DXD Capital is breaking ground this week on a $18.7 million self-storage facility in Miami, The Real Deal has learned.
The Albuquerque-based real estate development and private equity firm is planning a five-story building with 865 units at 3500 Northwest 35th Street in the city’s Allapattah neighborhood, according to a press release. The facility will be managed and operated by Extra Space Storage.
In 2021, DXD Capital paid $1.4 million for the nearly 1-acre site, records show.
Allapattah is in need of new self-storage sites due to the development of new multifamily projects in the neighborhood, said DXD Capital Managing Director Martha Hargrove in a statement. The Allapattah multifamily submarket has an occupancy rate of 96 percent, and nearly 5,000 apartments are under construction or are in the planning phase, she added.
The influx of renters is driving demand for self-storage facilities, Hargrove said, noting that apartment dwellers are three times more likely to use them.
Multifamily builders targeting Allapattah include Lissette Calderon’s Neology Life Development Group, which has three apartment projects in the neighborhood. In August, Neology scored a $57.5 million construction loan for Fourteen Residences Allapattah, a two-building complex with 237 units planned for 1470 Northwest 36th Street.
Neology is also developing The Julia, a 14-story, 323-unit apartment project at 1625 Northwest 20th Street. In 2021, the company completed No. 17 Residences, a 13-story building with 192 apartments at 1569 Northwest 17th Avenue.
DXD Capital’s new self-storage facility is near Miami Freedom Park, a massive planned mixed-use project anchored by a 25,000-seat Major League Soccer stadium. The development is proposed by a partnership led by Miami businessman Jorge Mas and retired international soccer star David Beckham.
Led by principals Drew Dolan, Cory Sylvester, James de Gorter and Gary Delaney, DXD Capital last year raised $53 million for a fund that will finance the development of 10 self-storage projects across the country, including the Allapattah facility, according to published reports.