DXD Capital to Harness Private Equity Growth in Self-Storage Space

Albuquerque, New Mexico--(Newsfile Corp. - February 20, 2023) - DXD Capital, a data-driven real estate and private equity firm based in Albuquerque, NM, is seeking to capitalize on the strong performance of the self-storage industry through two private equity funds and individual investments.

According to DXD, self-storage is among the real estate sectors that has performed strongly in the wake of the COVID-19 pandemic, with many residents clearing out space in their bedrooms and garages to create home offices and gyms. There is also increased demand for commercial users. The demand drivers for self-storage are very diverse. Any disruption increases storage demand with major changes in people's lives, such as relocating for a new job, marriage, divorce and moving to/returning from college.

DXD's first fund is a fully discretionary limited partnership (LP) fund, which was intended to raise $50 million and was oversubscribed at $53 million. According to Drew Dolan, DXD Capital principal and fund manager, the LP fund has fully committed to 10 self-storage projects across the US, with two that have completed construction, five that are under construction, and three set to start within the quarter.

Dolan said that in the process of raising the LP fund, the team found that investors wanted additional flexibility, such as the ability to do a 1031 exchange, invest in opportunity zones, or contribute land. This resulted in DXD creating a second fund, which was structured as a general partner (GP) fund.

"The GP fund had an original goal of $25 million, which we raised in a month. We expect to reach our hard cap of $35 million soon," Martha Hargrove, Managing Director - Investor Relations said.

The GP fund will be a 10% equity partner in about 40 self-storage deals over the next 2.5 years, and DXD has closed on the fund's first project, which will be located in an Opportunity Zone in Daytona, Florida.

DXD's ability to invest in a fast-growing number of self-storage projects is backed by its proprietary technology that allows it to identify a large number of suitable sites to build self-storage projects, based on the location's population, rental rates and other characteristics.

"We increased efficiency around site selection by using data analytics, which allows us to examine more self-storage opportunities than any other developer," Hargrove said.

According to Hargrove, DXD has attracted a wide variety of investors, including family offices, high net worth individuals, and institutional investors of different sizes.

"We have a handful of deals that will be closing in the next month or two," Hargrove said. "We have two projects in Miami, one on Long Island, one outside Phoenix, and another on Maui. Our pipeline has around 15 projects in it, representing over $200 million in equity need over the next couple of years. Our goal is to become the US' best investor in self-storage with outsized returns for our investors."

About DXD Capital

DXD Capital is a full scale, vertically integrated real estate developer and private equity fund that harnesses data analytics and expects to generate outsized returns for investors. Their methods anticipate outperforming traditional development and acquisition approaches. DXD has offices in Colorado, Connecticut, Pennsylvania, and New Mexico with development managers stationed throughout the Southeast.

Media contact:
Name: Haeley Belt
Email: haeley@dxd.capital
Website: https://www.dxd.capital/

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