Passive Investing with Scaffold Partners
Scaffold Partners provides investors access to private, value-add, self-storage real estate investments. We offer direct ownership in select commercial properties while removing the burden of day-to-day operations, tenant management, and property oversight.
We acquire simple-to-buy, simple-to-operate, cash-flowing self-storage facilities in tertiary U.S. markets. These properties often lack modern technology, have underpriced units, and present clear operational or physical challenges, which we fix.
We partner with professional operators to execute disciplined acquisition, expert management, and strategic exits. We offer our investors diversity out of the stock market, tax savings, and financial opportunities they can understand and otherwise cannot access.
Our Investment Approach
Property Identification
We source value-add self-storage opportunities that meet our strict investment criteria, including (1) stable or growing tertiary markets with no REITs and mainly “Mom & Pop” operators, (2) limited technological or operational sophistication, and (3) smaller, fully leased and cash flowing assets that need simple renovation and operational improvements to yield strong results.
Rigorous Due Diligence
Each opportunity undergoes comprehensive analysis, including financial modeling, market research, legal review, and physical inspections.
Structured Financing
We secure optimal capital structures that balance risk and return through thoughtful debt and equity arrangements. We focus on simple financing with quarterly distributions.
Acquisition & Operational Management
We execute the acquisition efficiently and oversee professional, performance-driven operations.
Strategic Disposition
We seek to maximize returns through a planned exit strategy, typically via sale or refinancing.
Selecting High-Quality Operating Sponsor Partners
We partner only with proven operators who meet our standards for excellence:
- Background & Track Record: Demonstrated success and strong industry reputation
- Communication: Clear, consistent, and transparent investor reporting
- Market Expertise: Deep knowledge of local market dynamics
- Management: Professional, efficient, and scalable operations
- Underwriting: Conservative financial projections and realistic risk assessment
Investment Structure
- Sponsor Co-Investment: Our partners and we invest alongside our investors—typically 10% or more of total equity—to ensure alignment of interests
- Preferred Returns: Investors receive a preferred return before sponsor participation
- Return of Capital: Investor capital is returned upon sale or refinancing
- Profit Sharing: Profits are distributed between investors and sponsors based on agreed-upon terms
Understanding the Risks
All investments carry risks, including:
- Economic Risk: Market conditions may impact property values and occupancy
- Management Risk: Performance depends on effective operations and execution
- Liquidity Risk: Investments are illiquid, with typical holding periods of 3–5 years
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