Property Details
Below Market Rents  Below Market Occupancy  Repositioning Opportunity  NOI Growth  Ground-Up Development 
Asset Profile
Value Add

ZRP Storage Opportunity Fund

Southeast, Northeast, Midwest & Rocky Mountains

Self-Storage Fund
Ziff Real Estate Partners Mt. Pleasant, SC
Ziff Real Estate Partners
  • IRR 22%
  • Equity Multiple 2.6x
  • Hold Period 5-8Y
  • Minimum Investment $25K
  • Year 1 Cash on Cash 0-2%
  • Stabilized Cash on Cash 4-6% in Y5
  • First Distribution Q3 2022
  • Distribution Frequency Quarterly
  • Asset Profile Value Add
  • Loan-to-Value 60-70%
  • Current Occupancy 80%

About this Fund

"$50 million fund offered by an experienced Sponsor targeting a portfolio of both value-add and new development self-storage opportunities to produce cash flow, substantial capital gains and net returns to investor of 22% IRR and 2.6x multiple."

-Sarah Brantley, Ziff Real Estate Partners

Fund Type Self-Storage
Investment Timing Equity called over time
Market(s) Southeast, Northeast, Midwest &
Rocky Mountain Regions(1)
Target Fund Size $50MM(2)
Date Opened for Investments 09/29/2021
Amount Raised $29.5MM
Amount Deployed $2.3MM
Est. Time to Next Investment Nov. 2021
Est. Time to Initial Distribution Q3 2022
(1) The target markets are not specified in the PPM or OA.
(2) Minimum target fund size is $30MM. Please see PPM for more details.

Top Questions

All answers are provided by the sponsor, Ziff Real Estate Partners, or its representatives.

 

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

Sarah Brantley, Ziff Real Estate Partners: "The Fund intends to pursue a value-add and development strategy to acquire a diverse portfolio of ~15 high-quality self-storage properties, utilize professional third-party management - including state-of-the-art technology - to optimize NOI and then dispose of the properties either as a portfolio or in tranches to maximize returns to investors. Acquisitions will include the purchase of existing facilities that will benefit from improvements and expansion of the physical property, as well as acquisitions of undeveloped land which will deliver a newly-constructed Class A facility."

 

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

Sarah Brantley, Ziff Real Estate Partners: "As Sponsor, Ziff Real Estate Partners is committing to 50% of the equity, up to $25 million, ensuring strong alignment of interests with investors. Storage has proven to be a resilient asset class throughout economic cycles, including the latest pandemic. Lastly, the fund is targeting net returns to investors of 22% IRR and 2.6x Equity Multiple. ZRP has a decade long track record of achieving similar returns in over $250 million self-storage investments, resulting in a 21% IRR and 2.5x Equity Multiple."

 

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

Sarah Brantley, Ziff Real Estate Partners:

  1. "Rising Cap Rates: The storage industry is experiencing historically low cap rates. The Fund was underwritten at a 6.25% exit cap rate, a significant decompression to the cap rate commanded in today's market of ~ 4.5%."
  2. "Supply: Ziff Real Estate Partners is diligent in identifying areas that are undersupplied with capacity and demand for storage solutions."
  3. "Loss of Occupancy: Diverse rent roll provides credit and turnover diversity across 500 renters per property and average length of stay is typically 12 months (average length of stay for business renters is longer than one year)."
  4. "Obsolescence: Use of storage is necessity-based and driven by transitory needs from life changes to contracting/expanding businesses instead of economic trends. The consistent product type (concrete floors, garage doors, industrial lighting, etc.) makes the asset extremely resistant to obsolescence."

 

How has COVID-19 impacted your business plan?

Sarah Brantley, Ziff Real Estate Partners: "Ziff Real Estate Partners' business model for self-storage investments includes the utilization of new technology at the facility level, which allow customers to go through the rental process entirely online or virtually. The Covid-19 pandemic has further accelerated the adoption for such amenities / features within the marketplace. These technological enhancements have proven to benefit the assets, as they help lower operational costs and ultimately improve cash flow, while also providing a superior customer experience."

All answers are provided by the sponsor, Ziff Real Estate Partners, or its representatives.

About this Fund

"$50 million fund offered by an experienced Sponsor targeting a portfolio of both value-add and new development self-storage opportunities to produce cash flow, substantial capital gains and net returns to investor of 22% IRR and 2.6x multiple."

-Sarah Brantley, Ziff Real Estate Partners

Fund Type Self-Storage
Investment Timing Equity called over time
Market(s) Southeast, Northeast, Midwest &
Rocky Mountain Regions(1)
Target Fund Size $50MM(2)
Date Opened for Investments 09/29/2021
Amount Raised $29.5MM
Amount Deployed $2.3MM
Est. Time to Next Investment Nov. 2021
Est. Time to Initial Distribution Q3 2022
(1) The target markets are not specified in the PPM or OA.
(2) Minimum target fund size is $30MM. Please see PPM for more details.

Top Questions

All answers are provided by the sponsor, Ziff Real Estate Partners, or its representatives.

 

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

Sarah Brantley, Ziff Real Estate Partners: "The Fund intends to pursue a value-add and development strategy to acquire a diverse portfolio of ~15 high-quality self-storage properties, utilize professional third-party management - including state-of-the-art technology - to optimize NOI and then dispose of the properties either as a portfolio or in tranches to maximize returns to investors. Acquisitions will include the purchase of existing facilities that will benefit from improvements and expansion of the physical property, as well as acquisitions of undeveloped land which will deliver a newly-constructed Class A facility."

 

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

Sarah Brantley, Ziff Real Estate Partners: "As Sponsor, Ziff Real Estate Partners is committing to 50% of the equity, up to $25 million, ensuring strong alignment of interests with investors. Storage has proven to be a resilient asset class throughout economic cycles, including the latest pandemic. Lastly, the fund is targeting net returns to investors of 22% IRR and 2.6x Equity Multiple. ZRP has a decade long track record of achieving similar returns in over $250 million self-storage investments, resulting in a 21% IRR and 2.5x Equity Multiple."

 

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

Sarah Brantley, Ziff Real Estate Partners:

  1. "Rising Cap Rates: The storage industry is experiencing historically low cap rates. The Fund was underwritten at a 6.25% exit cap rate, a significant decompression to the cap rate commanded in today's market of ~ 4.5%."
  2. "Supply: Ziff Real Estate Partners is diligent in identifying areas that are undersupplied with capacity and demand for storage solutions."
  3. "Loss of Occupancy: Diverse rent roll provides credit and turnover diversity across 500 renters per property and average length of stay is typically 12 months (average length of stay for business renters is longer than one year)."
  4. "Obsolescence: Use of storage is necessity-based and driven by transitory needs from life changes to contracting/expanding businesses instead of economic trends. The consistent product type (concrete floors, garage doors, industrial lighting, etc.) makes the asset extremely resistant to obsolescence."

 

How has COVID-19 impacted your business plan?

Sarah Brantley, Ziff Real Estate Partners: "Ziff Real Estate Partners' business model for self-storage investments includes the utilization of new technology at the facility level, which allow customers to go through the rental process entirely online or virtually. The Covid-19 pandemic has further accelerated the adoption for such amenities / features within the marketplace. These technological enhancements have proven to benefit the assets, as they help lower operational costs and ultimately improve cash flow, while also providing a superior customer experience."

All answers are provided by the sponsor, Ziff Real Estate Partners, or its representatives.

Offered By

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Assets Under
Management

Currently
$248MM 30+ assets
Exited
$405MM 50+ assets
Portfolio LTV
46%  
Historical
Realized Returns

Total IRR
20.3%  
Equity Multiple
2.4x  
Annual Cash
12.7%  
Years Of
Experience

As Principals
30+ years  
In Business
30 years  
Size
28 Staff  
* All information is reported by Ziff Real Estate Partners as of 9/29/2021.
Assets Under
Management

Currently
$248MM 30+ assets
Exited
$405MM 50+ assets
Portfolio LTV
46%  
Historical
Returns

Total IRR
20.3%  
Equity Multiple
2.4x  
Annual Cash
12.7%  
Years Of
Experience

As Principals
30+ years  
In Business
30 years  
Size
28 Staff  
* All information is reported by Ziff Real Estate Partners as of 9/29/2021.

Financials

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Offering Financial

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Diligence Preview

Location Details

Southeast, Northeast, Midwest & Rocky Mountains

Sarah Brantley, Ziff Real Estate Partners: "Ziff Real Estate Partners is seeking to acquire opportunities in secondary and tertiary markets across the US with established demographics and positive migration patterns. Self-storage directly supports the surrounding community of residents and businesses so it is important to be in areas that will produce steady demand for storage rentals."

The target markets are not specified in the PPM or OA.

Documents

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Offering Agreement Documents

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