DXD Capital📦 @dxd_capital

I spent the last week with storage developers, acquirers, GCs and investors. If you want to get my latest thoughts on what I heard and see ahead in the industry signup for my newsletter to read it

Send Me a Storage Site Sunday During the peak panic of COVID we put a building under contract for $2,150,000 (it was listed for $4,850,000) Here’s why the deal died: The building was a former office building, 110,000 sqft, built with 3x the floor loading strength needed to…

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I've made many mistakes en route to building $500 million of self-storage. But the #1 mistake storage developers make? Blindly following national averages. Here's a simple example: Let's imagine the US is only two states: Florida and North Dakota. Let's also imagine that: ->…

DXD Capital = Self storage developer & music video producer This one opened last month enjoy👇

We bought this piece of land in Nov 2020 for $1,250,000 and built a self storage facility. When it stabilizes, it'll be worth $26,000,000 - $29,000,000. Here's what went into this deal:

Update on our Huntington Station, NY property: Closed on the land last week after a two year battle to gain approvals. The 3-mile radius has ~80K people with $160,000 MHHI. Net Rentable Sq Ft: 62,125 Total Units: 664 10x10 Rate: $400 More details 👇

We continue to see the same shovel-ready projects that were sent to us a year ago. Sellers still think they hold the keys. A year from now, the same parcels will be hitting my inbox, this time from the 4th or 5th broker that entertains the seller's fantasy. The bull market of…

Self-storage is a $43 billion industry w/ 55,000 units in the U.S. We built the Bloomberg for Self-Storage. It's called Radius+. It's the go-to data platform for self-storage investors, brokers, and developers. Ask me anything about the industry 👇

DXD Capital is a self storage investment firm. We use data to find opps that outperform traditional development & acquisition. We’re at 27 employees. If I was just raising funds on the way to an exit, we would only need 10. But we're swinging for the fences and scaling. AMA

Update on our Daytona, FL property: Net Rentable Sq Ft: 77,090 Total Units: 776 10x10 Rate: $195 Our first fund 2 deal (and first Opportunity Zone deal). The site was home to nearly 70 tortoise burrows. We found 25 in the burrows (they were all safely relocated) 🐢🐢🐢

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Self storage is a commodity. All customers want is a clean storage space less than 15 mins away. They don’t care about brand. They don't care about amenities. So how do you win? Data. Find the areas with the greatest mismatch between supply & demand.

Alohaaa with a Construction Update: DXD Fund I Investment - Kapolei, Oahu It's a big week for installation on site at our Kapolei project! Building pad footings are getting rebar installed, and main drain lines are being installed at the elevator pits.

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We are officially counting down the days until our DXD Fund I, Flamingo facility in Vegas is open, expected in July. Our previous Las Vegas project is outperforming expected leasing velocity by 3.5x. Stay tuned for images of our entire DXD team visiting the site this summer!

It’s all but impossible to feel progress during the day to day Zoom out and you’ll see it 1st picture is our booth in 2017 2nd picture is our setup today There’s a lot I miss about those early days. Regardless, enjoy the journey

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@shawngorham you get great depreciation from these temp units - Janus makes a good one, if they are a long term solution might be worth spending a little more

While not a perfect comparison, it's a good exercise to pull up the financials of REITs and see how your portfolio stacks up Life Storage in 2022: $7b portfolio (book value) $586m operating cash flow 8.37% yield Market values it at $10.4 billion, or 17.8x operating cash flow

Market trends take years to play out. If you're unsure where a market is headed, zoom out. 2009 to ~2016: Almost zero new self storage developed after the Financial Crisis. Very little capital available for new construction

In multi-family real estate, you can drop rates to increase demand But it's not really the same for self storage 20% off a $110/mo product is only $22 in savings Price reductions don't do much to increase demand. Either someone needs storage or they don't.

We tend to think that the big players in an industry have all the answers But a few years ago, I was consulting for a few investment managers and got to meet the CEO of Jernigan Capital, a self storage REIT that later sold for $900 million I showed him some data we had…

Price per square foot for self storage in the Tampa market This trend is roughly what we're seeing in most markets in the US