Jernigan Capital Closes Self-Storage Development Investment in Inglewood, CA
Sept 22, 2017 – insideselfstorage.com
Jernigan Capital Inc., a merchant bank and advisory firm serving the self-storage industry, has committed $28.7 million toward a proposed 120,038-square-foot self-storage facility in Inglewood, Calif. If approved, the multi-story, climate-controlled facility would be built on W. Hyde Park Boulevard. Construction is expected to begin during the first quarter of 2019, with completion scheduled by mid-year 2020, according to a press release.
Inglewood Self-Storage LLC will serve as the project’s developer. The entity is comprised of several investors including Bruce Fairty, Stephen Garchik, Jay Massirman, Stephen McBride and Michael Sorochinsky. Garchik, Massirman and McBride are founding principals with Miami City Self-Storage (MCSS). Jernigan and MCSS have previously co-invested in three storage projects, the release stated. The development is the first for Jernigan in California.
The target site is along Interstate 405, with visibility to nearly 300,000 cars per day. It’s less than two miles from the Hollywood Park District, which eventually will be home to entertainment and sports venues; hotel, retail and office space; 25 acres of parks, pedestrian walkways and bicycle paths; restaurants; and 2,500 residences. The former home to the Hollywood Park horseracing track is being transformed with a new 70,000-seat stadium that will host NFL games for the Los Angeles Chargers and Rams. The venue is also slated to host the opening and closing ceremonies for the 2028 Olympic Games. The NBA’s Los Angeles Clippers also have a new arena approved in the district.
“The company and the developers anticipate significant gentrification of Inglewood as the Hollywood Park area is developed,” Jernigan officials said.
Since Jan. 1, Jernigan has closed 22 self-storage investments totaling $281.7 million. The lender typically holds a 49.9 percent profits interest in its joint-venture transactions, according to company officials.
Launched in 2015, MCSS owns 11 self-storage facilities in Florida comprising more than 880,000 square feet.
Jernigan Capital is a commercial real estate finance company that provides financing to private developers, operators and owners of self-storage facilities. It offers financing for acquisition, ground-up construction, major redevelopment or refinancing. The firm intends to be taxed as a real estate investment trust and is externally managed by JCap Advisors LLC.