Jernigan Capital Inc has invested $28.7 million in an Inglewood, California-based proposed multi-story self-storage facility. Construction is expected to begin in the first quarter of 2019 and be completed in mid-2020. Inglewood Self-Storage LLC is the developer of the proposed project.
MEMPHIS, Tenn.–(BUSINESS WIRE)–Jernigan Capital, Inc. (NYSE:JCAP) (the “Company”) announced today that it has closed a $28.7 million investment in a proposed multi-story, primarily climate-controlled self-storage facility in Inglewood, California. The proposed 120,038 net rentable square foot facility will be a ground-up project located on W. Hyde Park Blvd. situated along the 405 Freeway providing “billboard” visibility to nearly 300,000 cars per day, in addition to being next to the new Metro Rail, giving the proposed facility further visibility to thousands of rail commuters. The investment is the Company’s first in California.
The proposed project will be located less than two miles from Hollywood Park, site of the new 70,000 seat LA Stadium that will be the home of the Los Angeles Rams and Los Angeles Chargers and venue for the Opening and Closing ceremonies of the 2028 Summer Olympics. Hollywood Park is also the future site of an approved arena for the Los Angeles Clippers. Plans for the Hollywood Park District include an entertainment district containing a 6,000-seat performing arts venue, substantial office, retail and hotel space, 25 acres of parks, pedestrian walkways and bicycle paths, family and fine dining options and 2,500 modern residences. The Company and the developers anticipate significant gentrification of Inglewood as the Hollywood Park area is developed.
The proposed facility is expected to serve several surrounding communities that provide limited self-storage options to a growing population. Currently, the submarket is served by big-box retailers such as Target, Costco, and Home Depot. Construction is expected to begin in the first quarter of 2019 and be completed in mid-2020. Inglewood Self-Storage LLC is the developer of the proposed project. Members in the developer entity include Bruce Fairty, Stephen Garchik, Jay Massirman, Stephen McBride and Michael Sorochinsky. Messrs. Garchik, Massirman and McBride are principals in Miami City Self-Storage, headquartered in Miami, Florida. The Company and MCSS have co-invested in three other self-storage development projects.
Since January 1, 2017, the Company has closed 22 investments in new self-storage projects for an aggregate commitment amount of $281.7 million.
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.