Jernigan Capital, Inc. Announces New Investment in Columbia MSA; Development Properties Continue to Exceed Lease-up Expectati...
October 03 2016 - 4:30PM
Business Wire
Jernigan Capital, Inc. (NYSE:JCAP) (the “Company”) announced
today that on September 28, 2016, the Company closed a $9.2 million
development investment in Columbia, SC. The proposed 798 unit
multi-story facility will provide state-of-the-art, all
climate-controlled storage in the heart of downtown Columbia.
Hallmark Self Storage, headquartered in Columbia, is the developer
of the proposed project. This is the first self-storage development
in which the Company and Hallmark have co-invested. The investment
was made through Storage Lenders I, LLC, the Company’s $122.2
million joint venture with Heitman Capital Management and an
institutional partner (the “Heitman joint venture”). The Company
and Heitman have identified one additional development investment
of approximately $9.1 million, which is currently subject to a term
sheet, which will complete the Heitman joint venture. The Company
and Heitman have agreed that the Company has no further obligation
to present additional investments to the Heitman joint venture
unless the identified investment should not close, in which event
the Company and Heitman would agree upon a replacement
investment.
In addition, the Company announced the leasing
progress on its six self-storage development projects that have
opened since April 2016. The following table reflects the physical
lease-up progress for each facility as of September 30, 2016:
Location
Days Open
Occupancy
Riverview Florida (Tampa) 175 55.7% Ocoee Florida (Orlando) 155
60.0% Alpharetta Georgia (Atlanta) 131 28.9% Marietta Georgia
(Atlanta) 132 39.3% Jacksonville Florida 52 23.3% Charlotte North
Carolina 46 7.9%
To date the Company has underwritten each of its development
investments to a 40% physical occupancy at the end of the first
year of operations. Based on the performance to date, the Company
expects this initial group of development investments to
significantly outperform its original lease-up estimate.
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.
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version on businesswire.com: http://www.businesswire.com/news/home/20161003006435/en/
Jernigan Capital, Inc.John A. Good, 901-567-9517
Jernigan Capital (NYSE:JCAP)
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