Hearthfire Holdings Partners With Extra Space In Detroit Area

Hearthfire Holdings, a premier real estate investment company focused on institutional-grade self-storage assets, has announced the introduction of a high-end investment prospect in Taylor, Michigan, and the successful closing of a shovel-ready development project in Crest Hill, Illinois. The transactions mirror the firm's ongoing emphasis on high-growth, undersupplied markets throughout the Midwest.

According to Hearthfire Holdings, Taylor, Michigan, is strategically positioned for Detroit's economic rebirth. Adding to a ground up project acquired last year and now open for business in the adjacent city of Romulus, Hearthfire's Taylor acquisition offers investors a Class-A self-storage asset directly from a national developer with a Certificate of Occupancy - an ideal entry point during the lease-up process.

The Taylor opportunity offers two equity classes, both providing a preferred annual return before profits are split:* Class A - Early Commitment Bonus (commit by September 15, 2025): 10% preferred return; investors receive 85% of profits until the project reaches a 17% internal rate of return (IRR), then 60% thereafter.* Class B - Standard Terms: 8% preferred return; investors receive 75% of profits until a 15% IRR is reached, then 50% thereafter.

Market benefits related to this opportunity include:

• Strategic location close to I-94, I-75, and Detroit Metro Airport.
• Underserved need for self-storage in drive-up and climate-controlled properties.
• Deep tenant pool powered by manufacturing, logistics, and residential demand.
• Wayne County's multibillion-dollar infrastructure investments.
• Operational synergy with the existing Romulus facility without duplication.

Extra Space Storage - the country's largest self-storage operator - will operate the Taylor facility, bringing institutional-grade operational expertise.

"This expansion builds on our momentum in Romulus while taking complete advantage of Detroit's amazing renaissance," said Sergio Altomare, Hearthfire Holdings CEO. "With Extra Space Storagemanagement and the dynamics of the market, we believe this will be highly desirable for sophisticated investors."