Recession Resistant Real Estate Investments with Steady Cash Flow.
Project Name / MG Self Storage Fund (Fund II)
Type of Investment / Commercial Real Estate
Investment Strategy / Core Plus/Value-added
Strategy / Acquisition, Rehab & Disposition of 20-30 Self-Storage Facilities
Acquisition Area / East Coast of United States & Central United States
Capital Raise / $20,000,000 - $30,000,000
Minimum Investment / $100,000(Class C) or $25,000(Class D)
Investor IRR / See Investment Summary, Click Here for more Information
Preferred Return / See Investment Summary, Click Here for more Information
Distribution / Quarterly
Issue Period / May 20, 2019 - June 30, 2020
The Fund II retains limited amounts of transferable units, which can be subscribed with the authorization of the fund manager. Please contact us for more information on the offering.
Investment Period / 4 years
Investor Newsletter / Click Here for More Information
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MG Self Storage Fund (“the Fund”) is a $30 million real estate equity investment fund focusing on acquisition of self-storage facilities from small mom-pop operators.
The project sponsor implements advanced and patented technology, industry leading PropTech, to convert the facilities into unmanned operations. Along with applying management best-practices, the sponsor is able to maximize NOI of each facility and hence positioning them for market cap exit at an amazing premium. In addition to historically steady cash flow during the holding period, through aggregation of these self-storage facilities into a portfolio, the project sponsor is able to create additional value upon exit, resulting in consistent high yield to the our investors.
Current Fund Status information: Fund I capital raising was closed successfully in December 2018; Fund II is on-going; Both Fund I and Fund II have produced consecutive quarters of meeting and exceeding preferred return target since its inception. Furthermore, the Fund was able to realize huge return on equity at exit, way above industry average. You can subscribe Fund newsletter as Accredited Investor for latest updates.
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The Fund Highlights
PropTech – Innovative Integration of advanced technologies with traditional CRE industry, coupled with patented technology through in-house R&D;
Recession-Resistant – Self-storage is one of the most recession-resistant asset class in real estate, proven again and again by both research data and historical statistics;
Robust Cash Flow – Unique and industry leading investment strategy with a priority preferred return to the investor that yields consistent and steady cash flow.
Recession-Resistant Businesses
The Self-storage sector has been recession-resistant because the demand for self-storage space is based on life events, such as marriage and divorce, renovating and relocating. During the Great Recession, self storage was one of the least foreclosed real estate sectors.
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Other Advantage
Proven commercial Real Estate investment with above industry ROI;
The self-storage market is now in a fast-growing phase through aggressive institutional acquisition;
Laser focused on value-add acquisition strategy drastically lower the risk compare to new-build;
Huge value upside due to institutionalized capital raised by sponsor;
Portfolio aggregation asset sale brings premium to our fund investors;
Targeted by REITs as an additional highlight to the unique investment strategy;
Multi-class options offered to different investors;
Proven track records of the previous Funds performance;
Strong project developer with years of credible background.
Why High-Tech Is The Key?
Fund Highlight: DaVinci Lock® System
Patterned design with software platform which can be integrated to 3rd party self-storage management platform;
Best optimization of the unit rent based on big-data analysis to maximize income;
Technology enabled unmanned facility drastically removes HR overhead and improved rent collection efficiency;
Intelligent monitoring ensures smooth facility operation while reduce risk and liabilities;
Remote management and call center provides 24x7 service and renters on-boarding.
Read more Successful Stories and Press Release of Davinci lock® system.
PIE CHART OF Self-storage and multi-family market share distribution in 2018.
Why Is The Strategy Robust?
Private equity real estate funds generally follow CORE, CORE-PLUS, VALUE ADDED, or OPPORTUNISTIC strategies when making investments.
CORE is a low-leverage, low-risk/low-potential return strategy with predictable cash flows and CORE-PLUS is originally defined as "CORE" plus leverage, or leveraged CORE.
VALUE ADDED is a medium-to-high-risk/medium-to-high-return strategy which involves buying land or under leased or mispositioned property, improving it in some way, and selling it at an opportune time for gain.
The fund strategy is between CORE-PLUS and VALUE ADDED with low-risk and medium return, as well as healthy cash flows.
THE Davinci lock® system allows properties to release overlocked renters remotely.
Why Invest Self-Storage ?
Imaging investing in multi-family assets from 2008 and 2018, refer to the consolidation of Multi-family vs Self-storage (see chart left), the multi-family market in 2008 has the similar share distribution as self-storage market in 2018.
The star plot of fund investment strategy and the other four investment strategies.
