An interview with a self storage operator who sold his portfolio for $1.5 BILLION

I attended RE-convene in Los Angeles in September hosted by Moses Kagan. 280 real estate investors were in attendance. And we’re not talking about your local realtor or mortgage banker – we’re talking about folks with $100m real estate portfolios who are deep in the business of managing risk and acquiring real estate.

A quick sponsored note before we dive in:

Tax season is right around the corner and the folks at RE Cost Seg just let me know their fall / spring schedule is filling up and they’re considering raising their prices. They’ve already delivered 1/2 my cost segs this year and the depreciation is mouth watering. Reach out if you’re in the market – the proposal is free.

Professional engineering reports you can count on, and they do virtual visits to turn them around even quicker. Not sure what a cost seg is? Check out this thread.

A quick self storage update

With no homes selling (and the housing market in free fall) we are seeing new rentals slow down quite a bit. I don’t have the final data yet but I would guess new rentals in October are down about 25% vs last year across our portfolio. Occupancy is dropping slightly. This could be seasonality but it seems a bit amplified this year. I’ll report back.

There is a lot of stress in the real estate market right now. A lot of real estate syndicators, developers, operators are dealing with complete chaos inside their organizations. You aren’t hearing about it yet, but its there.

The time to buy real estate is right around the corner and we’re ready.

At Re-convene in September I sat down with Jay Schuminsky – the owner / operator of All-Storage.

He sold his portfolio of self storage facilities for $1.5 BILLION to Public Storage a few months ago.

The company was much much smaller when he took over at 31 years old after the sudden passing of his father. He tells the story of how he grew it, took giant swings with the development of 200,000 rentable square foot facilities, and ended up making the sale happen.

On top of that he did a 1031 exchange FOR THE ENTIRE SALE PRICE into several portfolios of multifamily assets.

Watch the interview here.


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About Me

I started the Sweaty Startup in December of 2018 because I believe the Shark Tank and Tech Crunch culture is ruining the real spirit of low-risk entrepreneurship.