07 Apr Jernigan Capital Completes Heitman Joint Venture Resulting in $122.2 Million
By Alex Hassel, Storage.com
Jernigan Capital Inc. has found a pair of partners to fund self storage investments. The merchant bank and advisory firm that serves the self storage industry announced that it has reached its target investment amount of $122.2 million. This comes after Jernigan Capital reached a co-investment agreement with an affiliate of Heitman Capital Management, LLC and another unnamed public pension plan.
Heitman partnered with Jernigan Capital by committing $35 million, but this was contingent on a co-investor adding $75 million to the mix. Jernigan Capital says that unnamed pension plan filled the void. They’re calling the partnership the Heitman Joint Venture.
Jernigan Capital has also added in three existing development property investments, totaling $41.9 million of aggregate capital commitments. At the time Jernigan Capital contributed the three properties, it also committed $8.1 million toward the price. Heitman Joint Venture will pay the remaining $33.8 million of commitments toward the self storage projects, which are located in the Miami-Fort Lauderdale area. After this, Heitman Joint Venture will still have $80.3 million of remaining capital to fund new self storage investments.
“We are delighted to have completed the Heitman Joint Venture with a $75 million capital contribution from one of the preeminent investors in the world to go along with a $35 million commitment from Heitman, one of the leading real estate investors in the United States,” says Dean Jernigan, Chairman and Chief Executive Officer of Jernigan Capital. “The quality of our partners in this joint venture highlights the tremendous opportunity our business model presents for our stockholders, self storage entrepreneurs looking to take advantage of the unprecedented fundamentals of the self storage sector, and our talented JCAP team.”
John Good, Jernigan Capital’s President and Chief Operating Officer, adds, “The Heitman Joint Venture provides us with efficient funding that allows us to continue closing high-quality self storage development investments from our robust pipeline at returns that should prove to be very accretive to our book value. We have made good progress in structuring and documenting a $45 million credit facility that’s expected to grow to $60 million as participants are secured. We expect the credit facility to close by the end of April. We are confident that these capital solutions will allow us to continue creating value through high-return self storage development investments.”
Jernigan Capital also announced that it has filed its Form 10-K with the Securities Exchange Commission, which annual report is available at www.sec.gov or on the Company’s website at www.jernigancapital.com.
Jernigan Capital, Inc. is a New York Stock Exchange-listed real estate investment trust (NYSE: JCAP) that provides debt and equity capital to private developers, owners, and operators of self-storage facilities. Its mission is to be the preeminent capital partner for self storage entrepreneurs nationwide by offering creative solutions through an experienced team demonstrating the highest levels of integrity, dedication, excellence and community, while maximizing shareholder value. The Jernigan Capital team has extensive experience in over 100 U.S. markets.
Heitman Capital Management, LLC is a global real estate investment management firm with $35.2 billion in assets under management. It has 12 offices worldwide and is an active participant in three key segments of the global real estate property and capital markets.