Atlanta-based The Ardent Cos. has announced its ambition to raise $150 million to fund the development of 11 new self-storage facilities across the United States.
The commercial real estate asset management firm has initiated its Self-Storage Development Fund III, targeting high-demand, supply-constrained markets, as stated in a recent press release.
These new projects are set to provide a total of 1 million square feet of climate-controlled self-storage space in key areas such as Hoboken, New Jersey, Long Island, New York, and Boston.
Since its inception, Ardent has successfully raised $170 million through two prior funds, which contributed to the development of 16 self-storage facilities. Most notably, the firm has recently opened a 75,000 square-foot Extra Space Storage facility in Auburn, Maine.
The self-storage market is experiencing a recovery as occupancy rates and rents stabilize following a tumultuous period caused by the pandemic. A report from Cushman & Wakefield highlights that construction surges had initially driven down rents, with asking rates falling by more than 4% year-over-year in July. However, the trend has reversed, with only an 80 basis point drop reported by February, and rental increases noted in 11 of the top 30 metropolitan areas in the U.S.
“The current environment presents an especially compelling opportunity for Fund III,” said Matt Shulman, CEO of Ardent.
This initiative comes shortly after the company faced significant setbacks, including the foreclosure loss of the 2.2 million square-foot Piedmont Center office park located in Buckhead.
In related news, Sonida Senior Living has acquired an 88-unit senior living facility in Alpharetta for $11 million. Though Sonida did not disclose the property details, records from Fulton County confirm the acquisition of Mansions Senior Living from Oklahoma City-based Rees on June 1.
Mansions Senior Living, located at 3675 Old Milton Parkway, includes 64 assisted living units and 24 dedicated to memory care. Before the sale, it was appraised at $12 million by the county last year.
Additionally, Aubuchon Realty Co. has made a strategic purchase of the Woodmont Village, an 86,000 square-foot shopping center anchored by Kroger on Cumming Highway in Canton. The property, which was developed in 2002, is currently 75% leased and was previously owned by ShopCore Properties.
The transaction was brokered by Matthews Real Estate Investment Services’ Kyle Stonis, Pierce Mayson, and Boris Shilkrot.
In financing news, private equity firm Acre has provided a significant $33 million nonrecourse, interest-only, floating-rate loan to Norhaven Partners and Coro Realty for refinancing The Massell. This 210-unit apartment complex is located at 1230 Joe Frank Harris Parkway in Cartersville.
The new mortgage will replace a short-term $31.7 million loan from First Horizon Bank, which was approaching maturity in September. The refinancing comes with a five-year term, arranged by Walker & Dunlop’s Stephen Farnsworth and Hanes Dunn.
Meanwhile, CP Group has engaged Stream Realty Partners’ team, including Bryan Heller, Preston Manning, Glenn Kolker, Parker Welton, and Lauren Slappey, to handle the leasing of the Piedmont Center office park.
Having co-invested in the property after Bawag Group’s foreclosure on the original mortgage, CP Group views Piedmont Center as a significant opportunity to reshape the office space for modern workforce needs.
“Piedmont Center is one of the most significant projects in Atlanta, and we see tremendous potential in reimagining it for the modern workforce,” commented Chris Eachus, founding partner of CP Group, in a statement.
In the leasing sector, Oodazu, an indoor children’s party venue, has leased 68,000 square feet at 421 DeKalb Industrial Way in Decatur. Partners Real Estate’s Shea Meddin and Brooke Gothard represented Oodazu, while Mimms Enterprises’ Sarah Gretzmacher brokered on behalf of the landlord.
Oodazu also operates a location at the Shops of Miami Circle in Buckhead.
Furthermore, SquareOne Holdings has secured 6,000 square feet for the Stir raw bar and cocktail concept at The Medley, a mixed-use project currently under construction by Toro Development Co. in Johns Creek. Additionally, a 1,000 square-foot satellite cocktail bar called Tonic House has also been leased at the same project.
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