John Casmon

How to Find, Develop, and Finance Self-Storage with Scott Krone, Episode 168

Scott Krone is the Founder of CODA Management based in Chicago, IL. They partner with investors to find and convert warehouses and office buildings into climate-controlled, self-storage facilities. CODA has over 47 syndications and 400,000 sq. ft with 2,750 storage units under management. Today, Scott shares where he finds opportunities, his criteria and tips for working with local officials.

Partner: The Real Estate Syndication Podcast hosted by Whitney Sewell

Key Insights

Could not find distressed self-storage, so he focused on development
Converted an empty warehouse into a self-storage
Started in Chicago, expanded to Illinois, Wisconsin, and Ohio
Future opportunities in Kentucky, Michigan and North Carolina
Seeks 70,000 – 110,000 sq. ft of empty commercial spaces
PACE Financing and Opportunity Zones
Hire CubeSmart to manage the renovated self-storage facilities
Biggest risk for self-storage is competition within a 3-5 mile radius
Key Stat for Self-Storage: 7 sq. ft of lockers per capita
Commercial and Resident Users for Self-Storage
Check with city officials on zoning process, permits and approvals
Leverages PACE Financing and was the first opportunity zone and PACE financing in Ohio
PACE is a program providing energy efficiency financing
Opportunity Zones are an enhanced benefit, not as the reason to buy
Drive for subcontractors on projects when you need specific labor