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Self-storage has become a favorite with today’s real estate investors, who have come to see such facilities as a recession-resistant asset. But realizing long-term financial security with self-storage investing isn’t a given. Achieving that level of success requires an operating model that drives outsized returns, which is what Cedar Creek Capital brings to its investors.
“At Cedar Creek Capital, we specialize in helping investors capitalize on lucrative opportunities in self-storage investments,” says AJ Osborne, Founder and CEO of Cedar Creek Capital. “Our portfolio showcases a proven track record of success, featuring self-storage facilities strategically located for maximum growth potential.”
Osborne, an Amazon best-selling author and host of “The AJ Osborne Podcast” and “Self Storage Income Podcast,” is a recognized industry voice who has been featured on platforms such as BiggerPockets and YouTube and followed by over 140,000 people on Instagram. Since founding Cedar Creek in 2004, Osborne and his team of industry veterans, real estate experts, and investment strategists have grown it to become a self-storage investment firm with a portfolio spanning eight states and more than 2.5 million net rentable square feet.
“From acquisition to management, we handle every step to help provide you with strong returns and steady income streams,” Osborne says. “By leveraging industry expertise and market analysis, we create tailored investment strategies that align with our investors’ goals. It’s an approach that empowers our investors to build a legacy of financial security for generations to come.”
Cedar Creek leverages next-level integration to achieve complete synergy for investors
Vertical integration has become a key strategy for real estate developers who want to maximize returns. Cedar Creek takes vertical integration to the next level with its unique Universal Integration™ model.
“Universal Integration™ is vertical integration reimagined,” Osborne explains. “Cedar Creek Capital owns the storage facility, the property management company that runs it, the software company that supports it, and the media network that brought the deal. It’s a strategic approach that has allowed us to build a unique and comprehensive ecosystem of self-storage companies and gain a competitive advantage in the industry.”
Universal Integration™ allows Cedar Creek to handle every step, from acquisition to management. It’s just one example of how the company is constantly pushing the boundaries of innovation and setting new standards for excellence.
Cedar Creek’s BIRD™ model achieves maximum return with minimum downside
When engaging with mid-level risk growth assets and low-level risk stabilized assets, Cedar Creek applies a proprietary model that allows it to maintain high investor return potential while minimizing downside exposure. The BIRD™ model, which derives its name from its four steps: Buy, Increase Cash Flow, Reduce Risk, and Do It Again.
During the Buy phase, Cedar Creek purchases underperforming facilities in growing markets with great potential. Targeting facilities in strong markets with high visibility can help offer a bright future for its investors.
“We search for facilities in markets with at least 30,000 people to help maximize long-term economic growth for our investors as much as possible,” Osborne shares. “And the facilities we target have no less than 50,000 rentable square feet, leaving plenty of room for new tenants.”
The Increase Cash Flow phase involves identifying value-add opportunities and implementing them across acquired facilities. The opportunities generally improve operations and revenue management, which dramatically increases net operating income and, consequently, provides financial capacity to improve each asset and drive utilization.
“The Reduce Risk phase of our BIRD™ model involves refinancing the capital we have in one asset into a non-recourse loan,” Osborne explains. “This step returns principal investments to investors while allowing them to retain asset ownership. It also frees cash flow for investors without triggering the tax obligations usually associated with a sale.”
The final step — Do It Again — repeats the first three to increase holdings and transform lackluster facilities into market leaders. With each new facility, Cedar Creek Capital takes the same long-term approach to investing, which builds equity through loan paydown and appreciation while continuously distributing profits to our investors.
Cedar Creek continues to innovate with extreme ownership and bold adaptability
Over 20 years ago, Cedar Creek Capital was founded upon a vision to create unparalleled investment opportunities within the self-storage sector. Since then, it has built a portfolio that includes over 400 investors, over $83 million in investor capital, and over $400 million in self-storage transactions. Moving forward, Cedar Creek Capital continues to build on its vision by staying committed to core values that include steadfast integrity, bold adaptability, and extreme ownership.
“We envision a future where every qualified investor can leverage the power of real estate to diversify and strengthen their portfolio,” Osborne shares. “And we’re committed to driving that vision by continuously innovating and expanding our investment offerings to meet the evolving needs of our investors.”
Disclaimer: This article is not intended to be a recommendation. The author is not responsible for any resulting actions of the company during your trading/investing experience.
Also read: Navigating the Modern Real Estate and Property Market
Image source: Freepik.com
