Storage Capital funded $2.5M of a $3.0M purchase with the agreement to fund another $1.3M of capital for development and improvements. Storage Capital funded $3.8M of $4.3M of the investment. Storage Capital received a preferred return and 50% of the upside. In less than 36 months the site was developed, repositioned and sold for a large gain, allowing the investor to more than triple their capital.
Storage Capital was approached by a group with two existing facilities looking to acquire several more. After sourcing three deals, Storage Capital purchased 50% of the common shares and invested in preferred shares providing almost 90% of the capital for 50% of the equity with the option to grow to 75%. Storage Capital anticipates providing additional capital for growth.