New Development - Self Storage

[Richard Lorenzen]

Investment Info:

Large multi-family (5+ units) commercial investment investment.

I am a principal with 2 other partners in a ground-up self-storage facility in Gilbert called Envy Self-Storage and RV. The project opened for business in October 2018.

What made you interested in investing in this type of deal?

I have been pursuing a career in real estate development and commercial investments since college.

How did you find this deal and how did you negotiate it?

After making connections in the Self-Storage industry, I partnered with a land owner and peer developer to build a new self-storage facility. After conducting a market analysis and financial feasibility study we engaged professional consultants to check our underwriting. There was demand in the area and we moved forward. The project took approximately 2.5 years to complete from idea to opening the doors.

How did you finance this deal?

Conventional construction loan with 30 months interest only.

How did you add value to the deal?

I provided the financial underwriting, market feasibility, brought in the professional self-storage consultants, and the contractor. I also provided construction management oversight along with the other partners.

What was the outcome?

The facility opened October 2018. The RV is 100% leases with the storage component leasing up according to proforma.