HPI Storage Fund IV Expands Capital Efforts

The Austin-based real estate fund targets self-storage investment opportunities, aiming for a $100 million total raise.

November 14, 2024

A Focused Strategy in Self-Storage Investment

HPI Storage Fund IV, LP, a Delaware-based limited partnership, has reached a milestone in its ongoing capital raise, amassing $55.36 million of its targeted $100 million goal. The firm specializes in investments in self-storage properties, leveraging its expertise in real estate to capitalize on the growing demand for secure storage solutions.

The issuer is headquartered in Austin, Texas, and operates under the management of HPI Self Storage Investments, LLC. This investment manager, alongside a general partner and its principals, oversees the fund's strategic operations. With its most recent launch in 2023, the fund represents a continuation of HPI’s strategy to deliver targeted returns through niche real estate segments.

Offering Details and Financial Structure

The current offering is structured under Rule 506(b) of Regulation D, which limits solicitation to accredited investors. As of November 13, 2024, the fund has 68 investors participating, leaving approximately $44.64 million available in the raise. The minimum investment threshold for participation stands at zero, signaling flexibility for accredited contributors to engage with varying capital levels.

While declining to disclose precise revenue or asset ranges, HPI Storage Fund IV underscores the significance of its administration and financing fees tied to the assets under management. These fees, coupled with development incentives allocated to affiliated entities, are laid out in the fund's confidential offering documents.

Operational Dynamics and Strategic Goals

HPI has ensured that its operational framework aligns with its long-term objectives. The general partner and investment manager receive administrative, financing, and development-based incentives to manage and grow the portfolio effectively. This structure is designed to ensure alignment of interest with investors, creating a mutually beneficial pathway toward achieving the fund’s return objectives.

A Growing Portfolio in Self-Storage Real Estate

The fund’s emphasis on self-storage aligns with trends in the real estate market where demand for secure, rentable spaces continues to rise. The sector has proven resilient, often considered a defensive investment in both economic booms and downturns. By strategically targeting this niche, HPI aims to generate consistent income streams while pursuing capital appreciation opportunities.