Joe Downs explains why storage deals under $200 million have few third-party management options. Most acquisitions at this price point don't work with outsourced management, so buyers need to underwrite self-management, third-party, and hybrid scenarios before purchasing.
Chapters
most common entry point, you know, under $200 million, at that size, there's not a lot of third-party management companies, A, that will manage there. I know there's more today and certainly better ones than when— than we can even manage ourselves. But a lot of times it doesn't even pencil to have a third party. You almost are forced to, especially the smaller you get. All right? And this is exactly why the self-management question is so critical at the acquisition stage that we alluded to earlier. So folks, if you're buying in that size range, the assumption you, you— that you should be be that you're— that you potentially are running it, at least you need to underwrite that scenario as well as a third-party management scenario and even a hybrid scenario in between.