Jernigan Capital Co-Invests $77.6M in 8 Self-Storage Projects

Update 7/31/17 – Jernigan Capital has co-invested in a third self-storage project with Structure Development, committing $8 million toward a proposed multi-story facility in Jacksonville, Fla. The asset would comprise 68,700 square feet in 749 climate-controlled units on Edison Avenue, about a half-mile from downtown. Construction is expected to begin during the fourth quarter and be complete in about a year, according to a press release.

The property is less than a mile from Brooklyn Station, a new retail and dining area, and is close to several recently developed upscale apartment complexes. It’s visible from Interstates 10 and 95.

Jernigan Capital also announced that three of its earlier self-storage co-investments have opened for business. Two of the assets are also in Florida, with one in Pittsburgh, Pa. A project in Ocoee, Fla., added 287 units to its existing site, while another Jacksonville project was a 787-unit multi-story facility. The latter is through Storage Partners LLC, a joint venture with real estate investment firm Heitman Capital Management LLC and an unidentified institutional investor. The Pittsburgh project is a 584-unit new development in which Jernigan Capital has a $5.3 million investment.

In all three cases, either Jernigan Capital or the joint venture holds a 49.9 percent profits interest, which is the typical structure in the lender’s transactions, according to company officials.

6/19/17 – Jernigan Capital has made a fourth co-investment with Phillips Development & Realty. The bank has committed $10.3 million toward a proposed 73,500-square-foot self-storage facility in St. Petersburg, Fla. The multi-story facility would comprise 811 climate-controlled units and be part of a mixed-use development featuring 310 apartment units and a restaurant, according to a press release.

The ground-up project is slated for 30th Avenue S., between 34th Street S. and Interstate 275. Construction is expected to begin during the third quarter and be complete by the end of September 2018. Phillips Development will serve as developer.

The 9-acre property is at the north entrance to the growing Skyway Marina District. It’ll also serve the Tierra Verde and St. Petersburg Beach markets due to its proximity to the freeway, the release stated.

“This closing sets us in a forward direction,” Donald Phillips, managing director of Phillips Development, told the source. “The facility we have planned is just the start of something much larger, something we hope will add even greater character to the already influential neighborhood.”

The storage building will include an art mural across the entire length of the structure facing I-275. “This addition to the St. Petersburg art scene will be one of the largest in history and will set the tone for the district’s long-term plan,” Phillips Development officials said in a statement. The mural’s design will be unveiled this summer.

The building site was originally home to the Suncoast Resort Hotel and was earmarked for a Home Depot development before the home-improvement retail chain cancelled its plans in 2008. Phillips Development acquired the property in February for $4.2 million, according to the source.

Jernigan Capital has closed 15 self-storage investments since Jan. 1 with a total commitment of $175.1 million. The St. Petersburg facility will also be managed by CubeSmart.

5/23/17 – Jernigan Capital has made a third co-investment with Phillips Development & Realty. The bank has committed $9.2 million toward a proposed 70,888-square-foot self-storage facility in Tampa, Fla. The target building site is on Falkenburg Road at the Selmon Expressway. Construction is expected to start during the third quarter, with completion expected by June 2018, according to a press release. Phillips Development will serve as developer.

The property is in an area experiencing “significant” population growth, the release stated. It’s less than a mile from Bass Pro Shop, Top Golf and the Westfield Brandon Shopping Centre.

Jernigan Capital has closed 14 self-storage investments since Jan. 1 with a total commitment of $164.8 million. The Falkenburg facility will also be managed by CubeSmart.

5/4/17 – Jernigan Capital has invested $20.6 million in two more multi-story development projects in Florida and Georgia. Both are in the proposal stage. Together, they comprise 154,000 net rentable square feet in more than 1,600 units, according to a press release. Both are expected to break ground in July, with completion anticipated before the end of the third quarter of 2018.

Of the $20.6 million, $8.1 million was invested in a property at Ulmerton Road and 90th Street in Largo, Fla. The asset will comprise 71,000 net rentable square feet in 684 units. It’s expected to be complete during the second quarter of 2018. The project is a co-investment with Tampa, Fla.-based developer Phillips Development & Realty. This is the second co-investment project between the two companies, the release stated.

The second project is in Atlanta. Jernigan Capital invested $12.5 million in a property at 2033 Monroe Drive near Interstate 85. It’s in an area with “high-end” retail and multi-family residences, according to the release. The facility will comprise 83,000 net rentable square feet in 941 units. The project is a co-investment with local developer RRB Development LLC. This will be the fifth project on which the companies have co-invested.

Jernigan Capital has invested $155.6 million this year in 13 self-storage development projects. Each of the facilities will be managed by CubeSmart, a publicly traded self-storage real estate investment trust and third-party management firm.

4/26/17 – Jernigan Capital Inc., a merchant bank and advisory firm serving the self-storage industry, has invested $29.5 million in three multi-story development projects in Colorado and Kentucky. All are in the proposal stage. Together, they comprise 200,000 net rentable square feet in more than 2,100 units, according to a press release. Each is expected to break ground this year with completion scheduled for the second quarter of 2018.

Of the $29.5 million, $11.2 million was invested in a property at S. Wadsworth Boulevard, near U.S. 285, in Denver. Construction is expected to begin this month on the 75,000-square-foot, 795-unit facility. The project is a co-investment with locally based developer Pamlico Investments, which also has offices in Charlotte, N.C. This is the fourth co-investment project between the two companies, the release stated.

Construction on a second Denver project, with a $9.8 million investment, is expected to begin in July. The facility will comprise 59,000 net rentable square feet in 688 units. The project is a co-investment with Structure Development LLC in Orlando, Fla., which will serve as developer. This will be the second project on which the companies have co-invested.

The third project will be a 66,000-square-foot facility at 2801 N. Hurstbourne Parkway in Louisville, Ky. Jernigan Capital has invested $8.5 million in the asset, which will contain 642 units. Construction is expected to begin this week. This will be the bank’s second co-investment project with Memphis, Tenn.-based developer Storage Development Partners.

These investments come on the heels of $61.7 million in co-investments Jernigan Capital announced last month for five self-storage developments proposed in the Southeast. The company has made more than $135 million in self-storage development investments this year.

Jernigan Capital is a commercial real estate finance company that provides financing to private developers, operators and owners of self-storage facilities. It offers financing for acquisition, ground-up construction, major redevelopment or refinancing. The firm intends to be taxed as a real estate investment trust and is externally managed by JCap Advisors LLC.