OFFERING MEMORANDUM. Apple Valley Self Storage Coshocton Avenue Howard, OH 43028

Transcription

1 Apple Valley Self Storage Coshocton Avenue Howard, OH OFFERING MEMORANDUM Alec J. Pacella, CCIM NAI Daus Chagrin Blvd., Suite 250 Cleveland, OH

2 CONFIDENTIALITY & DISCLAIMER Parties: Alec Pacella, CCIM, of NAI Daus, is the listing Broker for the property and agents of the Seller. Except as indicated herein, no other parties are or will become agent of or for the Seller in the contemplated transaction. Brokers will not employ any sub-agents unless such agents are employed by Broker s real estate firm. Brokers will cooperate (sharing commissions on a negotiated basis) with third party brokers that present a purchaser for the listed property. The Argus Self Storage Sales Network (Argus) is not the listing agent for this property. Offers to buy or sell this property can only be made through the listing agent identified herein. Argus is a marketing consultant that provides certain marketing assistance to the listing broker and is not a party to the listing agreement or any other agreement relating to the property. The Seller is the owner or the authorized agent of the owner, of the property offered for sale and the subject of the listing agreement between Broker and Seller. Disclaimer: Neither the Seller, Owner, Broker, or Argus represents, warrants, either by implication nor express statement, the accuracy or completeness of the information contained in this property presentation. The information contained herein has been prepared from sources believed to be reliable but has not been independently verified by the Broker or Argus as to accuracy or completeness. No warranties or representations, express or implied, are made as to the information presented herein. Warranties or representations can only be made by the Seller or Owner in a written and fully executed purchase and sales agreement between Seller and purchaser. Projections in the presentation are based on assumptions and interpretations based on future events, market conditions, managerial operations beyond the control of Argus, Broker, Seller or Owner, and, therefore, subject to error and change without notice. The prospective purchaser is encouraged to perform such independent due diligence as he or she finds appropriate. Typically, due diligence activities provide a more comprehensive review and analysis of all aspects of the property (including, but not limited to, financial matters, market conditions, physical condition, regulatory issues and title status) than the material contained herein. This presentation is for information purposes only and is not a solicitation of any nature whatsoever. Seller and Owner reserve the right, at their sole and absolute discretion, to reject any offer. Confidentiality: The information contained in this presentation is confidential and proprietary and is for the exclusive use of the party receiving the information (whether in printed, electronic, or facsimile format) for the sole purpose of determining if the recipient desires to acquire more information regarding the Property. By acceptance of this information in any format or from any source, the recipient agrees to not distribute nor to disclose this information in any form to any other person or entity without the prior written consent of the Broker. For further information, please contact: Argus Self Storage Sales Network 2993 S. Peoria St., Suite 105 Aurora, CO STORE info@argus-realestate.com 2

3 TABLE OF CONTENTS Offering Summary 4 Property Details 5 Unit Mix & Scheduled Income 6 Financial Information 7 Maps 8 Market Overview & Demographics 9 Competitor Survey 10 The Argus Advantage 11 3

4 OFFERING SUMMARY Apple Valley Self Storage is a 220-unit facility located in the central Ohio community of Howard. It contains 32,150 square feet of storage, including 4,000 square feet of airconditioned units. The property also includes a 7,800 square foot retail center at its entrance, which is currently configured into 6 units. Tenants include a local realtor s office, a beauty salon and a Domino s Pizza shop. The facility is located adjacent to Apple Valley Lake. This planned unit development dates to the mid-1970s and encompasses 3,700 acres with over 6,600 platted lots and 2,600 homes. It also includes a 511-acre lake, an 18-hole golf course, a marina and a community center with an indoor heated pool. While this development certainly provides a captive audience, the facility also is strategically located close to Danville and Mt Vernon. FINANCIAL DATA Price $1,550,000 Terms Fee simple Down Payment $310,000 Proposed Financing 20% equity 5.5% interest Cap Rate Proforma 8.5% NOI Proforma $130,500 4

5 PROPERTY DETAILS PROPERTY NAME Apple Valley Self Storage Address Coshocton Road, Howard, OH County Knox Parcel Numbers , Parcel Size Irregular in shape Zoning Public Storage, Mini Warehouse Property Type Self Storage plus retail Year Built (storage)/ 2007 (retail) Land Area 7.38 acres or 321,473 SF Rentable Square Feet 32,150 storage/ 7,800 retail Land for Expansion Minimal Surrounding Land for Purchase Potentially OCCUPANCY Total Units 220 Unit Occupancy 97.3% Economic Occupancy 95.9% Physical Occupancy 97.3% PHYSICAL Foundation Concrete Exterior Construction Metal Interior Construction Metal Roof Structure Standing seam Paving Gravel lot (storage)/ paved (retail) Partitions Metal Office 600 SF office within one of the retail units Apartment No Doors/Access Roll-up unit doors Number of Buildings 7 storage and 1 retail Land-to-Building Ratio 15% coverage Traffic Exposure Moderate, located on US 36 Restrooms Each retail unit has a bathroom and an HVAC unit Parking Ample in front of retail building Site Improvements Drainage and retention basin 5

6 UNIT MIX & OCCUPANCY SCHEDULE # of Units SF Per Unit 5x ,500 $31.00 $0.62 $7.44 $1,550 $18,600 10x ,300 $46.00 $0.46 $5.52 $1,518 $18,216 10x ,400 $56.00 $0.37 $4.48 $3,136 $37,632 10x ,000 $71.00 $0.36 $4.26 $2,130 $25,560 10x ,000 $76.00 $0.30 $3.65 $912 $10,944 10x ,800 $91.00 $0.30 $3.64 $1,456 $17,472 5x10 AC $31.00 $0.62 $7.44 $124 $1,488 10x20 AC ,800 $71.00 $0.36 $4.26 $1,349 $16,188 $12,175 $146,100 Unit Size Totals 220 Total SF 32,000 Rental Rates Rent PSF Monthly Rent PSF Annually Potential Potential Annual Monthly Income Income 6

7 PROFORMA FINANCIAL INFORMATION Description Jan/Dec 2015 Income Rental Income - Storage $146,100 Rental Income - Retail* $93,600 Less: Vacancy - Storage -$10,958 Less: Vacancy - Retail -$9,360 Total Income $219,383 Expenses Real Estate Taxes $13,684 Salaries $20,000 Insurance $2,488 Utilities $9,906 Repairs and Maintenance $31,866 Management Fees $8,775 Marketing and advertising $1,821 Office supplies and expenses $1,483 Other expenses $3,347 Total Expenses $93,370 Net Operating Income (NOI) $126,012 Retail Unit Breakdown * Rent PSF Potential Potential Unit Total SF Annually Monthly Income Annual Income A 2,000 $12.00 $2, $24, B 1,200 $12.00 $1, $14, C 2,000 $12.00 $2, $24, D 1,200 $12.00 $1, $14, E 1,400 $12.00 $1, $16, ,800 $7, $93,

8 MAPS State Map Area Map Aerial Map 8

9 MARKET OVERVIEW AND DEMOGRAPHICS Howard, OH is located in Knox County and is located near Apple Valley, a planned community covering 3,770 acres. Apple Valley Resort is located about 50 miles northeast of Columbus. Apple Valley Resort is a terrific family retreat where golf is in the spotlight with an 18-hole PGA -rated course nearby. Mohican State Park is just 25 miles away. Approximately seven miles away, Knox Lake is perfect for fishing and boating. For downhill skiing, Clear Fork Ski Area is just a half-hour's drive away Coshocton Rd, Howard, OH mi Coshocton Rd, Howard, OH mi Coshocton Rd, Howard, OH mi % % % Population 2024 Forecast 1,180 5,664 12, Projection 1,179 5,653 12, Estimate 1,180 5,640 12,381 Households 2024 Forecast 482 2,218 4, Projection 482 2,214 4, Estimate 483 2,209 4,207 Current Year Estimated Households by Household Income 483 2,209 4,207 Less than $10, % 112 5% 220 5% $10,000 to $14, % 64 3% 177 4% $15,000 to $19, % 60 3% 156 4% $20,000 to $24, % 58 3% 142 3% $25,000 to $29, % 59 3% 125 3% $30,000 to $34, % 98 4% 192 5% $35,000 to $39, % 146 7% 272 6% $40,000 to $44, % 150 7% 246 6% $45,000 to $49, % 56 3% 132 3% $50,000 to $54, % 136 6% 261 6% $55,000 to $59, % 138 6% 259 6% $60,000 to $64, % 100 5% 203 5% $65,000 to $69, % 89 4% 179 4% $70,000 to $74, % 80 4% 152 4% $75,000 to $79, % 92 4% 163 4% $80,000 to $84, % 85 4% 152 4% $85,000 to $89, % 76 3% 135 3% $90,000 to $94, % 71 3% 124 3% $95,000 to $99, % 67 3% 115 3% $100,000 to $124, % % % $125,000 to $149, % 103 5% 189 4% $150,000 to $174, % 41 2% 87 2% $175,000 to $199, % 53 2% 76 2% $200,000 to $249, % 5 0% 15 0% $250,000 to $499, % 8 0% 22 1% $500,000 or more 0 0% 0 0% 2 0% Median Household Income $ 63,264 $ 61,307 $ 58,519 Average Household Income $ 74,914 $ 72,831 $ 69, Estimated Per Capita Income $ 31,020 $ 29,708 $ 26, Estimated Housing Units by Tenure 619 2,705 4,947 Vacant Housing Units % % % Occupied Housing Units % 2,209 82% 4,207 85% Owner-Occupied % 1,879 69% 3,280 66% Renter-Occupied 64 10% % % 9

10 COMPETITOR SURVEY Unit Size Type On-Site Rates PSF Buckeye Storage 10 x 10 Outside, Drive Up $40.00 $ x 20 Outside, Drive Up $60.00 $ x 30 Outside, Drive Up $ $0.33 J&D Storage 5 x 10 Outside, Drive Up $48.15 $ x 10 Outside, Drive Up $69.00 $ x 15 Outside, Drive Up $79.00 $ x 20 Outside, Drive Up $89.00 $

11 THE ARGUS ADVANTAGE Since 1994, the Argus Self Storage Sales Network has been the only national network of commercial real estate brokers who specialize in self storage properties. The network assists buyers and sellers of self storage real estate by combining the knowledge and expertise of a local broker with the exposure of our national sales and marketing program. Through our National Network of Broker Affiliates, the Argus Self Storage Sales Network aims to assist buyers and sellers by helping complete real estate transactions in a timely manner and provide a best in class service to our clients. Since it s beginning, ASSSN has completed over 700 self storage transactions totaling over $1 Billion. Alec Pacella, CCIM is a seasoned investment professional, bringing 20 years experience as both a principal and a highly successful real estate salesperson. As Senior Vice President, he focuses on the marketing and sale of institutional-quality real estate assets. Alec has received numerous professional accolades during his career. He is a three-time winner of NAIOP's Investment Deal of the Year, winning the award in 2004, 2005 and He completed the largest individual investment transactions in Cleveland five times since He was named to Crain's 'Forty Under 40' in And he was recently appointed as an associate instructor for the CCIM institute. Alec began his real estate career in 1989 at the former DeBartolo Corporation. He came to Cleveland in 1994, joining Grubb & Ellis as Client Services Manager and became Vice President of Investment sales in In 2007, he joined First Industrial as a Regional Director, spending 15 months helping to direct the company's acquisition, leasing, management and disposition efforts. 11