RealCrowd Launches New Offering For A Self-Storage Fund With Value-Add Strategy

Real estate crowdfunding platform, RealCrowd recently launched a new offering for Reliant Self-Storage Fund III, allowing investors to capitalize on the growing demand for self-storage facilities alongside an experienced sponsor.

Reliant Self-Storage Fund III is a $75 million equity fund targeting acquisitions of a diversified portfolio of value-add and stabilized self-storage properties in the Southeast U.S. and Colorado. The fund has already acquired 13 properties and expects to end up with 15 to 20 properties in total.

The fund’s strategy is focused on value-add self-storage opportunities in secondary and tertiary markets with room to build out additional square footage, add ancillary income or lease-up vacant units.

The sponsor’s business plan is to hold this portfolio for six years then look to exit to a publicly-traded REIT or institutional capital buyer.

Investment Highlights: Self-storage facilities have produced exceptional returns for investors in recent years and the industry is expected to continue growing at a fast pace throughout the fund’s target term.

Publicly-traded REITs focused on storage facilities have been one of the fastest-growing REIT sectors, with National Storage Affiliates Trust NSA increasing its market cap by 257% over the past three years and Life Storage Inc LSI increasing its market cap by 149.5% over the same period.

Reliant Self-Storage Fund III gives individuals the opportunity to invest directly in this asset class without being exposed to the volatility that comes with investing in REITs.

• Minimum investment: $50,000
• Target IRR: 12%
• Target equity multiple: 1.86x
• Cash-on-cash return: 4% - 7%
• Target investment term: 5-10 years

View full offering details on RealCrowd

Deal Sponsor: This fund is being offered by Reliant Real Estate Management, a vertically integrated commercial self-storage operator with a portfolio of 70 properties across eight states.

The company has produced an average internal rate of return (IRR) of 33.8% from its 38 exited investments with an average equity multiple of 2.57x.

Glossary of Terms Used in This Article

Cash-on-Cash: The annual cash distributions received once the property is stabilized in relation to the amount of capital invested.

Equity Multiple: The total return achieved on an investment, calculated by dividing the total dollars received by the total dollars invested.

Internal Rate of Return (IRR): The average annual return over the lifetime of an investment.