Real estate first. Solar creates the additional value.
SunVault buys stabilized self-storage facilities whose in-place cash flow supports the investment on its own. Where a roof is suited to solar, the Program turns the roof into a second source of value, designed to return invested capital sooner while the Fund keeps the property.
A coordinated transaction designed to create a second source of property-level value.
Identify fundamentally sound self-storage properties at a disciplined basis. The Fund forms a single-purpose subsidiary (Facility SPV) and buys the property, typically with up to 70% debt.
Evaluate conventional real estate fundamentals and solar feasibility in parallel. A cost segregation study identifies components eligible for accelerated depreciation.
The Facility SPV grants roof and site rights to Fortified Solar LLC, the affiliated Solar Affiliate, which replaces the conventional roof with BIPV infrastructure. The property pays nothing for the installation.
The Facility SPV receives Solar Site Payments following the rights granted, at mechanical completion, over time or at agreed milestones. Targeted within about 12 months of acquisition.*
Available proceeds and applicable tax benefits may be distributed to investors or redeployed into the next acquisition, at each investor's election.
Maintain exposure to property cash flow, active asset management and potential long-term appreciation.
*Form, timing and amount of Solar Site Payments vary by property and depend on interconnection and permitting timelines outside the manager's control.
From cost center to productive infrastructure.
A self-storage roof is large, unobstructed and structurally simple, yet it produces nothing. Most owners treat it as a future replacement bill. SunVault treats suitable roofs as host sites for a separate solar project.
Conventional Roof
Ages toward a major replacement cost · Funded from reserves or priced into the purchase · Generates no revenue · Exposure to leaks and tenant-contents claims · Utility costs paid at retail
The SunVault Roof
Replaced with a new BIPV steel roof at no cost to the property · New useful life warranty* · May generate Solar Site Payments to the property · Lower capital reserve needs over the hold · Possible on-site energy savings, where utility rules allow
*Warranty, maintenance and removal obligations rest with the Solar Affiliate under the applicable site agreement. Energy savings depend on the utility and state.
A large market still outside of REIT control.
Flexible Revenue Model
Month-to-month leases permit frequent repricing and active revenue management. Relocation, downsizing, life events and small-business needs drive demand.
Low Operating Burden
Limited tenant-improvement and leasing-commission requirements compared with many other commercial property types.
Fragmented Ownership
About 70% of U.S. self-storage square footage is outside REIT-managed ownership, creating a broad acquisition universe for disciplined buyers. source citation needed
Easing Supply
New construction is the main driver of rent pressure in self-storage. Annual new supply is forecast to fall by about a third by 2028. source citation needed
Market of 2.1B+ square feet of national net rentable self-storage space figure to be verified, dated and cited before publishing.
Designed to accelerate the return of invested capital.
Cash Distributions / Return of Capital
Solar Site Payments to each property are distributed or reinvested at investor election. Distributions representing a return of capital are expected to be largely tax-advantaged when received.
Depreciation Allocation
Cost segregation and bonus depreciation may accelerate deductions on eligible property components, which may substantially offset tax liability on Fund distributions.
Targets, not guarantees; ~12-month target is per property, on a combined cash and tax-benefit basis. Return of capital reduces each investor's tax basis. Use of losses is subject to the passive activity loss rules. Treatment depends on actual Fund allocations and each investor's tax position; bonus depreciation is not guaranteed. The five-year lock-up and redemption limits still apply. Consult your own tax adviser.