State of Storage with Mark McGuire

Mark’s Background: • Vice President of Investor Relations at Hearthfire Capital • LP on 20 deals • Raised $13,000,000 in capital • Done $28,000,000 in self-storage Mark’s Philosophy: • Recently, capital from office space is diverting to self-storage • 5 Major REITs in Self-storage: - Public Storage - Extra Space - Life Storage - National Storage Affiliates - Cube Smart ✔ The top 5 storages are making a big push to conduct all processes online; no human interaction o The only human requirement is for unit turns once a storage unit is vacated ✔ “You will get an increase in interest when you can minimize friction” ✔ Looks for locations with 50,000 or more square feet o Economies of scale o Only 1 person is required to manage an entire self-storage site regardless of site ✔ Looks for value-add opportunities such as deferred maintenance, no fencing and underutilized empty space on site ✔ Stabilized deal in self-storage is 92% physical occupancy and 92-94% economic occupancy Tips for Investors: ✔ Ask yourself, “What will cause this project to fail?” ✔ Ask this question before investing in any deal Contact Information: http://investingwithmark.com/

Episode 68 of the Jake & Gino: Real Estate Investing & Multifamily podcast, hosted by Jake Stenziano and Gino Barbaro, titled "State of Storage with Mark McGuire" was published on April 23, 2022 and runs 32 minutes.

April 23, 2022 ·32m · Jake & Gino: Real Estate Investing & Multifamily

Summary

Mark’s Background: • Vice President of Investor Relations at Hearthfire Capital • LP on 20 deals • Raised $13,000,000 in capital • Done $28,000,000 in self-storage Mark’s Philosophy: • Recently, capital from office space is diverting to self-storage • 5 Major REITs in Self-storage: - Public Storage - Extra Space - Life Storage - National Storage Affiliates - Cube Smart ✔ The top 5 storages are making a big push to conduct all processes online; no human interaction o The only human requirement is for unit turns once a storage unit is vacated ✔ “You will get an increase in interest when you can minimize friction” ✔ Looks for locations with 50,000 or more square feet o Economies of scale o Only 1 person is required to manage an entire self-storage site regardless of site ✔ Looks for value-add opportunities such as deferred maintenance, no fencing and underutilized empty space on site ✔ Stabilized deal in self-storage is 92% physical occupancy and 92-94% economic occupancy Tips for Investors: ✔ Ask yourself, “What will cause this project to fail?” ✔ Ask this question before investing in any deal Contact Information: http://investingwithmark.com/

Episode Description