NexPoint Expands Self-Storage Platform With Launch of Sixth Storage DST
Alternative investment firm NexPoint announced the launch of NexPoint Storage VI DST, a $45 million Delaware statutory trust offering that qualifies for 1031 exchanges. The DST includes two Class A storage facilities, both to be managed by Extra Space Storage.
The modern storage facilities are located in Nashville, Tenn., and Temple Hills, Md., the latter of which is under 10 miles to Alexandria, Va., and under 20 miles to Washington, D.C. NexPoint believes both regions present attractive long-term investment opportunities given the favorable demographic qualities. The DST offering is open to accredited investors and requires a minimum investment of $100,000.
The Maryland facility is located in Prince George’s County is conveniently located next to major highways, regional malls, and shopping centers. The Washington, D.C., metropolitan statistical area benefits from a stable, growing population, in large part from job growth tied to opportunities in the government, education, and healthcare sectors.
The Nashville property will serve residents in Nashville and the surrounding metropolitan area. The Nashville market has established itself as a key transportation hub, according to NexPoint, offering convenient access to major highways, rail networks and airports, all helping drive both business and tourism growth.
Both properties feature the amenities and characteristics of Generation V storage facilities, including enhanced security, fully climate-controlled units within a single multistory building, and locations in areas with above-average household incomes.
“Self-storage has remained the fastest-growing sector in the commercial real estate industry throughout the last 40 years, and the launch of NexPoint Storage VI DST solidifies our growing presence in the market,” said John Good, chief executive officer of NexPoint Storage. “We believe these GenV facilities set the benchmark for high-quality self-storage in their respective submarkets, and we expect them to maintain strong occupancy and rental performance in these thriving MSAs.”
According to NexPoint, it focuses on a trio of business areas: mainly real estate, corporate credit and equities, and insurance solutions. Its investment strategies are offered in a range of vehicles and fund structures, including mutual funds, public and private real estate investment trusts, tax-advantaged vehicles, private funds, and separate accounts.
Last month, the company fully subscribed NexPoint Storage V DST – reaching its total goal of $46 million in equity raised since launching in June, as previously reported by The DI Wire. Those storage assets are located in Cape Coral, Fla., and Dundalk, Md.
Since its launch in 2015, the Dallas, Texas-based NexPoint self-storage platform has evolved to capture a range of investment opportunities and vehicles alongside rapid growth. The platform was originally built around collaboration with entrepreneurial developers who have extensive experience in site selection, acquisition and entitlements for self-storage projects, and now includes an investment portfolio exceeding $1.9 billion in value.
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