Designed for growth-minded investors.

At AAA Storage, we specialize in maximizing your real estate investment returns. Discover what a team of experts with a proven track record can do for you.

90

Total projects exited since 1993, 28 of which since 2012.

19%IRR

Net of fees and carried interest.

3.3x

Weighted average project equity multiple.

6M

Rentable square feet developed, Primarily from raw land.

A proven track record.

Founded by John Muhich in 1993, AAA Storage has delivered a 19% IRR to investors across 90 completed projects that total 6M square feet and over $450M in exit value. From construction and land acquisition to site design, financing, project and property management, and more, AAA Storage knows what it takes to get results.

$450M+

Total value of projects exited

$125M

Returned gains to investors

FAQs
A flyover view of red storage units in a grassy field.
INSIGHT

Strategy matters.

Our investment strategy focuses on high-growth markets with supply and demand imbalances. We leverage these market dynamics to identify and acquire premium sites for development.

Focused on value creation

Ground up development provides a unique opportunity to create incremental value that drives above average returns.

Driven by yield on cost

We target an average 9.5% yield on cost. Self-storage outpaces other real estate classes in yield on cost.

Managed and supported

We perform all property and asset management to drive performance and value for investors.

Vertically-integrated

Managing every life stage from land acquisition and construction to property/asset management, we minimize cost and maximize performance.

Red storage units.
INSIGHT

Mitigate risk with Office/Industrial Flex business parks.

Our name is synonymous with self-storage, but we’re also a leading developer and manager of office/industrial flex business parks. Our Funds allocate approximately 60% of their equity to self-storage projects and 40% to the development of office/industrial flex or “small bay industrial” business parks. This combination provides additional diversification and upside for our investors.

Small bays, big demand


Small bay industrial properties are in high demand in virtually every market in the United States. Small bay industrial properties are typically 15,000- to 20,000-square-foot buildings that are divided into 2,500- to 5,000-square-foot units and then finished out with office space in the front and warehouse space with a roll up door in the back.

A strategic combination


AAA Storage typically builds these two property types on adjacent parcels. Buying larger tracts of land can result in lower land costs and provides cost efficiencies in the development and construction process.

In addition, the two property types are actually synergistic- with small bay tenants often renting extra space in the adjacent self-storage facility and businesses operating out of a self-storage space outgrowing that space and moving into the adjacent small bay office park.

Broad and diverse tenants


Over the last five years these properties have attracted last mile logistics companies, internet-based retailers and many other types of businesses. The broad and diverse tenant base drives high demand, low vacancy rates and above average rent growth.

Office/Industrial flex properties serve a broad base of tenants including local General, HVAC and plumbing contractors, home service providers (pest control, landscaping etc), and car repair shops.

Stable, predictable revenue streams

Unlike self-storage where tenants have essentially a month-to-month lease, small bay industrial tenants sign 3 to 5 year triple net leases. This provides a stable, predictable revenue stream and the triple net lease protects investors from future increases in property insurance, property taxes and common area maintenance costs.

Small bay industrial projects also have very attractive yield on costs that support significant value creation in the development process.

A flyover view of a building and parking lot during golden hour.

Why AAA?

At AAA Storage Investments, we know how to deliver results.

As the largest single investor in the fund and guarantor on all debt, our interests are aligned with yours.

With over 30 years of experience  we have navigated multiple cycles in the real estate industry.

Our ability to deliver projects at costs below the national average drives incremental returns for investors.

We've delivered 19% IRR to our investors across 90 completed deals.

Start your investment journey today.

Let’s start a conversation about how our investment funds can diversify your portfolio.

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Together

Our leadership

Meet the dedicated professionals who drive our success and commitment to excellence.

Paul Bennett
Managing Director

Mr. Bennett is the President of AAA Storage and Managing Director of AAA Storage Investments, the Fund Manager.

Mr. Bennett has over 30 years of experience in real estate and corporate finance as an investor, senior executive, and advisor.

After starting his real estate private equity career in 1981 with a North Carolina real estate investment and syndication firm, Mr. Bennett served as Senior VP of Limited Partnership Products for Thomson McKinnon Securities, one of the top 5 investment brokerage firms in the United States at the time. At Thomson McKinnon, Mr. Bennett was part of a team that raised and deployed in excess of $100 million annually, primarily investing in real estate assets including self-storage.

From 1990 through 2015 Mr. Bennett held various positions including President and the Managing Director of a boutique investment bank. In 2016, Mr. Bennett became President and CEO of Southern Spear, Inc. Southern Spear is a privately owned investment company and the U.S. subsidiary of a European family office that invests in commercial real estate and makes direct control investments in lower middle market companies. While at Southern Spear, Mr. Bennett managed a portfolio of real estate assets valued at more than $130 million, including the development of an $80 million mixed-use project in North Carolina.

Mr. Bennett left Southern Spear in March of 2023 to become the President of AAA Storage and the Managing Director of AAA Storage Investments Manager, LLC, the Fund Manager for AAA’s current offering.

John Muhich
Founder & Managing Director

John Muhich is the Founder and CEO of AAA Storage and has led all aspects of its activities since 1993.

John Muhich is the Founder and President of AAA Storage and has led all aspects of its activities since 1993. Mr. Muhich has personally directed the development of over 100 self-storage and office/warehouse flex properties and has successfully exited 90 properties valued at over $450 million.


At its peak in 2011, the Sponsor and its investors owned and managed 39 self-storage and office/warehouse flex properties, making the Sponsor the fifth-largest storage operator in the United States at that time. Mr. Muhich’s experience includes all areas of the business including strategy, market analysis, acquisition, site design, entitlements, permitting, finance, construction management, lease up, property management, and disposition.


Mr. Muhich is the author of the Sponsor’s unique and proprietary site design and engineering approach and is considered one of the top developers in the self-storage industry. Prior to AAA Storage, Mr. Muhich worked as an engineer at IBM, designing computer processors for 19 years.
Mr. Muhich is also a direct private investor, having whole, majority, and minority ownership in a variety of companies outside of the real estate industry.

“Investing with AAA Storage has transformed my financial future. Their expertise and support made the process seamless and rewarding.”

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Name Surname
Position, Company name

FAQs

Find answers to your questions quickly and easily.

What kind of support and updates can I expect as an investor with AAA?

AAA is committed to maintaining transparency and keeping our investors informed. You’ll receive regular quarterly updates on property performance, market trends, and investment returns. Our dedicated team is always available to address any questions or concerns, ensuring you remain confident and informed throughout your investment journey.

How can I get started investing with AAA Storage Investments?

Getting started is simple. Reach out to us through our website or contact our team directly to schedule a consultation. We’ll guide you through our investment opportunities, answer any questions, and help you determine how self-storage investing fits into your wealth management strategy. We pride ourselves on making the process transparent and investor-friendly.

How does the self-storage sector fit into a diversified investment portfolio?

Self-storage complements a diversified investment portfolio by offering unique benefits such as resilience, consistent demand, and cost-effective operations. It provides stability through economic cycles and augments portfolio balance by introducing an asset with counter-cyclical tendencies—critical for mitigating broader financial market risks. Its high yield potential and efficiency of operation make self-storage an appealing choice for investors seeking predictable cash flows and potential equity growth. As part of a comprehensive asset allocation strategy, self-storage can enhance returns, reduce volatility, and contribute to overall portfolio strength by combining consistent performance with opportunities for value creation through strategic development or acquisition.

What factors contribute to self-storage’s low operating costs?

Self-storage benefits from an efficient operational model characterized by low costs relative to other real estate sectors. Its primary expenses—property taxes and insurance—constitute the bulk of operational outlays, typically comprising 30-34% of gross revenue. Limited staffing requirements and minimal maintenance for drive-up facilities further streamline expenditures. Additionally, the simplicity of facility design—often involving fewer physical assets compared to multifamily or office properties—substantially curtails costs. Collectively, these elements yield a business model with efficient cash management, enabling self-storage operators to deliver higher net operating incomes and favorable returns on investment compared to more complex real estate endeavors.

How does self-storage performance compare in different economic climates?

Self-storage demonstrates robust resilience during varied economic climates, frequently outperforming other real estate classes like office or retail sectors. This is due in part to its consumer-driven demand, largely unaffected by economic downturns or lifestyle changes such as moving or downsizing. Its low cost for consumers and consistently high demand supports occupancy rates and pricing stability. During recessions, these factors combine to bolster self-storage operations, sustaining cash flows and preserving asset values. This resilience has increased self-storage’s appeal among institutional investors and private equity, further distinguishing it as a valuable investment vehicle in times of economic volatility.

Why do some investors prefer dividend distributions over growth-focused returns?

Investors seeking stable income may prefer dividend distributions for their regular cash flow, aligning with predictable financial planning. This focus often appeals to individuals requiring liquidity for living expenses or other commitments. However, a growth-focused approach, like self-storage development, targets significant equity growth over time. This strategy maximizes long-term value rather than short-term cash payouts, appealing to investors with capacity to delay gratification for potentially greater capital appreciation. The choice between income and growth depends on individual financial goals, timelines, and risk tolerance—some investors appreciate immediate returns, while others prioritize substantial long-term gains, making both options valuable in diverse investment strategies.

What are the risks and rewards of developing new self-storage facilities?

Developing new self-storage facilities carries inherent risks, such as land acquisition and entitlement processes. Yet, it offers considerable rewards, primarily due to favorable yield on cost metrics. These projects often generate yields around 9.5%, compared to lower yields in other real estate sectors. By mitigating land risk through techniques like land banking, developers can better ensure project readiness and optimize construction timelines. Although development entails greater risk than purchasing stabilized assets, the potential for enhanced risk-adjusted returns makes it a compelling strategy for investors focused on capital growth. Successful developments yield substantial returns, thus providing a strong argument for including such projects in a diversified investment portfolio.

How does self-storage development create value for investors?

Self-storage development offers a unique opportunity for significant equity growth by leveraging cost efficiencies in construction and high yield on cost. For example, building a facility for $10 million with a pro forma NOI of $950,000 results in a 9.5% yield on cost. Upon stabilization, if these outputs yield a 6% cap rate, the property’s value escalates to $16.5 million. Investors, having contributed 30% equity in a leveraged structure, could potentially see their $3 million initial investment return as $9 million post-sale. This process of development and stabilization creates intrinsic value and underscores the potential for outsized returns relative to other real estate investments.

What are the key investment strategies in self-storage?

Investors can engage in several strategies within self-storage, including core, core plus, value-add, and ground-up development investments. Core and core plus investments involve stabilized, cash-flowing properties requiring minimal capital expenditure. Value-add opportunities include acquiring underperforming properties with potential for enhancements or expansion. Ground-up development focuses on constructing new facilities to generate significant equity growth. Though riskier, development offers higher potential returns by capitalizing on construction cost efficiencies and subsequent property valuation. Investors inclined towards growth may prefer development projects, while those seeking immediate cash flow might favor core investments. Each strategy addresses different investor goals, allowing for tailored asset management strategies in self-storage.

Why is vertical integration beneficial in self-storage development?

Vertical integration in self-storage development ensures control over the entire development process—from land acquisition to construction and property management. This approach enables more cost-effective building practices, particularly in drive-up self-storage facilities focused development areas like Texas, where construction costs can be maintained around $105 per square foot. By managing both the vertical and horizontal construction processes, and retaining ownership of property management, developers can optimize efficiency and drive higher returns. Additionally, vertically integrated firms are adept at lease-up strategies, crucial for achieving and maintaining rent targets. This comprehensive control positions vertically integrated companies to deliver substantial value creation for investors, which stands in contrast to competitors reliant on third-party services.

How do self-storage cap rates compare to other real estate segments?

In the self-storage industry, cap rates often track closely with those of multifamily properties, generally adding about 50 to 75 basis points. Institutional interest, such as that from publicly traded REITs, has helped to shape the cap rate landscape, maintaining a low cap rate environment due to high demand. Self-storage facilities often have a lower cost per square foot than multifamily properties, while their yield on cost—the cash on cash return when stabilized versus cost of construction—is notably higher. This cost efficiency contributes to its appeal, drawing private equity investment interested in maximizing returns. The differentiation in yield on cost between self-storage and other real estate sectors further underscores self-storage’s standing as a profitable, competitive investment.

What makes self-storage an attractive investment option?

Self-storage stands out due to its resilience, particularly during economic downturns. Unlike other real estate sectors like office or retail, self-storage maintains steady demand driven by life transitions and urbanization. It offers an efficient economic model with low operating costs, typically around 30–34 percent of gross revenue. Investors benefit from above-average cash flows and cash on cash returns. The simplicity of its operations—focusing on real estate property taxes and insurance as the major expenses—makes self-storage a reliable investment. Furthermore, self-storage facilities can be built at a considerably lower cost per square foot compared to other real estate developments, yet can still command competitive returns. This combination of resilience, simplicity, and profitability makes self-storage an appealing asset class.

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andrew.frowine@aaastorage.com
(704) 792-5205
Austin, TX (HQ)
Davidson, NC (Regional HQ)
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The information provided on this website is for general informational purposes only and does not constitute financial, investment, or legal advice. AAA Storage makes no guarantees regarding investment returns, and past performance is not indicative of future results. All investments carry risks, including potential loss of capital. Prospective investors should conduct their own due diligence and seek professional advice before making any investment decisions. AAA Storage is not responsible for any decisions made based on the information provided on this site.

Over the last quarter-century, your business sense, discipline, and intuitive knack for identifying lucrative opportunities have never ceased to impress me.

Ben B.
Investor of 15 years

I've been investing with AAA for 19 years and have participated in six full-cycle projects. Investing in these six projects has been a significant contributor to my ability to afford early retirement. The process with AAA has been consistent across all the deals I’ve been involved in, from start to finish, providing reliable returns that helped me reach my financial goals. I’m thankful for the opportunities that have allowed me to secure my future.

Nicholas M.

We can always count on you to be upfront and straight forward with answering any of our questions about the investments AAA offers. We trust you whole heartedly and we know you’ve built a team around you that we can count on as well.

Annie B.