Jernigan Capital Announces Acquisition of Developer’s Interest in Recently Completed Self-Storage Property in New York MSA
Further Executes Long-Term Strategy to Wholly Own JCAP-Financed Development Projects in Top MSAs
Jernigan Capital, Inc. (NYSE:JCAP) (the “Company”) announced today that it has acquired the membership interest of its developer partner in a recently completed self-storage facility located at 1775 Fifth Avenue in Bay Shore, New York. The project is a 105,347 net rentable square feet, multi-story, 100% climate-controlled facility ideally located in a dense, underserved submarket on Long Island. The facility, which opened for business on September 29, 2017, had a physical occupancy of approximately 56.5% as of December 21, 2018, exceeding the Company’s underwritten physical occupancy at this stage of lease-up. The property is branded and managed by CubeSmart.
With this acquisition, the Company now has 100% ownership of seven on-balance sheet development investments, demonstrating its ability to execute on its strategy of becoming a long-term owner of the self-storage development projects that it has financed during this development cycle.
“We are excited to close out what has been a tremendous year for JCAP with the acquisition of a great property in the New York metropolitan area,” said John Good, Chief Executive Officer of the Company. “This purchase, along with the six other developer buy-outs completed to date, demonstrates the substantial growth opportunity unique to JCAP, that of acquiring our developer partners’ interests in the assets financed through our development capital program. These acquisitions demonstrate the continued execution of our strategy to provide our shareholders ownership in a portfolio of exceptionally located, high quality, current generation self-storage assets at attractive investment yields.”
|Initial Closing Date||1/4/2017|
|Location||New York MSA|
1775 Fifth Avenue
Bay Shore, NY 11706
|Number of Units||1,194|
|Net Rentable Square Footage||105,347|
|Percent Climate Controlled||100%|
MARKET OVERVIEW (Three Mile Radius)
|Average Household Income||$97,343|
|SF Per Capita||4.96|
About Jernigan Capital, Inc.
Jernigan Capital 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 with a view to eventual outright ownership of facilities we finance. Our mission is to maximize shareholder value by accumulating a multi-billion-dollar investment portfolio consisting of the newest, most attractive and best located self-storage facilities in the United States through a talented and experienced team demonstrating the highest levels of integrity, dedication, excellence and community.
This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. 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 the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, and those set forth in the Company’s other reports and information filed with the Securities and Exchange Commission (“SEC”), which are accessible on the SEC’s website at www.sec.gov.