Cascade Storage Partners LLC, a Charlotte, N.C.-based self storage developer, and Jernigan Capital Inc., a merchant bank and advisory firm serving the same industry, intend to develop an 88,838-square-foot facility in St. Paul, Minn. The five-story, climate-controlled structure is proposed for 2109 University Ave. Construction is expected to begin during the second quarter of 2018, with completion scheduled for the second quarter of 2019, according to a press release.
Jernigan has committed $12.6 million toward the project, its sixth co-investment with either Cascade or its affiliates, including Colorado-based developer Pamlico Investments Inc. Those projects include a 75,000-square-foot facility in Denver. Pamlico also has an office in Charlotte and is focused on self-storage development in the top 75 U.S. Metropolitan Statistical Areas, according to its website.
University Avenue connects downtown St. Paul with downtown Minneapolis. The University of Minnesota and its medical center are about three miles from the site, which is passed by an estimated 20,000 cars daily, the release stated. In addition, a light-metro line carries 30,000 passengers per day along the avenue’s median, connecting the Union Depot train station in St. Paul with the Target Field baseball stadium in Minneapolis.
The submarket population is about 180,000 people, with 56 percent estimated to live in multi-family housing. Jernigan estimates there is 4.5 square feet of self storage per capita in the area, making it underserved. The market also features a wide range of dining, entertainment and retail choices, according to the release.
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. Since Jan. 1, the company has closed 27 self storage investments totaling more than $357 million. It typically holds a 49.9 percent profit interest in its joint-venture transactions, according to company officials. The firm intends to be taxed as a real estate investment trust and is externally managed by JCap Advisors LLC.