The Industrial Real Estate Podcast Industrial Outdoor Storage (IOS) Lessons with Ron Rohde
In this week's episode Ron walked through his track record of about $25M in partner-equity deals with no LP syndications, where he typically sells at a 2× equity multiple plus cash flow.
After selling most of his holdings this year (three sold, one small buy), he’s retooling with fewer partners, longer holds, higher-quality assets with durable leases, and sites that include optional land he can monetize later.
The big takeaways match my playbook: be fast to underwrite and offer, but patient until a real opportunity appears. Tighten NNN leases and keep meticulous documentation because institutions turn diligence up to roughly 10x a normal deal.
Ron’s recent IOS example summed it up well: bought two buildings on roughly 4 acres for $2.35M, corrected overstated acreage, reset a tenant to market before closing, secured about 5% seller financing, re-leased quickly after a vacancy (plus a roof repair), then exited about 18 months later to Blackstone for $4M+ at roughly a 6.4 to 6.5% cap.
Looking ahead, he is eyeing an 80,000 sf Laredo distribution play with two years of term left, comfortable with lease-up risk given a low basis and easy demisability. We both prefer clustering assets in one submarket to cross-shop tenants. Macro view: the economy feels fragile, cap-rate compression is a maybe, and selective small IOS, sometimes all cash, can be the resilient move
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