Property Details
Below Market Rents  NOI Growth 
Asset Profile
Value Add

Reliant Self Storage Fund II, LLC

Southeastern US

Self-Storage Fund

This deal is oversubscribed

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Reliant Real Estate Management Roswell, GA
Reliant Real Estate Management
  • IRR 12.21%
  • Equity Multiple 1.72-1.9x
  • Hold Period 5-10Y
  • Minimum Investment $50K
  • Year 1 Cash on Cash 4-7%
  • Stabilized Cash on Cash 4-7%
  • First Distribution Jan 2022
  • Distribution Frequency Quarterly
  • Co-Investment 3% ($1.5M)
  • Preferred Return 8%
  • Investor Profit Share See Financials
  • Asset Profile Value Add
  • Loan-to-Value 70%
  • Current Occupancy N/R

About this Fund

"Reliant Self-Storage Fund II is a $50 MM equity fund offered from an experienced sponsor targeting acquisitions of a diversified portfolio of value-add and stabilized self-storage properties across the Southeastern United States."

-Matt Blackwell, Reliant Real Estate Management


"This offering page is reflective of a Class C share. See PPM for information regarding Class A & B shares."
Fund Type Self-Storage
Investment Timing Equity called upon close
Market(s) GA, FL & NC
Target Fund Size $50MM(1)
Date Opened for Investments April 2020
Amount Raised $37MM
Amount Deployed $29.8MM
Est. Time to Next Investment Sept. 2021
Est. Time to Initial Distribution Already Begun
(1) As described in the PPM Reliant has discretion to increase the max offering to $100M. See PPM for details.

Top Questions

All answers are provided by the sponsor, Reliant Real Estate Management, or its representatives.

 

What is your investment strategy/business plan for the Fund?

Matt Blackwell, Reliant Real Estate Management: "Reliant's strategy is focused on value-add self-storage opportunities in secondary and tertiary markets across the southeast. The value add strategy can be broken into three categories:"

  • "Expansion: Building out additional square footage at a property which allows Reliant to grow NOI through the lease up of the new units."
  • "Ancillary Income: Many "mom and pop" owners do not take advantage of ancillary income items like tenant insurance programs, U-Haul truck rental, and sales of retail items like locks, boxes, tape, etc. Reliant adds these as part of their management strategy and can add significant NOI to bottom line."
  • "Lease Up: Many times Reliant will purchase an asset that recently opened or had an expansion and the value-add is completing the lease up to stabilization."

"These value add strategies can be found in the assets Reliant has already purchased with Fund II. Thus far Fund II has already closed on 8 properties and property number 9, 10, and 11 are already under contract and expected to close early in Q4."

"Reliant expects the fund to be closed to any new funding in November. Their business plan is to hold this portfolio for 6 years and then look to exit to a publicly traded REIT or institutional capital buyer. Reliant has sold 38 properties in its history and 80% of those sales have been to the REIT community."

 

What are the most important aspects of the fund for investors?

Matt Blackwell, Reliant Real Estate Management:

  • "Reliant Self-Storage Fund II allows accredited investors to invest in one of the most recession resilient asset classes in the past 25 years."
  • "Investors have the opportunity to invest with the Reliant team as a sponsor who has a proven track record for over 10 years with an average project level IRR of 33% on projects sold."
  • "Fund II allows investors the diversification of 11 properties across 3 states to create the best risk adjusted returns. A value-add strategy focused on NOI growth works in good markets as well as downturns."
  • "RealCrowd investors get the opportunity to invest in a Fund where the portfolio has already been identified and take advantage of the value that has already been created in the properties purchased last year."
  • "Currently through June of 2021 Fund II is 26% above NOI projections."

 

What are the risks and how are you mitigating those risks?

Matt Blackwell, Reliant Real Estate Management: "The biggest risk in self-storage is new supply. When a new facility comes into the market the operator generally is going to reduce prices to maximize their lease up until they have reached stabilization. That will pull pricing down in the market which could impact revenue."

"Where this is most impactful is when you have a facility that is also in lease up. If your facility is stabilized and a new facility comes into the market, generally people will not take the time/energy to rent a moving truck and move their stuff to another property to save a few dollars. If your facility is in lease up and competing for those new clients that is where new supply can impact your ability to hit your revenue projections."

"Reliant's acquisitions team does a deep dive into every market working with the local municipalities to understand the pipeline of new developments and modeling how that could impact their pro forma. Reliant also use 3rd party development reports which help them understand what the future market could look like."

"The risk of new supply is generally not in Year 1 as they can understand what that situation is by doing their homework. If they are projecting a 6 year hold the challenge could be new supply that comes into the market in Year 3. There is no way to predict this and certainly a risk they consider."

 

How has COVID-19 impacted your business plan?

Matt Blackwell, Reliant Real Estate Management: "COVID-19 has been a tremendous boost for the self-storage industry on a whole. Generally demand for self-storage can be thought of through the "4 D's". Death, Dislocation, Downsizing, and Divorce. Generally when you have transition in your life you will need self-storage."

"Fortunately for this asset class, COVID has created a lot of all 4 of those "D's" which has driven up demand. Reliant is currently at all time highs in occupancy and revenue across their portfolio over the past 12 months."

"COVID has also allowed Reliant to implement technologies across their platform specifically to minimize face to face contact. Their tenants can now complete online leasing completely without ever having to go into the office. Now over 30% of leases are coming through their online platform. Reliant believes this trend will continue into the future."

All answers are provided by the sponsor, Reliant Real Estate Management, or its representatives.

About this Fund

"Reliant Self-Storage Fund II is a $50 MM equity fund offered from an experienced sponsor targeting acquisitions of a diversified portfolio of value-add and stabilized self-storage properties across the Southeastern United States."

-Matt Blackwell, Reliant Real Estate Management


"This offering page is reflective of a Class C share. See PPM for information regarding Class A & B shares."
Fund Type Self-Storage
Investment Timing Equity called upon close
Market(s) GA, FL & NC
Target Fund Size $50MM(1)
Date Opened for Investments April 2020
Amount Raised $37MM
Amount Deployed $29.8MM
Est. Time to Next Investment Sept. 2021
Est. Time to Initial Distribution Already Begun
(1) As described in the PPM Reliant has discretion to increase the max offering to $100M. See PPM for details.

Top Questions

All answers are provided by the sponsor, Reliant Real Estate Management, or its representatives.

 

What is your investment strategy/business plan for the Fund?

Matt Blackwell, Reliant Real Estate Management: "Reliant's strategy is focused on value-add self-storage opportunities in secondary and tertiary markets across the southeast. The value add strategy can be broken into three categories:"

  • "Expansion: Building out additional square footage at a property which allows Reliant to grow NOI through the lease up of the new units."
  • "Ancillary Income: Many "mom and pop" owners do not take advantage of ancillary income items like tenant insurance programs, U-Haul truck rental, and sales of retail items like locks, boxes, tape, etc. Reliant adds these as part of their management strategy and can add significant NOI to bottom line."
  • "Lease Up: Many times Reliant will purchase an asset that recently opened or had an expansion and the value-add is completing the lease up to stabilization."

"These value add strategies can be found in the assets Reliant has already purchased with Fund II. Thus far Fund II has already closed on 8 properties and property number 9, 10, and 11 are already under contract and expected to close early in Q4."

"Reliant expects the fund to be closed to any new funding in November. Their business plan is to hold this portfolio for 6 years and then look to exit to a publicly traded REIT or institutional capital buyer. Reliant has sold 38 properties in its history and 80% of those sales have been to the REIT community."

 

What are the most important aspects of the fund for investors?

Matt Blackwell, Reliant Real Estate Management:

  • "Reliant Self-Storage Fund II allows accredited investors to invest in one of the most recession resilient asset classes in the past 25 years."
  • "Investors have the opportunity to invest with the Reliant team as a sponsor who has a proven track record for over 10 years with an average project level IRR of 33% on projects sold."
  • "Fund II allows investors the diversification of 11 properties across 3 states to create the best risk adjusted returns. A value-add strategy focused on NOI growth works in good markets as well as downturns."
  • "RealCrowd investors get the opportunity to invest in a Fund where the portfolio has already been identified and take advantage of the value that has already been created in the properties purchased last year."
  • "Currently through June of 2021 Fund II is 26% above NOI projections."

 

What are the risks and how are you mitigating those risks?

Matt Blackwell, Reliant Real Estate Management: "The biggest risk in self-storage is new supply. When a new facility comes into the market the operator generally is going to reduce prices to maximize their lease up until they have reached stabilization. That will pull pricing down in the market which could impact revenue."

"Where this is most impactful is when you have a facility that is also in lease up. If your facility is stabilized and a new facility comes into the market, generally people will not take the time/energy to rent a moving truck and move their stuff to another property to save a few dollars. If your facility is in lease up and competing for those new clients that is where new supply can impact your ability to hit your revenue projections."

"Reliant's acquisitions team does a deep dive into every market working with the local municipalities to understand the pipeline of new developments and modeling how that could impact their pro forma. Reliant also use 3rd party development reports which help them understand what the future market could look like."

"The risk of new supply is generally not in Year 1 as they can understand what that situation is by doing their homework. If they are projecting a 6 year hold the challenge could be new supply that comes into the market in Year 3. There is no way to predict this and certainly a risk they consider."

 

How has COVID-19 impacted your business plan?

Matt Blackwell, Reliant Real Estate Management: "COVID-19 has been a tremendous boost for the self-storage industry on a whole. Generally demand for self-storage can be thought of through the "4 D's". Death, Dislocation, Downsizing, and Divorce. Generally when you have transition in your life you will need self-storage."

"Fortunately for this asset class, COVID has created a lot of all 4 of those "D's" which has driven up demand. Reliant is currently at all time highs in occupancy and revenue across their portfolio over the past 12 months."

"COVID has also allowed Reliant to implement technologies across their platform specifically to minimize face to face contact. Their tenants can now complete online leasing completely without ever having to go into the office. Now over 30% of leases are coming through their online platform. Reliant believes this trend will continue into the future."

All answers are provided by the sponsor, Reliant Real Estate Management, or its representatives.

Offered By

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Assets Under
Management

Currently
$800MM 50+ assets
Exited
$339.12MM 30+ assets
Portfolio LTV
63%  
Historical
Realized Returns

Total IRR
33.8%  
Equity Multiple
2.57x  
Annual Cash
9%  
Years Of
Experience

As Principals
20+ years  
In Business
11 years  
Size
20 Staff * Dedicated investor relations
* All information is reported by Reliant Real Estate Management as of 8/26/2021.
Assets Under
Management

Currently
$800MM 50+ assets
Exited
$339.12MM 30+ assets
Portfolio LTV
63%  
Historical
Returns

Total IRR
33.8%  
Equity Multiple
2.57x  
Annual Cash
9%  
Years Of
Experience

As Principals
20+ years  
In Business
11 years  
Size
20 Staff * Dedicated investor relations
* All information is reported by Reliant Real Estate Management as of 8/26/2021.

Financials

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Offering Financial

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Location Details

Southeastern US

Matt Blackwell, Reliant Real Estate Management: "Self-Storage market selection is a "sharpshooters" game. Generally Reliant is looking at the 1, 3, and 5 mile radius around a facility to determine the condition of the market. Remember that self-storage is a convenience game. If your facility is not convenient to a tenants work or home they are going to go somewhere else. There are no amenities like school districts, community center, etc. that tenants will travel for like they might with an apartment community."

"Reliant really focuses on where the addressable market is. Most recently they have been using 5, 10, and 15 minute drive times to understand where tenants may be coming from and what the supply and demand characteristics are in a market."

"Reliant uses the traditional demographics like traffic count, population growth, income, job growth, etc. to help build a picture of the market. Their number 1 indicator on demand though is looking at the current occupancy of the competitive set in the market. If there are 10 competitive facilities and all of them are 95%+ occupied, generally that would indicate a strong demand for storage in that market."

"Each of the 11 properties in the Fund has it's own market dynamics which have made it attractive for the Reliant team. Please refer to the investment summary for an overview on each market."

Documents

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Offering Agreement Documents

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