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| Martha Hargrove |
MIAMI, FL, Feb. 27, 2023 -- DXD Capital, a data-driven real estate and private equity firm based in Albuquerque, NM, will launch on March 1st its latest self-storage project in the Allapattah submarket of Miami, Florida.
The proposed self-storage facility will be a
five-story, fully climate-controlled building with 865 units, with a total cost
of $18.7 million, and is located in an area with strong rental growth. The
location was selected using DXD’s unique, data-driven site selection process.
According to DXD, Allapattah is a prime market for self-storage, due to its high multifamily occupancy of 96.79%, with 4,913 multifamily units planned for delivery.
Apartment dwellers are three times more likely to use
self-storage, and their preferred self-storage units are typically within 3
miles – or roughly a 10-minute drive – away from their residence.
Allapattah’s median income is expected to rise
by 2% annually until 2025, with higher income residents increasingly moving
into new multifamily units around the area.
It is
also close to the proposed $1 billion mixed-use soccer complex project for
soccer team Inter Miami, which is co-owned by David Beckham.
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| David Beckham |
The Allapattah project is part of DXD’s
continued investment in self-storage development. Self-storage experienced
strong rental rate growth through the pandemic and represents one of the
fastest growing investment opportunities in the United States.
“DXD reverse-engineers that process,” says Martha Hargrove, DXD Capital Managing Director - Investor Relations.
“Real estate professionals have a rough
understanding of land costs, construction costs, property taxes, and many
different metrics. From there, we can determine what rental rates we must
achieve to deliver our investors outsized returns.”
According to Hargrove, DXD’s specialization in
self-storage gives it an edge over other developers in the space.
“We’ve assembled a team of experts to be the
best investor in self-storage. Our 25-person team has developed over 200
facilities nationwide. They now select sites and build self storage facilities
with DXD from the ground up across the US.”
Hargrove added that DXD’s investments have been
performing well in today’s self-storage-friendly climate.
“One of our projects in Litchfield Park,
Arizona, just outside of Phoenix, has outperformed our pro forma leasing
expectations by more than 150%, despite opening in November, which is typically
the slowest leasing month for self-storage.”
Contact:
David Ebeling
Ebeling Communications
949.861.8351
949.278.7851 (Cell)
Member of the National Association of Real
Estate Editors (NAREE)
“PR Strategist for the Commercial Real Estate Industry: I do what I love and love what I do.”
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