In this episode of our Deal Review Series, Paul Bennett from AAA Storage Investments present AAA Storage Growth Fund II to our LP panel: Paul Shannon, Pascal Wagner and Litan Yahav.
The LP Panel asks questions like:
- How does your internal underwriting process ensure site selection discipline and avoid loosening standards as more capital becomes available?
- What’s the breakdown and real performance of the 90 full-cycle deals in your track record?
- Is the sponsor’s 8% co-investment truly from personal capital or funded through fees?
- How is Fund One performing so far, and what lessons or early results are informing Fund Two?
- What’s your contingency plan for macroeconomic risks like prolonged high interest rates or stalled housing activity?
- How do you manage key person risk, and is there a succession plan in place to ensure long-term continuity?
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About the Deal
Growth Fund 2 will invest in the development of 7 self-storage and 4 office/flex industrial business parks located in TX and NC. With 32 years of experience and 90 full cycle deals, our average return to investors across all 90 completed investments is a 19% IRR and represents over 6mm square ft and $450m of exit value. AAA Storage will invest a minimum of 8% of the fund’s total equity and guarantee all property level debt, providing strong alignment between the sponsor and investors.