Fident Capital secured $12.4MM of construction debt and joint venture equity for the development of a 3-story, 682-unit self-storage project in the Portland, OR suburb of Happy Valley. The 77,000 square foot project employed $7.6MM of construction debt sourced from a regional bank and $3.8MM of equity from a mid-sized California-based opportunity fund.
The development is located in one of the few industrial zones within the municipality adjacent to a major highway with excellent drive-by visibility and traffic counts. The project will serve a quickly growing bedroom community in Southeast Portland that is underserved in terms of square feet of storage per capita.
Our Southern California based client had diligently pursued expansion in the Portland market for years and only after having the discipline to pass on three other opportunities which Fident had helped evaluate did they find the appropriate deal. Fident’s assistance with the underwriting of the possible sites facilitated the client’s successful brand expansion into Oregon.
Challenges to the project included overcoming the macro-perception that Portland has been over-served with self-storage, pursuing investment capital prior to the final design approvals from the City, and convincing equity that the developer had the skill to self-manage the facility under their own flag.
*Subject property is still under construction. The image above represents a similar design by the same contractor as the Happy Valley project.