Growth Fund 2

The Fund offers investors the opportunity to participate in the development of an identified and diversified portfolio of self-storage and office/warehouse flex properties with an experienced and successful Sponsor who will contribute a minimum of 8% of the total equity capital of the Fund and expects to guarantee all property-level debt. The Fund’s strategy is to acquire, develop, lease up and sell properties to provide attractive returns to investors. Experienced Sponsor with over 30 years of experience and a history of providing an average internal rate return to investors of 19% An identified pool of entitled development sites in Houston, Austin, San Antonio and Charlotte metro areas that will be ready to begin development when acquired by the Fund. Growth strategy intended to leverage the value created by the strong yield on cost in self-storage and office/warehouse that drives above average returns for development of these property types.Life of fund objective is 6-8 years and target return is a 19-20% IRR consistent with our track record.  Proceeds from the sale of each property will be distributed to investors as they occur.

In 2022/2023 AAA Storage saw a unique opportunity in the market. As self-storage emerged from the boom created by the pandemic and interest rates increased significantly, we believed that development activity would slow dramatically.The supply created by the pandemic boom and softening of demand for SS related to higher mortgage rates combined to slow or stop many new developments. We launched our first fund to take advantage of a market with dwindling new supply and intermediate term stability in demand and believe those same dynamics are in play for Fund 2. New development has slowed as we expected, with the development pipeline shrinking to under 3% of total inventory nationwide, and we believe this will create a seller’s market for well located properties as we liquidate Funds I and II.

Growth Fund 2 will invest in the ground up development of up to 8 self storage facilities and 4 office/flex industrial business parks. The Fund’s objective is to allocate its capital 60% to self storage and 40% to office/flex business parks. The strong yield on costs provided by both property types offers the opportunity to develop, stabilize and sell the funds’ properties in 4-5 years, harvesting the value created in the development process and providing above average time valued returns to investors.