Lessons From a Family Office Self Storage Investor

Structuring a Resilient Investment Portfolio

On a recent episode of the AAA Storage podcast, Van Isley of Isley Ventures, shared with us how a seasoned family office, shaped by decades of entrepreneurial growth, approaches wealth protection and expansion with precision. After a business exit enabled new flexibility for him, the first objective was strategic diversification—moving from concentrated ownership into a segmented portfolio. Isley defined seven distinct allocations: operating companies, commercial real estate, residential real estate, public equities, private equity, venture capital, and a combined cash and fixed income segment.

Each category receives a specific allocation target, with expected returns thoughtfully modeled. Diversification is managed across asset classes, staggered timing, and differing geographies. Geographically, the office considers exposure across regions to offset risk—never concentrating all real estate, for example, in one market or time window. The strategy allows for both capital preservation and sustainable returns, meeting the dual aims of protecting legacy wealth and enabling the next generation.

This foundation also provides leeway for mission-driven investing. The office dedicates a share of resources to supporting young entrepreneurs and growth companies, connecting financial capital with mentorship. Yet responsible risk assessment always determines exposure, ensuring portfolio strength remains intact.

Combining Direct Oversight and Outsourced Expertise

Active involvement is central in certain portfolio segments. As a family office they have direct roles in operating companies or residential real estate—serving on boards, engaging in financial oversight, and maintaining regular involvement. For complex or high-touch sectors like venture capital, the posture shifts to a passive one, often through fund platforms or seasoned third-party managers with deep sector expertise. This blend of hands-on and hands-off roles is determined by available time, in-house knowledge, and comfort with external oversight.

In self storage, their hybrid strategy stands out. Their office directly develops primarily multi-story, climate-controlled facilities in North Carolina, reflecting local knowledge and control. To broaden exposure and capture additional value, they invested with AAA Storage—known for its focus on primarily single-story, non-climate-controlled developments in high-growth Texas and Florida markets. Key drivers for this decision included a long-established relationship with Paul Bennett, AAA’s 19% net IRR track record, and AAA’s differentiated approach, including integrating flex space.

Due Diligence and the Value of Trusted Relationships

The diligence process is thorough: analyzing financial projections, challenging assumptions, engaging legal and environmental experts, and drawing on CFO expertise. Leadership evaluation is paramount—deep trust and a proven track record count as much as analytics. The office prioritizes alignment with experienced sponsors who demonstrate both credibility and reliability.

Communication is another core differentiator. Isley shared how they prize frequent, proactive updates—never having to request information or chase investment status. With AAA Storage, consistent construction updates, clear investor communication, responsive leadership, and streamlined investment administration deliver operational confidence.

AAA’s unique flex property component—pairing self storage with office/industrial space—further diversifies tenant mixes and potential income streams. Exposure to different facility types and markets reduces overall correlation risk.

Takeaways for Growth-Minded Investors

Disciplined allocation, sound risk management, and trusted relationships underpin effective portfolio construction. Partnering with managers who maintain open communication and demonstrate sustained performance helps family offices and individual investors achieve higher confidence and greater resilience. Rigorous due diligence, well-defined segments, and strategic partnerships like those with AAA Storage are key to long-term success in self storage and across private capital markets.