Barings, Canvass Capital Enter $250M Partnership
The joint venture plans to acquire and develop self-storage facilities across the southeastern part of the U.S.
Start Your Application and Unlock the Power of Choice$5.6M offered by a Bank$1.2M offered by a Bank$2M offered by an Agency$1.4M offered by a Credit UnionClick Here to Get Quotes!Rendering courtesy of Barings
Barings has formed a joint venture with Canvass Capital LLC to acquire and develop self-storage facilities across the southeastern part of the U.S. The partnership aims to invest up to $250 million of equity into the self-storage sector in the next several years.
Barings and Canvass kickstarted the partnership with the acquisition of three storage properties encompassing 1,129 units across 163,000 rentable square feet in the Lake Norman region of North Carolina, north of Charlotte. The joint venture plans to expand the facilities with new climate-controlled units and covered RV and boat storage space. Other planned improvements include new tech and sustainability-focused features.
The duo also purchased a 2.8-acre site in Hilton Head, S.C., to develop a two-building asset featuring 150,000 square feet across 1,231 units. The groundbreaking of the facility is scheduled for this fall.
According to prepared remarks from John Ockerboom, head of U.S. Real Estate Equity at Barings, the joint venture identified several additional assets in the Southeast which are currently under contract, with acquisitions expected to close shortly. The strategic partnership targets properties with value-add or expansion opportunities and ground-up developments in high-growth self-storage markets.
Consolidation Drives Self-Storage Investment
Barings also recognizes the opportunities that the sector provides due to its fragmented nature, as more than half of the U.S. supply is still managed by mom-and-pop operators. Most of these operators are not well-equipped to keep up with tech or sustainability trends; therefore, there’s a widening gap between institutional and smaller owners that the industry is attempting to solve by consolidation.
Thanks to the sector’s resiliency through economic uncertainties and strong demand drivers boosted by the pandemic, more and more institutional investors recognize the opportunities the self-storage industry provides. This, coupled with the need for consolidation, will likely drive investment in the sector in the foreseeable future.
Related Questions
What is the purpose of the Barings and Canvass Capital partnership?
The Barings and Canvass Capital partnership is a joint venture that provides commercial real estate financing solutions to developers. The partnership offers a variety of loan products, including bridge loans, mezzanine loans, and preferred equity. The partnership also provides access to capital markets, allowing developers to leverage their existing assets and increase their returns. Additionally, the partnership provides access to a network of experienced professionals who can provide guidance and advice on the best financing options for each project.
What types of investments will the Barings and Canvass Capital partnership focus on?
The Barings and Canvass Capital partnership will focus on industrial real estate, multifamily, and niche sectors like self storage. According to a survey of investors, more than 60% said they planned to acquire more commercial real estate. In addition to commercial real estate, other types of common accredited investments include private equity and hedge funds, oil and gas investments, limited partnerships, and the stock of privately held firms. Source and Source.
How will the Barings and Canvass Capital partnership benefit commercial real estate investors?
The Barings and Canvass Capital partnership will benefit commercial real estate investors by providing them with access to high-quality, high-yield direct real estate investment opportunities. Through the partnership, investors will be able to invest in crowdfunded real estate opportunities with some of the nation's leading developers. Each opportunity is carefully vetted with Multifamily Loans, and less than 5% of opportunities submitted make it through the rigorous underwriting process. Additionally, investors will have access to capital gains tax considerations for commercial real estate investments. If you have any questions, you can fill out the form here to speak with a commercial mortgage specialist.
What are the advantages of the Barings and Canvass Capital partnership for small business owners?
The Barings and Canvass Capital partnership offers small business owners access to venture capital and angel investors. This partnership provides small business owners with the resources and expertise they need to grow their business. Additionally, the partnership provides an exit strategy for investors, which can provide a large return on their investment. This partnership can help small business owners access the capital they need to grow their business and achieve their goals.
What criteria must be met for a commercial real estate investment to qualify for the Barings and Canvass Capital partnership?
To qualify for the Barings and Canvass Capital partnership, investors must be accredited investors according to the Securities and Exchange Commission (SEC). This means that an individual must have an annual income of at least $200,000 (or $300,000 for married couples) and a net worth of at least $1 million (for both individuals and married couples). This does not include the value of the investor’s primary residence. Source
In addition, investors must join the waiting list for the next wave of real estate crowdfunding for 2023. To join the waiting list, please click here and fill out a short form. Source
How does the Barings and Canvass Capital partnership compare to other financing options for commercial real estate investments?
The Barings and Canvass Capital partnership offers a unique financing option for commercial real estate investments. This partnership provides a combination of debt and equity financing, allowing investors to access capital quickly and efficiently. The partnership also offers a variety of loan products, including bridge loans, mezzanine loans, and preferred equity. These loan products are tailored to meet the needs of each individual investor, providing flexible terms and competitive rates. Additionally, the partnership provides access to a network of experienced professionals who can provide guidance and advice throughout the investment process.
Compared to other financing options, the Barings and Canvass Capital partnership offers a unique combination of debt and equity financing, tailored loan products, and access to experienced professionals. This makes it an attractive option for investors looking for a comprehensive financing solution for their commercial real estate investments.