Turning Empty Big Box Stores Into Drive Through Self Storage with David Pelusio

A vacant big box store may look like a problem. David Pelusio sees the shell of a drive through self storage facility.

David and his team buy large former retail properties and convert them into climate controlled storage. Customers can drive into the building, park beside their storage area, and unload without dealing with the weather.

But the storage conversion is only part of the opportunity.

David explains why his team likes shopping centers with separate out parcels. They can subdivide those parcels, creating different choices for selling, holding, or refinancing pieces of the property. Rent from existing tenants can also help with carrying costs while the storage portion moves toward operation.

One idea comes up again and again in the conversation: buy it right. David says his team is buying some big box buildings for about $30 to $70 per square foot. He also points to the value already inside the property, including site work, sprinklers, electrical systems, and plumbing.

Key topics and takeaways:

• How vacant big box stores can become drive through self storage
• Why David likes properties with out parcels
• How subdivision can create more options within one acquisition
• Why secondary markets can offer opportunities
• Why David focuses heavily on the original purchase price
• How his team raises capital for down payments
• The choices between selling, refinancing, holding, and moving investor capital into another project
• David’s goal of completing about eight or nine projects in 2027

Guest information:

David Pelusio is based in Rochester, New York. He says his team has been doing real estate for 55 years and now focuses on finding large retail properties that fit its criteria for conversion.

David says people can find more information through:

David Real Estate Homes dot com

He says his email address and phone number are available through the website. Interested people can then connect with his team about a data room, pitch deck, and a one on one conversation.

Call to action:

To learn more about David and his projects, visit the website he identified during the interview as David Real Estate Homes dot com. David said he is interested in connecting with investors and banks that want to do business.