Jernigan Capital, Inc. Announces New Investment in Columbia MSA; Development Properties Continue to Exceed Lease-up Expectations
Jernigan Capital, Inc. (NYSE:JCAP) (the “Company”) announced today that on September 28, 2016, the Company closed a $9.2 million development investment in Columbia, SC. The proposed 798 unit multi-story facility will provide state-of-the-art, all climate-controlled storage in the heart of downtown Columbia. Hallmark Self Storage, headquartered in Columbia, is the developer of the proposed project. This is the first self-storage development in which the Company and Hallmark have co-invested. The investment was made through Storage Lenders I, LLC, the Company’s $122.2 million joint venture with Heitman Capital Management and an institutional partner (the “Heitman joint venture”). The Company and Heitman have identified one additional development investment of approximately $9.1 million, which is currently subject to a term sheet, which will complete the Heitman joint venture. The Company and Heitman have agreed that the Company has no further obligation to present additional investments to the Heitman joint venture unless the identified investment should not close, in which event the Company and Heitman would agree upon a replacement investment.
In addition, the Company announced the leasing progress on its six self-storage development projects that have opened since April 2016. The following table reflects the physical lease-up progress for each facility as of September 30, 2016:
|Riverview Florida (Tampa)||175||55.7%|
|Ocoee Florida (Orlando)||155||60.0%|
|Alpharetta Georgia (Atlanta)||131||28.9%|
|Marietta Georgia (Atlanta)||132||39.3%|
|Charlotte North Carolina||46||7.9%|
To date the Company has underwritten each of its development investments to a 40% physical occupancy at the end of the first year of operations. Based on the performance to date, the Company expects this initial group of development investments to significantly outperform its original lease-up estimate.
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. 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.