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.
About Jernigan Capital
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.