Pack Rat Self Storage

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 Pack Rat Self Storage

5 PROPERTY DESCRIPTION OFFERING SUMMARY Unit Type: Climate Controlled Units As of 11/30/2016 UNITS No. MONTHLY RENT Approx. OCCUPANCY Unit of Annual Square Occupied Size Total Units Total SqFt Type Rent PSF # Units Unit Units** Gross Pot Mix Feet Economic TOTALS 68 3,943 $77,292 $ % 90.5% Total Unit Type: Self Storage Units UNITS MONTHLY RENT OCCUPANCY Size Total Units Total SqFt Annual Gross Pot Rent PSF # Units Occupied Economic TOTALS ,758 $455,076 $ % 95.5% TOTAL ,700 $532,368 $ % 94.8% Major Employers Price $3,855,000 Down Payment 100% / $3,855,000 Total Units 407 Price per Unit $9,472 Gross Square Feet 50,176 Rentable Square Feet 45,700 Price per Rentable Square Foot $84.35 Year Built 1989 Lot Size 2.34 Acres (MOL) Vital Data CAP Rate - Current 6.20% Net Operating Income - Current $238,976 Total Return - Current 6.20% / $238,976 CAP Rate - Pro Forma 7.58% Net Operating Income - Pro Forma $292,091 Total Return - Pro Forma 7.58% / $292,091 Company Local Employees Trident Health Systems 1,500 Boeing 998 Alternative Staffing Inc 702 Six Continents Hotel 700 Alcoa 620 Usaf Recruiting Office 510 Air Force US Dept of 508 Force Protection Inc 500 McKesson Corporation 400 VT Milcom Inc 350 Cummins Turbo Technologies 343 Dialamerica Marketing Inc 320 Demographics 2014 Total Population 2019 Total Population 2014 Total Households 2019 Total Households 1-Mile 3-Miles 5-Miles 10,614 58, ,171 11,323 63, ,615 4,728 22,564 50,454 5,058 24,655 55,203 Median HH Income $47,126 $44,212 $46,277 Per Capita Income (based on Total Average (Mean) HH Income $24,997 $21,388 $21,978 $56,113 $55,051 $58,080 1

6 PROPERTY DESCRIPTION INVESTMENT OVERVIEW Investment Highlights High Growth Area of North Charleston 45,700 Rentable Square Feet 407 Total Storage Units Visibility from Rivers Avenue Three Miles From Joint Base Charleston Less than Two Miles from Massive Ingleside Development List Price: $3,855,000 Current Cap Rate: 6.2% Pack Rat Self Storage is a 45,700 rentable square foot storage facility located in North Charleston, South Carolina. The property totals 407 units including both climate controlled and drive up storage and sits on a 2.34 acre lot. This facility was built in 1989, is well maintained, and includes a two story residence for the property manager. The business fronts Greenridge Road and can also be seen from Rivers Avenue via a large lighted sign. North Charleston is a developing suburb of Charleston with a population of 108,304 as of 2015 according to the census. The population for the MSA is 712,220, which represents a 30% increase since North Charleston is home to the area s largest employment center and economic driver, Joint Base Charleston. This is a military facility operated by both the US Air Force as well as the Navy. Joint Base Charleston is one of 12 DoD Joint Bases, is host to over 60 DoD and Federal agencies and has a population above 80,000. The immediate area surrounding Pack Rat has seen nearly 28% population growth since 2000 when considering a 5 mile radius and the property is well positioned to benefit from continued growth in the future. The Joint Base is located about three miles to the east, Charleston Southern University is located about 2.5 miles to the northwest, Charleston International Airport and Boeing Manufacturing are located about four miles to the south, and most recently the massive Ingleside development is underway less than two miles away. Ingleside is a 1,500 acre mixed use commercial property which will include over 5,400 residences. The entire property has been master planned with the goal of creating a sustainable community including single and multifamily residences, office and industrial buildings as well as highly attractive retail. Offered at $3,855,000, which represents a 6.2% current CAP rate, this opportunity presents an investor with a well maintained self storage facility in the highly desirable metro area of Charleston, South Carolina. Over the past 24 months the property has averaged 87% physical occupancy by unit count and 77% economic occupancy according to management summary reports. In this time period, asking rents have never changed. This presents a new owner with a tremendous opportunity to acquire a stable property in a dense market with potential to improve revenue through a more aggressive management strategy. 2

7 PROPERTY DESCRIPTION PROPERTY SUMMARY The Offering Property Pack Rat Self Storage Property Address 2170 Greenridge Rd North Charleston, SC Assessor's Parcel Number Zoning B-2 (GENERAL BUSINESS DISTRICT) Site Description Total Units 407 Units Sizes 23 to 300 Square Foot Storage Units Gross Square Feet 50,176 Rentable Square Feet 45,700 Year Built 1989 Lot Size 2.34 Acres (MOL) Type of Ownership Fee Simple Number of Buildings Six Storage Buildings and One Residence Number of Stories Single Storage Storage and Two Story Residence Parking Sufficient Street Frontage 280 Feet on Greenridge and Visibility from Hwy 78 Cross Street Highway 78 Traffic Counts (Vehicles per Day) 66,900 Cars Per Day on Hwy 78 Highway Access Less Than one mile from I-26 Construction Foundation Framing Exterior Walls Parking Surface Roof Fencing Entry Poured Concrete Steel Metal Concrete Screw Down Storage Roofs and Shingled Residence Iron Gate Keypaded Gate Mechanical Climate Control Security 68 Units Digital Video Surveillance 3

8 PROPERTY DESCRIPTION PROPERTY AMENITIES Common Area Amenities Climate Controlled Storage Units Drive-Up Storage Units Management Office Manager's Residence Keypaded Gate Access Digital Video Surveillance High Visibility Lighted Signage Exterior Lighting Throughout Property Wide Driveways Break In Median for Ease of Access 4 U

9 PROPERTY DESCRIPTION PROPERTY PHOTOS 5

10 PROPERTY DESCRIPTION AREA MAPS Local Map Regional Map 6

11 PROPERTY DESCRIPTION AERIAL OVERVIEW the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any 7

12 PROPERTY DESCRIPTION AERIAL PHOTO 8

13 PRICING AND FINANCIAL ANALYSIS Pack Rat Self Storage

14 PRICING AND FINANCIAL ANALYSIS UNIT MIX Unit Type: Climate Controlled Units As of 11/30/2016 Size 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 $59.00 $767 $649 $9,204 $ % 84.6% 84.6% 5x ,800 1,650 $89.00 $3,204 $2,937 $38,448 $ % 91.7% 91.7% 5x $96.00 $192 $96 $2,304 $ % 50.0% 50.0% 10x ,700 1,600 $ $2,278 $2,144 $27,336 $ % 94.1% 94.1% TOTALS ,943 3,573 $6,441 $5,826 $77,292 $ % 90.6% 90.5% Unit Type: Self Storage Units Size 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 $48.00 $816 $576 $9,792 $ % 70.6% 70.6% 5x $48.00 $1,200 $912 $14,400 $ % 76.0% 76.0% 5x ,350 1,250 $69.00 $1,863 $1,725 $22,356 $ % 92.6% 92.6% 10x $69.00 $1,104 $966 $13,248 $ % 87.5% 87.5% 5x ,450 3,375 $81.00 $3,726 $3,645 $44,712 $ % 97.8% 97.8% 10x ,800 6,500 $ $7,072 $6,760 $84,864 $ % 95.6% 95.6% 10x ,200 7,200 $ $6,528 $6,528 $78,336 $ % 100.0% 100.0% 10x ,400 11,000 $ $8,949 $8,635 $107,388 $ % 96.5% 96.5% 10x ,750 3,750 $ $2,685 $2,685 $32,220 $ % 100.0% 100.0% 10x ,000 5,700 $ $3,980 $3,781 $47,760 $ % 95.0% 95.0% TOTALS ,758 40,220 $37,923 $36,213 $455,076 $ % 96.3% 95.5% TOTAL ,700 43,793 $44,364 $42,039 $532,368 $ % 95.8% 94.8% 10

15 PRICING AND FINANCIAL ANALYSIS FINANCIAL OVERVIEW Location 2170 Greenridge Rd North Charleston, SC Price $3,855,000 Down Payment 100% / $3,855,000 Number of Units 407 Gross Square Feet 50,176 Rentable Square Feet 45,700 CAP Rate - Current 6.20% CAP Rate- Pro Forma 7.58% Year Built 1989 Lot Size 2.34 Acres (MOL) Type of Ownership Fee Simple Annualized Operating Data Current Pro Forma Gross Potential Rent $532,368 $532,368 Other Income $23,320 $26,458 Gross Potential Income $555,688 $558,826 Less: Vacancy/Deductions 20.7% / $110,062 (10.0%) 53,237 Effective Gross Income $445,626 $505,589 Less: Expenses $206,650 $213,498 Net Operating Income $238,976 $292,091 Net Cash Flow Before Debt Service $238,976 $292,091 Net Cash Flow After Debt Service 6.20% / $238, % / $292,091 Total Return 6.20% / $238, % / $292,091 Expenses Real Estate Taxes $38,306 $41,288 Insurance $10,945 $10,945 Utilities $16,455 $16,455 Repairs & Maintenance $11,425 $11,425 Marketing & Promotion $3,079 $3,079 On-Site Payroll $76,459 $76,459 Management Fee $22,281 $25,279 General & Administration $13,424 $13,424 Reserves/Replacements $4,570 $4,570 Bank Charges $6,450 $7,318 Telephone $3,256 $3,256 Total Expenses $206,650 $213,498 % of EGI 46.4% 42.2% Note: Current Effective Gross income is based on Trailing 6 revenue from Management Summary Reports as of Dec 2016 Note: Current and Pro Forma Expenses are based on actual annual P&L statements for the year of

16 PRICING AND FINANCIAL ANALYSIS INCOME AND EXPENSES Total Number of Units 407 Total Gross Square Feet 50,176 Total Rentable Square Feet 45,700 Income Current Per SF Pro Forma Per SF GROSS POTENTIAL RENT $532,368 $11.65 $532,368 $11.65 Additional Income $23,320 $0.51 $26,458 $0.58 TOTAL OTHER INCOME $23,320 $0.51 $26,458 $0.58 GROSS POTENTIAL INCOME $555,688 $12.16 $558,826 $12.23 Vacancy/Collection Allowance 20.7% / $110,062 $2.41 (10.0%) 53,237 $1.16 EFFECTIVE GROSS INCOME $445,626 $9.75 $505,589 $11.06 Total Expenses $206,650 $4.52 $213,498 $4.67 % of EGI 46.4% 42.2% NET OPERATING INCOME $238,976 $5.23 $292,091 $6.39 Comments 12

17 PRICING AND FINANCIAL ANALYSIS EXPENSES Current Per SF Pro Forma Per SF Real Estate Taxes $38,306 $0.84 $41,288 $0.90 Insurance $10,945 $0.24 $10,945 $0.24 Utilities $16,455 $0.36 $16,455 $0.36 Repairs & Maintenance $11,425 $0.25 $11,425 $0.25 Marketing & Promotion $3,079 $0.07 $3,079 $0.07 On-Site Payroll $76,459 $1.67 $76,459 $1.67 Management Fee $22,281 $0.49 $25,279 $0.55 General & Administration $13,424 $0.29 $13,424 $0.29 Reserves/Replacements $4,570 $0.10 $4,570 $0.10 Bank Charges $6,450 $0.14 $7,318 $0.16 Telephone $3,256 $0.07 $3,256 $0.07 TOTAL EXPENSES $206,650 $4.52 $213,498 $4.67 % of EGI 46.4% 42.2% 1. Pro Forma Real Estate Taxes have been adjusted to reflect a sale 2. Current and Pro Forma Repairs and Maintenance has been adjusted to reflect industry standards 3. Current and Pro Forma Management Fee Expense has been added at 5% of EGI 4. Current and Pro Forma Reserves/Replacements has been added to reflect industry standards 5. Pro Forma Bank Charges have been adjusted to reflect increased revenue 13

18 DEMOGRAPHIC ANALYSIS Pack Rat Self Storage

19 DEMOGRAPHIC ANALYSIS DEMOGRAPHIC REPORT 1 Mile 3 Miles 5 Miles 2000 Population 5,507 41, , Population 9,602 53, , Population 10,614 58, , Population 11,323 63, , Households 2,218 15,824 37, Households 4,258 20,535 46, Households 4,728 22,564 50, Households 5,058 24,655 55, Average Household Size Daytime Population 5,336 23,815 54, Owner Occupied Housing Units 45.10% 49.36% 52.56% 2000 Renter Occupied Housing Units 48.73% 43.87% 39.80% 2000 Vacant 6.18% 6.78% 7.64% 2014 Owner Occupied Housing Units 47.86% 49.70% 54.91% 2014 Renter Occupied Housing Units 52.14% 50.30% 45.09% 2014 Vacant 4.86% 6.02% 5.90% 2019 Owner Occupied Housing Units 48.57% 49.94% 55.47% 2019 Renter Occupied Housing Units 51.43% 50.06% 44.53% 2019 Vacant 4.75% 6.15% 5.68% $ 0 - $14, % 12.8% 12.4% $ 15,000 - $24, % 12.2% 11.8% $ 25,000 - $34, % 13.5% 12.4% $ 35,000 - $49, % 17.9% 17.0% $ 50,000 - $74, % 21.7% 21.9% $ 75,000 - $99, % 10.6% 11.8% $100,000 - $124, % 5.5% 6.2% $125,000 - $149, % 2.8% 3.0% $150,000 - $199, % 2.0% 2.2% $200,000 - $249, % 0.5% 0.5% $250, % 0.6% 0.8% 2014 Median Household Income $47,126 $44,212 $46, Per Capita Income $24,997 $21,388 $21, Average Household Income $56,113 $55,051 $58,080 Demographic data 2012 by Experian. 15

20 DEMOGRAPHIC ANALYSIS SUMMARY REPORT Geography: 5 miles Population In 2014, the population in your selected geography is 135,170. The population has changed by 28.08% since It is estimated that the population in your area will be 146,615 five years from now, which represents a change of 8.46% from the current year. The current population is 50.24% male and 49.75% female. The median age of the population in your area is 31.0, compare this to the Entire US average which is The population density in your area is 1, people per square mile. Households There are currently 50,454 households in your selected geography. The number of households has changed by 33.07% since It is estimated that the number of households in your area will be 55,203 five years from now, which represents a change of 9.41% from the current year. The average household size in your area is 2.61 persons. Income In 2014, the median household income for your selected geography is $46,276, compare this to the Entire US average which is currently $51,972. The median household income for your area has changed by 18.36% since It is estimated that the median household income in your area will be $53,409 five years from now, which represents a change of 15.41% from the current year. The current year per capita income in your area is $21,977, compare this to the Entire US average, which is $28,599. The current year average household income in your area is $58,079, 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: 57.48% White, 28.60% Black, 0.15% Native American and 3.61% 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 11.27% of the current year population in your selected area. Compare this to the Entire US average of 17.13%. Housing In 2000, there were 21,575 owner occupied housing units in your area and there were 16,339 renter occupied housing units in your area. The median rent at the time was $465. Employment In 2014, there are 54,172 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 55.16% of employees are employed in white-collar occupations in this geography, and 44.95% are employed in blue-collar occupations. In 2014, unemployment in this area is 5.00%. In 2000, the average time traveled to work was 24.7 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 Pack Rat Self Storage

26 RENT COMPARABLES RENT COMPARABLES MAP Property Name Address City State Zip Phone Distance from Subject Sq. Ft. Pack Rat Self Storage 2170 Greenridge Rd North Charleston SC (843) Miles 45,675 1) Extra Space Storage 8850 Rivers Ave North Charleston SC (843) Miles 63,500 2) Public Storage 2560 Ashley Phosphate Rd Charleston SC (843) Miles 31,806 3) Mini Warehouse of Goose Creek 128 Howe Hall Rd Goose Creek SC (843) Miles 30,016 4) Stars & Stripes Storage 1206 Redbank Rd Goose Creek SC (843) Miles 47,260 5) Assured Storage of Goose Creek 1110 Harbour Lake Dr Goose Creek SC (843) Miles 41,999 6) Cubesmart Self Storage 3260 Ashley Phosphate Rd North Charleston SC (843) Miles 32,325 7) Stars & Stripes Storage 103 Luken Rd Goose Creek SC (843) Miles 59,096 8) Cubesmart Self Storage 102 S Goose Creek Blvd Goose Creek SC (843) Miles 43,749 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 Pack Rat Self Storage - 5x4.5 c/c 23 Sq Ft $ x10 c/c 50 Sq Ft $ x10 c/c 100 Sq Ft $ x15 c/c 150 Sq Ft N/A 10x20 c/c 200 Sq Ft N/A $1.91 Extra Space Storage 1.1 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 $ $1.43 Public Storage 1.5 Miles 5x5 c/c 25 Sq Ft - 5x10 c/c 50 Sq Ft - 10x10 c/c 100 Sq Ft - 10x15 c/c 150 Sq Ft $ x20 c/c 200 Sq Ft $ $0.82 Stars & Stripes Storage 2 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 $ $1.38 Cubesmart Self Storage 2.2 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 - 10x20 c/c 200 Sq Ft - $1.35 Cubesmart Self Storage 2.7 Miles 5x5 c/c 25 Sq Ft $ x10 c/c 50 Sq Ft $ x10 c/c 100 Sq Ft - 10x15 c/c 150 Sq Ft $ x20 c/c 200 Sq Ft - $1.79 Subject $/SF $2.62 $1.78 $1.34 N/A N/A $1.91 Average Comparable $/SF $2.17 $1.74 $1.46 $1.10 $0.93 $1.79 "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 Distance from Property Subject Unit Size Rate Unit Size Rate Unit Size Rate Unit Size Rate Unit Size Rate Average $/SF Pack Rat Self Storage - 5x5 25 Sq Ft $ x10 50 Sq Ft $ x Sq Ft $ x Sq Ft $ x Sq Ft $ $1.21 Public Storage 1.5 Miles 4x4 16 Sq Ft $ x10 50 Sq Ft $ x Sq Ft $ x Sq Ft $ x Sq Ft $ $1.40 Stars & Stripes Storage 2 Miles 5x5 25 Sq Ft $ x10 50 Sq Ft $ x Sq Ft $ x Sq Ft $ x Sq Ft $ $1.09 Assured Storage of Goose Creek 2.1 Miles 5x5 25 Sq Ft $ x10 50 Sq Ft $ x Sq Ft $ x Sq Ft $ x Sq Ft $ $1.19 Cubesmart Self Storage 2.2 Miles 5x5 25 Sq Ft $ x10 50 Sq Ft - 10x Sq Ft $ x Sq Ft $ x Sq Ft - $1.26 Stars & Stripes Storage 2.5 Miles 5x5 25 Sq Ft $ x10 50 Sq Ft $ x Sq Ft $ x Sq Ft $ x Sq Ft $ $1.09 Cubesmart Self Storage 2.7 Miles 5x5 25 Sq Ft - 5x10 50 Sq Ft $ x Sq Ft $ x Sq Ft - 10x Sq Ft - $1.33 Subject $/SF $1.92 $1.38 $1.04 $0.91 $0.79 $1.21 Average Comparable $/SF $1.85 $1.38 $1.09 $0.92 $0.76 $1.20 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 $2.50 $2.00 $1.50 Climate Controlled $1.00 Average $0.50 $0.00 $1.91 $1.43 $0.82 $1.38 $1.35 $1.79 Pack Rat Self Storage Extra Space Storage Public Storage Stars & Stripes Storage Cubesmart Self Storage Cubesmart Self Storage Non Climate Unit Rent per Square Foot $1.60 $1.40 $1.20 $1.00 $0.80 $0.60 Non Climate Controlled Average $0.40 $0.20 $0.00 $1.21 $1.40 $1.09 $1.19 $1.26 $1.09 $1.33 Pack Rat Self Storage Public Storage Stars & Stripes Storage Assured Storage of Goose Creek Cubesmart Self Storage Stars & Stripes Storage Cubesmart Self Storage Rent per Square Foot $3.00 $2.50 $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 RENT COMPARABLES SATURATION Saturation Estimate Per Capita Demand for Self Storage in Charleston, SC: 8.73 Sq Ft 1-Mile Target Market Facilities in 1-mile radius* 1 1 Sq. Ft. in marketplace** 45,675 45,675 Residents in 1-mile radius 10,614 = 4.30 SF/person 11,323 = 4.03 SF/person 46,985 SF Undersupplied 53,175 SF Undersupplied 3-Mile Target Market Facilities in 3-mile radius* 5 5 Sq. Ft. in marketplace** 218, ,257 Residents in 3-mile radius 30,380 = 7.18 SF/person 32,825 = 6.65 SF/person 46,960 SF Undersupplied 68,305 SF Undersupplied 5-Mile Target Market Facilities in 5-mile radius* 9 9 Sq. ft. in marketplace** 395, ,426 Residents in 5-mile radius 58,751 = 6.73 SF/person 63,814 = 6.20 SF/person 117,470 SF Undersupplied 161,670 SF Undersupplied References * The number of facilities within a given radius was determined using a combination Google search and proprietary M&M database search. ** The square feet in the marketplace was determined using a combination of Realquest, proprietary databases, unit counts and aerial views, and raw estimates. The number of residents and households within a given radius was determined using M&M proprietary demographic databases based on Census numbers. The # of available units within a given radius was determined the same way the total rentable square footage was. 25

30 RECENT SALES Pack Rat Self Storage

31 RECENT SALES RECENT SALES MAP 1) 2) 3) 4) 5) Pack Rat Self Storage 278 Econo Storage Greenwave Self Storage Grand Oaks Self Storage Absolute Storage North Myrtle Beach Portfolio 27

32 RECENT SALES CAP RATE AND PRICE PER RENTABLE SQUARE Average Cap Rate Subject 278 Econo Storage Greenwave Self Storage Absolute Storage North Myrtle Beach Portfolio Average Price per Rentable Square Feet Subject 278 Econo Storage Greenwave Self Storage Grand Oaks Self Storage Absolute Storage North Myrtle Beach Portfolio 28

33 RECENT SALES RECENT SALES Pack Rat Self Storage 2170 Greenridge Rd North Charleston, SC Total Units: 407 Offering Price: $3,855,000 Rentable SF: 45,700 Price/SF: $84.35 Year Built: 1989 CAP Rate: 6.20% Subject Property Econo Storage 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: Greenwave Self Storage 434 Orangeburg Rd Summerville, SC Close of Escrow: 7/22/2016 Sale Price: $1,540,000 Total Units: 230 Price/SF: $51.33 Rentable SF: 30,000 CAP Rate: 6.97% Year Built:

34 RECENT SALES RECENT SALES 3 Grand Oaks Self Storage Dorchester Rd Summerville, SC Close of Escrow: 1/27/2016 Sale Price: $1,700,000 Total Units: 140 Price/SF: $80.38 Rentable SF: 21,150 CAP Rate: Year Built: Absolute Storage 434 Scuffletown Rd Simpsonville, SC Close of Escrow: 12/8/2016 Sale Price: $4,450,000 Total Units: 313 Price/SF: $97.74 Rentable SF: 45,530 CAP Rate: 5.23% Year Built: 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:

35 OFFERING MEMORANDUM Stacey Gorman First Vice President Investments Senior Director, National Self Storage Group Atlanta Office License: GA: License: TN: Tel: (678) Fax: (678) Raj Ravi Broker of Record M&M REIS of Atlanta Inc License: SC: Tel: (843) Fax: (843) Offices Throughout the U.S and Canada