On Monday, Madison Capital Group, a Charlotte, North Carolina-headquartered private equity investor that has distinguished itself in recent months by buying up big box retail properties and turning them into multifamily and self-storage properties, announced a new partnership aimed at supporting its expansion into the U.S. Sun Belt. The company will receive $75 million in growth capital through a venture with Denver private equity investor FrontRange, which invests strategically in real estate as a GP in high-growth real estate-related businesses.
Earlier this spring, Madison Capital Group announced the purchase of two vacant Sears box stores located in high-growth markets, specifically Boise, Idaho and Savannah, Georgia, with plans to re-develop each box into a mixed-use development, including residential housing and retail. The company says it has a “robust pipeline” of other disused big box retail stores that it intends to repurpose along similar lines.
Beyond its-big-box redevelopment strategy, in April, Madison announced plans to develop a 280-unit apartment complex in St. Johns, FL, its first development in the Jacksonville area, but part of an active pipeline of Florida deals in Orlando, Tampa and Bonita Springs.
Madison Capital Group also owns a self-storage company, Go Store It, which operates 57 different self-storage properties in Georgia, Florida, Tennessee and the Carolinas.
FrontRange, for its part, has committed more than $700 million to various real estate platforms and properties since its establishment in 2010. The company invests on behalf of institutions and high-net-worth individuals.
“We are thrilled with the new partnership and the capital it provides our various investment strategies. In multifamily, we see tremendous need for quality suburban housing throughout the Carolinas, Georgia, Florida, and Texas,” Madison Capital Group Founder and CEO Ryan Hanks said. “In self storage, our Go Store It platform continues to expand nationally through both development and acquisitions. We were able to play offense during the pandemic and we are continuing to see interesting opportunities in our target markets.”
“We are excited to partner with Madison Capital, which has demonstrated its ability to generate attractive returns for investors in both the multifamily and self storage sectors,” added FrontRange Capital Partners CEO David Robertson. “We have been impressed with the Madison team’s ability to rapidly scale their operating platform over the past few years, and share their view that multifamily and self storage properties in their target markets are likely to exhibit very attractive demand and growth dynamics for the foreseeable future. We look forward to being a part of this next phase of growth for the company.”