All Forum Posts by: Nathan Klym

Hi everyone,

We are excited to offer the opportunity to invest in an off market ground-up construction of Class A Storage in Port Charlotte, Florida. We have been searching for a Florida deal for a while and are very happy to pursue this opportunity with a select group of investors.

Project Overview - 13300 Ingraham Blvd, Port Charlotte, Florida

- 8 Acre parcel of land located in Port Charlotte, Florida along a busy roadway. Land is already permitted for self storage.

- Approximately 100,000 sq.ft. of net rentable storage space to be constructed. It will consist of a mix of Climate and Non-Climate controlled units

- Class A facility (only one of its kind in market) with keypad access, state of the art security and HVAC

- Excellent location boasts high demand and unmatched market rates

- Near Home Depot, Publix, Dollar General

- Independent third party feasibility study rated the project potential as Grade A (attached)

- Develop, lease up and exit project via either refinance, or sale to REIT (eg, Cubesmart)

Market

-Florida is one of the fastest growing US states in terms of net migration (ie, UHaul one way trips, change of address, etc)

-SW Florida, the Port Charlotte area is one of the fastest growing markets in the US, and has a diverse economy

-Underserved market with respect to self storage, ~100K sq.ft. of demand even after factoring in this project being added to market supply

-Population growth expected to continue over the next 5 years (+9.7%)

-High median household income (~$55K USD), average age of 55 years old.

-Large new home construction developments in the area

Return

-Expected project valuation at 3 years ~$36M when occupied based on conservative cap rate for the area of 6%

- 10% annual return, split and paid monthly

- remainder of return generated from exit (refinance or sale)

- GP's do not get paid profit until investor principal is repaid

Project Costs

-Land acquisition, initial development fees $4M USD

-Construction Cost, Development Fees, Holding Costs etc, $17M USD. (Note - construction loan to be financed with large lender, (ie Marcus & Millichap)

Timeline

-Closing on land March 2024

-Finalizing design, permits Q2 2024

-Construction to Start Mid Q3 2024

-Certificate of Completion expected Sept 2025

-Lease up to 80% projected to take ~27 months from Sept 2025 (Grand opening)

Funds

-If you would like to be involved in this deal funds are required by April 10, 2024

-$200K USD (~270K CAD) in exchange for 1% equity in the deal. With up to 20% in total equity available for buy in. $50K USD minimum.

-A private placement memorandum (PPM) will be provided.

Who's involved

James Fernandez & Nathan Klym - main General Partners - managing the project, lending expertise and contributing capital

Barry Sherman - for a deal of this scale and complexity we opted to bring on Barry Sherman to assist with executing the development. Barry has 25+ years of designing and building self storage. His team has worked on over 90 projects in over 12 states. Barry is also on multiple state self storage boards.

Nick Van Dyk/Jake Rosseau - We brought on Nick/Jake as they are other Canadians executing two other large projects. Their experience from the Canadian and self storage perspective will assist in the journey

Limited Partners - accredited investors who contribute funds and earn a passive return.

Hurricane info:

- The facility will meet all current local building codes, and will be insured.

Disclaimer - As with any investment please do your own due diligence. Consult with your legal, tax and financial team. This opportunity is for accredited investors ONLY. 

We will be taking funds on a first come first serve basis and looking to fund sooner than later on this deal.

Please reach out to us with any additional questions. We have a slide deck that outlines the entire project as well as an independent feasibility study available.

Thanks,

Nathan & James

Hi,

Recently acquired a new self storage facility in a small town (Perry, IL). Previous owner had not setup a google pin for the business. The challenge is we live in Canada and it's about 15 hours away by vehicle. Hoping to find someone familiar with Perry, IL who we can pay to help validate the physical location with google on the phone. I tried to do this myself remotely but they will not validate the business without having someone on site to show the signage, location, etc. Please reach out if you can assist!

Thank you,

Nathan

Would also like to meet up on Sunday. Let me know where you guys are at and I’ll swing by. First time in NO so I’m just bar hopping and sightseeing right now 

Technically by law you need to claim the rental income. You can write off up to 45% of your expenses associated with the property (mortgage interest, property taxes, etc) but do not exceed that 45% or you will lose your primary residence tax exemption. I am not familiar with your last sentence situation at all. Obviously, confirm the above with your tax expert.

I have a bunch of rentals in Guelph and am happy to help with anything you need. let me know!

I also invest in Guelph - I have a bunch of student rentals that cashflow. They can be found but it’s definitely not as easy as it once was.

Other markets like london, Windsor and Sarnia all have good cashflow opportunities. Same thing with most places in northern Ontario as well  

Hi All,

I'm an intermediate real estate investor based out of Guelph, Ontario and would love to meet up with fellow Guelph RE investors. I haven't seen any recent posts for meetups (probably due to COVID) but thought I would reach out and start a discussion. Perhaps we can meet up and grab a beer? I'm open to branching out to other topics too such as FIRE or investing in general!

Please reach out!

Hi all,

I have been studying the BRRRR method for a couple of months now and am moving pieces around to start and execute on that strategy. One question I had was - Regardless of location, what happens if the market goes south due to political / cat event / bubble activity… and house valuation decreases. Even though you may be able to overcome the gap with constant renters, you run the risk of being over leveraged if you have 75% LTV on multiple properties. Usually, the lending is in the same geo as the investment, so in this instance, it could be the bank or lender being in trouble causing you to have your margin called. Just looking to get some feedback on this as I have been mulling it over.

Thanks in advance!