Dead Retail, Live Returns with Neil Henderson

Neil Henderson is a general partner and Director of Investor Relations at Nomad Capital, a Wilmington, NC-based private equity firm with a twist on self-storage: they buy vacant big-box retail buildings and convert them into climate-controlled storage facilities.The numbers behind their model are hard to ignore. Ground-up self-storage construction runs $120-130 per square foot and takes nearly three years. Nomad's conversions come in at $60-65 per square foot, acquisition to occupancy in 12-14 months. Half the cost, a third of the time.In this episode, we get into:- Why old Kmarts and strip malls are the perfect conversion targets- How vertical integration keeps construction costs at cost-plus-12% vs the industry standard 25%- Their current deal: a 171,000 sq ft strip mall in Rocky Mount, NC for $6M with seller financing- Why 2026 loan maturities could create a wave of distressed self-storage opportunities- The Sam Zell principle that guides every acquisition: buy below replacement cost- Neil's Las Vegas condo in 2005 and what it taught him about buying when everyone else is greedyLearn more about Nomad Capital at nomadcapital.usBook recommendation: "How to Break Up with Your Phone" By Catherine PriceElevista - Speed as a Service™Elevista Connect is the first AI-powered lead conversion system built for real estate investors. 🎧 Subscribe to Real Estate Underground for weekly insights on building wealth through real estate, without sacrificing your sanity.Additional Resources:Clark St Capital -> Passive real estate investments for busy business owners and executivesElevista -> AI SaaS for real estate investorsClark St Academy on YouTube -> Learn how to invest in real estateSocial Media:LinkedIn -> Ed Mathews (President at Clark St and Elevista)Heads up: If you find this week's book intriguing and you buy using our link, we receive a small commission that helps support the show. Thank you!