NexPoint Launches Self-Storage Investment Platform
NexPoint, an alternative investment firm, has launched NexPoint Storage Partners, a real estate investment platform dedicated to originating, executing, financing, and managing investments in the self-storage sector.
NexPoint, an alternative investment firm, has launched NexPoint Storage Partners, a real estate investment platform dedicated to originating, executing, financing, and managing investments in the self-storage sector. NexPoint’s self-storage investments total approximately $1.1 billion.
NexPoint Storage is the product of NexPoint’s November take-private acquisition of Jernigan Capital, a NYSE-listed self-storage REIT.
NexPoint Storage invests in newly built, multi-story, climate controlled, Class A self-storage facilities— known as “Generation V” facilities—located in dense and growing markets throughout the United States.
NexPoint Storage intends to continue and build on the investment strategy and approach employed at Jernigan Capital, while leveraging the resources and expertise at NexPoint, especially in the areas of real estate financing, product strategy, and distribution.
John Good, Jernigan’s former chairman and chief executive officer, serves as CEO of NexPoint Storage. In total, nine former Jernigan employees join NexPoint Storage, comprising the self-storage platform’s core investment team.
“NexPoint Storage brings together deep knowledge of the self-storage industry—especially around GenV facilities—with a sophisticated real estate investment platform to capture a multitude of opportunities in the self-storage space,” said Good. “We expect to see significant transaction volume in the next few years stemming from the most robust self-storage development cycle in the history of the sector…”
NexPoint Storage provides debt and equity capital to self-storage entrepreneurs with a view toward eventual outright ownership of the facilities it finances through partner buyouts or right-of-first refusal exercises. Additionally, NexPoint Storage intends to selectively develop GenV self-storage facilities.
NexPoint Storage has 69 total self-storage investments across the country, 38 of which are wholly owned facilities. The company noted that more than 95 percent of those investments are located in the top 50 U.S. MSAs.
Extra Space Storage Inc. (NYSE: EXR), a self-storage real estate investment trust, made a $300 million preferred equity investment in NexPoint Storage and will manage all of the company’s wholly owned facilities.
In addition to Extra Space’s equity investment, JPMorgan Chase Bank N.A. provided approximately $512 million of financing for NexPoint’s acquisition of Jernigan and the future growth of NexPoint Storage through two separate secured credit facilities.
NexPoint is comprised of a group of investment advisers and sponsors, a broker-dealer, and a suite of related investment vehicles. The firm sponsors public and private REITs, tax- advantaged real estate vehicles, other private real estate investments, and registered funds, among other offerings.
