Land Shark's deal framework starts every RV and storage property valuation at 40% baseline ROI, rejecting anything lower. Covered premium storage facilities command the highest per-square-foot rents. Financial leverage can push returns from 23-40% up to 40-60%, but revaluing with market methods risks the deal collapsing.
Did you see the deals today in The Deal Room? Ideal, because this is legitimately the only way we do deals in Land Shark is to start at 40%. What we're doing to be smart about it is we're making sure that we don't touch anything that's got less than 40% to it. So one of the things that it said was to go with an industrial storage yard because we can charge a larger amount per square foot for that. Now, Blake, based on that, it shows your ROI fits at the 23 to 40% area and then adding the leverage to it gets you up above that 40 to 60%. Cents, right? Anyway, not, not an industrial storage, but covered premium storage parking gave you a pretty decent bump as well, give you a value of $34 to $36 million. If we changed the way we valued it to a market or to an asset, the value of this property plummets extreme. The last thing you want to do is start off a deal by pissing somebody off.
