By: Victoria Kennedy

Navigating the ever-changing landscape of real estate investment requires astute insight and strategic planning. Recently, we interviewed AJ Osborne, the CEO of Cedar Creek Capital, for an illuminating interview. We gained invaluable perspectives on the company’s strategies and projections for the remainder of the year. Osborne’s expertise sheds light on the challenges and opportunities real estate investors face in today’s dynamic market.

At Cedar Creek Capital, the primary focus for the remainder of the year revolves around the acquisition environment, which Osborne describes as increasingly challenging yet ultimately rewarding. As a value-driven and fundamental investor, the company prioritizes properties with robust long-term economic fundamentals, prioritizing quality over quantity in its investment decisions.

Osborne elaborated on Cedar Creek’s plans, emphasizing, “For the rest of the year for us, we’re focusing a lot on the acquisition environment, which is much harder today. We are value investors. We are fundamental investors and long-term investors. So we aren’t just cruising through; we’re not flipping things. We need good properties with good prices and very good long-term, fundamental economics behind them. So the amount of assets for us to purchase, I think, is less; I think it’ll be a slower acquisition year than normal. Because of quality, we won’t touch anything that’s not really, really good.”

Despite the challenges posed by the current market conditions, Osborne remains cautiously optimistic about the future trajectory. Cedar Creek Capital aims to procure between 500,000 to a million more square feet of real estate this year, signaling a rebound from the previous year’s acquisition figures. “We’re okay with that; it’s quality over quantity for us,” Osborne affirmed. “We expect that we will have a new development ready to go. Our target is between about 500,000 to a million more square feet that we will acquire this year, which I think we’ll probably get that number even in this environment.”

Key governmental policies, such as the 1031 exchange and the potential renewal of 100% depreciation, play pivotal roles in shaping investment opportunities. Osborne underscored the significance of these policies, stating, “The 1031 exchange money is one of the big things that we’re looking at right now. The 1031 exchange money is having a tough time; it is rough right now because there are just not a lot of deals out there. So, the pickings are low. Now, another big thing is the government is looking at renewing the 100% depreciation. I believe it’s going in front of Congress, and we fully expect them to do it, which is great because that means we get 100% depreciation again, which has been whittled down over the last two, three years.”

Looking ahead, Osborne identifies critical factors such as elections, interest rates, and depreciation policies as defining elements that can shape the real estate landscape for 2024. These factors can influence investment decisions and market dynamics in the coming months.

In summary, AJ Osborne’s insights offer valuable guidance for navigating the complexities of the real estate investment market, particularly in the self-storage sector. As Cedar Creek Capital adapts to evolving conditions, investors can rely on Osborne’s expertise for informed decision-making in their endeavors.

About AJ Osborne:

AJ Osborne, the CEO of Cedar Creek Capital, boasts an impressive 20 years of experience as a self-storage owner, operator, and developer. He is a founder and board member of one of the largest self-storage co-op, Storelocal, and Tenant Inc — a SaaS company supporting self-storage facility management. AJ has authored a bestselling book on self-storage investing and hosts a popular self-storage podcast, Self Storage Income. Accredited investors seeking further information can visit cedar.cc.

Published by: Khy Talara