Veritas Group to Close Storage Units Income Fund II by Year’s End

Veritas Group, a real estate investment platform focused on the multifamily and self-storage sectors, announced that Storage Units Income Fund II, LLC, will close to new investments on or before Dec. 31.

Sponsored by Storage Units Capital, a self-storage real estate investment firm, the fund increased its additional preferred return to 5% for investments made on or after May 1, 2024. It also reduced ongoing management, acquisition, disposition, and advisory fees by a total of 5%.

“We are thrilled with the success of this fundraise and grateful for the strong support we have received from a diverse group of investors,” said Sean Casterline, chief executive officer for Veritas Group. “Investors continue to gravitate to self-storage as a recession-resilient asset class that generates steady cash flow and high margins.”

Since its launch in August 2023, the company has raised more than $35 million, funding eight self-storage facilities with more than 896,000 rentable square feet in high-demand markets across the Southeast.

As part of its lifecycle planning, the fund expects to undergo an independent portfolio valuation in early 2026, a milestone that may offer a tax-planning opportunity for certain high-income investors.

With assets expected to be in various development stages, the company said the valuation will likely reflect construction-phase economics, including upfront and non-recoverable costs. This could result in a temporarily reduced fair market value compared to stabilized operations.

For investors utilizing retirement accounts, the valuation window may be particularly beneficial for those considering a Roth IRA conversion, according to Veritas Group. Taxes are assessed based on the asset’s value at the time of conversion.

Converting during a lower valuation period can allow investors to pay taxes on a reduced amount, positioning future appreciation and distributions to occur on a tax-free basis. 

Veritas Group is a fully integrated real estate investment platform focused on institutional-quality multifamily and self-storage assets, primarily in the Southeast. The firm partners with financial professionals to deliver risk-adjusted returns across market cycles.

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