Jernigan Capital has struck a deal to be acquired by Dallas-based alternative investment firm NexPoint advisors.

The deal is valued at about $900 million. NexPoint has agreed to buy the publicly traded self-storage lender and investment firm for $17.30 per common share and $25.00 per share for Series B preferred stock.

Launched in 2015 by former CubeSmart CEO Dean Jernigan, the debt and equity REIT amassed a portfolio of about 60 newly developed self-storage facilities. During the first quarter of this year, the company reported losses of $54.7 million and earned $11.6 million in sales revenue. Jernigan retired as CEO in 2018.

One of the most recently completed projects in Jernigan Capital’s portfolio, located in New York, NY.

Jernigan Capital’s current CEO, John Good, said the deal is in the best interest of all stakeholders.

“We believe this transaction with NexPoint validates the quality of the portfolio of self-storage properties and the corporate platform we have built and accomplishes the goal of maximizing value for our stockholders during a very difficult time for all of us,” Good said in a statement.

Dallas-based NexPoint is a “registered investment adviser to a suite of funds and investment offerings, including a closed-end fund, a business development company, an interval fund, and various real estate vehicles.” The firm reports that it has closed $2.4 billion in real estate transactions over the last 12 months.

“NexPoint has long admired and supported Jernigan Capital’s unique self-storage business model and platform,” said Jim Dondero, NexPoint’s founder and president in a statement. “We plan to build on this vision as a private company, maintaining unparalleled asset quality and continuing the current growth trajectory.

Dondero added that they plan to further expand the company’s national footprint. The transaction is expected to close in the fourth quarter of 2020.


Alexander Harris