Storage California Ventures (SVC) is an Orange County California based self storage real estate company. Our goal is to own self storage real estate properties that offer high cash flow returns with the opportunity for long term capital appreciation. We are an entrepreneurial group of individual investors, who look to purchase self storage investment properties in Southern California, specifically in the areas of Orange County, the San Gabriel Valley, and Coastal San Diego. Go here to see a great example of a self storage investment, check out San Clemente Storage.
Why Self Storage Property Investments?
With prices at an all time high, and and significant investment interest from Wall Street Investors, Self Storage Investments are Booming and considered one of the biggest ticket properties in commercial real estate today.
It is easy to see why there is such high demand for self storage property investments, self storage facilities have high margins, consistent cash flow, and the ability to perform well in economic downturns.
Self Storage property investments are now considered to be “fairly recession proof”, with strong real estate income fundamentals. For example in 2012, the four largest publicly traded self storage REITs brought in an average return of 19.11% with rental revenues up 6.6% compared to 2011. We also like the fact that Self storage contracts are typically month to month, which allows landlords that unique ability to increase tenants’ rents fairly easily. Unlike other real estate assets, self storage operators do not need to pay leasing commissions and costly tenant improvements allowances.
We Buy Properties Where There is Limited Supply
We look to buy self storage properties in Cities that have imposed laws or the similar to prohibit new development of self storage facilities. We consider storage units to be a commodity, and do not want to have a storage facility located in a City where large amounts of new competing storage units can developed. New storage facilities offer significant discounted pricing that can significantly hurt the ability to increase rents for exiting self storage operators.
Many Cities now limit the growth of self storage facilities due to the fact that they usually are large in stature – over 50,000 square, and employ a minimal number of employees for a large facility. At the end of the day, Cities want employers who are going to bring in large amounts of jobs, and self storage operators simply do not do that, usually employing no more than 5 people.
SCV will buy highly occupied (over 85%) self storage investment properties on a CAP RATE basis between 6% to 8.5% depending on the quality of the facility and its location. Additionally, we will purchase under achieving properties that have occupancy less than 80%. SCV will typically invest 25% to 35% of the purchase price with investor equity and fund the remainder of the purchase price with a long term loan.
ACE in the Hole – What Makes Us Different?
Besides the fact that we have been successful owners and operators in the self storage industry for the past 11 years, we are experts in SEARCH ENGINE OPTIMIZATION, which gives us a keen advantage over our competitors in getting self storage facilities high internet advertising exposure. The fact is that over 50% of new business for most self storage operators is generated from leads derived from the internet. We are experts in getting high rankings for the most important keyword terms that deliver qualified leads for self storage rentals. We simply can beat the “big boys” in internet advertising, which gives us a unique advantage over the competition. Are you interested in seeing the type of work that we have done? Go to your internet browser and type in storage San Clemente, and you can see these outstanding search results yourself!
Interested in Investing in Self Storage?
We are looking for self storage investor partners. Our minimum investment requirement is $500,000. If you have interest, please contact us using the contact form below:
Perhaps your an investor who does not want to invest $500,000. Did you know that you can purchase shares in a Publicly Help Self Storage REITs? Go here to check out the very profitable opportunities offered by Self Storage REITs now.