Inside a $4.8M Industrial Outdoor Storage (IOS) Deal in Fontana | Benji Miller

IIndustrial outdoor storage (IOS) has shifted from overlooked mom-and-pop truck yards into one of the most profitable, highly competitive sectors in commercial real estate—consistently outperforming traditional core asset classes.In this episode of Adding Value, host Shy Assar sits down with Benji Miller, founder of Negresco Property Group. Benji shares how he transitioned from working on massive institutional portfolios to launching his own firm and teaming up with Bethesda-based Open Industrial to deploy programmatic capital across Southern California.We dive straight into our recently closed transaction at 10905 Hemlock Avenue in Fontana, CA—a $4,800,000 all-cash acquisition ($50/LSF) on 2.20 acres featuring a ±10,000 SF building and verified by-right truck and trailer storage.In this episode, we cover:• The 10905 Hemlock Breakdown: Sourcing, front-end due diligence, and navigating Fontana’s strict zoning landscape. • The 1–3 Acre Sweet Spot: Why smaller low-coverage parcels provide the highest leasing velocity versus chasing "white whale" 10-acre sites.• Acquisition Criteria: Why sub-30% coverage, functional service facilities, and dual-street ingress/egress are non-negotiable for institutional IOS.• Structuring Co-GP & Equity Partnerships: How emerging sponsors scale by leveraging balance sheets, LP equity, and patient capital.• Capital Markets & IOS Maturation: Debt conditions, cap rate expectations (fives to high sixes), and how 1031 buyers view IOS today.• Advice for Brokers & Sponsors: The "unicorn" skill set of raising equity vs. finding deals, and how brokers can win institutional business.Timestamps: 00:00:00 - Preview: Sponsorship Rules & Finding Alpha in Small Deals 00:01:09 - The Rise of Industrial Outdoor Storage (IOS) 00:02:02 - Breaking Down 10905 Hemlock Ave ($4.8M Fontana Acquisition) 00:03:38 - How the Deal Came Together: Sourcing & 2-Decade Trucking History 00:05:40 - The 1–3 Acre Sweet Spot vs. Chasing "White Whales" 00:07:20 - Negresco’s Co-GP Partnership with Open Industrial 00:08:44 - De-risking Due Diligence Upfront with Land-Use Counsel (Allen Matkins) 00:11:04 - The Value-Add Business Plan & CapEx Playbook for Hemlock 00:12:56 - Aggregating "Golden Tickets": Flexible Capital & WALT Strategy 00:14:10 - Why Institutional Equity Is Chasing Niche Alternative Assets 00:18:09 - Benji's Pivot: From $700M Hackman Deals to Entrepreneurship 00:20:26 - The True Cost of Starting a Firm & Balancing Family 00:24:44 - A Note for Inland Empire Industrial Owners 00:25:13 - How Co-GP Equity Stacks & GP Co-Invest Splits Work 00:28:42 - The Sub-30% Coverage Rule & Functional Shop Space 00:31:46 - Municipal Moats: Why Cities Don't Want More Truck Yards 00:32:50 - Acquisition Target Range ($3M to $50M+) 00:33:49 - IOS Portfolio Exit Strategies, Recaps & Maturing Loans 00:36:14 - SoCal Cap Rates & 1031 Exchange Buyers in IOS 00:37:51 - How Long-Term Relationships Turn into Closed Transactions 00:40:46 - Advice for Next-Gen Sponsors: The Sponsor Rule of Survival 00:44:06 - What Top Brokers Must Do to Win Institutional IOS Business 00:47:03 - Closing ThoughtsConnect with Shy Assar: Voit Real Estate Services: https://voitco.com Email: SAssar@voitco.com Follow on YouTube: @AddingValueShyAssarWatch the full episode here: https://www.youtube.com/watch?v=7qT_5Pw0cTo#IndustrialOutdoorStorage #IOS #CommercialRealEstate #IndustrialRealEstate #Fontana #InlandEmpire #AddingValue #creative  Follow Adding Value with Shy Assar for more conversations that shape the future of industrial and logistics real estate. Subscribe on YouTube, Apple Podcasts, Spotify, or your favorite platform. Follow on Instagram and TikTok @AddingValueShyAssar Music Codes: MB01DKPGNACZVRS MB01TGKRMBHDK91 #CommercialRealEstate #IndustrialRealEstate #InlandEmpire #inustrial #warehousing #logistics