New Ground-Up Development Acquisition: Self-Storage

Syndicated Equities recently invested $4 million in the ground-up development of a Class-A, self-storage facility located near the North Loop neighborhood of Minneapolis, Minnesota.

The Property will be developed by Cogent Capital Group, a Chicago-based self-storage firm that has developed more than 25 self-storage facilities (approximately 2 million square feet) over the last eight years. Cogent has built facilities for each of the major self-storage operators.

Construction is expected to last for approximately 9-12 months; once complete, the Property will consist of 1,074 units spread out across 131,261 square feet and provide renters with the best-in-class amenities and security features. Syndicated believes that the Property will address an undersupply of storage units in the market, where occupancy and rental rates continue to grow due to strong population density and overall demand. Historically, self-storage has remained recession-resistant, outperforming other real estate asset classes. In an analysis conducted by NAREIT, between 1994 and 2018, self-storage had the highest returns over their 10- and 15-year average as compared to five core asset classes: office, multi-family, retail, industrial, and hospitality.

Syndicated Equities provides individuals with institutional quality, commercial real estate investments. Since 1986, the firm has developed an expertise in co-investment ownership, net lease brokerage services, global real estate opportunity funds, and more recently, qualified opportunity zones. To date, Syndicated Equities has made over 100 investments representing over $500 million of equity and $4 billion of total asset value.

ByJenna Rivera
October 19, 2020