Jernigan Capital Completes Record Investment Year
--Two Northeast Investments Bring Annual Total to $408.7 Million--
Jernigan Capital, Inc. (NYSE:JCAP) (the “Company”) announced today that it has closed two investments in the Northeast, one in the Boston MSA and the other in Hackensack, New Jersey. The aggregate amount of the two investments is $26.2 million, bringing the Company’s total of 2017 investment commitments to $408.7 million, exceeding the Company’s previously announced expectations.
The Boston-area project will be located in a submarket containing approximately 150,000 people with average household incomes exceeding $110,000, 61% of whom are in rental housing. After construction of the project, the submarket will have approximately 3.1 square feet per capita of self-storage supply.
The Hackensack project will be a billboard location just off the Interstate 80 bridge crossing the Hackensack River, with an estimated 190,000 cars per day passing the site. The submarket to be served by this proposed facility contains over 100,000 people with average household incomes exceeding $90,000, over 50% of whom are in rental housing. After construction of the project, the submarket will have approximately 4.8 square feet per capital of self-storage supply.
Construction of both projects is expected to commence in the first half of 2018 and be completed in the second quarter 2019. The projects are being developed by separate developers, each of whom has multiple development co-investments with the Company.
“We are very pleased to have exceeded our own aggressive expectations set earlier this year and increased in November” stated John Good, President and Chief Operating Officer of the Company. “In early 2015 we undertook to build a network of best-of-class self-storage developers who could acquire, entitle and develop the best self-storage sites in the top markets in the United States. After the two most recent closings, we have consummated 55 development investments with 26 developers, nine of whom have accounted for 37 (approximately 67.2% ) of these investments. Our early vision of programmatic execution of top quality Generation V self-storage development during this cycle has become a highly-successful reality. We are now excited about providing creative bridge financing for early-cycle projects that can provide excellent returns for our shareholders.”
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.
This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. 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.