We are seeking approximately $1,706,245 of Equity commitments for Lehigh Flex Storage Program I, a ground-up flex storage development in Lehigh Acres, FL, alongside sponsor co-investment and construction debt financing. Investor capital will fund land acquisition, hard and soft costs, and reserves through construction, lease-up, and stabilization of the 56-unit, ~30,700 SF micro-suite facility. In exchange, investors receive a direct ownership interest in the project and are entitled to their pro rata share of distributable cash flow during the hold period, as well as proceeds from a future sale or recapitalization. Based on current underwriting, the opportunity targets investor-level returns of approximately 20.93% net IRR and a 2.22x net equity multiple over an estimated 56-month hold, though these figures are projections only and actual results may differ and cannot be guaranteed.
MULTIPE
Premier Location: Lehigh Acres is one of the fastest-growing communities in Southwest Florida, fueled by strong population growth, new housing development, and expanding commercial activity. The area demonstrates recession-resistant demand drivers and a notable imbalance in supply and demand for modern flex storage solutions.
Proven Development Model: The facility’s design follows industry best practices established in other successful Flex Storage developments, ensuring operational scalability, market competitiveness, and an attractive return profile for investors.
Structured Financing: Project debt is expected to be provided through the Sponsor’s preferred lending partner, complemented by committed equity capital to ensure efficient deployment and execution.
Thesis: Deliver a 30,730 SF small-bay flex storage/warehouse in Lehigh Acres, FL, aimed at trades, contractors, and e-commerce overflow. The micro-suite format broadens demand, keeps downtime low, and supports annual mark-to-market. Goal: develop efficiently, stabilize cash flow, and exit after seasoning with a strong development spread.
Site & Program: Single-story building with ~56 micro-suites (each ~400 SF plus mezzanine), straightforward circulation, and on-site parking. The bite-size units create diversified income (many small tenants vs. a few large) and require minimal tenant buildout, accelerating lease velocity and limiting capex.
Capital Stack & Uses: Fund with construction debt (~60%) and equity (~40%) to cover land, hard/soft costs, and fully capitalized interest/reserves. The structure targets an attractive yield on cost relative to prevailing market cap rates, creating value at stabilization and protecting returns against moderate exit cap expansion.
Leasing & Operations: Position as clean, secure, professionally managed flex storage with one-year leases, minimal concessions, and no TIs. Assumptions include modest vacancy/credit loss and lean OpEx, with taxes/insurance phased in. Annual repricing keeps rents at market while high unit count smooths any individual turnover.
Exit & Returns: Upon stabilization and seasoning, market the asset at a conservative terminal cap rate. Returns are driven by the spread between stabilized yield on cost and market cap rates, diversified cash flow from 56 units, and limited ongoing capex—supporting compelling unlevered and levered outcomes over a ~4.5-year hold.
Lehigh Acres (Lee County, FL) is a fast-growing, workforce-oriented suburb just east of Fort Myers, offering developer-friendly access to the Southwest Florida labor pool and regional logistics. The community has ~127k residents (median age ~35) and has continued to expand, with population and incomes rising year over year. It sits roughly 15–17 miles (≈25–30 min) from downtown Fort Myers and 13–17 miles (≈25–35 min) from RSW (Southwest Florida International Airport), providing efficient access for tenants and contractors. Proximity to I-75 (Exit 136) via Colonial Blvd./SR-884 helps tie the site to the broader Gulf Coast corridor.
The industrial backdrop is supportive: Southwest Florida’s tri-county industrial market has posted long-running positive absorption with ~3.6% overall vacancy in 2024 and active leasing momentum, underscoring demand for modern small-bay and flex product. RSW, a Top-50 U.S. airport, handled >11 million passengers in 2024 and is undergoing terminal expansion—another regional demand driver for service, construction, and light-industrial users.
Local and state investments have improved east-west mobility (SR-82 widening) and are advancing new connectors (Alico Road extension to SR-82), further enhancing access for trade and construction traffic serving Lehigh Acres.
Why it matters for this deal: growing population and workforce, near-airport/near-interstate location, tight regional industrial fundamentals, and ongoing transportation upgrades all support lease-up, rent growth, and exit liquidity.
Alico Road Expansion
The site is located between two large future road expansions that will undoubtedly redefine the way SWFL residents travel throughout eastern Lee County. Traditionally, residents of the surrounding communities must first travel West to 75 and then south to Fort Myers and Naples in their daily work commutes.
The expansion of the Alico Road and the Kingstone community connection will provide commuters with direct access to the south thereby completely eliminating the need to travel westerly towards 1-75. the projects are anticipated to drastically decrease drive times for southern commuters and will ultimately further accelerate the explosive growth occurring in the surrounding area.
