False Start
In his own words, Roberts is a “persuader.” In fact, he was able to rally financial backing for a new venture, Onyx Trust Inc., the same summer he declared bankruptcy. Onyx Trust planned to purchase self-storage facilities, but his timing was hardly as persuasive.

Announcing the launch of Onyx the same month he declared bankruptcy drew withering public criticism. Roberts insists that the money for the new venture came from investors, not from funds of his own that were secreted away from the bankruptcy court. He points to a second mortgage he took out on his home during the height of the crisis at Charlevoix as evidence of his commitment to the company, not to mention the comprehensive seizure of assets that followed.

“What do people expect me to do? Stay down?” Roberts says about the episode. “That’s not me. I don’t quit. That’s just not me.”

But the fact is, it didn’t look good. The blog Arizona Real Estate Notebook observed at the time: “Ahhh, real estate! You can file for bankruptcy protection for your old company while creating a new multi-million dollar real estate investment company the same week.”

Former Phoenix Mayor Skip Rimsza, who was an unpaid board member, resigned. Amid the turmoil, Roberts shut down operations.

Rags to Riches, Part II?
About a year later, in September 2009, Roberts launched Sure Storage USA with no publicity, which he says was just fine with him. The Sure Storage USA business plan calls for the acquisition of 200 self-storage facilities in the next 36 months, with the intention of becoming one of the leading storage facility providers in the western United States.

The model looks like a solid one, according to a senior Valley banker with an extensive background in business lending who asked to remain anonymous. “Mike took the time to develop a sound plan. He has done an incredible job putting a team together that understands the industry. They are well on their way and it’s going to be pretty exciting.”

According to Roberts, various sources of financing agree with this assessment. He says he’s received commitments for a quarter of a billion dollars from equity groups, capital partners, shareholders and debt lenders.

“There’s no lack of capital out there looking to be placed,” says ASU’s Mark Stapp, “but people are looking for good ideas, ideas that can really pay off.”

It’s a good time to buy real estate if you’re in a position to do so. Many storage facility operators are in trouble because they over-leveraged their properties to pursue real estate development and other endeavors, so good deals are plentiful. In effect, Roberts is seeking to turn the very market forces that brought down Charlevoix Homes – declining property values and tight credit – into driving forces for growth in Sure Storage USA.

“Most real estate fortunes are built on failure,” says Jay Butler, director of the Arizona Real Estate Center at ASU’s W. P. Carey School of Business, who points out that major real estate enterprises often take advantage of collapsed market conditions to create substantial wealth.

What is not quite as common is for the same individual to both suffer the consequences of a real estate collapse and benefit from them, perhaps to an even greater degree. Where did the confidence and entrepreneurial fire come from to not only rebuild after losing everything but perhaps become even more successful in the process?

“The momentum comes from within,” Roberts says. “There’s nothing we can do about the past but run from it. First, I got me to believe in this new venture, which was the hardest part of all, then I got one more person to believe, then another one then another one.”

In February, Sure Storage USA, headquartered in Scottsdale, completed a reverse merger with a publicly traded shell company, which will effectively take Sure Storage USA public, pending Federal Trade Commission approval. Roberts is working on his new venture about 20 hours a day with unrelenting enthusiasm, powerful partners and a staff of nine. All of which could (Roberts would say should) yield a company worth between $500 million to $1 billion within five years.

But there’s a lot of work to be done between now and then. At press time, the company had its first six properties in escrow. They are located in Denver, Las Vegas, Salt Lake City, Los Angeles, San Diego and Houston. Now just 194 to go.

When it comes to real estate entrepreneurs on the comeback trail, ASU’s Jay Butler notes, “It’s easy to say that the market ruined them. The question is, did these guys learn from their mistakes in the past, or are they just going to make the same dumb moves that got them in trouble before?”

But Roberts insists he is a changed man, uninterested in returning to the profligate pitfalls of the housing bubble.

“I’ve learned to be a right menu guy (where the prices on the menu are found). My greatest successes in life were when I was a right menu guy. I was so frugal with the video stores. I ran it like a war ship, and we handled each transaction one dime at a time. I got rich and all of a sudden the machine went astray. All my disciplines from the stores we built went out the window. I had become a left menu guy. But I am back!”