Nixon's Crossroads LITTLE RIVER, SC OFFERING MEMORANDUM

Transcription

1 OFFERING MEMORANDUM

2 CONFIDENTIALITY AND DISCLAIMER The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. NON-ENDORSEMENT NOTICE Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

3 TABLE OF CONTENTS Section 1 PROPERTY DESCRIPTION Section 2 PRICING AND FINANCIAL ANALYSIS Section 3 DEMOGRAPHIC ANALYSIS Section 4 RENT COMPARABLES Section 5 RECENT SALES

4 PROPERTY DESCRIPTION Nixon's Crossroads

5 PROPERTY DESCRIPTION OFFERING SUMMARY Unit Type: Non-Climate Controlled Units As of 6/9/2016 Unit Mix Approx. No. of UNITS Unit MONTHLY RENT OCCUPANCY Square Units** Rented Type Annual Occupied Size Total Units Total SqFt Rent PSF Feet # Units SqFt Gross Pot Economic TOTALS 223 Total 30,900 24,900 $213,600 $ % 82.2% Unit Type: Office/ Warehouse UNITS MONTHLY RENT OCCUPANCY Rented Annual Occupied Size Total Units Total SqFt Rent PSF # Units SqFt Gross Pot Economic TOTALS 3 2,600 2,600 $13,200 $ % 100.0% TOTAL ,500 27,500 $226,800 $ % 83.3% Major Employers Price $1,250,000 Down Payment 30% / $375,000 Total Units 226 Price per Unit $5,531 Rentable Square Feet 33,500 Price per Rentable Square Foot $37.31 Year Built/ 1992 / 1994 Lot Size 2.74 Acres Total Vital Data CAP Rate - Current 9.08% Net Operating Income - Current $113,493 Net Cash Flow After Debt Service - Current 14.70% / $55,131 Total Return - Current 19.87% / $74,515 Company Local Employees Lowes 307 A O Hardee & Son Inc 210 Barefoot Rsort Golf CLB II LLC 200 Home Depot The 200 Avista Resort 180 City of North Myrtle Beach 178 Century 21 Thomas 175 Little River Medical Ctr Inc 138 Boulineaus Foodland 125 Bi-Lo LLC 120 Kroger 120 North Myrtle Beach Prmry Schl 115 Demographics CAP Rate - Pro Forma 10.98% Net Operating Income - Pro Forma $137,207 Net Cash Flow After Debt Service - Pro Forma 21.03% / $78,845 Total Return - Pro Forma 26.19% / $98, Total Population 2019 Total Population 2014 Total Households 2019 Total Households 1-Mile 3-Miles 5-Miles 2,941 22,200 33,519 3,374 24,871 37,371 1,232 10,596 15,631 1,437 11,931 17,509 Median HH Income $42,892 $43,903 $43,174 Per Capita Income (based on Total Average (Mean) HH Income $24,790 $29,494 $27,983 $59,175 $61,787 $60,001 1

6 PROPERTY DESCRIPTION INVESTMENT OVERVIEW Investment Highlights Two Self- Properties Less than 0.2 Miles Apart Strong Visibility from Hwy 90 and Sea Mountain Hwy High Growth Area Seasonal Population Ensures Demand for Long Term Self- 86 Percent Physical Occupancy by Unit Count List Price $1,250,000 Current CAP Rate: 9.1% Projected IRR: 26% Nixon s Crossroads Mini includes two storage locations within 0.16 miles from each other located in the Myrtle Beach, SC MSA. The facility s 226 units, total 33,500 net rentable square feet and were constructed at varying times beginning in 1992 and the most recent addition was completed in These properties have strong visibility from Highway 90 as well as Sea Coast Highway which both see over 10,000 cars per day. Nixon's Crossroads is currently operating at 86 percent physical occupancy based on unit count and 80 percent economic occupancy. The Nixon s Crossroads facilities are well located, with exceptional area demographics recording 43.6 percent population growth since 2000 and expecting 11.5 percent growth in the next five years. To account for local growth the McLeod Seacoast Hospital, less than a half mile from the subject is planning a $73 million expansion, more than doubling the number of beds at the facility. The planned expansions also include three trauma bays, and a Fast Track section of the department that will allow medical staff to quickly treat minor emergencies and injuries. The hospital already employs over 120 physicians, but more will be needed with the additional capacity. While the permanent population is growing quickly, the surrounding area is still influenced by tourism and seasonal tenancy, with seasonally occupied housing accounting for 24 percent of all housing units in the area. This factor provides a strong portion of the tenant base in need of storage for extended periods of time. A new owner has the opportunity to expand the current operation at the Highway 90 location through conversion and rebuilding. The carwash which is currently a source of negative cash flow can be converted to storage and a section one of the storage buildings which was destroyed by a fire and can be rebuilt. The building that was burned was 6,300 square feet and currently the remaining 2,700 square feet is 83% occupied. These two projects are expected to cost $108,000 to complete and are expected to add $41,040 to the annual gross potential rent. Offered at $1,250,000, a nine percent cap, this listing, presents a unique opportunity for an investor to acquire two well occupied existing self storage locations in the Myrtle Beach MSA. In year one, the car wash and damaged building at the Highway 90 location, can be converted and rebuilt, and begin leasing up. This acquisition, including the additional cost of the construction, is expected to yield a new investor a 26 percent internal rate of return as shown in the Pricing and Financial Analysis section. 2

7 PROPERTY DESCRIPTION INVESTMENT OVERVIEW Myrtle Beach is one of the major centers of tourism in the United States because of the city's warm subtropical climate and extensive beaches, attracting an estimated 14 million visitors each year bringing an estimated $5billion to the area. Myrtle Beach hosts a variety of special conventions, events, and musical concerts. The area's attractions include its beaches and many golf courses, as well as a number of amusement parks, an aquarium, Legends in Concert, retail developments, a number of shopping complexes and over 1,900 restaurants. The area also has dinner theaters, nightclubs, and many tourist shops. Myrtle Beach has an estimated 460 hotels, with many on the beachfront and approximately 89,000 accommodation units in total. Thirty eight percent of the state s hotel and motel rooms are located in Horry County and 40 percent of the state s second homes are also located within the county. This bodes well for self storage as the seasonal population needs secure storage space for a significant portion of the year. While tourism is big business in Myrtle Beach, the area is seeing an influx of permanent residents as well. As of the 2010 census, the population of the city was 27,109 with the Myrtle Beach metropolitan area population at 465,391 according to a 2013 estimate. Myrtle Beach s population has grown 3.5 times faster than the National Average between 1990 and 2014 averaging 4.1 percent annual growth with Little River averaging 7.2 percent. The Myrtle Beach metropolitan statistical area ranked as the second fastest growing MSA in the nation from July 1, 2013 to July 1, Horry County likewise saw a 37% population growth between 2000 and 2010 and another 11% between 2010 and

8 PROPERTY DESCRIPTION PROPERTY SUMMARY The Offering Property Nixon's Crossroads Property Address 4310 Sea Mountain Highway Little River, SC Assessor's Parcel Number ; ; ; Zoning BC (Highway Commercial); CFA (Commercial, Forest Agriculture) Site Description Total Units 226 Units Sizes 50 to 900 Square Foot Units Rentable Square Feet 33,500 Year Built/ 1992 / 1994 Lot Size 2.74 Acres Total Type of Ownership Fee Simple Number of Buildings 12 Buildings Number of Stories Single Stories Parking Sufficient Street Frontage 420 Feet Cross Street Sea Mountain Highway Traffic Counts (Vehicles per Day) 13,400 Cars Per Day on Hwy 90 Construction Foundation Framing Exterior Walls Parking Surface Roof Poured Concrete Steel Metal Concrete Screw Down Metal 4

9 PROPERTY DESCRIPTION PROPERTY AMENITIES Common Area Amenities Drive-Up Self Units Warehouse Space for Rent Coin-Operated Car-Wash Highly Visible Signage On-Site Management Office Sign Space for Rent Leased Billboard Free Truck Rental Wide Driveways 5 U

10 PROPERTY DESCRIPTION PROPERTY PHOTOS 6

11 PROPERTY DESCRIPTION AREA MAPS Local Map Regional Map 7

12 PROPERTY DESCRIPTION AERIAL PHOTO 8

13 PRICING AND FINANCIAL ANALYSIS Nixon's Crossroads

14 PRICING AND FINANCIAL ANALYSIS UNIT MIX Unit Type: Non-Climate Controlled Units As of 6/9/2016 Size Prev Units Total Units Rented Units UNITS MONTHLY RENT OCCUPANCY Unit SqFt Total SqFt Rented SqFt Rate Monthly Gross Pot Occupied Gross Pot Annual Gross Pot Rent PSF # Units SqFt Occupied Economic 5x ,300 1,050 $42.50 $1,105 $893 $13,260 $ % 80.8% 80.8% 10x ,800 2,700 $70.00 $1,960 $1,890 $23,520 $ % 96.4% 96.4% 10x ,400 5,100 $85.00 $3,060 $2,890 $36,720 $ % 94.4% 94.4% 10x , $ $500 $400 $6,000 $ % 80.0% 80.0% 10x , $ $1,950 $300 $23,400 $ % 15.4% 15.4% Hwy 90 5x $42.50 $765 $723 $9,180 $ % 94.4% 94.4% 10x ,600 4,300 $70.00 $3,220 $3,010 $38,640 $ % 93.5% 93.5% 10x ,000 2,700 $85.00 $1,700 $1,530 $20,400 $ % 90.0% 90.0% 10x ,000 3,400 $ $2,000 $1,700 $24,000 $ % 85.0% 85.0% 10x ,700 2,100 $ $1,080 $840 $12,960 $ % 77.8% 77.8% 20x $ $160 $160 $1,920 $ % 100.0% 100.0% 30x $ $300 $300 $3,600 $ % 100.0% 100.0% TOTALS ,900 24,900 $17,800 $14,635 $213,600 $ % 80.6% 82.2% Unit Type: Office/ Warehouse Size UNITS MONTHLY RENT OCCUPANCY Total Units Rented Units Unit SqFt Total SqFt Rented SqFt Rate Monthly Gross Pot Occupied Gross Pot Annual Gross Pot Rent PSF # Units SqFt Occupied Economic Warehouse $ $200 $200 $2,400 $ % 100.0% 100.0% Warehouse $ $300 $300 $3,600 $ % 100.0% 100.0% Warehouse ,200 1,200 $ $600 $600 $7,200 $ % 100.0% 100.0% TOTALS ,600 2,600 $1,100 $1,100 $13,200 $ % 100.0% 100.0% CURRENT TOTAL ,500 27,500 $18,900 $15,735 $226,800 $ % 82.1% 83.3% Conversion/Construction Unit Type: Car Wash Conversion UNITS Size Total Units Unit SqFt Total SqFt Rate MONTHLY RENT Monthly Gross Pot Annual Gross Pot Rent PSF 15x ,800 $ $900 $10,800 $0.50 TOTALS 6 1,800 $900 $10,800 $0.50 * The car wash currently costs more to run than the revenue it generates. The bays could be converted to storage with minimal investment. Unit Type: Non-Climate Controlled Units UNITS Size Total Units Unit SqFt Total SqFt Rate MONTHLY RENT Monthly Gross Pot Annual Gross Pot Rent PSF 10x ,600 $70.00 $2,520 $30,240 $0.70 TOTALS 36 3,600 $2,520 $30,240 $0.70 CURRENT TOTAL ,900 $22,320 $267,840 $

15 PRICING AND FINANCIAL ANALYSIS FINANCIAL OVERVIEW Location 4310 Sea Mountain Little River, SC Price $1,250,000 Down Payment 30% / $375,000 Number of Units 226 Rentable Square Feet 33,500 CAP Rate - Current 9.08% Year Built/ 1992 / 1994 Lot Size Type of Ownership Financing FIRST TRUST DEED 2.74 Acres Total Fee Simple Loan Amount $875,000 Loan Type Proposed New Interest Rate 4.5% Amortization 25 Years Loan information is time sensitive and subject to change. Contact your local Marcus & Millichap Capital Corporation representative. Annualized Operating Data Current Pro Forma Gross Potential Rent $226,800 $267,840 Other Income $7,339 $4,421 Gross Potential Income $234,139 $272,261 Less: Vacancy/Deductions 19.6% / $44,481 (15.0%) 40,176 Effective Gross Income $189,658 $232,085 Less: Expenses $76,165 $94,878 Net Operating Income $113,493 $137,207 Net Cash Flow Before Debt Service $113,493 $137,207 Debt Service $58,362 $58,362 Debt Coverage Ratio Net Cash Flow After Debt Service 14.70% / $55, % / $78,845 Principal Reduction $19,384 $19,384 Total Return 19.87% / $74, % / $98,229 Expenses Real Estate Taxes $12,289 $15,145 Insurance $4,754 $5,520 Utilities $16,584 $9,725 Repairs & Maintenance $8,375 $9,725 Marketing & Promotion $2,400 $6,000 On-Site Payroll $19,200 $34,320 General & Administration $5,025 $5,835 Reserves/Replacements $3,350 $3,890 Bank Charges $2,371 $2,901 Telephone $1,817 $1,817 Total Expenses $76,165 $94,878 % of EGI 40.2% 40.9% Note: Current revenue represents annualized scheduled revenue from June 2016 Note: Current Expenses are based on the full year of 2015 Note: Pro Forma Expenses have been adjusted to reflect expansion 1) Pro Forma Real Estate Taxes have been adjusted to reflect a sale 2) Current Repairs & Maintenance has been adjusted to reflect industry standards 3) Current Marketing & Promotion has been added to reflect industry standards 4) Current General & Administration has been adjusted to reflect industry standards 5) Current Reserves/Replacements has been added to reflect industry standards 6) Current Bank Charges have been added to reflect industry standards 1 Includes additional build-out of units. 11

16 PRICING AND FINANCIAL ANALYSIS INCOME AND EXPENSES Total Number of Units 226 Total Rentable Square Feet 33,500 Income Current Per SF Pro Forma Per SF GROSS POTENTIAL RENT $226,800 $6.77 $267,840 $8.00 Car Wash $3,600 $0.11 $0 $0.00 Sign Revenue $1,000 $0.03 $1,000 $0.03 Other Income $2,739 $0.08 $3,421 $0.10 TOTAL OTHER INCOME $7,339 $0.22 $4,421 $0.13 GROSS POTENTIAL INCOME $234,139 $6.99 $272,261 $8.13 Vacancy/Collection Allowance 19.6% / $44,481 $1.33 (15.0%) 40,176 $1.20 EFFECTIVE GROSS INCOME $189,658 $5.66 $232,085 $6.93 Total Expenses $76,165 $2.27 $94,878 $2.83 % of EGI 40.2% 40.9% NET OPERATING INCOME $113,493 $3.39 $137,207 $4.10 Comments 12

17 PRICING AND FINANCIAL ANALYSIS IRR ANALYSIS Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Gross Potential Rent $247,320 $274,644 $282,883 $291,370 $300,111 $309,114 $318,388 $327,939 $337,777 $347,911 Economic Occupancy 76.2% 84.3% 85.0% 85.0% 90.0% 90.0% 90.0% 90.0% 90.0% 90.0% Rental Income $188,475 $231,395 $240,451 $247,664 $270,100 $278,203 $286,549 $295,145 $304,000 $313,120 Other Income $3,832 $4,704 $4,888 $5,035 $5,491 $5,656 $5,826 $6,000 $6,180 $6,366 Effective Gross Income $192,307 $236,100 $245,339 $252,699 $275,591 $283,859 $292,375 $301,146 $310,180 $319,486 Expenses Taxes $15,145 $15,145 $15,600 $16,068 $16,550 $17,046 $17,558 $18,084 $18,627 $19,186 (Costs for) On-Site Management $34,320 $34,320 $35,350 $36,410 $37,502 $38,627 $39,786 $40,980 $42,209 $43,476 Insurance $5,137 $5,520 $5,686 $5,857 $6,032 $6,213 $6,400 $6,592 $6,789 $6,993 Marketing/Advertising $6,000 $2,400 $2,472 $2,546 $2,623 $2,701 $2,782 $2,866 $2,952 $3,040 Repairs and Maintenance $9,050 $9,725 $10,017 $10,317 $10,627 $10,946 $11,274 $11,612 $11,961 $12,319 Reserve for Capital Improvements $3,620 $3,890 $3,890 $3,890 $3,890 $3,890 $3,890 $3,890 $3,890 $3,890 Utilities $9,725 $9,725 $10,017 $10,317 $10,627 $10,946 $11,274 $11,612 $11,961 $12,319 Administration $5,430 $5,835 $6,010 $6,190 $6,376 $6,567 $6,764 $6,967 $7,176 $7,392 Bank Charges $2,404 $2,951 $3,067 $3,159 $3,445 $3,548 $3,655 $3,764 $3,877 $3,994 Telephone/Internet $1,817 $1,817 $1,872 $1,928 $1,986 $2,045 $2,107 $2,170 $2,235 $2,302 Total Expenses $92,649 $91,329 $93,979 $96,682 $99,657 $102,530 $105,490 $108,538 $111,677 $114,911 Net Operating Income $99,658 $144,770 $151,360 $156,017 $175,934 $181,328 $186,885 $192,608 $198,503 $204,575 Debt Service $42,777 $63,405 $63,405 $63,405 $63,405 $66,521 $66,521 $66,521 $66,521 $66,521 Before Tax Net Cash Flow After Debt Service $56,881 $81,365 $87,955 $92,612 $112,529 $114,807 $120,364 $126,087 $131,982 $138,054 Cash-on-Cash 15.17% 21.70% 23.45% 24.70% 30.01% 30.62% 32.10% 33.62% 35.20% 36.81% Principal Reduction: $0 $21,059 $22,026 $23,038 $24,096 $15,315 $16,260 $17,263 $18,327 $19,458 Total Return $56,881 $102,424 $109,981 $115,650 $136,625 $130,122 $136,623 $143,349 $150,309 $157, % 21.23% 22.80% 23.97% 28.32% 26.97% 28.32% 29.72% 31.16% 32.65% Cap Rate 9.08% Sale Price $1,250,000 Loan Amount $875,000 Down Payment: $375,000 Closing Costs $75,000 6% of Sale Price Expansion Cost $108,000 Expansion Loan $75,600 Total Investment $482, year Hold: Sale Proceeds End of Year 10: Financing Term Internal Rate of Return Net cash flow $1,062,636 Terminal CAP 7.50% $2,727,666 Amortization 25 Unleveraged IRR 16% Net sales Income $1,872,078 Less cost of 3.00% ($81,830) Term 5 Leveraged IRR 26% Total Proceeds : $2,934,714 Sale Proceeds: $2,645,836 Interest Only Year One Annual Escalations (Year 3+) Cost of Investment: ($482,400) Loan Payoff ($773,758) Interest Rate 4.50% Income Escalations 3.0% Return on Investment $2,452,314 Net Sales Proceeds $1,872,078 LTV 70% Expense Escalations 3.0% 508.4% Year 6 Interest Rate 6.00% the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any 13

18 DEMOGRAPHIC ANALYSIS Nixon's Crossroads

19 DEMOGRAPHIC ANALYSIS DEMOGRAPHIC REPORT 1 Mile 3 Miles 5 Miles 2000 Population 2,050 14,695 23, Population 2,724 20,619 31, Population 2,941 22,200 33, Population 3,374 24,871 37, Households 879 6,783 10, Households 1,137 9,813 14, Households 1,232 10,596 15, Households 1,437 11,931 17, Average Household Size Daytime Population 1,552 9,000 11, Owner Occupied Housing Units 54.57% 37.03% 37.63% 2000 Renter Occupied Housing Units 12.16% 8.78% 9.95% 2000 Vacant 33.27% 54.18% 52.41% 2014 Owner Occupied Housing Units 72.74% 72.14% 71.37% 2014 Renter Occupied Housing Units 27.26% 27.86% 28.63% 2014 Vacant 36.64% 56.37% 55.42% 2019 Owner Occupied Housing Units 72.19% 71.36% 70.83% 2019 Renter Occupied Housing Units 27.81% 28.64% 29.17% 2019 Vacant 36.86% 56.43% 55.75% $ 0 - $14, % 10.6% 11.6% $ 15,000 - $24, % 15.4% 15.0% $ 25,000 - $34, % 12.1% 13.1% $ 35,000 - $49, % 18.0% 17.3% $ 50,000 - $74, % 19.6% 19.6% $ 75,000 - $99, % 10.8% 10.3% $100,000 - $124, % 5.2% 5.0% $125,000 - $149, % 2.9% 3.3% $150,000 - $199, % 3.4% 3.1% $200,000 - $249, % 0.7% 0.6% $250, % 1.5% 1.3% 2014 Median Household Income $42,892 $43,903 $43, Per Capita Income $24,790 $29,494 $27, Average Household Income $59,175 $61,787 $60,001 Demographic data 2012 by Experian. 15

20 DEMOGRAPHIC ANALYSIS SUMMARY REPORT Geography: 5 miles Population In 2014, the population in your selected geography is 33,518. The population has changed by 43.58% since It is estimated that the population in your area will be 37,370 five years from now, which represents a change of 11.49% from the current year. The current population is 48.16% male and 51.83% female. The median age of the population in your area is 53.5, compare this to the Entire US average which is The population density in your area is people per square mile. Households There are currently 15,630 households in your selected geography. The number of households has changed by 46.64% since It is estimated that the number of households in your area will be 17,509 five years from now, which represents a change of 12.01% from the current year. The average household size in your area is 2.13 persons. Income In 2014, the median household income for your selected geography is $43,173, compare this to the Entire US average which is currently $51,972. The median household income for your area has changed by 9.16% since It is estimated that the median household income in your area will be $48,772 five years from now, which represents a change of 12.96% from the current year. The current year per capita income in your area is $27,982, compare this to the Entire US average, which is $28,599. The current year average household income in your area is $60,001, compare this to the Entire US average which is $74,533. Race & Ethnicity The current year racial makeup of your selected area is as follows: 84.90% White, 10.18% Black, 0.03% Native American and 0.87% Asian/Pacific Islander. Compare these to Entire US averages which are: 71.60% White, 12.70% Black, 0.18% Native American and 5.02% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin make up 4.17% of the current year population in your selected area. Compare this to the Entire US average of 17.13%. Housing In 2000, there were 8,429 owner occupied housing units in your area and there were 2,229 renter occupied housing units in your area. The median rent at the time was $533. Employment In 2014, there are 11,859 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 57.99% of employees are employed in white-collar occupations in this geography, and 42.12% are employed in blue-collar occupations. In 2014, unemployment in this area is 8.23%. In 2000, the average time traveled to work was 21.6 minutes. Demographic data 2012 by Experian. 16

21 DEMOGRAPHIC ANALYSIS POPULATION DENSITY Demographic data 2012 by Experian. Number of people living in a given area per square mile. 17

22 DEMOGRAPHIC ANALYSIS EMPLOYMENT DENSITY Demographic data 2012 by Experian. The number of people employed in a given area per square mile. 18

23 DEMOGRAPHIC ANALYSIS AVERAGE HOUSEHOLD INCOME Demographic data 2012 by Experian. Average income of all the people 15 years and older occupying a single housing unit. 19

24 DEMOGRAPHIC ANALYSIS TRAFFIC COUNTS Traffic Count data 2012 by TrafficMetrix. All rights reserved. Two-way, average daily traffic volumes. * Traffic Count Estimate 20

25 RENT COMPARABLES Nixon's Crossroads

26 RENT COMPARABLES RENT COMPARABLES MAP Property Name Address City State Zip Phone Distance from Subject Sq. Ft. Nixon's Crossroads 4310 Sea Mountain Highway Little River SC (843) Miles 33,500 1) High Ground Self 100 U.S. 17 Little River SC (843) Miles 112,374 2) Draw Bridge Self 4347 Sea Mountain Hwy Little River SC (843) Miles 15,400 3) ABSCO 414 S Carolina 90 Little River SC (843) Miles 21,404 4) All Seasons Self 483 U.S 17 Little River SC (843) Miles 39,000 5) U-Haul Moving & 3195 Hwy 9 E Little River SC (843) Miles 88,601 6) Lock & Go Self Hwy 9 E Little River SC (843) Miles 18,513 7) ABSCO 2352 S Carolina 9 Little River SC (843) Miles 106,625 8) Resort Stor-All 405 Highway 17 S North Myrtle Beach SC (843) Miles 31,100 9) ABSCO 1730 Highway 17 Little River SC (843) Miles 20,000 10) E Z 1830 S Carolina 9 Longs SC (843) Miles 32,100 11) Guardian Self 9221 S Carolina 9 Longs SC (843) Miles 106,880 22

27 RENT COMPARABLES RENT COMPARABLES Climate Controlled Property Distance from Subject Unit Size Rate Unit Size Rate Unit Size Rate Unit Size Rate Unit Size Rate Average $/SF High Ground Self 0.3 Miles 5x6 c/c 30 Sq Ft $ x10 c/c 80 Sq Ft $ x11 c/c 100 Sq Ft $ x14 c/c 140 Sq Ft $ x20 c/c 200 Sq Ft N/A $1.69 All Seasons Self 0.6 Miles 5x5 c/c 25 Sq Ft $ x10 c/c 50 Sq Ft $ x10 c/c 100 Sq Ft $ x15 c/c 150 Sq Ft $ x20 c/c 200 Sq Ft $ $1.51 U-Haul Moving & 1.5 Miles 5x5 c/c 25 Sq Ft $ x10 c/c 50 Sq Ft $ x10 c/c 100 Sq Ft $ x15 c/c 150 Sq Ft $ x20 c/c 200 Sq Ft $ $1.40 ABSCO 2.5 Miles 5x5 c/c 25 Sq Ft N/A 5x10 c/c 50 Sq Ft N/A 10x10 c/c 100 Sq Ft $ x15 c/c 150 Sq Ft $ x20 c/c 200 Sq Ft $ $0.94 E Z 3.9 Miles 5x5 c/c 25 Sq Ft N/A 5x10 c/c 50 Sq Ft $ x10 c/c 100 Sq Ft $ x15 c/c 150 Sq Ft $ x20 c/c 200 Sq Ft N/A $0.98 Guardian Self 4.8 Miles 5x5 c/c 25 Sq Ft N/A 5x10 c/c 50 Sq Ft $ x10 c/c 100 Sq Ft $ x15 c/c 150 Sq Ft $ x20 c/c 200 Sq Ft $ $1.44 Subject $/SF N/A N/A N/A N/A N/A N/A Average Comparable $/SF $2.24 $1.84 $1.27 $0.98 $0.87 $1.44 "N/A" indicates storage facility does not offer that unit. "-" indicates storage facility does offer the unit but the price was not given. Non-Climate Controlled Property Distance from Subject Unit Size Rate Unit Size Rate Unit Size Rate Unit Size Rate Unit Size Rate Average $/SF Nixon's Crossroads - 5x5 25 Sq Ft N/A 5x10 50 Sq Ft $ x Sq Ft $ x Sq Ft $ x Sq Ft $ $0.65 High Ground Self 0.3 Miles 5x5 25 Sq Ft $ x10 50 Sq Ft $ x Sq Ft $ x Sq Ft $ x Sq Ft $ $1.11 Draw Bridge Self 0.3 Miles 5x5 25 Sq Ft $ x10 50 Sq Ft $ x Sq Ft $ x Sq Ft $ x Sq Ft $ $1.11 ABSCO 0.6 Miles 5x5 25 Sq Ft $ x10 50 Sq Ft $ x Sq Ft $ x Sq Ft $ x Sq Ft $ $0.92 All Seasons Self 0.6 Miles 5x5 25 Sq Ft N/A 5x10 50 Sq Ft $ x Sq Ft $ x Sq Ft $ x Sq Ft $ $1.10 U-Haul Moving & 1.5 Miles 5x5 25 Sq Ft $ x10 50 Sq Ft $ x Sq Ft $ x Sq Ft $ x Sq Ft $ $1.12 ABSCO 2.5 Miles 5x5 25 Sq Ft $ x10 50 Sq Ft $ x Sq Ft $ x Sq Ft $ x Sq Ft $ $0.91 Resort Stor-All 2.7 Miles 5x5 25 Sq Ft $ x10 50 Sq Ft $ x Sq Ft $ x Sq Ft $ x Sq Ft $ $1.08 ABSCO 3.3 Miles 5x5 25 Sq Ft $ x10 50 Sq Ft $ x Sq Ft $ x Sq Ft $ x Sq Ft $ $0.92 E Z 3.9 Miles 5x5 25 Sq Ft N/A 5x10 50 Sq Ft $ x Sq Ft $ x Sq Ft $ x Sq Ft $95.00 $0.63 Guardian Self 4.8 Miles 5x5 25 Sq Ft $ x10 50 Sq Ft $ x Sq Ft $ x Sq Ft $ x Sq Ft $ $1.07 Subject $/SF N/A $0.85 $0.70 $0.57 $0.50 $0.65 Average Comparable $/SF $1.66 $1.22 $0.90 $0.71 $0.65 $0.87 Comparable Overall Average excludes 5x5 average to most accurately mirror subject the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any 23

28 RENT COMPARABLES RENT COMPARABLES Climate Controlled Unit Rent per Square Foot $1.80 $1.60 $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 $1.20 $1.69 $1.51 $1.40 $0.94 $0.98 $1.44 High Ground Self All Seasons Self U Haul Moving & ABSCO E Z Guardian Self Non Climate Unit Rent per Square Foot Climate Controlled Average $1.00 $0.80 $0.60 $0.40 Non Climate Controlled Average $0.20 $0.00 $2.50 $0.65 $1.11 $1.11 $0.92 $1.10 $1.12 $0.91 $1.08 $0.92 $0.63 $1.07 Nixon's Crossroads High Ground Self Draw Bridge Self ABSCO All Seasons Self U Haul Moving & Rent per Square Foot ABSCO Resort Stor All ABSCO E Z Guardian Self $2.00 $1.50 $1.00 Subject Comp Avg $0.50 $0.00 5x5 c/c 5x10 c/c 10x10 c/c 10x15 c/c 10x20 c/c 5x5 5x10 10x10 10x15 10x20 the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any 24

29 RECENT SALES Nixon's Crossroads

30 RECENT SALES RECENT SALES MAP 1) 2) 3) 4) 5) 6) 7) 8) Nixon's Crossroads Morningstar North Myrtle Beach Portfolio New River Mini Mini For Less Affordable Self H&H Self 278 Econo Pawleys Self 26

31 RECENT SALES CAP RATE AND PRICE PER RENTABLE SQUARE Average Cap Rate Subject Morningstar North Myrtle Beach Portfolio New River Mini Mini For Less Affordable Self H&H Self 278 Econo Average Price per Rentable Square Feet Subject Morningstar North Myrtle Beach Portfolio New River Mini Mini For Less Affordable Self H&H Self 278 Econo Pawleys Self 27

32 RECENT SALES RECENT SALES Nixon's Crossroads 4310 Sea Mountain Highway Little River, SC Total Units: 226 Offering Price: $1,250,000 Rentable SF: 33,500 Price/SF: $37.31 Year Built/: 1992/1994 CAP Rate: 9.08% Subject Property 1 Morningstar 542 Main Ave SE Hickory, NC Close of Escrow: 9/14/2015 Sale Price: $1,365,000 Total Units: 237 Price/SF: $48.90 Rentable SF: 27,914 CAP Rate: 4.25% Year Built: 1970 Comments Includes 18,400 square feet under-roof to be developed into additional self storage 2 North Myrtle Beach Portfolio 100 Highway 17 Little River, SC Close of Escrow: 10/30/2015 Sale Price: $18,500,000 Total Units: 1,916 Price/SF: $84.86 Rentable SF: 218,014 CAP Rate: 6.42% Year Built: 1985 Comments Portfolio Included Three locations in the North Myrtle Beach area. 28

33 RECENT SALES RECENT SALES 3 New River Mini 2160 Highway 172 Sneads Ferry, NC Close of Escrow: 12/4/2015 Sale Price: $1,000,000 Total Units: 418 Price/SF: $25.13 Rentable SF: 39,800 CAP Rate: 9.20% Year Built: Mini For Less 752 Simpson Road Anderson, SC Close of Escrow: 6/10/2016 Sale Price: $1,950,000 Total Units: Price/SF: $61.22 Rentable SF: 31,852 CAP Rate: 8.65% Year Built: Affordable Self 1941 Jefferson Davis Highway Warrenville, SC Close of Escrow: 3/31/2015 Sale Price: $1,015,000 Total Units: 293 Price/SF: $29.77 Rentable SF: 34,100 CAP Rate: 7.25% Year Built:

34 RECENT SALES RECENT SALES 6 H&H Self 2711 Woodruff Rd Simpsonville, SC Close of Escrow: 1/11/2016 Sale Price: $3,930,000 Total Units: 453 Price/SF: $77.10 Rentable SF: 50,975 CAP Rate: 8.24% Year Built: Econo 33 Parameter Rd Bluffton, SC Close of Escrow: 1/27/2016 Sale Price: $3,100,000 Total Units: 362 Price/SF: $87.94 Rentable SF: 35,250 CAP Rate: 7.37% Year Built: Pawleys Self 49 Library Ln Pawleys Island, SC Close of Escrow: 2/17/2015 Sale Price: $2,179,324 Total Units: 390 Price/SF: $45.28 Rentable SF: 48,132 CAP Rate: Year Built:

35 OFFERING MEMORANDUM Offices Throughout the U.S and Canada