Toy Storage Nation proudly introduces Adam C. Pakes, CEO of Luxelocker, as its newest TSN Advisory Board Member, effective immediately. As CEO of LuxeLocker–a Class A RV, boat and self storage brand that leases and sells condo storage–his responsibilities include growth and scalability of Luxelocker, growth of all Luxe personnel, constant evaluation of morale and ensuring the proper trajectory to make Luxelocker a 10-figure company. To achieve that goal, Pakes is focusing on three verticals: development, technology and insurance.
Since 2001, Pakes has been a user of storage and saw the value early on. In 2015, he led the charge to build a small location in Lake Havasu City, Ariz., due to his own needs. That project was a success and another development shortly followed suit. It was then that Pakes saw a much larger need outside of Lake Havasu and committed to scale the Luxury Large-Box Storage asset class.
In his spare time, Pakes enjoys spending time with his wife of 17 years and his three kids. Faith is the foundation for all decisions, both personally and professionally. All of his kids are involved in competitive sports and he and his wife love to support them. Some of his solo passions are golf, dirt bike riding, hunting and deep-sea fishing. He holds an undergraduate degree in management from Cal State University Long Beach.
What inspired you to go into RV/boat storage?
It was based on a self-serving need. I was looking to store my boat closer to my home. After calling a few locations, nothing was available. I decided to build my own. The rest is history.
What compelled you to choose to develop traditional self-storage as well as toy storage units?
We solely develop Luxury Storage for toys. Lake Havasu is home to 6,000 large-box storage facilities. We learned how to develop from local experts. We did three projects locally before venturing outside city lines.
Can you explain the company’s strategy and business plan?
Our vision is to achieve a yield on cost of more than 10%. To do this, we specifically design each campus to sell a minority number of units and keep most units for cash flow. Our strategy is to be the largest holder of luxury storage in the world.
What criteria determines where LuxeLocker will develop new properties?
We created a proprietary model that uses algorithms to determine locations. We focus on eight specific data points. Our model drills down to the Zip code. Currently our total addressable market (TAM) exceeds 1,400 sites. From there, we dive deeper into specific data points to determine our serviceable addressable market (SAM,) which is greater than 550 locations.
Are you converting traditional into hybrid and/or condos, or are all your sites developed from the ground up?
Currently, we are 100% ground up.
How many sites are you currently operating and what do you have in the pipeline?
As of September 2024, Operating 11 campuses, 6 in construction, 15 in various stages of development.
How are you marketing your properties?
We are active on social media and also market through newspapers, search engine optimization (SEO) and pay per click (PPC) strategies.
Do you have any advice for streamlining the entitlement process?
My best advice: Hire a local entitlement attorney. As Sun TZU, ”We shall be unable to turn natural advantages to account unless we make use of local guides.”
How has the community responded to your business and how quickly do you lease up the spaces? Why or why not should developers and investors be considering Class A sites as opposed to operating Class B or Class C facilities?
Luxelocker is a premium brand that commands premium pricing. We do that by providing amenities that users value. Some locations are fast, and some aren’t. We are never going to get it 100% right; however, we analyze the data and determine where we missed and pivot, thereafter.
What are the key factors that new developers of condo storage should consider? (such as location, feasibility, unit mix and ancillaries/concierge services)
Developers should closely evaluate proximity to rooftops, income and age. My other suggestion is to buy entitled land, because it makes your life a lot easier. Luxelocker is committed to scale, therefore our requirements are more than most. If it fits inside “the box” we move forward. If at any time it falls outside of “the box,” we punt.
Are you pleased with the direction your business model has taken? How do you picture the LuxeLocker in two to 10 years?
Yes, I’m definitely pleased with the direction of LuxeLocker. I also think people should know that it always looks sexier from the outside. Anyone will tell you that falling in love with the process will grow your company faster than falling in love with the result. In 10 years, I project that Luxelocker will be operating between 100-200 locations nationwide.
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