Investors

Our Investment Philosophy and Targets

SDG is focused on providing investors with high growth potential as well as a long-term, stable income. We achieve that goal by utilizing a multi-level investment strategy, which includes the development of facilities built from the ground up as well as the purchasing of existing assets.

Ground Up Development

• We look for the best locations with retail exposure
• High traffic locations
• Growing residential communities in the trade area
• We target our underwriting toward the following criteria:
  • Stabilized Yield of 8-9%
  • Targeted IRR Range of 18-20%
  • Targeted Equity Multiple of 1.5 to 2.0 X

 

Existing Facilities

Our intent is to provide safe and stable returns from existing and proven cash-flowing properties as well as the opportunity for high returns and the wealth creation typically seen with ground-up development or existing cash-flowing assets that offer added-value.

 

Targeted Portfolio Profile:

• Land for existing ground-up development properties.
• Existing Self Storage facilities in secondary and tertiary markets with a “story”.

 

Core Strategies:

• Ground-up development
• Existing added-value acquisitions in tertiary and secondary markets.

 

Investor Profile:

• Accredited investors

Past Investment Offerings

Happy Valley Self Storage Facility

1740 Happy Valley Road | Phoenix, AZ

Happy Valley Self Storage was conceived in 2017. It was fully entitled and delivered to market on time and on budget in May 2018. On budget here means we executed the construction with fewer than 1% change orders on the project. Some highlights of the project include:

• 80,000 SF 90% conditioned space with first floor drive-up units
• Expandable to 100,000 SF
• State-of-the-art security
• REIT Quality Design
• Situated across from USAA’s 2000-unit Master Planned community
• Leased at 60% in the first year of operation

We secured an unsolicited offer from a private REIT 8 months after we opened. The highlights of the deal follow:

• 23% IRR on investor equity
• Two-year holding period
• 1.56X multiple on investor equity
• $25,000 Minimum Limited Partner Investment

Red Mountain Self Storage Facility

5615 McDowell Road | Mesa, AZ

Red Mountain Self Storage was conceived in 2018. It was fully entitled and delivered to market in October 2019. Despite early challenges with rising construction costs, we brought the project in on time and within 1% of the revised budget. Some highlights of the project follow:

• 95,000 SF 90% conditioned space with first-floor drive-up units
• 40,000 SF of covered RV and boat storage
• State-of-the-art security
• REIT quality design
• Located in NE Mesa and protected by many barriers to entry
• Leased at 60% in the first 12 months of operation

We secured an unsolicited offer from an “Exchange” buyer 14 months after we opened. Highlights of the sale are as follows:

• 1.9x Equity Multiple
• 21.5% IRR to Investors

*The statements and information contained herein do not constitute a guarantee on performance or a guarantee of return on money for any future investments. The investment interests have not been approved or disapproved by the Securities and Exchange Commission or any state securities commission nor has the Securities and Exchange Commission or any state securities commission passed upon the accuracy or adequacy of the statements contained herein. Any representation to the contrary is a criminal offense.