DXD Capital, a real estate and private equity fund based in Albuquerque, NM, is building a $18.7-million self-storage project located the Allapattah submarket of Miami, FL.

The facility will be a five-story building with 865 units situated in an area with strong rental growth. According to DXD Capital, Allapattah is a prime market for self-storage due to its high multifamily occupancy of 96.79%, with 4,913 multifamily units planned for delivery. Apartment dwellers are three times more likely to use self-storage.

The Allapattah project is part of DXD Capital’s continued investment in self-storage development. According to the company, self-storage experienced strong rental rate growth through the pandemic and represents one of the fastest growing investment opportunities in the US.

“Real estate professionals have a rough understanding of land costs, construction costs, property taxes and many different metrics,” said Martha Hargrove, DXD Capital managing director – investor relations. “From there, we can determine what rental rates we must achieve to deliver our investors outsized returns.”