Jernigan Capital Inc., a merchant bank and advisory firm serving the self-storage industry, and Hallmark Self Storage are co-investing in their first joint project: a $9.2 million development in Columbia, S.C. Hallmark will build the 792-unit, multi-story facility in the downtown area.
The investment was made through Storage Lenders I LLC, Jernigan’s $122.2 million joint venture with Heitman Capital Management and an institutional partner. The partnership has identified one additional development investment of approximately $9.1 million, which is currently subject to a term sheet and will complete the joint venture, according to a Jernigan press release.
Jernigan also announced the leasing progress on its six self-storage development projects that have opened since April, which are in Atlanta, Florida and North Carolina. To date, the company has underwritten each of its investments to a 40 percent physical occupancy at the end of the first year of operation. Based on these facilities’ performance so far, the company expects them to significantly outperform its original lease-up estimate, the release stated.
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.
