Jernigan Capital Inc., a merchant bank and advisory firm serving the self-storage industry, has invested $8.9 million in a Raleigh, N.C., self-storage development project. The investment was made through Storage Lenders I LLC, the company’s joint venture with real estate investment firm Heitman Capital Management LLC and an unidentified institutional partner. The multi-story facility will be built in the Brier Creek community and comprise 65,110 net rentable square feet in 756 units, according to a press release.
Tampa, Fla.-based Phillips Development & Realty LLC will serve as the developer. This is the first self storage project in which both Jernigan Capital and Phillips have co-invested, the release stated.
The joint venture was launched last March with a $35 million commitment from Heitman. The investment firm’s contribution was contingent on a $75 million institutional co-investment, which was contributed in April by a public-pension plan. The $122.2 million capitalization is intended for self-storage development.
During a November earnings call, Jernigan Chief Operating Officer John Good indicated the firm had executed nine term sheets totaling $88.9 million, on which the company expected to close before the end of 2016, according to the source.
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 REIT and is externally managed by JCap Advisors LLC.