Jason and Pili Project

Scott Krone Featured On The Jason And Pili Project

On this podcast episode, Jason Yarusi sits down with Scott Krone, a Chicago native whose career in architecture began in 1991 by pursuing his Masters of Architecture from the Illinois Institute of Technology.  While obtaining his degree, he also worked as a Project Manager for Optima, Inc.  During his time at Optima, Krone’s responsibilities included such notable projects as the 400 unit Cormandel in Deerfield, IL, the 40 unit HedgeRow in Winnetka, IL, and the 51 unit Optima Center Wilmette in Wilmette, IL.

In 2012, Krone founded Coda Management Group – a firm who specializes in managing real estate assets.  Since its inception, Coda has manages a wide range of real estate including single and multi-family homes, retail, commercial warehouse and self-storage and multi-use flex athletic spaces.  Currently, the platform of investments is in excess of $55 million.

In 1998, Krone founded Coda, an award winning Design + Build | Sustainability | Consulting firm.  Since its inception, Coda has won numerous design/build awards including the international Green GOOD Design Award in 2010, Best of Houzz 2014 and 2015, and Design Evanston Award.  Their work has been featured in notable publications as Dream Homes - Chicago, Midwest Luxury Homes, Crate & Barrel 2010 Best Catalogs, NBC TV Show Taste, and national ACE Hardware Commercials.  

In addition, Krone has authored High Performance Homes – Navigating the Green Road to Your Dream Home, a book for homeowner’s seeking to incorporate green technology into their home.

Krone resides in Wilmette, IL, with his wife and three children.

Some key takeaways from the interview include:

  • Scott's pinnacle point from moving into storage facilities and away from multi-family buying
  • What makes the conversion process that much more buyable than the ground up in terms of being able to maximize space
  • Metrics that Scott looks forward to, to show that the market is or isn't meeting demand
  • Whether or not there's opportunities to find space in predominantly areas that were oversaturated with retail and office space that maybe you can use for this conversion process (thanks to COVID)
  • Mistakes that are commonly made when people go into self storage investing

Listen to the full interview and read the complete show notes here!


TMI Blog Post Ep 168

Scott Krone Featured On The Target Market Insights Podcast

In this episode, John Casmon sits down with Scott Krone who is the Founder of CODA Management based in Chicago, IL. They partner with investors to find and convert warehouses and office buildings into climate-controlled, self-storage facilities. CODA has over 47 syndications and 400,000 sq. ft with 2,750 storage units under management. Today, Scott shares where he finds opportunities, his criteria and tips for working with local officials.


Some key takeaways from the interview include:

  • Could not find distressed self-storage, so he focused on development
  • Converted an empty warehouse into a self-storage
  • Started in Chicago, expanded to Illinois, Wisconsin, and Ohio
  • Future opportunities in Kentucky, Michigan and North Carolina
  • Seeks 70,000 - 110,000 sq. ft of empty commercial spaces
  • PACE Financing and Opportunity Zones
  • Hire CubeSmart to manage the renovated self-storage facilities
  • Biggest risk for self-storage is competition within a 3-5 mile radius
  • Key Stat for Self-Storage: 7 sq. ft of lockers per capita
  • Commercial and Resident Users for Self-Storage
  • Check with city officials on zoning process, permits and approvals
  • Leverages PACE Financing and was the first opportunity zone and PACE financing in Ohio
  • PACE is a program providing energy efficiency financing
  • Opportunity Zones are an enhanced benefit, not as the reason to buy
  • Drive for subcontractors on projects when you need specific labor

Listen to the full interview and read the complete show notes here!


Purchase to Profits - Real Estate Investing Podcast Seth Ferguson

Scott Krone Featured On The Purchase To Profits Show

In this episode, Seth Ferguson meets with Scott Krone who hailed from Chicago and started his architecture career in 1991. He pursued his Masters of Architecture from Illinois Institute of Technology. While finishing up his studies, he worked as a Project Manager for Optima.

He founded Coda, an award-winning Design + Build | Sustainability | Consulting firm, and has won numerous awards.

In 2012, Scott Krone also founded Coda Management Group which focuses on managing real estate assets. Coda manages single and multi-family homes and a whole lot more.

Some key takeaways from the interview include:

  • What are his goals and where is he currently at it now
  • When and how did his design-build firm and fund all start
  • What experience has led him into fund management
  • What preparations does he make when anticipating a recession
  • What routines and rituals have he developed that made him successful today
  • What is his keystone deal
  • What made him decide that he need to take his business to the next level 

Listen to the full interview and read the complete show notes here!


Scott Krone Featured On Your Accelerated Investor Podcast

In this episode, Josh Cantwell sits down with Scott Krone who's company Coda Management Group moved into storage units after seeing a  tremendous amount of volatility in the single family area of real estate and a cap rate on multi-family units in their area.

Scott and his company currently manage over 400,000 square feet of storage units across the Midwest, and they are actively looking for more warehouses to convert to self-storage and flex space.

Death, divorce, and down-sizing are three reasons people rely on self-storage. In addition, as people move to a more urban setting, they lose the garage, attic, or extra bedroom where they may have stored their extra stuff. And if they need to downsize for a while, as most people do during a recession, then a storage unit is a lot cheaper than renting a bigger apartment or house.

Using PACE funding, which stands for Property Assessed Clean Energy Act, Scott has been able to fund these projects in opportunity zones (OZ). This federal program has to be state adopted and implemented at the local level, but it’s designed to help buildings become more energy efficient. Instead of paying this back like a debt payment, it gets applied to your real estate taxes through a special assessment. There are huge and exciting benefits to utilizing the PACE funding on your properties.

Typically, Scott is looking to convert warehouses that are between 80-110,000 square feet, and he prefers warehouses in a growing urban market. If you’re interested in bird dogging a deal for him, he would love to connect with you.

Some key takeaways from the interview include:

  • Some of the really cool tax benefits of PACE funding for properties.
  • Why self-storage is an attractive addition to your real estate portfolio.
  • The perfect kind of warehouse to convert into storage space.
  • Scott’s current model for investors, and how long it takes to turn a profit.

Listen to the full interview and read the complete show notes here!



Scott Krone Featured On Bigger Pockets

In this episode, Paul Moore meets with Scott Krone to discuss the four different paths someone can go down when investing in self-storage.

Key takeaways from this episode:

  • Learn about the different classes of self storage
  • Learn about the current landscape of self storage during the pandemic
  • How self storage performs better in a downturn
  • Managing risk within the space

Listen to the full interview here!


Scott Krone Featured On The Real Estate Syndication Show

Listen to this episode as Whitney Sewell discusses converting distressed buildings into storage units with Scott Krone. What Scott does is converts distressed buildings into self-storage units, primarily in rural areas throughout the Midwest. In this episode, we discover that this niche is both environmentally friendly and profitable too.

By utilizing existing buildings, these projects decrease much of the waste that is synonymous with construction. There are also financial incentives for being involved in projects that lower the carbon footprints of buildings and increase their energy efficiency. Scott talks about how he ensures that his self-storage units will succeed by going into areas with heavy demand and very little supply. We also learn why self-storage is as close to a failsafe investment as is possible, some of the creative financing he uses to fund these projects, and much more. 

Key Points From This Episode:

  • An introduction to Scott and the work that his two firms are currently involved in.
  • Why Scott works in the Midwest: it’s underserved and there are development incentives.
  • Criteria Scott looks for in buildings: size, competition, and more.
  • A ‘look green’ concept that underpins Scott’s self-storage conversion projects.
  • How long a deal on these types of buildings usually takes to close.
  • PACE Funding: the federal program that looks to reduce a building’s carbon footprints.
  • What motivated Scott to pursue his niche.
  • How the market is not the biggest hurdle in self-storage.
  • The two biggest self-storage mistakes: not knowing your competition or your market.
  • Creative ways of increasing investor returns: historic tax credit, opportunity zones, and PACE.
  • The markets Scott is looking at buying in and how he locates properties.
  • Challenges in Scott’s journey with real estate: getting people to believe in him.
  • How Scott has used the Enneagram to improve his business recently.
  • Why Scott understands investors well: he does the design, development, and the build.

Listen to the full interview and read the complete show notes here!


Best Ever Show with Joe Fairless

Scott Krone Featured on The Best Ever Real Estate Show

In this episode, listen to Joe Fairless and Scott Krone discuss how to leverage capital stack in a conservative manner, but help yield good trajectory returns for investors. 


Some key insights of this episode include:

  • When Scott made his pivot away from multi family into self storage and why
  • Why efficiency is the most important thing
  • Scott's exact process for identifying if a location is suitable for a new project
  • Looking at immediate income vs other demographics to decide what type of locker to put in
  • How Scott got his latest project in Milwaukee on the National Park registry
  • Finding the barriers to entry in the market place and identifying how much resistance there is to the product
  • Looking at all case scenarios and seeing if weathering the "worst case" is viable
  • Where you can find Scott giving his latest advice and insider tips online

Listen to the full episode and read the show notes here!


Scott Krone Featured On Real Estate Investing For Cash Flow

In this episode, Kevin Bupp sits down with self-storage expert Scott Krone. With a solid background in architecture, Scott co-founded Coda Management Group, an international award-winning design firm which specializes in sustainable building practices.

Kevin and Scott dive into self-storage real estate, which has been Scott’s more prominent venture. Scott shares a lot of valuable information about the factors and challenges concerning self-storage and how to identify building candidates for potential adaptive reuse. He also explains other aspects of the market such as financing and some market strategies.


Key takeaways from this episode:

  • 5:55 Scott’s background in architecture and his first foray into self-storage
  • 12:46 Scott talks about their business model and demographics to look out for
  • 17:40 Other factors and challenges in converting buildings to self-storage
  • 21:30 What is PACE financing?
  • 24:02 More common forms of adaptive reuse of buildings
  • 30:07 Scott shares his longterm strategy

Listen to the full interview and read the complete show notes here!



Scott Krone Featured on the Rental Property Owner & Real Estate Investor Podcast

In this episode, Scott Krone joins Brian Hamrick, host of the Rental Property Owner & Real Estate Investor Podcast where they discuss the adaptive re-use of commercial space and how it can be turned into an asset class that is very attractive and extremely profitable.

Scott Krone is the managing partner of Coda Management Group, a company that teams up with investors to purchase and convert undervalued warehouse space into climate-controlled self-storage facilities. Scott has a Masters of Architecture degree from the Illinois Institute of Technology and he's created 47 syndications and has over 400,000 sq. ft. and 2,759 storage units under management, along with over 25 years of development and design-build experience.

Scott shares the process he goes through in converting old warehouse space to self-storage, including his typical costs per sq. ft. for acquisition, construction, and soft costs. He discusses the financing that's available for these projects and how Coda builds and sells their developments to REITS.

Scott and Brian discuss the importance of mentors, whatever happened to the original 'Lincoln Log' factory in Chicago, and how he uses personality profiling techniques to build his team and understand his clients better.

Some key takeaways from the interview include:

  • Things to look for when purchasing a property:
    • Demographic: hire a feasibility consultant
    • Size: look at the size that the end buyer wants
    • Zoning: If your cost structure is lower than your competitors, it gives you more flexibility in the pricing.
  • The more open and flexible the space is, the greater ability we have to put functional units.
  • Look to maximize the investor's rate of return.
  • PACE financing is through the department of energy. If you are using green energy and it can be paid out through the property taxes.
  • Structure your debt so it’s interest only and through the interest reserve.
  • If there is too much product in a market place, that will impact your pricing. Know where you stand in the supply and demand.
  • Take education from outside businesses and apply them to your company.
  • Ask yourself and your business, are you solving a problem.

Listen to the full interview and read the complete show notes here!



Scott Krone Featured on Flipping Junkie Podcast with Danny Johnson

Danny Johnson of Flipping Junkie was joined by Scott Krone, Founder of CODA Management that teams up investors to purchase undervalued warehouse space and convert it into climate controlled, self-storage facilities that are managed by a top 3 operator. In this episode, Scott shares with us what he considers to be the most valuable lessons he’s learned throughout his career. He begins by advising “develop a strong team,” and explains how he relies on a strong team of brokers, contractors, lenders, and more to be able to keep everything running smoothly.

Some key takeaways from the interview include:

  • You need to develop strong team. The longer you’re in the industry, the more you’ll depend on the team.
  • Focus on developing each aspects of your team.
  • Use a wide range of resources to find properties.
  • Figure out if it is a good time to be in the market.
  • You can make “real money” in development, changing the use of the property.
  • Go in to markets that are not over saturated. Hire feasibility consultants to get the demographics of the area you are interested in.

Listen to the full interview and read the complete show notes here!



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