight projects to the company portfolio in Florida and Texas over the next year. The investment will expand AAA’s ability to acquire, develop, lease up and manage assets in key growth markets, according to a source.

“We are thrilled to partner with AAA Storage, a leader in the self-storage industry,” said Stephen Lawrence, manager of Direct Equity Source. “This collaboration aligns with our growth strategy and commitment to providing high-quality real estate solutions and investment opportunities.”

Direct Equity is soliciting participants in the new partnership through its AAA Storage Development Fund, which is open to qualified investors. The fund will develop eight sites, all of which will include self-storage. Five will also include an office/industrial flex business parks. Projects are planned for Austin and San Antonio, Texas, as well as Tampa, Florida.

Founded by John Muhich in 1993, AAA has developed more than 6 million square feet of self-storage and office/warehouse flex space with a value of more than $450 million. Its internal rate of return to investors across 90 projects is 19 percent, a source reported. It also offers services including land acquisition and entitlement, site planning, development, and construction and property management.

Direct Equity specializes in the acquisition, development and management of diverse property types including self-storage facilities and RV parks.

Sources:
Morningstar, Direct Equity Source Announces Strategic Partnership with AAA Storage to Expand Self-Storage PortfolioZ
Direct Equity Source, AAA Storage Development Fund