We provide investors with exposure to value-add self storage assets. This is a high growth sub-sector within storage that REITs and other vehicles do not capture.
Our investments are tax-efficient. We take an aggressive approach to claiming depreciation, and pass 100% of it along to investors.
We distribute profits to investors from storage operations investors multiple times a year, similar to a dividend stock. A perfect fit for the income-seeking investor.
Strong consumer demand for storage has led to massive surges in profit potential. Over 10% of US households are now using storage. Earnings per facility have grown +50% since 2019 according to reports from storage REITs.
Data has shown that storage consistently fares better than all other real estate asset classes during economic down turns. Down sizing, consolidation, and displacement during recessions are drivers for self storage growth.
Storage facilities are simple metal structures with fewer moving parts compared to other forms of real estate. As a result, maintenance and operational expenses are low and predictable, enabling consistent cash flow.
There are over 50,000 storage facilities in the US. Over 70% are still owned by mom-and-pop operators, meaning this space has not yet been institutionalized like most other asset classes. There is an opportunity to consolidate facilities, optimize them through professional portfolio-level management, and generate out-sized returns.
Storage operate like a small business. It requires direct-to-consumer marketing, a frictionless digital experience, dynamic pricing, customer service, etc. This presents operators with several levers to generate value. Unlike most real estate asset classes, this can be accomplished without the need for expensive & time consuming rehabs or renovations.
All leases are month-to-month, allowing operators to update rates and drive revenue quickly without having to wait for lease expirations. Given that storage rents are much lower price points than other assets (apartments, office, etc), operators can raise rents by a significant percentage with a minimal dollar amount impact to each individual customer.
Pebble Ridge was founded by Faraz Hemani, who’s background is in technology. Faraz worked for companies including Oracle and Google as a strategy lead.
Using technology helped Faraz gain an edge in the world of real estate, which is an industry that has been slow to adopt innovation. He built software to programmatically identify and acquire residential real estate investments, which went on to net investors over 200% ROI.
Faraz has experience across several real estate asset classes, including residential, retail, land, etc. In 2022, he made the decision to focus the firm exclusively on self storage, given the incredible upside present in consolidating assets in a mom-and-pop asset class, and then applying technology and automation to optimize the performance of those assets.
A wonderful serenity has taken possession of my entire soul, like these sweet mornings of spring which I enjoy with my whole heart. I am alone, and feel the charm of existence in this spot, which was created for the bliss of souls like mine. More than 25 years of experience working in the industry has enabled us to build our services and solutions in strategy, consulting, digital.
Here is what enables us to deliver exceptional results:
