The real estate investment universe may be awash in institutional capital looking for investment opportunities, but that doesn't mean that real estate companies and money managers don't need help making a match.
Private Mini Storage Ventures LLC, Houston, ran up against just such a dilemma. The firm has been around for decades and its seven-member executive management team has more than 100 years of combined self-storage real estate experience, but that didn't help in finding an institutional partner for a $50 million joint venture. The firm is seeking an institutional partner to invest alongside Private Mini Storage, which will invest 10% on every deal.
It ended up hiring placement agent Flint Creek Partners LLC, Fox River Grove, Ill. Flint Creek began to market the deal in early March, said John Nikolich, Flint Creek managing director and founder. Private Mini Storage has a large portfolio — 5.7 million square feet of property — but it needs more capital to continue growing, he said. "They have more opportunities than they can finance internally. They want to diversify their capital sources."
There's a lot of capital being raised in the market right now, but "it is not ‘come and get it,'" Mr. Nickolich said.