Friday, August 15, 2014

Former Self-Storage CEO Branches Out

The self-storage industry continues to grow and with that growth comes expansion. The former CEO of CubeSmart Dean Jernigan has spread his wings and launched Jernigan Capital LLC, a Florida-based merchant bank and advisory firm based in Miami Beach. The specialty? Self-storage. Jernigan invested his own funds for the loans needed to start the business and is recruiting joint-venture partners for capital.

According to “The Storage Facilitator,” an industry blog, Jernigan said, “I decided that all the things I’ve learned over the years being a borrower, I’d like to use as a lender. I think I have a unique perspective to offer many people out there looking to build, buy or refinance a facility.”

This is very good news for investors or individuals wanting to take part in becoming a self-storage owner. Another perfect way to use social media, the word has spread quickly through the pipeline. Considered a pro within the self-storage industry, Jernigan has over 30 years of experience. He was the founder of Storage USA which was started in 1984 and went on to become the first REIT traded publicly. His career went on to include being CEO of U-Store-It Trust, Inc., which was rebranded into CubeSmart.

There are many opportunities for new owners. The firm will consider loans as low as $1 million for properties, but expects the amounts to vary between $8 and $10 million. The transactions will be in the metropolitan statistical areas (MSAs) for refinancing and acquisitions, but development loans will be narrowed to the top 20 MSAs. The company has already started deals, with the first few to be completed in March.

This is a perfect way to diversify your brand and personal portfolio. Diversifying your experience is key in being able to make a positive impact across the overall industry. Jernigan currently has over $10 in commercial mortgage-backed security loans. With their due date looming within the next five years, he expects to do a lot of business during that time.

Jernigan realizes the urgency of the industry being able to rebound after many companies with self-storage assets that were built between 2005 and 2008 are underperforming. The notion of these existing companies being able to refinance through traditional methods is slim to none. That’s where Jernigan comes in. “Many people will struggle to refinance their existing loan amounts. My plan is to be a source for those people.”

By capitalizing on the opportunity at hand and using the viability of successful content marketing, Jernigan can make quite a splash in the industry. This is a great resource for those owners currently struggling to make payments or expand their businesses for growth. Specialized financing can work wonders and keep the momentum of growth going.

There are many opportunities to positively invest in the self-storage industry. This is just an example of how the industry is not just capitalizing on growth, but is embracing other facets to make sure the self-storage industry is here to stay.


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