Select Page
self storage, real estate, capital, development, financial services, investment, REIT, NYSE
self storage, real estate, capital, development, financial services, investment, REIT, NYSE
self storage, real estate, capital, development, financial services, investment, REIT, NYSE

Bridge Capital

 

Jernigan Capital is a boutique self-storage REIT that primarily invests alongside professional developers in new self-storage properties.  Understanding the needs of self-storage entrepreneurs is what Jernigan Capital does best.  We are not only a capital partner but also a trusted provider of industry know-how accumulated during more than 35 years in the self-storage industry.

Our bridge financing provides professional developers with capital to refinance upcoming construction loan maturities and provide distributions to equity partners prior to stabilization of their self-storage projects.  Jernigan Capital will consider providing bridge capital for projects that were constructed and opened for business within the past [4] years and are in one of the top 50 US metropolitan statistical areas (MSAs). See the Press Release on our initial bridge closing here.

 

Start Now

Call Us:

901.567.9578

 

 

Business Development Team

 

Billy Perry  |  901.567.9523  |  billy@jernigancapital.com

Jack Connell  |  901.567.9490  |  jack@jernigancapital.com

Warner Russell  |  901.567.9536  |  warner@jernigancapital.com

 

INVESTMENT AMOUNT $7,500,000 and up
INVESTMENT TERM Minimum 5 years, accelerated upon sale of project
INVESTMENT % Negotiable based on stage of lease-up, but generally minimum of 75% loan to value
INVESTMENT STRUCTURE First mortgage, payable interest-only at 6.9% per annum – JCAP will consider accruing interest during lease-up

Equity participation to JCAP in appropriate cases involving lease-up risk

Owner grants JCAP Right of First Refusal (ROFR)

Professional management required (generally by publicly traded self-storage REIT)

AMORTIZATION Interest only – no required principal payments before maturity
ORIGINATION FEE Generally 1%
PREPAYMENT FEE 2-1-0 after 2-year lockout
DUE DILIGENCE DEPOSIT Paid by borrower (including legal, appraisal, environmental)
RECOURSE Non-recourse subject to customary “bad boy” and environmental carve-outs
COVENANTS Debt service coverage

Customary affirmative covenants

Customary negative covenants

INTEREST RATE 6.9% Fixed
UNDERWRITING SCHEDULE 15 days to term sheet on initial loan; 45 days max term sheet to closing; streamlined investment committee process