?? It's Official: Announcing Our Newest Partner
In This Issue:
Hello!
The weather isn't the only thing heating up this month—we have some new updates to share and more exciting developments just on the horizon!
After kicking off June with our very first Self Storage Industry Update, Hearthfire announced a strategic partnership with Atomic Storage Group (more details below). Later this month, I’ll also be speaking at two events—virtually at the?Storage Investor Nation Summit?and live at?InvestHER CON. We're only a few weeks in, and June is already shaping up to be a monumental month for the entire Hearthfire team!
As we navigate our current landscape and plan for the future, we've put together this?Investor Sentiment Survey. We sincerely appreciate you taking a few moments out of your day to respond!
Sincerely,
Corinn Altomare & the Hearthfire Team
Bird-In-Hand Self Storage - Our First Self Storage Disposition
After going full-cycle on six multifamily syndications, we are thrilled to report we are now progressing towards our first self storage syndication disposition.
The timing for a disposition is ideal for where the property is in terms of revenue performance and the market climate for sellers in self storage. The sale price we are under agreement for exceeds our Year 5 projected sale price and total return from our underwriting at time of acquisition. With this return, we are exceeding the 5-year total return in under 3 years.
With this underway, and in an effort to defer capital gains, we are actively working with our legal, tax, and acquisitions teams to prepare to execute a 1031 Tax Deferred Exchange into a new investment opportunity. We have already identified a property to trade into, which offers the same—if not greater—value-add potential than Bird-in Hand Self Storage.
This is exactly the vision that we planned to achieve for our investors when we began our journey in syndications:
1. Start with modest-sized properties;
2. Implement our business plan to drive value, and
3. Use 1031 exchange to "trade-up" into bigger and better properties over time
We are thrilled to see the hard work and dedicated execution of the business plan come to fruition.
What is a 1031 exchange??This whitepaper from our 1031 exchanger is packed with information including:
We have used 1031Corp to facilitate placement of 1031 funds by an investor into our Crete, IL acquisition and look forward to continuing to provide our investors value through their services in this next exchange.
Hearthfire Holdings is pleased to announce we have partnered with Atomic Storage Group, a national full-service self-storage management company.
The partnership will enable Hearthfire to continue focusing on capital management, acquisitions, and asset management to build a portfolio of properties and position our companies and investors to scale faster and drive excellent returns for years to come.
Read the full press?release?below to learn more about this strategic partnership.
In other self storage industry news:
?Whitepaper: Keys to Developing a Successful Boat & RV Storage Project
Continuing along the topic of RV and Boat storage from last month,?here is a whitepaper?produced by Mako Rabco, "Keys to Developing a Successful Boat & RV Storage Project." It gives a good high-level overview of the process.
The Rise of Secondary and Tertiary Self-Storage Markets
In "The Rise of Secondary and Tertiary Self-Storage Markets and What It Means for Buyers and Sellers," Jane H. Sauls, broker and co-owner of Sauls Storage Group LLC, breaks down why has there been so much focus on secondary and tertiary markets, and how buyers and sellers can strategically position themselves for success.
Hearthfire Capital acquisitions are staying true to the same fundamentals that have guided our buying criteria from the beginning: identifying self-storage properties in secondary and tertiary markets with value-add potential, including mismanagement, revenue management, tech stack optimization, and expansion.
"Keep in mind, self-storage was born as an "unmanned" business model, and several groups have recently become pacesetters in refining the idea to make it truly effective and efficient. The coronavirus pandemic accelerated the acceptance of the automated concept, as customers demonstrated that they prefer the ability to rent a unit online 24/7and sign a lease without any in-person interaction.
Not having to encounter anyone on site has become ideal for consumers. As a result, proven automated processes have made ownership in smaller self-storage markets easier. Facilities in secondary and tertiary markets shine brightly when given the opportunity to become even more desirable to investors near and far. Thanks to the strong performance of the sector during a down economic climate and other market uncertainties, investor sentiment is stronger than ever."
In local Philadelphia Real Estate and Property Management News:
Heads up to property owners within the city of Philadelphia! On May 9, 2022, the City of Philadelphia released updated assessed values for all properties in the city. As the first citywide reassessment in three years, the increases to assessed values were significant. Overall, the median increase for single-family residential properties is 31%, but the values for many properties have doubled or even tripled. For background, in Tax Year 2019, assessments increased by 10.5% on average.
This interactive map?shows much assessments changed for the more than 400,000 single-family residential properties in the city.
领英推荐
This opinion article?by the Philadelphia Inquirer pulls no punches, stating "the new assessments are so fatally flawed the city needs to go back to the drawing board."
From the Philadelphia Office of the Controller
Analysis also found:
"….the areas with the most dramatic increases were concentrated in North, West, and South Philadelphia, in some of the poorest areas of the city. We’ve provided both the map of property assessment increases and poverty rates so you can compare, but it’s clear that this process needs to be better."
On a larger scale, at the national and state level, keep your eyes open for growing rent control laws. Pennsylvania joined the list of states that have recently introduced legislation to expand rent control in some way.?This article?from American Apartment Owners Association goes into more detail.
Whether you are a property owner looking to continue to hold, buy, or sell, it is critically important to keep a pulse on local, state, and national legislation movements to inform your investment strategy and next steps, especially as we enter turbulent times—stay vigilant.
The rise in gas prices is dominating news headlines—is this putting a damper on the effervescent RV rental market?
Not exactly.?This article?breaks down why:
"We compared the cost of an RV vacation to the cost of a typical hotel stay or airfare expense, which have both increased by 40 percent and 25 percent respectively," said Jennifer Young, co-founder & CMO of Outdoorsy. "In the RV world, those prices don’t have to go up because we don’t carry all the fixed costs associated with renting a hotel or airline, so as a budget option for a vacation plan, those other types of vacations are proving to be almost too expensive."
For our RV owners and users: Have you heard of?myrvresource.com? We all know breakdowns and emergency repairs happen at the most inconvenient places and times on the road!
?A free membership with this service:
Check it out:?myrvresource.com!?
Easily accessible from our home base in Philadelphia, Virginia Beach is a destination we have personally explored—we've seen the wild ponies of Chincoteague Island and enjoyed the sand and sea along the Virginia shore during an epic month-long RV adventure next summer (a tale for another time).?
This article?gives a great overview of some of the highlights of Virginia shoreline, so if you haven’t yet considered it, take a look!
?Over the next few weeks, I am speaking at?two?events—one virtual, one live. Please join me and tell your friends
We are passionate about sharing how life-changing our journey into self storage investing has been.
Storage Investor Nation Summit
The ?????????????? ???????????????? ???????????? ???????????? is next week. Join me on Thursday, June 16 from 12PM-1PM EST for my live, virtual session: ???????????? ????????: ???????? ???? ?????????? ???? ?????????????? 11 ???????????????????? ???? ?????? ??????????.
The Storage Investor Nation Summit will be 100% virtual. Even if you are unable to attend, registration will provide full access to replays.
For $100 off your ticket, use my promo code ????????????????????!
To get your ticket and view the full event line-up, visit storagesummit.com.
InvestHER CON
I am incredibly excited for first live conference put on by The Real Estate InvestHer community. I have been involved with this community since 2018, and if you or female loved ones in your circle have not yet checked out this resource, I cannot urge you enough to do so! There are 55 Meetups across the US, a weekly podcast, and a free Facebook community—all delivering on the mission of this community to "Empower women to a financially free and balanced life through real estate."
More than a traditional real estate conference, this is a full circle transformational experience—bringing top notch experts in real estate investing, business strategies and self-care who will push the boundaries, expand the mindset, and promote deeper connections among the attendees.
Join us June 23-24 in Charlotte, NC!
Get your ticket here:?https://hfire.co/InvestHerCON.
Sergio appeared on The Self Storage Investing Podcast, covering "Effective Business Scaling Strategies" with host Scott Meyers.
Sergio talks about the mindset shift, strategy, and actions that took us from our first facility acquisition in 2019 to our current portfolio now of 11 locations, as well as the strategy and actions we are taking for continued future growth.
Until next month, be well!