Above the Falls on Ridge: A Philadelphia Asset Below Replacement Cost, With Upside Ahead

Most self-storage buyers today get one or two of these at a time: a newer building, proven performance, a price below replacement cost and an off-market deal. Above the Falls on Ridge, in Philadelphia's East Falls neighborhood, has all four.

On Wednesday, November 11 at 1:30 PM ET, Sergio Altomare and Jordan Canino will walk through Hearthfire's newest offering live.

Built in 2023, Above the Falls on Ridge is an 850-unit, 100% climate-controlled facility with 65,954 net rentable square feet, operated by Extra Space Storage, the largest self-storage operator in the U.S. It's 91% occupied today, and Hearthfire is acquiring it at about 20% below what it would cost to build the same facility today. It also sits about 20 minutes from our office.

What we'll cover:

• How the deal came to us off-market, and how the acquisition is structured
• Why rents still have room to grow: a climate-controlled 10x10 rents for $128/month here, against a $153 average at six nearby competitors
• The East Falls market: 313,502 residents within three miles, 54% of households renting, and 5.1 square feet of storage per person
• How we underwrote it: fixed-rate debt at 6.25% with three years interest-only, and an exit that assumes a 5.50% cap rate, so projected returns don't rely on cap rates compressing
• How the raise is structured, including the projected first-year tax benefit
• How to participate, and live Q&A

The numbers we'll walk through live

• Target Class A returns (net of waterfall): 10% preferred return, 17% IRR, 2.0x equity multiple, 20% average annual return, over a projected 5-year hold
• Projected tax benefit: first-year bonus depreciation projected above 100% of the equity invested (2026 tax year, assuming a 2026 closing). Please review it with your own tax advisor.
• Raise: $5.8M in LP equity, $50,000 minimum, accredited investors only, targeting a mid-December closing

Projected and target returns, not guaranteed.

Speakers

Sergio Altomare, CEO & Co-Founder, Hearthfire Holdings. Co-founded Hearthfire in 2012 and has grown it into a $200M+ self-storage investment platform with 26 assets in 10 states. He has led nine realized exits averaging a 30%+ IRR. Before real estate, he spent more than two decades with the Federal Reserve System leading financial infrastructure and risk initiatives.

Jordan Canino, Senior Director, Investor Relations, Hearthfire Holdings. Brings more than a decade of experience across self-storage brokerage, acquisitions and capital markets, with prior work at Colliers and JLL. He leads investor relations across Hearthfire's current offerings.

Can't make it live? Register anyway and we'll send you the replay. Want to see the building in person? We're hosting small-group property tours at 4022 Ridge Ave, starting Thursday, November 12.

This communication is for informational purposes only and is not an offer to sell or a solicitation of an offer to buy any security. Any offer will be made only through the Private Placement Memorandum and subscription documents for the offering. The offering is open to accredited investors only. Projections and target returns are hypothetical and not guaranteed, and an investor could lose capital. Past performance is not indicative of future results. Nothing in this session is legal, tax or investment advice. Hearthfire Holdings, 850 Cassatt Rd, Suite 100, Berwyn, PA 19312.