Development 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 over 35 years in the self-storage industry. Our 90% non-recourse, development financing is 100% one-of-a-kind.
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Call Us:
901.567.9536
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 | $5,000,000 and up |
| INVESTMENT TERM | Generally 6 Years |
| INVESTMENT % | 90% Investment to Cost on a development property |
| INVESTMENT STRUCTURE | First mortgage, payable interest-only at 6.9% per annum
JCAP also receives 49.9% interest in operating cash flows and cash flows from sale/refinancing after developer recovers equity plus 6.9% preferred equity return Developer 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 | 3-2-1-0 after 3 year lockout |
| DUE DILIGENCE DEPOSIT | $20,000 payable upon issuance of Term Sheet |
| RECOURSE | Completion guarantee only. Non-recourse after CO with customary carve-outs |
| INTEREST RATE | 6.9% Fixed |