Jernigan Invests $83M in Miami Self-Storage Portfolio
- Mar 08, 2018
Jernigan Capital Inc. has invested $83.3 million in a five-property self-storage portfolio in Miami. The firm closed this investment under its recently launched bridge lending program. Miami City Self-Storage developed the properties and CubeSmart manages each facility.
The investment comprises five separate first mortgage loans, with a five-year term and two separate one-year extension options. The loans have fixed interest rates between 6.5 and 6.9 percent annually, and two of the loans have an additional paid-in-kind interest rate of 3 percent. Besides these, each loan provides for a profits interest of 49.9 percent, after certain preferential payments are made, and each loan provides the company with a right of first refusal to acquire the underlying self-storage facilities upon sale.
The five-property portfolio includes:
- MCSS Brickell, a 75,000-net-rentable-square-foot facility at 1103 SW. 3rd Ave.
- MCSS Coconut Grove, a 52,000-net-rentable-square-foot facility at 2434 SW. 28th St.
- MCSS West Doral, a 77,000-net-rentable-square-foot facility at 590 NW. 137th Ave.
- MCSS Doral, a 77,000-net-rentable-square-foot facility at 4001 NW 77th Ave.
- MCSS Pembroke Pines, an 85,000-net-rentable-square-foot facility at 18460 Pines Blvd.
Each facility is of Generation V and climate controlled. Three of the properties have been in operation for a year, and two are expected to open by the end of the first quarter of 2018.
“We are very pleased to have launched our self-storage bridge investment program with a high-profile refinancing. We believe this is the top portfolio of Generation V self-storage properties in Miami, one of the top self-storage markets in the United States,” stated John Good, president & COO of Jernigan Capital.
Image courtesy of Yardi Matrix