BIG SKY DISCOUNT STORAGE & EXPANSION LAND

Transcription

1 OFFERING MEMORANDUM Presented by: Bobby Loeffler President The Loeffler Self-Storage Group P.O. Box 4950 El Dorado Hills, CA License: CA , NV Tel.: Fax: Cell: Web:

2 TABLE OF CONTENTS Section One Executive Summary Page 2 Section Two Investment Highlights Page 3 Section Three Aerial Photography Page 4 Section Four Property Photographs Page 5-8 Section Five Physical Description Page 9 Section Six Location Maps Page 10 Section Seven Site Description & Parcel Map Page 11 Section Eight Demographics Page Section Nine Rent Comparables Page 14 Section Ten Sale Comparables Page Section Eleven Financial Analysis Page

3 EXECUTIVE SUMMARY Property Name: Property Address: Property Type: Project Size: Big Sky Discount Storage & Expansion Land & Big Sky Blvd., Susanville, CA Self-storage facility 48,814 net rentable square feet of storage 60 open RV parking stalls, 264 storage units, 324 total units Year Built: 1993 & 2004 Average Rent/SF: $0.42 Current Occupancy: (As of 08/01/14) 71% by square footage 67% by units 68% by dollars collected (economic occupancy) Average Market Occupancy: 90% Purchase Price: $1,800,000 Current NOI / Capitalization Rate: $126,543 / 7.03% Pro Forma NOI / Capitalization Rate: $189,587 / 10.53% Proposed Financing: 80% LTV, 30 year amortization, 5.5% fixed rate, due in ten years Price/NRSF: $37.43 Traffic Counts: Investment Highlights: Route Johnstonville Road: 9,500 vehicles per day (California DOT, 2011) Great location along Big Sky Boulevard at Johnstonville Road Prominent signage visible from the street Thriving U-Haul business with AAA rating Economy is recession-resistant due to three nearby prison authorities 9.69 acres plenty of room for expansion Upside through increased occupancy and the elimination of concessions over time - 2 -

4 INVESTMENT HIGHLIGHTS Big Sky Discount Storage is a well-located, functionally sound, self-storage facility located in Susanville, California approximately 84 miles northwest of Reno, Nevada. For the potential investor, Big Sky Discount Storage serves as an ideal project with the following attributes: Opportunity: Financing: Signage: Competition: Location: Occupancies in the Susanville submarket currently trend very close to 90% physical occupancy. Operationally, the property is a great opportunity for the experienced operator who will act as a hands-on owner to dictate management directives and marketing incentives to the onsite staff. The U-Haul business offers a unique opportunity to expand a AAA rated location. With a recently added 6+ acres, there is ample room to expand the U-Haul and self-storage businesses. Prevailing market rates indicate that the property should qualify for the following loan: 70% LTV, 30 year amortization, 5.5% fixed rate, due in ten years. Big Sky Discount Storage offers excellent signage to Big Sky Boulevard at the property s entrance. The competitors in the Susanville market are typically properties of similar age construction when compared to that of the Subject Property. Customer service is paramount in this small community and the Subject Property has a history of delivering exceptional service. The project is located at the corner of County Highway A27 (Johnstonville Road) and Big Sky Boulevard. The property s entrance can be found along the northwestern end of Big Sky Boulevard. Susanville is home to High Desert State Prison (HDSP) a maximum security prison which employs over 1,500 people. Susanville is also home to the California Correctional Center (CCC) a minimum-medium level security state prison employing over 1,200 people. The Federal Correctional Institution in Herlong is also nearby. Workers at all three prisons can travel along the Johnstonville Road corridor and can pass by the Subject Property. Other major employers include: Diamond Mountain Casino, Eagle Lake Village, Lassen Community College, and Wal-Mart. The property s location among several familiar industrial tenants and nearby residential neighborhoods adds to the visibility and viability of the property overall

5 AERIAL PHOTOGRAPHY - 4 -

6 PROPERTY PHOTOGRAPS - 5 -

7 PROPERTY PHOTOGRAPS - 6 -

8 PROPERTY PHOTOGRAPS - 7 -

9 PROPERTY PHOTOGRAPS - 8 -

10 PHYSICAL DESCRIPTION Property Location: Big Sky Boulevard, Susanville, CA Assessor s Parcel Number: Gross Site Area: Zoning: Project Type: (2.71 acres Big Sky Storage) (2.4 acres Storage and Expansion) (2.53 acres Storage and Expansion) (2.05 acres Expansion Area) 9.69 total acres, 422,096 square feet of land (Lassen County) Use Code: Commercial (General) Commercial Year Built: 1993 & 2004 Project Description: Twelve (12) one (1) story self-storage buildings, and one (1) one (1) story building including an office and manager s unit totaling approximately 50,000 gross square feet of building area. Building Description: Total Gross Building Area 50,000 Rentable Square Feet: 48,614 Total Units: Construction Type: Roof Material: Interior Partitions/Doors: Paving/Parking: Security: Climate Control: Management Software: Website: 264 storage units averaging 184 net rentable square feet Metal frame Metal Metal Gravel Keypad entry gate, video surveillance, fenced grounds None emove (U-Haul) None - 9 -

11 LOCATION MAPS

12 SITE DESCRIPTION & PARCEL MAP Property Location: Distance to Freeway: Gross Site Area: Shape: Topography: Street Frontage: Parcel Map & Big Sky Boulevard, Susanville, CA Located approximately 2 miles northwest of U.S. Route acres, 422,096 square feet of land Irregular Gently sloping west to east Approximately 600 feet along Big Sky Boulevard

13 DEMOGRAPHICS Demographics for Big Sky Boulevard, Susanville, CA Population 1-mi. 3-mi. 5-mi Male Population 479 5,614 6, Female Population 485 5,582 6,400 % 2011 Male Population 49.69% 50.14% 50.18% % 2011 Female Population 50.31% 49.86% 49.82% 2011 Total Adult Population 650 7,574 8, Total Daytime Population 2,774 12,506 13, Total Daytime Work Population 1,653 6,681 7, Median Age Total Population Median Age Adult Population % 2011 White Population 80.91% 82.44% 83.04% % 2011 Black Population 1.76% 1.39% 1.33% % 2011 Asian/Hawaiian/Pacific Islander 2.90% 2.33% 2.24% % 2011 American Indian/Alaska Native 3.42% 4.75% 4.59% % 2011 Other Population (Incl 2+ Races) 11.00% 9.08% 8.80% % 2011 Hispanic Population 15.04% 12.42% 12.11% % 2011 Non-Hispanic Population 84.96% 87.58% 87.89% % 2000 Non-Hispanic White 94.40% 88.49% 88.73% % 2000 Non-Hispanic Black 1.65% 1.47% 1.48% % 2000 Non-Hispanic Amer Indian/Alaska Native 1.27% 4.71% 4.54% % 2000 Non-Hispanic Asian 0.00% 0.51% 0.61% % 2000 Non-Hispanic Hawaiian/Pacific Islander 0.00% 0.35% 0.32% % 2000 Non-Hispanic Some Other Race 0.00% 0.11% 0.16% % 2000 Non-Hispanic Two or More Races 2.67% 4.37% 4.16% Population Change 1-mi. 3-mi. 5-mi Total Population ,196 12, Total Households 459 4,383 5,016 Population Change ,642 1,857 Household Change % Population Change % 17.19% 16.90% % Household Change % 22.84% 23.18% Population Change Household Change % Population Change % 3.37% 3.58% % Households Change % 7.32% 7.85%

14 DEMOGRAPHICS (cont d) Housing 1-mi. 3-mi. 5-mi Total Housing Units 470 4,470 5, Occupied Housing Units 416 4,044 4, Owner Occupied Housing Units 213 2,400 2, Renter Occupied Housing Units 203 1,643 1, Vacant Housing Units % 2000 Occupied Housing Units 88.51% 90.47% 90.63% % 2000 Owner Occupied Housing Units 45.42% 53.70% 55.88% % 2000 Renter Occupied Housing Units 43.28% 36.76% 34.75% % 2000 Vacant Housing Units 11.30% 9.53% 9.37% Income 1-mi. 3-mi. 5-mi Median Household Income $46,135 $53,616 $56, Per Capita Income $28,146 $29,211 $30, Average Household Income $59,113 $74,616 $77,231 % 2011 Household Income < $10, % 5.91% 5.44% % 2011 Household Income $10,000-$14, % 4.52% 4.19% % 2011 Household Income $15,000-$19, % 4.34% 4.13% % 2011 Household Income $20,000-$24, % 5.07% 4.67% % 2011 Household Income $25,000-$29, % 6.09% 5.66% % 2011 Household Income $30,000-$34, % 5.48% 5.18% % 2011 Household Income $35,000-$39, % 5.77% 5.50% % 2011 Household Income $40,000-$44, % 4.43% 4.31% % 2011 Household Income $45,000-$49, % 4.61% 4.55% % 2011 Household Income $50,000-$59, % 10.47% 10.03% % 2011 Household Income $60,000-$74, % 12.05% 12.12% % 2011 Household Income $75,000-$99, % 16.98% 18.66% % 2011 Household Income $100,000-$124, % 8.97% 9.75% % 2011 Household Income $125,000-$149, % 4.18% 4.57% % 2011 Household Income $150,000-$199, % 0.71% 0.82% % 2011 Household Income $200,000-$249, % 0.21% 0.20% % 2011 Household Income $250,000-$499, % 0.23% 0.22% % 2011 Household Income $500, % 0.00% 0.00% % 2011 Household Income $200, % 0.43% 0.42%

15 RENT COMPARABLES Property Name # Unit s Yr. Blt. Occ. Unit Type SF/U Rent/U Rent/SF Big Sky Discount Stg % 8x10 80 $50 $ Big Sky Blvd. 10x $55 $0.55 Susanville, CA x $70 $ x $80 $ x $95 $ x $110 $0.37 Open RV -- $40 -- Skyline Self-Storage % 5x10 50 $45 $ Johnstonville Rd. 9% 10x $60 $0.60 Susanville, CA x $73 $0.49 6% 10x $85 $ miles from Subject 10x $99 $ x $110 $0.38 ABC Mini Storage % 8x10 80 $40 $ Johnstonville Rd. 18% 10x $45 $0.45 Susanville, CA x $62 $ x $110 $ miles from Subject Open Rv -- $25 -- Covered -- $ Erwin-Pearson Mini Stg % Johnstonville Rd. 18% 10x $45 $0.45 Susanville, CA x $55 $ % 10x $65 $ miles from Subject 12x $75 $0.26 Skyline Self-Storage % 5x10 50 $45 $ Gentry Lane 9% 10x $60 $0.60 Susanville, CA x $73 $0.49 6% 10x $85 $ miles from Subject 10x $99 $ x $110 $

16 SALE COMPARABLES BIG SKY DISCOUNT STORAGE Big Sky Blvd. Susanville, CA SUBJECT Total Units: 189 Price: $1,800,000 Rentable SF: 33,385 Price/SF: $37.43 Year Built/Reno: 2004 CAP rate: 7.03%/10.53% LOAD-N-LOCK STORAGE COMP # Stockton Blvd. Sacramento, CA Close of Escrow 12/17/12 Price: $863,000 Total Units: 243 Price/SF: $44.14 Rentable SF: 19,550 CAP rate: 7.08% Year Built/Reno: 1984 NORTH TULARE MINI STORAGE COMP # North J Street Tulare, CA Close of Escrow: 11/15/12 Price: $1,100,000 Total Units: N/A Price/SF: $24.53 Rentable SF: 44,850 CAP rate: 8% Year Built/Reno:

17 SALE COMPARABLES COLUSA SELF STORAGE COMP # Wilson Avenue Colusa, CA Close of Escrow: 10/26/12 Price: $1,220,000 Total Units: 232 Price/SF: $42.07 Rentable SF: 29,000 CAP rate: N/A Year Built/Reno: 1984 GARDEN HIGHWAY MINI STORAGE COMP #4 517 Garden Highway Yuba City, CA Close of Escrow: 06/26/12 Price: $935,000 Total Units: 439 Price/SF: $20.59 Rentable SF: 45,420 CAP rate: 8.58% Year Built/Reno: 1987 PURELY STORAGE COMP #5 201 Gertrude Avenue Atwater, CA Close of Escrow: 05/14/12 Price: $2,300,000 Total Units: 423 Price/SF: $42.67 Rentable SF: 53,900 CAP rate: N/A Year Built/Reno:

18 FINANCIAL ANALYSIS Unit Mix No. of Units Unit Type SF/Unit Current Rent/Unit Current/Pro Forma Monthly Income Current/Pro Forma Annual Income Big Sky Discount Storage (2.71 Acres) 28 8x10 80 $50 $1,400 $16, x $55 $3,025 $36, x $70 $2,100 $25, x $80 $1,760 $21, x $85 $765 $9, x $95 $1,615 $19, x $140 $560 $6, x $165 $1,485 $17, x60 1,800 $630 $630 $7, x $110 $440 $5, x30 RV Open 0 $40 $400 $4,800 Big Sky Annex (6.98 Acres) 20 5x10 50 $25 $500 $6, x $35 $1,225 $14, x $55 $1,325 $16, x $650 $650 $7, x $200 $400 $4, x80 1,600 $250 $250 $3, x40 1,600 $500 $500 $6, x20 RV Open 0 $1,500 $18, TOTAL 48,614 $20,580 $246,960 COMMENTS

19 FINANCIAL ANALYSIS Expenses CURRENT % EGI INDUSTRY AVERAGE PRO FORMA % EGI Marketing & Promotion $ % 3.18% $ % Insurance 2, % 2.27% 2, % Repairs & Maintenance 2, % 1.88% 2, % Real Estate Taxes* 19, % 6.82% 19, % Utilities 2, % 2.23% 2, % General & Administration 8, % 3.00% 8, % On-Site Payroll 19, % 8.64% 19, % Management Fee** 9, % 4.92% 12, % Miscellaneous % 2.54% % TOTAL EXPENSES $65, % 35.48% $68, % COMMENTS * New Real Estate Taxes will be assessed upon sale price (1.1% est.). ** Management Fee projected at 5% of gross collections for appraisal underwriting and buyer valuation

20 FINANCIAL ANALYSIS Income & Expenses INCOME CURRENT PER SF PRO FORMA PER SF GROSS POTENTIAL RENT $243,720 $5.07 $243,720 $5.07 U-Haul Income 21, , Miscellaneous & Late Fees 3, , TOTAL OTHER INCOME $25,136 $0.52 $39,098 $0.81 GROSS POTENTIAL INCOME $268,856 $5.59 $282,818 $5.88 Vacancy/Collection Allowance (% GPR) (31.5%) 76, (10.0%) 24, EFFECTIVE GROSS INCOME $192,084 $3.99 $258,446 $5.37 Total Expenses $65,541 $1.36 $68,859 $1.43 % of EGI 34.1% 26.6% NET OPERATING INCOME (NOI) $126,543 $2.63 $189,587 $3.94 COMMENTS

21 FINANCIAL ANALYSIS Financial Overview LOCATION ANNUALIZED OPERATING DATA & Big Sky Blvd. INCOME CURRENT PRO FORMA Susanville, CA Price $1,800,000 Gross Potential Rent $243,720 $246,960 Down Payment 30% $540,000 Other Income 25,136 39,098 Number of Units 324 Gross Potential Income 268, ,818 Gross Square Feet 50,000 Less: Vacancy/Deductions 31.5% 76, % 24,372 Rentable Square Feet 48,048 Effective Gross Income 192, ,446 Price per Rentable SF $37.43 Less: Expenses 34.1% (65,541) 26.6% (68,859) Net Operating Income $126,543 $189,587 CAP Rate Current 7.03% Debt Service (85,458) (85,458) CAP Rate Pro Forma 10.53% Net Cash Flow After Debt 7.61% 41, % 104,129 Principal Reduction 22,645 22,645 Total Return 11.8% 63, % 126,774 EXPENSES Marketing & Promotion $787 $787 Insurance 2,024 2,024 FINANCING Repairs & Maintenance 2,215 2,215 FIRST TRUST DEED Real Estate Taxes 19,800 19,800 Loan Amount 70% $1,260,000 Utilities 2,795 2,795 Loan Type Proposed New General & Administration 8,749 8,749 Interest Rate 5.5% On-Site Payroll 19,400 19,400 Amortization 30 Years Management Fee 9,604 12,922 Program 70% LTV, 30/5 Miscellaneous Loan to Value 70% Total Expenses $65,541 $68,859 Loan information is time sensitive and subject to change. 34.1% 26.6%

22 P.O. BOX 4950 EL DORADO HILLS, CA BOBBY LOEFFLER PRESIDENT TEL: FAX: CELL: LICENSE: CA , NV