Hearthfire Holdings, a real estate and private-equity firm focused on self-storage, has promoted Pete McDaniel from director of construction to chief development officer. The company also launched an investment opportunity for a new development in Taylor, Michigan, according to separate press releases.
McDaniel has more than 22 years of real estate development and construction-leadership experience across multiple sectors. At Hearthfire, he’s helped complete more than seven self-storage projects in the last year. Prior to joining the company, he served as development manager for real estate investment trust Extra Space Storage Inc., overseeing projects across the Midwest and Northeast. He began his career as a general contractor, managing multi-million-dollar developments for public and private clients before transitioning to ownership-side leadership, the release stated.
In his new role, McDaniel will oversee Hearthfire’s development strategy with a focus on institutional-quality standards and investor-aligned outcomes. He’ll also lead its new division, Hearthfire Development Partners (formerly Hearthfire Storage Partners), which extends the company’s development and partnership model to independent self-storage operators and joint ventures.
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“Pete’s promotion reflects both his expertise in building a scalable construction model for the firm and his deep alignment with Hearthfire’s values,” said Sergio Altomare, cofounder and CEO of Hearthfire. “His proven ability to deliver complex projects with precision while keeping investors’ trust at the forefront makes him the right leader to guide our expanding development platform.”
The investment opportunity in Taylor offers two equity classes, both providing a preferred return and profit split, with a tax-incentive model in which all bonus and standard depreciation benefits are passed to limited partners. Participants in the class-A, early-commitment bonus, available through Sept.15, will receive a 10% preferred return, plus 85% of the profits until the project reaches a 17% internal rate of return (IRR), then 60% thereafter. Investors in class B with standard terms will receive an 8% preferred return, plus 75% of profits until a 15% IRR is reached, then 50% thereafter.
In addition, a select number of investors may take advantage of Hearthfire’s Dual-Return Strategy investment model that combines an income fund with a common equity investment for current cash flow and long-term equity appreciation.
Once built, the self-storage facility will be managed and branded by Extra Space, the release stated.
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“This portfolio expansion builds on our momentum in Romulus [Michigan] while taking complete advantage of Detroit’s amazing renaissance,” said Altomare. “With Extra Space Storage management and the dynamics of the market, we believe this will be highly desirable for accredited investors.”
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