Over the next few months, a New Mexico-based real estate developer is turning dirt on the first six self-storage facilities in its development pipeline.
From January through March, Albuquerque, NM-based Titan Development Ltd. is set to kick off construction on a total of more than 575,000 square feet of self-storage and over 4,300 units. All six facilities will be managed by Salt Lake City, UT-based self-storage REIT Extra Space Storage.
On Jan. 22, Titan Development laid out these details for the six projects, which are in New Mexico and Arizona:
- Extra Space Storage Gilbert & Warner in Gilbert, AZ. Groundbreaking: January 2018. Opening: Fourth quarter of 2018. Square footage: 102,546. Units: 755.
- Extra Space Storage Rodeo Business Park in Santa Fe, NM. Groundbreaking: January 2018. Opening: Third quarter of 2018. Square footage: 100,000. Units: 750 units.
- Extra Space Storage Vegas Verde in Santa Fe, NM. Groundbreaking: January 2018. Opening: Third quarter of 2018. Square footage: 88,000. Units: 643.
- Extra Space Storage Rio Rancho in Rio Rancho, NM. Groundbreaking: January 2018. Opening: Fourth quarter of 2018. Square footage: 88,000. Units: 650. Outdoor RV spaces: 92.
- Extra Space Storage Ladera & Unser in Albuquerque, NM. Groundbreaking: February 2018. Opening: Fourth quarter of 2018. Square footage: 107,000. Units: 790.
- Extra Space Storage Coronado & Ray in Gilbert, AZ. Groundbreaking: March 2018. Opening: Fourth quarter of 2018. Square footage: 91,000. Units: 744.
Phoenix, AZ-based real estate developer WDP Partners is Titan Development’s joint venture partner for the two Arizona facilities.
Self-storage is one of the investment targets of Austin, TX-based Titan Development Real Estate Fund I, which Titan Development established in April 2017. The fund’s other targeted sectors are industrial, multifamily, senior living and “opportunistic.” Before delving into self-storage, Titan Development’s portfolio consisted of commercial, industrial, mixed-use, multifamily and senior living properties.
So far, the private equity fund has collected more than $80 million toward its $200 million goal.
Drew Dolan, president of Titan Development, recently told The SpareFoot Storage Beat that with $200 million in equity, the fund will be able to tap into more than $600 million in development funding at a 65 percent loan-to-cost ratio.
“Titan Development’s objective is simple: maximize our investors’ returns and create value,” Dolan said. “In self-storage specifically, all indicators reinforce self-storage as an attractive asset class with good return potential. To that end, we are always evaluating growth into new marketplaces.”
