-Further Executes Long-Term Strategy to Own Developed Assets at
Compelling Yields-
MEMPHIS, Tenn. -- (Business Wire)
Jernigan Capital, Inc. (NYSE: JCAP) (the “Company”) announced today that
it has acquired the membership interests of its developer partners in
three self-storage facilities located in Fleming Island (Jacksonville
MSA) Florida, Alpharetta (Atlanta MSA) Georgia and Marietta (Atlanta
MSA) Georgia, respectively. All acquisitions were privately negotiated
with the development partner without any marketing of the project.
Following these acquisitions, the Company now has 100% ownership of four
of its initial ten on-balance sheet development investments made during
the first six months of the Company’s existence, demonstrating its
ability to execute on its strategy of becoming a long-term owner of the
self-storage development projects that it has financed during this
development cycle.
The aggregate purchase price for the developer interests in the three
properties was $8.1 million, which was funded out of existing balance
sheet cash. The Company’s development loans on the three properties were
converted to equity. Based on aggregate estimated stabilized NOI and the
Company’s aggregate $28.9 million cash investment in the three
properties, the Company estimates its weighted average cap rate on the
three properties is 8.04%.
Each of the facilities is a Generation V climate-controlled facility
ideally located in an underserved, rapidly growing submarket. Each
property has exceeded its initial underwritten physical lease up plan,
which generally is 40%, 70% and 85% physical occupancy at 12, 24 and 36
months, respectively, following the date the facility is open for
business. As of the date of acquisition, the approximate physical
occupancy of the three properties (number of months facility has been
open in parentheses) was:
Fleming Island (16 months)
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80.0%
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Alpharetta (20 months)
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66.4%
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Marietta (20 months)
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69.2%
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The Alpharetta and Marietta properties are branded and managed by
CubeSmart. The Fleming Island property has been managed by Life Storage,
but CubeSmart will brand and assume management of that facility on March
1, 2018.
“We are delighted to have been able to acquire prior to the beginning of
the spring leasing season these three fine properties, each of which has
already significantly leased up in less than two years,” said John Good,
President and Chief Operating Officer of the Company. “Each of these
properties is an excellent long-term investment in a great self-storage
submarket. We believe these acquisitions, along with our Ocoee
acquisition last year, have charted a pathway to our building the
newest, most attractive, best located and best managed self-storage
portfolio in the sector, which we believe will provide solid long-term
returns to our shareholders.”
About Jernigan Capital, Inc.
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.
Our 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—from acquiring and managing self-storage properties to new
self-storage development—providing JCAP with knowledge unmatched by any
lender, broker or advisor to the sector. Jernigan Capital is the only
source of construction and development capital focused solely on the
self-storage sector.
Forward-Looking Statements
This press release includes "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of. The ultimate
occurrence of events and results referenced in these forward-looking
statements is subject to known and unknown risks and uncertainties, many
of which are beyond our control. These forward-looking statements are
based upon the Company's present intentions and expectations, but the
events and results referenced in these statements are not guaranteed to
occur. Investors should not place undue reliance upon forward-looking
statements. For a discussion of these and other risks facing our
business, see the information under the heading “Risk Factors” in our
Annual Report on Form 10-K filed with the Securities and Exchange
Commission (“SEC”) and our other filings with the SEC from time to time,
which are accessible on the SEC’s website at www.sec.gov.
View source version on businesswire.com: http://www.businesswire.com/news/home/20180205006027/en/
Contacts:
Jernigan Capital, Inc.
Investor Relations: 901-567-9580
Investorrelations@jernigancapital.com
Source: Jernigan Capital, Inc.
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