Hearthfire Capital

Mastering Self-Storage:
Investment, Operation, and Development

The Hearthfire Vision

Hearthfire is building the self storage industry’s most durable and scalable self-storage investment platform, combining real estate assets, innovative technology, and extraordinary people to deliver outsized, risk-adjusted returns for our investors.

As self storage has proven resilient through major economic shifts and continues to consolidate at a rapid pace, our vision is to capitalize on this trend and become a top 50 owner-operator. We will achieve this by implementing our proven progressive investment model to construct a portfolio of value-add properties that will be rolled up into a premier brand of institutional-grade assets that utilize a cutting-edge tech stack and the top services in the industry.  

We have assembled a team of industry experts across self-storage operations, revenue management, marketing, and technology to deliver an unparalleled customer experience and the highest potential returns for investors. We believe this is a once-in-a-generation opportunity to capitalize on a market shift that is prime for our business model.

Tailored Investment Strategies: Serving Unique Investor Interests

Our team stands at the forefront of serving distinct investor needs. For high net worth individuals, we offer the ultimate passive investment experience in self-storage. Our commitment to carefully selected and crafted investment opportunities, transparency, and meticulous reporting allows these investors to confidently witness their investments flourish without the need for active involvement.
 
For joint ventures and institutional partners, we bring an extensive expertise in large-scale enterprise investment services, including financial analysis, project management, and deep industry knowledge to the table. Our team is proficient in not only facilitating single transactions but also constructing institutional-caliber portfolios of assets. We successfully navigate complex deal structures, ensuring balanced consideration of all stakeholder interests while swiftly adapting to dynamic market conditions. Our steadfast focus on sustainable, long-term growth, has enabled us to deliver consistently robust returns, cultivating an investment environment that is dedicated to meeting the high-demands of the most sophisticated partners in the world.

Why Invest in Self Storage?

Ownership Consolidation

The pace of industry consolidation continues to pick up. Building market portfolios allows for the effective use of technology and economies of scale.

Cap Rate Compression

Cap rate compression has reached diminishing returns in the top 25 MSAs despite the low cost of capital. Decreasing cap rates in our target markets mean higher values for the same NOI.

Independent Operators Cashing Out

Independent operators continue to cash out on the favorable market conditions. Concerns about tax rates and possible 1031 exchange legislation revisions are driving more operators to sell in the short-term.

REITs & Other Large Private Buyers

REITs and larger private buyers need to place capital, and they are looking for better returns than what’s available in major MSAs. This market consolidation bodes well for huge exits.

Rapid Adaptability

Tenant base at these facilities is large, and owners are protected from the long-term vacancies that can occur in other commercial real estate categories. The short-term nature of the rentals also allows owners to quickly react to market conditions.

Consumer Behavior

COVID created a huge demand for home-based office and learning environments, increasing the need for external storage space.

High Rental Rates

Rental rates have increased substantially year over year in secondary and tertiary markets as COVID has loosened geographic restrictions for well-paying jobs.

All-Time High Utilization

The consumer behavior that drives people to self storage (downsizes, renovations, and relocations) becomes more prevalent during economic downturns, lending a countercyclical feature to the sector.

Increased Investor Interest

Self storage is seeing a big increase in investor capital, flocking from other asset classes. No toilets, tenants, trash or eviction moratoriums!

Technology

The self storage tech revolution continues to advance and mature rapidly, allowing our tech focus to thrive.

Hearthfire has a strong history
as a trusted steward of investor capital.

$50+ Million

Of assets under management for self storage since inception, as of 3/31/2023.

171 Investors

Including sophisticated investors, high net-worth individuals, trusts, SD 401k/ IRA and private entities.

300k Cumulative NRSF & 2k Total Units

Of total self storage space under management.

30+ Years in Finance and Wealth Management

Including the US Central Bank, Private Equity, Finance, and Wealth Management.

80+ Years in Real Estate, Self Storage Operations & Acquisitions, and Investment Management

Combined experience of 30+ years self storage operations experience, management of $1B+ of assets across 113+ locations, and $1B+ in completed transactions.

40+ Years in Technology

Including application development and deployment, project management and information security. Total technology experience includes billions of dollars in capital investments and transaction volume.

30%+ Full Lifecycle Returns

Total full lifecycle returns have generated 33% net levered IRR.

Our Self Storage Track Record

14

Self Storage Facilities Under Management

with a deep pipeline of ongoing acquisitions

$50M+

Portfolio Value

Meet the Hearthfire Team

Sergio Altomare, CEO and Co-Founder

Sergio is Co-Founder and CEO of Hearthfire Holdings, a Real Estate Private Equity and Development firm with over $50MM in self storage assets under management. His personal and company track record includes 9 successful property exits with an average return of over 25% IRR. His storied career in central banking enables superior financial and investment competency to identify and profitably enter and exit real estate, equity, business positions, and ventures.

Career Journey
Sergio is a highly accomplished Technology Executive, Strategist, and Data Architect with an accredited track record of managing IT projects for the Federal Reserve System. He is an expert in analyzing business needs, performing gap analysis between goals and existing technology, and researching and recommending technological improvements. He has extensive experience in systems architecture, security, mobile computing and service management, and is an expert in security assessment, architecture, design, and compliance.
 
Through this experience, Sergio has developed strong leadership and interpersonal skills, financial and cash flow analysis, real estate underwriting, and investment crowdfunding. He is highly adept at diplomatically facilitating technical and business problem solving, public speaking, and negotiations with stakeholders. He has recognized project management skills, consistently delivering complex, high-visibility projects on time and within budget.
 
Education
Sergio received his Bachelor of Science degree in Computing and Security Technology from Drexel University (Summa Cum Laude).  He is a Certified Information Systems Security Professional (CISSP) and holds many other IT certifications.  Sergio is a licensed realtor in the state of Pennsylvania. 
 
Just for Fun
Sergio and Corinn have been married since 2014 and live in Downingtown, PA. In his not-so-free time, Sergio enjoys hiking, skiing, cooking, BBQ, gardening, technology and tinkering, traveling, and self-improvement.

Corinn Altomare, Co-Founder

Corinn founded Hearthfire Holdings with the belief in the power of real estate investing to change lives, and the commitment to turn that belief into a reality.

Since its founding in 2012, Hearthfire has grown and evolved significantly, but never strayed from this core pursuit – to create the ultimate durable investment platform that combines real estate, business, technology, and people to deliver amazing returns in wealth in all its forms.

Career Journey
Before Hearthfire, Corinn worked as a project manager for the Federal Reserve System, implementing technology systems on behalf of the US Treasury.  Prior to her time within such a large-scale organization, Corinn worked in her family’s businesses – in real estate and law.

Corinn is a keynote speaker and thought leader on the self storage industry and on being a working mom entrepreneur.   For over five years, she has led a local Meetup Chapter of The Real Estate InvestHer Community, founded to empower women real estate investors. She is an active member and regional organizer in women’s networking groups such as GoBundance Women, a community for female entrepreneurs.

Education
Corinn received a Bachelor of Music from California State University, Long Beach and a Master of Music from University of Southern California.

Just for Fun
In her free time, you will find Corinn with her daughter, exploring humanity and our world from a young child’s fresh perspective.

Michael Baillargeon, Chief Operating Officer

Mike brings over two decades of self storage leadership experience, with wide ranging responsibilities that have included operational management as well as third party and asset management.

Career Journey
Most recently, Mike led the rapid growth of the Store Space Storage portfolio as the Senior Vice President of Operations. Prior to that, he served for three years as a key member of the third party & asset management teams at Extra Space Storage in Salt Lake City, Utah. Earlier in his distinguished career, Mike served fifteen years in a variety of field operational roles for both Extra Space Storage and Public Storage.

Education
Mike is a graduate of The College of the Holy Cross in Worcester, Massachusetts.

Michael Marron , CFO

Michael is a proven real estate CFO and executive with success in both private and public markets over multiple business cycles. He is an executive leader and advisor to the CEO, responsible for overall financial management, capital strategy, and driving operational excellence in accounting, reporting, controls, and planning.

Career Journey
Michael was most recently CFO and member of the executive leadership team for Blue Onyx Companies, a vertically integrated multifamily real estate operator and developer. Prior to that, Michael was Co-Portfolio Manager for the global real estate securities strategy at Barings Alternative Investments, which outperformed the relative benchmarks and achieved Morningstar 5 Star status. Earlier in his career, Michael served in investment and asset management roles at EII Capital, Prudential Securities, Sovereign Investments, and Lehman Brothers. Michael began his career as a CPA and auditor at KPMG.

Education
Michael completed his undergraduate degree at SUNY-Albany in Albany, New York and obtained his MBA at Columbia University in NY. NY. He has served as an Adjunct Professor at Baruch College in NY, NY and Ramapo College of NJ.  Michael is a certified public accountant (CPA), a credential he earned early in his career while working as an auditor at KPMG.

Just for Fun
Outside of work, he enjoys spending time with his family, traveling, playing golf, and volunteering with local youth sports programs.

Henry Metcalf, Director of Acquisitions

Henry is a serial learner, especially when it comes to all things real estate. From becoming a licensed realtor in Utah to earning his Masters Degree in Real Estate Development, Henry has always sought out additional opportunities to learn and grow in the industry. He was exposed to self-storage early in his career with Extra Space Storage and realized its appeal through underwriting thousands of development and acquisition opportunities across the country. He leads acquisition efforts for Hearthfire Holdings and would love to chat about any opportunities you may have.

Career Journey
After starting his career in real estate as a residential realtor in Utah, Henry joined the Third Party and Asset Management team at Extra Space Storage. Henry led the underwriting efforts for outside partners on both the acquisition and development fronts. He also created the State of Third Party report, used by the executive team to track key performance indicators and growth opportunities nationwide.

From there, Henry spent some time in land acquisition and development with Ivory Homes, the largest home builder in Utah, where he led projects from origination through entitlements and gained valuable experience in deal negotiation and government approvals.

Most recently he acted as Investments Director for a real estate investment company focused on the development and acquisition of self-storage and retail mixed-use projects in primary and secondary markets throughout the United States.

Education
Henry received his Bachelor of Finance from University of Utah, and Master of Real Estate Development from University of Utah.

Just for Fun
Family is everything to Henry. He and Abby (his wife) are the lucky parents of two incredible kiddos, Cleo (2) and William (1 month). When not dressing up as Prince Charming or having dance parties with Cleo, Henry enjoys all things sports, from golfing to cheering on the local high school basketball teams. Abby and Henry are also avid travelers and love visiting London, England where they first met as volunteers for their church in 2015.

Ethan Blum, Director of Capital Markets

With over 15 years of experience in commercial real estate, Ethan brings a wealth of knowledge and expertise to our team. He has a proven track record in capital origination, structuring, finance, and analysis, and has developed a diverse set of industry relationships within institutional and retail investor communities.

Career Journey
Ethan’s experience in the commercial real estate industry is extensive, having successfully transacted over $1 billion in debt and equity since 2016. He possesses expertise in all debt, equity, and hybrid tranches of capital stacks across various asset types, including multifamily, office, retail, industrial, hospitality, and alternative assets. Additionally, he has completed deals ranging from pure ground-up to adaptive re-use and deep value-add.

Education
Ethan received his Bachelor of Arts degree in Managerial Economics from Union College in Schenectady, NY and holds a Pennsylvania real estate salesperson license.

Just for Fun 
Ethan has a deep appreciation for the outdoors, from hiking and fishing to visiting National Parks and playing sports with his sons.  He is also a fan of several musical genres and enjoys the shared experience of a live concert.  Ethan is also interested in wellness, the mind-body connection, self-growth, altruism, and learning about new topics.

Mike Capraro, Director of Asset Management & Corporate Finance

Mr. Capraro currently serves as Director of Asset Management & Corporate Finance for Hearthfire Capital, a rapidly growing privately held self-storage firm. Previously he was the AVP of Store Space where he built and implemented an asset management infrastructure to report KPIs for approximately $1 billion of assets with more than 100 store locations.

Career Journey
Before entering the storage industry Mr. Capraro spent several years with a sell side investment bank as an advisor for multiple companies across several industries. He conducted various financing transactions including: rights offerings, IPOS, private placements, up-lists, ATM structures, shelf-offerings, co-managed offerings, and American depositary share offerings.

Education
Mr. Capraro attended FAU where he completed his MBA.

Certification
Mr. Capraro has completed courses with CCIM for commercial RE analysis and previously held numerous FINRA licenses including: Series 79, 7, 66, 6, and 214.

Just for Fun
In his free time Mr. Carparo loves to spend time outdoors and has completed several hikes throughout Iceland and the Smoky Mountains.

Peter McDaniel, Director of Construction

Pete brings over 22 years of experience leading real estate development and construction, for public and private clients across laboratory, health care, education, stadium, government and civil sectors.  Pete loves development and construction and is driven to deliver maximum efficiency and accuracy in his work.

Career Journey
Most recently, Pete led development efforts for Extra Space Storage, across the US Midwest and Northeast regions. He started his career by working for a general contractor where he successfully managed large, multi-story, multi-million-dollar projects for multiple different government and private clients. This experience allowed Pete to gain knowledge from several different owners and developers before making the change to work directly for the owner (developing entity).

Education
Pete has a degree in Construction Science from the Texas A&M University – Commerce.

Just for Fun
In his free time, Pete spends the majority of his time with his partner Marissa and their three children Tucker, Ellen, and Brody. They enjoy going to any type of live event: from sports, to a play, comedy show, music festival, or the local fair. Pete also enjoys spending time outdoors, golfing, skiing, and traveling as long as it includes relaxing by the pool, lake, river, or beach.

Dan Paetzold , Senior Construction Manager

Daniel Paetzold, our esteemed Senior Construction Manager, has a rich career spanning over 22 years. He has been at the forefront of real estate development and construction across various sectors including retail banking, disaster recovery, residential new construction, and self-storage entities. His career journey is both diverse and impressive. He recently served as a project manager consultant for Extra Space Storage, overseeing projects across the US Midwest and Northeast regions. His career began with several nationally ranked homebuilders, where he successfully managed large-scale single-family and multi-family housing developments. His portfolio also includes roles as a Senior Program Manager for disaster recovery programs in New Jersey and Texas, and a key role in overseeing retail renovations for TD Bank.

Education
On the academic front, Daniel holds both a bachelor’s and master’s degree in business administration from Rowan University in Glassboro, NJ.

Certification
There is no specific certification mentioned in the provided content.

Just for Fun
When he’s not managing construction projects, Daniel loves spending quality time with his wife, Stephenie, and their three children, Jack, Molly, and Henry. He is a proud parent, often seen cheering on his children at youth sports events and school band performances. A hands-on dad, Daniel also coaches his children’s baseball, basketball, and football teams. An outdoor enthusiast, Daniel cherishes his time at the Jersey Shore or cheering for the Phillies at a baseball game.

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