Ari Rastegar is a prominent real estate entrepreneur based in Dallas, the headquarters of his firm, Rastegar Capital. What sets the firm apart, he says, is that it offers clients a direct relationship unencumbered by acquisition and origination fees.
He says that Rastegar Capital has a focus on investments that are nearly recession-proof, such as self-storage. “When you have the big house and the economy is booming and you buy the new couch,” he asked, “where do you put the old couch? In self-storage. That’s what Americans do. We love our stuff. What happens when the economy goes down and we have another 2008, when people start losing their houses and temporarily need to downsize into an apartment? Where do you put all your stuff that was filling up your big house? Our answer to that is self-storage. Self-storage is recession-resilient.”
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According to the Bloomberg Riskless Return Ranking, self-storage companies had the best risk-adjusted return among ten real estate investment trust indexes in the United States from about 2002 to 2012. They also had the highest total return and the third-lowest volatility. The owners of other commercial real estate investments, such as office buildings and warehouses, fared the worst.
There are four big companies that control most of the self-storage market in the United States, Ari Rastegar said. “It creates a good opportunity if you are a good operator.” He founded Rastegar Capital in 2015. He is a Texas native who holds a law degree from St. Mary’s University School of Law.