SmartStop Self Storage REIT, Inc. and investment management firm AXCS Capital have formed a real estate credit joint venture targeting bridge debt and preferred equity investments across the self-storage sector in the U.S. The JV will deploy capital across the full spectrum of structured capital solutions, including senior loans, mezzanine financing, preferred equity and hybrid instruments.
Target investment scenarios include ground-up development financing, value-add acquisitions and conversions, and recapitalizations of existing assets requiring rescue or bridge capital. The JV will have an initial target of $100 million in invested capital and the ability to recycle capital throughout its term
“We believe now is an excellent time to add another lever of growth by putting capital to work across the capital stack in the self-storage industry,” said H. Michael Schwartz, President, CEO and Chairman of SmartStop. “This joint venture gives us the opportunity to combine SmartStop’s expertise in the self-storage space with the lending platform and experience from the team at AXCS, which should result in attractive returns for both sides. The venture also allows us to provide flexible capital solutions for many of the entrepreneurial self-storage owners in the industry, smoothing the waters during turbulent capital markets.”
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