AC Self Storage Fund I Completes Full Cycle

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AC Self Storage Solutions, LLC sold its Self Storage assets in the AC SS Fund I

Expecting returns in the teens and hitting returns in the 20s obviously makes this as a very successful fund

AC Self Storage Solutions, LLC announced today that they have sold the assets of the AC Self Storage Fund I, LP (the Fund) completing a 5.5-year investment cycle.

The Fund was a blind-pool investment opportunity that purchased, managed, and disposed of US-based Self Storage facilities sponsored by AC Self Storage Solutions, LLC, a Delaware limited liability company operating in Carlsbad and Newport Beach, CA (the Company).

The Company reported that the cash-on-cash return to investors was greater than 21% per year for the life of the Fund. “We structured the Fund with an 8% preferred return and expected to hit all-in returns in the mid-teens”, states Troy Downing, Chief Executive Officer. “Expecting returns in the teens and hitting returns in the 20s obviously makes this as a very successful fund and exit for everyone involved.”

The Fund broke impounds and began investing in first quarter of 2011. The first asset, an existing facility in Tennessee, was purchased Q1 and partner distributions of cash flow began immediately after in Q2 of 2011. “We began distributing capital back to investors after our first quarter of operations” states F. Craig Morris, President AC Self Storage Solutions, LLC. “We ran the cash flow side conservatively with well-funded reserve accounts and continued to distribute cash to the investors over the life of the Fund without missing a quarter. Current cash flow distributions were more than 9.0% in annualized distributions for the initial two quarters of 2016.”

Highlights of the Fund.

  • Blind Pool Real Estate Fund
  • Assets were strictly Self Storage facilities
  • Initial debt ratio was 65% Loan-to-Value
  • Limited Partners were High Net Worth accredited investors
  • Total Project Returns were approximately a 2.71 multiple on invested capital and a 21.39% IRR
  • Total Investor Returns were approximately a 2.18 multiple on invested capital and a 117.63% return over the fund holding period (in addition to the investor return of capital)
  • The Investor returns were approximately a 21% per year on average.
  • Fund Net Operating Income was increased from $1.22m at acquisition to $2.35m at sale.
  • All Fund real estate assets were in Texas or Tennessee

The Company has not released specifics on portfolio size, asset specifics, or selling price due to confidentiality agreements with third parties.

About AC Self Storage Solutions, LLC- AC Self Storage Solutions, LLC is an owner, operator, and aggregator of Self Storage facilities across the US. The Company also offers third-party asset management of Self Storage facilities and, through wholly-owned subsidiaries acts as General Partner and/or Trustee of Self Storage portfolio funds.

Disclaimer: The Company believes all statements to be true and accurate. Final total returns may change as refunds, credits, and charges are released or charged. Past performance is not a guarantee of future results. This is a press release for general information on a closed fund. This is not a solicitation to buy or sell securities.

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Troy Downing
@ACStorage
since: 08/2011
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