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:

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