10 Federal announced today that it has launched fundraising for a $10mm fund to acquire self storage facilities and convert them from manned to fully-automated, unmanned operations. 10 Federal has developed a system using various hardware and software applications that allow for the leasing and operational functions often performed by a property manager to be replaced by these technologies.
10 Federal has developed this system over a three-year period and has implemented it on three facilities to date. In doing so, the system has both lowered operating expenses by eliminating the on-site payroll and increased revenue as the facility can rent units twenty-four hours a day thereby leading to higher leasing velocity and increased occupancy and rental rates.
10 Federal's fund has acquired its first facility for conversion. It is the South Point self storage property located in Belmont, NC which is near Charlotte, NC. Director of Acquisitions Kris Bennett stated, "South Point represented an ideal acquisition for the Fund. It was a 'Mom & Pop' operated facility with no website, no online advertising, a large property manager salary and rents that trailed the market."
10 Federal will implement its full suite of technologies including electronic locks, a kiosk, controlled access, and a roving camera. Further, the property will receive new paint and new doors.
Regarding the fund, Cliff Minsley, Co-Founder of 10 Federal, stated, "We are excited to have the fund underway. Our teams have worked hard to fine tune our systems and technologies and to see it succeed in the field has been rewarding. We look forward to now scaling the platform." The fund will target 'Mom & Pop' operated facilities located throughout the Southeast with a concentration in North Carolina.
Further information on the fund and 10 Federal's self storage system can be found at the company's website, www.10Federal.com. There is a webinar for accredited investors on the fund at 1pm EDT on May 30, 2017. To attend, register through the Current Offerings section of 10 Federal's website.
10 Federal is a diversified real estate company headquartered in Raleigh, NC. Through a combination of vertical integration and leveraging technology to improve performance, it is 10 Federal's mission to deliver a superior product to its customers at a superior value to the competition. 10 Federal acquires, develops, constructs and manages multifamily and self storage properties in North Carolina.