Long-Term Strategy Meets Smart Timing in Self-Storage Investment

How Dahn Corporation Delivered Strategic Value in Vero Beach, FL

Self-storage has quietly become one of the most resilient asset classes in commercial real estate. With demand fueled by life transitions, downsizing, relocations, and remote work shifts, storage units generate stable, recurring income without the volatility of other sectors.

Why Self-Storage Continues to Outperform for Our Investors

At Dahn Corporation, we’ve been investing in this space since long before it was trendy. With over $300 million in self-storage assets developed or acquired and 100+ facilities under our belt, we’ve seen firsthand how the right facility in the right market, paired with the right strategy, can consistently outperform. We’re not a platform or middleman. We acquire, improve, and manage properties directly to create long-term value for our investors.

Self-storage continues to stand out as one of the strongest performers in commercial real estate. In August 2024, self-storage REITs led all 13 equity REIT sectors with a total return of 13.3%, according to the FTSE Nareit All Equity Index.* That kind of performance reinforces what we’ve seen firsthand: self-storage remains a resilient, income-generating asset class, even in shifting market conditions.

*Source: NAREIT, August 2024. Self-Storage REITs: Strengthening Fundamentals and Solid Performance

Our partners benefit from:

  • 40+ years of real-world operating experience
  • Strong average annual total returns for the commercial real estate sector
  • A network of hundreds of repeat investors who’ve grown alongside us over decades

Targeting Opportunity in Vero Beach

In early 2023, our research team flagged a facility in Vero Beach, Florida, a growing market with favorable demographics and a strong residential pipeline. The property presented a value-add opportunity through light operational upgrades and stronger revenue management.

Key Investment Highlights:

  • Location: Vero Beach, FL
  • Investment Date: April 2023
  • Capital Stack: $9.0MM Equity
  • Investment Type: Core+
  • Purchase Cap Rate: 5.1%
  • Stabilized Cap Rate Target: 7.0%

What stood out about this deal wasn’t just the numbers, it was the potential for strategic upside. Our in-house analysis pointed to:

  • A strong demand corridor with minimal new supply
  • A manageable lift in marketing and operations
  • Untapped pricing potential in unit mix and existing tenant rates

Value Created, Step by Step

After acquisition, our operations team rolled out a series of focused improvements:

  • Optimized Unit Mix based on local data and competitor analysis
  • Revenue Management Enhancements including strategic rate adjustments
  • Curb Appeal & Maintenance Improvements that increased leasing conversion rates
  • Operational Tweaks such as camera repositioning, lighting upgrades, and smarter access control

Within the first 12 months, the property outperformed underwriting benchmarks, setting up the asset for refinance or long-term hold flexibility.

What This Means for Our Investors

This investment showcases Dahn’s ability to:

  • Source high-potential assets in competitive markets
  • Add meaningful value without overextending on renovations or risk
  • Deliver stability through operational discipline, not just market momentum

The Vero Beach project reflects our broader approach: buy well, operate smart, and build for long-term wealth.

Contact our team today to learn more about our current self-storage investment opportunities.

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