Reliant Launches Inaugural DST With $8.1M All-Cash Alabama Self-Storage Offering
Reliant Real Estate Management launched its first Delaware statutory trust offering on June 30, an $8.1 million program backed by a self-storage property in Athens, Ala., that the firm said is unencumbered by debt. The offering, Reliant/Midgard Athens DST I, or RMAT, targets a close date of June 30, 2027.
The acquisition price of the property was not disclosed.
The underlying asset is a 459-unit self-storage facility totaling about 60,510 rentable square feet, built in 2021 and 91% occupied at the time of the offering. It includes climate-controlled and non-climate units, gated keypad access, 24/7 video surveillance, and on-site U-Haul rental availability, and is operated by Midgard Self-Storage, Reliant’s property management affiliate.
Reliant is targeting a 4.5% distribution rate for investors, the company said.
“The launch of Reliant’s DST platform with RMAT is a meaningful step forward for us and reflects our commitment to delivering institutional-quality real estate investment products to the private wealth community,” said Chris Zollo, managing director at Reliant Real Estate Management. “We look forward to working with financial advisers and their clients to provide access to storage real estate and tax advantaged solutions within private wealth.”
The all-cash offering is structured to give accredited investors fractional ownership interests eligible for Section 1031 exchange treatment, subject to individual investor eligibility. Interests are offered under Regulation D, with a minimum investment of $50,000. Reliant engaged ARKap Markets as dealer-manager and Peak Capital Solutions for wholesale distribution.
“The Athens, Alabama metropolitan area has experienced rapid population growth and significant employment expansion driven by private investment, contributing to elevated occupancy and sustained rent growth across the submarket,” said Todd Allen, chief executive officer and managing principal at Reliant Real Estate Management. “RREM’s investment thesis for RMAT is predicated on these favorable attributes, and the launch of our DST platform will allow us to provide similar tax advantaged solutions to accredited investors through self-storage.”
RMAT is Reliant’s first DST offering, complementing what the company described as a value-add fund series of five private, Regulation D-exempt closed-end funds.
Founded in 2010, Reliant has completed 86 full-cycle investments and grown to $1.6 billion in assets under management across more than 100 properties in more than 10 states, according to the company.
Based in Roswell, Ga., Reliant is a vertically integrated self-storage owner-operator whose facilities operate under the Midgard Self Storage brand and is led by managing principals Lewis Pollack and Todd Allen. The firm has raised capital primarily through a series of private funds for accredited investors and has partnered with institutional real estate investment manager Harrison Street on self-storage portfolio transactions.
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