CHICAGO--(BUSINESS WIRE)--Blue Vista Capital Management (“Blue Vista”) and H&M Development today announced the acquisition of a 100,000 square foot recreation facility to be redeveloped into a self-storage facility in Hialeah Gardens outside of Miami, Florida. The self-storage development will consist of a 962-unit Class-A, climate-controlled three-story self-storage facility. The project marks the first asset in a long-term programmatic relationship to develop self-storage throughout the Southeastern U.S.
Located in an irreplaceable infill site surrounded by a dense residential population, the project is within a three-mile radius of over 20,000 existing and for-sale residential units, as well as key retail spaces including Publix, Home Depot, Starbucks, CVS, Walmart, ALDI, Walgreens and a major shopping plaza. The project is easily accessible to several major highways including Route 27, I-75, and the Ronald Reagan Turnpike, with easy access to downtown Hialeah, Miami International Airport and downtown Miami. The project will be designed by Deerfield Beach-based architect Kenneth Carlson, and upon completion will be managed by Extra Space Storage. Construction is slated to begin in May 2023.
Daniel Masveyraud, a principal at H&M Development, said, “Self-storage is one of the most attractive property types to develop because there’s a favorable spread between yield on cost and market capitalization rates. There’s a lot of momentum in Hialeah Gardens, with significant residential and commercial construction as well as below equilibrium storage supply that positions the development of this facility for success. This is the first of several properties that we will be developing in this programmatic joint venture with the objective of exiting through a portfolio sale.”
Joey Dornbusch, Vice President at H&M Development, commented, “Self-storage is an increasingly popular asset class. While it is a profitable business, we are also able to create state-of-the-art, Class-A facilities that really beautify the surrounding neighborhood. The Hialeah Gardens facility will be an example of our capabilities designing facilities that fit the surrounding community. We are very happy with our partnership with Blue Vista, which brings invaluable experience and considerable knowledge of the self-storage sector.”
“This project represents Blue Vista’s self-storage strategy of acquiring and developing assets in supply-constrained markets with bourgeoning populations. To date, we’ve deployed over $500 million in total capitalization into the sector across 45 investments,” said Brandon Goetzman, Managing Principal & Co-Head of Equity at Blue Vista. “We are excited to launch a new JV with H&M and leverage their development and construction expertise in the self-storage sector. We look forward to completing this project with H&M and expanding our relationship in the future to identify additional self-storage assets located in markets backed by limited existing supply and high population growth.”
Steven Rudgayzer of Fried, Frank, Harris, Shriver & Jacobson LLP acted as advisor for H&M Development.
ABOUT BLUE VISTA
Blue Vista is a leading investment management firm focused on helping investors maximize returns through best-in-class real estate equity and credit strategies across the risk-return spectrum. Blue Vista offers investors the benefits of a vertically integrated platform, complementary strategies managed by experienced teams, and deep expertise as an owner, operator and lender across all property types and various markets in the U.S. and Canada. Since its inception in 2002, the firm has invested over $12.6 billion in total capitalization, with the goal of challenging the status quo, setting high standards and bringing a relationship-based, client-focused approach to real estate investing. For more information, please visit https://bluevistallc.com/.
ABOUT H&M DEVELOPMENT
H&M Development is an integrated construction and development company with over 50 years of combined experience in property development, general contracting, and shell construction. H&M specializes in delivering high-quality, durable institutional development projects across the major property sectors including commercial, retail, industrial and multifamily. Always keeping its partners in mind, H&M credits its success to its commitment to meeting all structural, aesthetic, and financial needs. H&M was founded by the Dornbusch family, with the goal of bringing the family’s Colombian construction company’s vision to the United States; In the 1950s Herbert Dornbusch founded Colombian construction company, Dorco, which has built over 40 million square-feet of commercial and residential property. Keeping the firm’s vision alive through all facets of the company, H&M regards its clients and associates as family; and as a result, takes pride in being reliable, honest, and efficient in all of its pursuits. For more information please visit http://www.hmdevelopment.net.