Hwy 380 Self Storage

The thesis

Hwy 380 was the furthest thing from a stabilized asset: a self-storage facility running at 16% occupancy. At that level, the problem is almost never the real estate — it is the operation. Mismanagement had left a functioning facility performing like a vacant one.

That is the profile we look for in deep value-add: an asset priced off its broken operations rather than its potential, in an asset class where the fix is operational, not structural.

The plan

Storage lives and dies on management — pricing, marketing, collections, and curb appeal. The plan was to rebuild the operation from the ground up and let occupancy climb toward what the trade area would actually support.

Execution

Over the hold, the facility was taken from 16% occupancy to a performing, saleable operation. Every point of occupancy gained at a storage facility flows almost directly to the bottom line — which is why the turnaround translated into the exit numbers it did.

The outcome

Full cycle in 27 months: a 2.90x equity multiple and a 61.49% actual IRR — the strongest result in the track record to date. The lesson is the firm’s whole thesis in miniature: buy the broken operation at the right basis, fix it with your own hands, and sell the stabilized result.