NexPoint Launches NexPoint Storage Partners as a Dedicated Platform for the Self-Storage Sector

Rhea-AI Summary

NexPoint has launched NexPoint Storage Partners, a dedicated real estate investment platform focusing on the self-storage sector, following its acquisition of Jernigan Capital. The new platform's investments total approximately $1.1 billion across 69 self-storage facilities, with a significant emphasis on Generation V facilities in major U.S. markets. Former Jernigan CEO John Good leads this endeavor, supported by a strong partnership with Extra Space Storage, which made a $300 million equity investment, and J.P. Morgan, providing $512 million in financing.

Positive

• Launch of NexPoint Storage Partners as a specialized self-storage investment platform.
• Total investments in self-storage amounting to approximately $1.1 billion.
• Strong leadership under John Good, former CEO of Jernigan Capital.
• Key partnership with Extra Space Storage, securing a $300 million equity investment.
• Support from J.P. Morgan with $512 million in financing for growth and acquisitions.

Negative

• None.

DALLAS, Dec. 8, 2020 /PRNewswire/ -- NexPoint, a multibillion-dollar alternative investment firm, announced today the launch of NexPoint Storage Partners ("NexPoint Storage"), a real estate investment platform dedicated to originating, executing, financing, and managing investments in the self-storage sector. Across NexPoint, self-storage investments total approximately $1.1 billion. NexPoint Storage is the product of NexPoint's November take-private acquisition of Jernigan Capital ("JCAP"), a NYSE-listed self-storage REIT.

NexPoint launches NexPoint Storage Partners, a real estate investment platform dedicated the self-storage sector.

NexPoint Storage invests in newly built, multi-story, climate controlled, Class-A self-storage facilities—known as "Generation V" facilities—located in dense and growing markets throughout the United States. NexPoint Storage intends to continue and build on the investment strategy and approach employed at JCAP, while leveraging the resources and expertise at NexPoint, especially in the areas of real estate financing, product strategy, and distribution. NexPoint plans to develop investment solutions around NexPoint Storage, providing investors with unique access to investment opportunities in GenV self-storage facilities.

John Good, former chairman and CEO of JCAP, joins NexPoint as CEO of NexPoint Storage. In addition to leading NexPoint Storage, Good lends his many years of real estate, legal, investment, and capital markets experience to the firm in a senior advisory capacity. In total, nine former JCAP employees join NexPoint Storage, comprising the self-storage platform's core investment team.

"NexPoint Storage brings together deep knowledge of the self-storage industry—especially around GenV facilities—with a sophisticated real estate investment platform to capture a multitude of opportunities in the self-storage space," said Good. "We expect to see significant transaction volume in the next few years stemming from the most robust self-storage development cycle in the history of the sector, and NexPoint Storage is well positioned in that environment to significantly expand our portfolio of GenV facilities in top MSAs."

NexPoint Storage provides debt and equity capital to self-storage entrepreneurs with a view toward eventual outright ownership of the facilities it finances through partner buyouts or right-of-first refusal exercises. Additionally, NexPoint Storage has the desire, intention, and capital to acquire and selectively develop GenV self-storage facilities.

NexPoint Storage has 69 total self-storage investments across the country, 38 of which are wholly owned facilities. Over 95% of those investments are located in the top-50 U.S. MSAs. The expansion in the self-storage sector is a natural extension of NexPoint's continued growth in the complementary multifamily and single-family rental sectors; underpinning investment opportunities across all three real estate sectors are secular trends in mobility and population growth.

"We have a strong multiyear partnership with John and the former JCAP team and are excited by the opportunities to grow and create value through NexPoint Storage over the coming years," said Matt McGraner, NexPoint's chief investment officer. "While the combination of NexPoint and JCAP alone is powerful, NexPoint Storage further benefits from the expertise of Extra Space, a major equity partner in the new business, and J.P. Morgan, which provided financing for its future growth."

Extra Space Storage Inc. (NYSE:EXR) ("Extra Space"), a leader in the self-storage industry and the top performing self-storage REIT over the last 10 years, made a $300 million preferred equity investment in NexPoint Storage. Known as a best-in-class operator, Extra Space will manage all of NexPoint Storage's wholly owned facilities. In addition to Extra Space's equity investment, JPMorgan Chase Bank, N.A. provided approximately $512 million of financing for NexPoint's acquisition of JCAP and the future growth of NexPoint Storage through two separate secured credit facilities.

About NexPoint Storage Partners

NexPoint Storage Partners ("NexPoint Storage") is a real estate investment platform at NexPoint that specializes in the self-storage sector. A product of NexPoint's 2020 acquisition of Jernigan Capital, NexPoint Storage invests in newly built, multi-story, climate controlled, Class-A self-storage facilities—known as "Generation V" facilities—located in dense and growing markets throughout the United States. NexPoint Storage provides debt and equity capital to self-storage entrepreneurs with a view toward eventual outright ownership of the facilities it finances through partner buyouts or right-of-first refusal exercises. NexPoint Storage may also acquire and selectively develop GenV self-storage facilities. The platform leverages resources and expertise across NexPoint, especially in the areas of real estate financing, product strategy, and distribution. For more information visit www.nexpointstorage.com.

About NexPoint

NexPoint is a multibillion-dollar alternative investment firm comprised of a group of investment advisers and sponsors, a broker-dealer, and a suite of related investment vehicles. The firm provides differentiated access to real estate and other alternatives through public and private REITs, tax-advantaged real estate vehicles, other private real estate investments, and registered funds, among other offerings. Investment solutions draw on NexPoint's core capabilities in real estate, capital markets, and credit. Within real estate, NexPoint has expertise across multiple property types, including multifamily, single-family rental, self-storage, hospitality, industrial, office/retail, timber, and life sciences. NexPoint is based in Dallas, Texas and is part of an integrated network of investment management and financial services businesses. For more information visit www.nexpointgroup.com.

About Extra Space Storage Inc.

Extra Space Storage Inc., headquartered in Salt Lake City, Utah, is a self-administered and self-managed REIT and a member of the S&P 500. As of September 30, 2020, the Company owned and/or operated 1,906 self-storage stores in 40 states, Washington, D.C. and Puerto Rico. The Company's stores comprise approximately 1.4 million units and approximately 147.5 million square feet of rentable space. The Company offers customers a wide selection of conveniently located and secure storage units across the country, including boat storage, RV storage and business storage. The Company is the second largest owner and/or operator of self-storage stores in the United States and is the largest self-storage management company in the United States.

Except for the historical information and discussions contained herein, statements contained in this news release constitute forward-looking statements. These statements may involve a number of risks, uncertainties, and other factors that could cause actual results to differ materially, including the performance of financial markets, the investment performance of NexPoint-sponsored investment products, general economic conditions, future acquisitions, competitive conditions, and government regulations, including changes in tax laws. Readers should carefully consider such factors. Further, such forward-looking statements speak only on the date at which such statements are made. NexPoint undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statement.

Investor Relations Contact
Jackie Graham
jgraham@nexpointadvisors.com
(972) 419-6213

Media Relations Contact
Lucy Bannon
lbannon@nexpointgroup.com
(972) 419-6272

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SOURCE NexPoint

FAQ

What is NexPoint Storage Partners and when was it launched?

NexPoint Storage Partners is a dedicated real estate investment platform for the self-storage sector, launched by NexPoint on December 8, 2020.

What is the total investment by NexPoint in self-storage?

NexPoint has approximately $1.1 billion in self-storage investments.

Who is leading NexPoint Storage Partners?

John Good, the former chairman and CEO of Jernigan Capital, is leading NexPoint Storage Partners.

What financial support has NexPoint Storage received?

NexPoint Storage received a $300 million equity investment from Extra Space Storage and $512 million in financing from J.P. Morgan.

How many facilities does NexPoint Storage have?

NexPoint Storage has a total of 69 self-storage investments, with 38 wholly owned facilities.