Investment Overview

The Storage of America Income Fund provides investors with a 10% annual return, paid monthly, with no fees.

The Storage of America Income Fund (the “Fund”) is a real estate debt fund that pays 10% annually to investors. The Fund loans money exclusively to Storage of America—a regional developer, owner, and operator of self-storage facilities—to fund its expansion across the United States.

A Solid Industry

Since its founding in the 1960s, self-storage has proven to be a strong asset class both in good times and bad. Even during the Great Recession, self-storage proved to be an extremely resilient investment, posting the lowest default rate of CMBS loans of any asset class nationwide (Inside Self Storage, 2014). Trends in demographics and employment suggest that self-storage will be a mainstay for decades to come.

Experienced Principal

Storage of America was founded in 2003 by Robert B. Walker, principal of Walker International Capital, a real estate investment and development firm founded in 1990. Storage of America and Walker International Capital combined have acquired more than 700 properties, including self-storage, multifamily, retail, office, hotel, and land. Mr. Walker’s blended unlevered annualized return on investment on all closed deals throughout his career is 40.3%, while Storage of America’s levered annual internal rate of return (IRR) is 46.7%. Throughout Mr. Walker’s 28-year real estate career, neither he nor any of his related entities have ever defaulted on a loan.

Storage of America’s operating self-storage portfolio includes 25 facilities in operation and more than 25 projects under development. While Storage of America’s entire portfolio is located in the Midwest, they plan to roll out their model of storage conversion and development nationwide.

See Storage of America’s entire portfolio on their website.

Aggressive Acquisition

Storage of America is extremely selective in properties it acquires—closing on less than 1% of deals it analyzes. Its disciplined acquisition criteria means that it rarely acquires properties for more than 50% of its replacement cost and often for significantly less. For example, Storage of America has acquired several former Target big box stores for $5-10/SF, where replacement costs are around $80-100/SF.

Vertically Integrated Development

Storage of America’s construction process is vertically integrated, with related entities performing most of the construction work, allowing them to build facilities for a fraction of what competitors pay. 

Operational Edge

Storage of America is one of the first large operators to manage all facilities remotely, relying on state-of-the-art kiosk and web infrastructure and allowing them to operate their facilities significantly cheaper than competitors.