STORITE OFFERING MEMORANDUM SPANISH SPRINGS (SPARKS), NV. Presented by:

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: 916.467.7330 Tel.: 916.801.7734 Fax: 888.289.0703 Fax: 888.289.0703 Cell: 916.337.4856 Cell: 916.801.7734 Email: Bobby@LS-SG.

1 OFFERING MEMORANDUM Presented by: Bobby Loeffler President The Loeffler Self-Storage Group, Inc. Tyler Skelly National Director The Loeffler Self-Storage Group, Inc. P.O. Box 4950 P.O. Box 4950 El Dorado Hills, CA El Dorado Hills, CA Tel.: Tel.: Fax: Fax: Cell: Cell: Web: Web: License: CA Corp , CA , License: CA , TX NV , AZ , TX Corp , TX

2 TABLE OF CONTENTS Section One Executive Summary Page 2 Section Two Investment Highlights Page 3-4 Section Three Aerial Photography Page 5 Section Four Property Photographs Page 6-10 Section Five Physical Description Page 11 Section Six Location Maps Page 12 Section Seven Site Description & Parcel Map Page 13 Section Eight Demographics Page Section Nine Rent Comparables Page 16 Section Ten Sale Comparables Page Section Eleven Financial Analysis Page

3 EXECUTIVE SUMMARY Property Name: Storite Property Address: 0 Campo Rico Lane, Sparks, NV (NE corner of Calle De La Plata & Nevada State Route 445 (Pyramid Way) Property Type: Project Size: Self-storage facility 79,499 net rentable square feet 621 units Year Built: 2017/2018 Average Rent/SF: $1.25 Current Occupancy: Average Market Occupancy: Property is to be built and will be delivered complete with a Certificate of Occupancy 100%. Competing properties are full with a waiting list Purchase Price: $10,475,000 Pro Forma NOI / Capitalization Rate: $784,238 / 7.49% Proposed Financing: 70% LTV, 30-year amortization, 5.5% fixed rate, due in ten years Price/NRSF: $ Traffic Counts: 1 mile south of La Posada: 35,000 vehicles per day (Nevada DoT, 2016) Investment Highlights: Great location in Spanish Springs an affluent neighborhood in northeast Sparks Average household income within one mile exceeds $98,000 per year Will be adjacent to neighborhood retail and gas station/convenience store 100% occupancy at competing storage properties Wait listed customers have nowhere to rent - 2 -

4 INVESTMENT HIGHLIGHTS Storite is a well-located, functionally sound, to-be-built storage facility located in Spanish Springs, Nevada approximately 13.5 miles northeast of downtown Reno. For the potential investor, Storite serves as an ideal project with the following features: Opportunity: Financing: Signage: Competition: Location: Occupancies in the greater Spanish Springs submarket currently trend very close to 100% physical occupancy. The seller is an experienced, local self-storage developer who has three additional self storage properties in the pipeline. These three properties will not compete with the Subject Property as they are all located in Southern California markets. The purchaser of the Subject Property may have a first right of first refusal to purchase the other three properties. Additionally, the developers are willing to leave 20% equity in the deal as a testament to the location and the quality of property that they construct. The developers also have management expertise for the passive investor who is simply looking for a stellar return. The sellers are willing to entertain several deal structures which include: a joint venture, a sale of the land with plans, and a sale of the property at Certificate of Occupancy. An additional lot of 1.26 acres (Parcel B on page 6) may also be reserved for expansion of the property. Upon stabilization, 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. Storite will have significant building signage which will front NV-445 and Campo Rico Lane. The competitors in the Spanish Springs market are typically newer properties which feature high asking rents and quality services and a high level of security. Given the lack of supply in the area and the fact that the competing properties are at capacity, additional supply is needed as more and more single-family homes are built in the area. The Subject Property s construction, its variety of units, and its prominence as a class-a facility within the local community help insure that it will be a competitive project in the marketplace. The property will be located near the northeast corner Calle de Plata and NV-445. The immediate area is bustling with new development. Both Lennar Homes and Ryder Homes are very active in the area with over 790 homes under development. Additionally, there are over 2,900 residential units approved for the Spanish Springs area with more residential units being added to the development pipeline. Directly west of Pyramid Highway is the Spanish Springs Business Center, a 600+ acre master planned business park which further contributes to the financial viability of the area. Google, Tesla, Switch SuperNAP have all made substantial investments in the greater Reno/Sparks area and - 3 -

5 INVESTMENT HIGHLIGHTS their employees are settling in upscale areas like Spanish Springs. In summary, the property s location is proximate to several familiar retailers, employers, and housing developments

6 AERIAL PHOTOGRAPHY - 5 -

7 PROPERTY PHOTOGRAPHS - 6 -

8 PROPERTY PHOTOGRAPHS - 7 -

9 PROPERTY PHOTOGRAPHS Looking onto the property eastward from Pyramid Highway Looking to the northeast from Pyramid Highway - 8 -

10 PROPERTY PHOTOGRAPHS Looking onto the property from the northwest Build to suit industrial nearby - 9 -

11 PROPERTY PHOTOGRAPHS Additional industrial within close proximity Explosive growth within one mile of the Subject Property

12 PHYSICAL DESCRIPTION Property Location: 0 Campo Rico Lane, Sparks, NV Assessor s Parcel Number(s): , 5.36 acres (a portion of the total acres), Washoe County Gross Site Area: The northeast 5.36 acres of parcel , 233,481 square feet of land Zoning: Neighborhood Commercial Year Built: 2017/2018 Project Description: Six (6) single-story self-storage buildings, plus an office and break area totaling approximately 106,895 gross square feet of building area Building Description: Total Gross Area: 106,895 Rentable Square Feet: 79,499 Total Units: Construction Type: Roof Material: Interior Partitions/Doors: Paving/Parking: Security: Climate Control: Management Software: Website: 275 climate controlled units; 346 non-climate controlled units; 621 total units Metal frame Metal Metal partitions, metal doors Concrete Keycode gate, unit alarms, fenced grounds, video surveillance Yes, 275 units TBD TBD

13 LOCATION MAPS

14 SITE DESCRIPTION & PARCEL MAP Property Location: 0 Campo Rico Lane, Sparks, NV Distance to Freeway: Gross Site Area: Shape: Topography: Street Frontage: Located adjacent to NV acres, 233,481 square feet of land Irregular Generally flat Approximately 500 feet along Campo Rico Lane Parcel Map

15 DEMOGRAPHICS Demographics for 0 Campo Rico Lane, Sparks, NV Population 1-mi. 3-mi. 5-mi Total Population: Adult 1,169 13,176 25, Total Daytime Population 1,069 11,209 22, Total Employees 27 1,844 3, Total Population: Median Age Total Population: Adult Median Age % 2015 White alone 86.42% 88.35% 84.48% % 2015 Black or African American alone 1.38% 1.37% 1.91% % 2015 American Indian and Alaska Native alone 1.60% 1.27% 1.09% % 2015 Asian alone 2.18% 2.37% 4.12% % 2015 Native Hawaiian and OPI alone 0.23% 0.23% 0.31% % 2015 Some Other Race alone 4.64% 2.81% 4.24% % 2015 Two or More Races alone 3.55% 3.60% 3.85% % 2015 Hispanic 13.30% 11.34% 14.13% % 2015 Not Hispanic 86.70% 88.66% 85.87% % 2015 Not Hispanic: White alone 90.91% 89.16% 86.32% % 2015 Not Hispanic: Black or African American alone 0.00% 0.65% 1.07% % 2015 Not Hispanic: American Indian and Alaska Native alone 0.00% 0.93% 0.84% % 2015 Not Hispanic: Asian alone 0.00% 1.42% 1.96% % 2015 Not Hispanic: Native Hawaiian and OPI alone 0.00% 0.15% 0.26% % 2015 Not Hispanic: Some Other Race alone 0.00% 0.02% 0.04% % 2015 Not Hispanic: Two or More Races 0.00% 1.78% 1.86% Population Change 1-mi. 3-mi. 5-mi Total Population 1,745 17,741 35, Households 539 6,070 11,945 Population Change ,108 3,111 Household Change % Population Change % 6.66% 9.68% % Household Change % 5.40% 8.17% Population Change ,734 8,155 21,538 Household Change ,836 7,320 % Population Change 2000 to % 85.07% % % Household Change 2000 to % 87.69% % Housing 1-mi. 3-mi. 5-mi Housing Units 3 3,331 4, Occupied Housing Units 3 3,233 4, Owner Occupied Housing Units 3 3,108 4, Renter Occupied Housing Units n/a Vacant Housings Units n/a % 2015 Occupied Housing Units % 97.06% 92.98% % 2015 Owner occupied housing units % 96.13% 95.65% % 2015 Renter occupied housing units 0.00% 3.87% 4.35% % 2000 Vacant housing units 0.00% 2.88% 6.94%

16 DEMOGRAPHICS Income 1-mi. 3-mi. 5-mi Household Income: Median $90,782 $82,642 $81, Household Income: Average $98,887 $92,154 $91, Per Capita Income $30,544 $31,530 $31,127 % 2015 Household income: Less than $10, % 2.50% 2.31% % 2015 Household income: $10,000 to $14, % 0.72% 0.72% % 2015 Household income: $15,000 to $19, % 2.78% 2.59% % 2015 Household income: $20,000 to $24, % 3.21% 3.42% % 2015 Household income: $25,000 to $29, % 3.05% 3.07% % 2015 Household income: $30,000 to $34, % 3.64% 3.67% % 2015 Household income: $35,000 to $39, % 4.14% 3.95% % 2015 Household income: $40,000 to $44, % 3.25% 3.29% % 2015 Household income: $45,000 to $49, % 2.19% 3.44% % 2015 Household income: $50,000 to $59, % 8.60% 8.54% % 2015 Household income: $60,000 to $74, % 10.26% 10.72% % 2015 Household income: $75,000 to $99, % 18.48% 17.75% % 2015 Household income: $100,000 to $124, % 16.62% 16.07% % 2015 Household income: $125,000 to $149, % 10.68% 10.46% % 2015 Household income: $150,000 to $199, % 6.29% 6.45% % 2015 Household income: $200,000 or more 4.64% 3.57% 3.56%

17 RENT COMPARABLES Property Name # Unit Yr. Blt. Occ. Units Type SF/U Rent/U Rent/SF Storite N\/A 5x5 cc 25 $55 $ Campo Rico Lane 5x10 cc 50 $95 $1.90 Sparks, NV x10 cc 200 $145 $ x15 cc 150 $210 $1.40 5x5 25 $140 $0.44 5x10 50 $93 $ x $140 $ x $200 $ x $240 $ x $280 $ x $310 $1.03 StorQuest Self Storage % 5x5 25 $55 $ Ingenuity Avenue 5x10 50 $98 $1.96 Sparks, NV x $170 $ x $205 $ miles from Subject 10x $228 $ x $286 $ x $344 $1.15 Spanish Springs Mini Stg % 5x10 50 $60 $ Iratcabal Drive 10x $90 $0.90 Sparks, NV x $110 $ x $130 $ miles from Subject 10x $160 $ x $185 $0.87 Pyramid Self Storage % 5x5 25 $50 $ Roberta Way 5x10 50 $75 $1.50 Sparks, NV x $115 $ x $145 $ miles from Subject 10x $170 $ x $260 $

SALE COMPARABLES 0 Campo Rico Lane Sparks, NV 89441 SUBJECT Total Units: 621 Asking Price: $10,475,000 Rentable SF: 79,499 Price/SF: $131.

49% STORE MORE AMERICA 3711 Soquel Drive Soquel, CA 95073 COMP #1 Close of Escrow 03/31/17 Price: $18,650,000 Total Units: 667 Price/SF: $239.

18 SALE COMPARABLES 0 Campo Rico Lane Sparks, NV SUBJECT Total Units: 621 Asking Price: $10,475,000 Rentable SF: 79,499 Price/SF: $ Year Built/Reno: 2017/2018 CAP rate: 7.49% STORE MORE AMERICA 3711 Soquel Drive Soquel, CA COMP #1 Close of Escrow 03/31/17 Price: $18,650,000 Total Units: 667 Price/SF: $ Rentable SF: 78,001 CAP rate: 3.58% Year Built/Reno: 2009 STOR-ALL SELF-STORAGE 777 Panther Drive Reno, NV COMP #2 Close of Escrow: 02/23/17 Price: $10,925,000 Total Units: 790 Price/SF: $86.05 Rentable SF: 126,963 CAP rate: 6.15% Year Built/Reno:

SALE COMPARABLES OLD BARN SELF STORAGE COMP #3 175 Spring Hill Drive Grass Valley, CA 95945 Close of Escrow

19 SALE COMPARABLES OLD BARN SELF STORAGE COMP #3 175 Spring Hill Drive Grass Valley, CA Close of Escrow 08/03/16 Price: $8,750,000 Total Units: 503 Price/SF: $ Rentable SF: 71,341 CAP rate: 5.74% Year Built/Reno STORE MORE AMERICA COMP #4 6 Westgate Drive Watsonville, CA Close of Escrow: 05/18/16 Price: $19,350,000 Total Units: 918 Price/SF: $ Rentable SF: 106,818 CAP rate: 3.9%/7.6% Year Built/Reno:

20 FINANCIAL ANALYSIS Unit Mix No. of Units Climate Controlled Units Unit Type SF/Unit Current Rent/Unit Proforma Monthly Income Proforma Annual Income 26 5x5 25 $55.00 $1,430 $17, x7 35 $75.00 $75 $ x10 50 $95.00 $2,090 $25, x5 50 $95.00 $1,425 $17, x10 75 $ $5,750 $69, x $ $13,340 $160, x $ $11,340 $136, x $ $3,080 $36, x $ $235 $2,820 Non- Climate Controlled Units 44 5x5 25 $50.00 $2,200 $26, x10 50 $93.00 $2,325 $27, x5 50 $93.00 $1,488 $17, x10 80 $ $120 $1, x $ $8,680 $104, x $ $720 $8, x $ $7,400 $88, x $ $1,075 $12, x $ $1,100 $13, x $ $14,880 $178, x $ $12,040 $144, x $ $590 $7, x $ $9,610 $115, x $ $930 $11, x $ $1,625 $19, x $ $340 $4,080 TOTAL ,499 $103,888 $1,246,656 COMMENTS

21 FINANCIAL ANALYSIS Expenses PROFORMA % EGI INDUSTRY AVERAGE Marketing & Promotion $24, % 3.18% Insurance $12, % 2.27% Repairs & Maintenance $25, % 1.88% Real Estate Taxes* $115, % 6.82% Utilities $45, % 2.23% General & Administration $30, % 3.00% On-Site Payroll $85, % 8.64% Management Fee** $46, % 5.00% Miscellaneous $7, % 0.22% TOTAL EXPENSES $390, % 33.24% COMMENTS * Real estate taxes are estimated to be 1.1% of the purchase price. ** Management fee is estimated to be 4% of gross collections

22 FINANCIAL ANALYSIS Income & Expenses INCOME PROFORMA PER SF GROSS POTENTIAL RENT $1,246,656 $15.68 Miscellaneous Fees 37, Insurance Commissions (Net) 3, Miscellaneous Sales 12, TOTAL OTHER INCOME $52,972 $0.67 GROSS POTENTIAL INCOME $1,299,628 $16.35 Vacancy/Collection Allowance (% GPR) (10.0%) 124, EFFECTIVE GROSS INCOME $1,174,962 $14.78 Total Expenses 390, % of EGI 33.25% NET OPERATING INCOME (NOI) $784,238 $9.86 COMMENTS

23 FINANCIAL ANALYSIS Financial Overview LOCATION 0 Camp Rico Lane INCOME PROFORMA Sparks, NV Price $10,475,000 Gross Potential Rent $1,246,656 Down Payment 30% $3,142,500 Other Income 52,972 Number of Units 621 Gross Potential Income 1, Gross Square Feet 106,895 Less: Vacancy/Deductions 10.0% 124,666 Rentable Square Feet 79,499 Effective Gross Income 1,174,962 Price per Rentable SF $ Less: Expenses 33.3% (390,723) Net Operating Income $784,238 Debt Service (499,598) CAP Rate Pro Forma 7.49% Net Cash Flow After Debt 9.06% 284,640 Principal Reduction 598,775 Total Return 28.1% 883,415 EXPENSES Marketing & Promotion $24,000 Insurance $12,000 FINANCING Repairs & Maintenance $25,000 FIRST TRUST DEED Real Estate Taxes $115,225 Loan Amount 30% $7,332,500 Utilities $45,000 Loan Type Proposed New General & Administration $30,000 Interest Rate 5.5% On-Site Payroll $85,000 Amortization 30 Years Miscellaneous $7,500 Program 30%, LTV, 30/10 Total Expenses $390,723 Loan to Value 30% 33.3% Loan information is time sensitive and subject to change

24 P.O. BOX 4950 EL DORADO HILLS, CA CORPORATE LIC.# BOBBY LOEFFLER TYLER SKELLY PRESIDENT NATIONAL DIRECTOR TEL: TEL: FAX: FAX: CELL: CELL: LICENSE: CA CORP , CA , NV , AZ LICENSE: CA , TX , TX CORP , TX

BIG SKY DISCOUNT STORAGE & EXPANSION LAND

BIG SKY DISCOUNT STORAGE & EXPANSION LAND OFFERING MEMORANDUM Presented by: Bobby Loeffler President The Loeffler Self-Storage Group P.O. Box 4950 El Dorado Hills, CA 95762 License: CA 01264390, NV 1000942 Tel.: 916.939.1410 Fax: 888.289.0703