Insure Self Storage DALLAS, TX

Transcription

1 INTRODUCTION SELLING POINTS: 98% Physical Occupancy Strong Historical Occupancy Same On-Site Manager for 23 years! Turnkey Investment Opportunity Located Only Six Miles from the CBD of Dallas, Texas Requires Little-to-No Owner Involvement 8.23% Cap Rate Offering Great 1031-Exchange Investment Facility

2 OFFERING MEMORANDUM

3 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.

4 INTRODUCTION IABS

5 TABLE OF CONTENTS Section 1 PROPERTY DESCRIPTION Section 2 PRICING AND FINANCIAL ANALYSIS Section 3 MARKET OVERVIEW Section 4 DEMOGRAPHIC ANALYSIS

6 PROPERTY DESCRIPTION Insure Self Storage

7 PROPERTY DESCRIPTION INVESTMENT OVERVIEW Investment Highlights 8.23% Cap Rate Return with Effective Rent Increase Turnkey Investment with Long-Term On-Site Management Excellent 1031-Exchange Opportunity Upside in Revenue Management 14.49% Cash-on-Cash Return and 23.36% Overall Total Return Tiltwall and Metal Construction 98% Physical Occupancy and Strong Historical Occupancy Excellent Strategic Location (Only Six Miles from Dallas CBD) Insure Self Storage is a 167-unit, non-climate controlled, self-storage facility offering 18,587 net rentable square feet. The facility is currently 98 percent occupied and has a long track record of strong occupancy, with an overall average of 86.4 percent economic occupancy for Insure Self Storage offers an investor an excellent 1031-exchange opportunity, with a cap rate return of 8.23 percent on the next 12-month revenue based on a rent increase as of June 1, The cash-on-cash return for the next 12 months projects to percent and an overall total rate of return of percent. Based on the modeled and projected unit mix rent increase, the Year 2 return includes: percent cap rate, percent cash-on-cash, and percent total return on investment. Insure Self Storage currently has a full-time manager and an on-site, resident maintenance person. The manager has been with Insure for 23 years and would definitely prefer to continue managing the facility, which would allow this asset to be a true turnkey investment. The property features concrete/asphalt drives, tilt-up and metal wall construction, rollup and swing-style doors, overhead lighting, closed-circuit cameras, an electronic gate, and a high-traffic location just due south of the intersection of Walton Walker (Loop 12) and Duncanville Road in Dallas, Texas, with approximately 15,000 vehicles per day. Overall, Insure Self Storage presents a solid, long-term investment opportunity to acquire a well-maintained, self-storage facility with strong historical occupancy and an opportunity to increase rents due to high demand. 1

8 PROPERTY DESCRIPTION PROPERTY SUMMARY The Offering Property Insure Self Storage Property Address 3020 Duncanville Road Dallas, TX Assessor's Parcel Number Zoning Industrial / Manufacturing District Site Description Total Units 170 Units Sizes Various Sizes - See Unit Mix Page Rentable Square Feet 18,587 Year Built 1978 Lot Size 1.33 Acres Type of Ownership Fee Simple Number of Buildings 3 Number of Stories 1 Parking Yes Street Frontage 197' Along Duncanville Road per DCAD Nearest Cross Street Due South of South Walton Walker Boulevard Traffic Counts (Vehicles per Day) Approximately 15,000 Vehicles per Day Highway Access ~ 1/20 mile for Loop 12 and 3 Miles from IH-20 Land for Additional Development None Available Construction Foundation Framing Exterior Walls Parking Surface Roof Fencing Entry Concrete Steel Tilt Wall and Metal Concrete and Asphalt Metal Screw Down Chain-Link Perimeter Fencing Personalized Key Pad Mechanical Climate Control Fire Protection Elevators Security No Fire Extinguishers No 16 Closed Circuit Security Cameras 2

9 PROPERTY DESCRIPTION PROPERTY AMENITIES Common Area Amenities Roll-Up and Swing-Style Doors Perimeter Fencing and Lighting Closed Circuit Cameras and Surveillance Manager's Office On-Site Living Quarters (Currently used by Maintenance) Unit Amenities Electronic Gate and Key Pad Security Entrance Large Array of Unit Sizes Traffic Count of 15,000 Vehicles per Day Approximately 197' of Frontage on Duncanville Road Concrete Foundation with Concrete and Asphalt Drives 3

10 PROPERTY DESCRIPTION PROPERTY PHOTOS 4

11 PROPERTY DESCRIPTION PROPERTY PHOTOS 5

12 PROPERTY DESCRIPTION PROPERTY PHOTOS 6

13 PROPERTY DESCRIPTION AREA MAPS Local Map Regional Map 7

14 PRICING AND FINANCIAL ANALYSIS Insure Self Storage

15 OFFERING SUMMARY Unit Mix PRICING AND FINANCIAL ANALYSIS No. of Units** Unit Type Approx. Square Feet Total Major Employers Price $1,295,000 Down Payment 20% / $259,000 Total Units 170 Price per Unit $7,618 Rentable Square Feet 18,587 Price per Rentable Square Foot $69.67 Average Rent per Square Foot (Existing) $7.40 Year Built 1978 Lot Size 1.33 Acres Vital Data CAP Rate - Current 8.23% Net Operating Income - Current $106,641 Net Cash Flow After Debt Service - Current 14.49% / $37,540 Total Return - Current 23.36% / $60,491 CAP Rate - Pro Forma 10.22% Net Operating Income - Pro Forma $132,307 Net Cash Flow After Debt Service - Pro Forma 24.40% / $63,205 Total Return - Pro Forma 33.26% / $86,156 Company Local Employees Aafes Logistics 4,500 US Post Office 2,816 Aafes 2,604 County of Dallas 1,388 Air National Guard 1,000 Masco Cabinetry LLC 913 Wycliffe Bible Translators Inc 900 Mss 750 Pioneer Frozen Foods 750 Taylor Farms Texas Inc 652 Mission Foods 500 City of Dallas 436 Demographics 2014 Total Population 2019 Total Population 2014 Total Households 2019 Total Households 1-Mile 3-Miles 5-Miles 9,514 84, ,229 10,691 89, ,936 2,868 24,109 78,064 3,239 25,702 81,230 Median HH Income $34,064 $35,496 $37,778 Per Capita Income (based on Total Average (Mean) HH Income $13,635 $13,710 $16,179 $44,778 $47,464 $50,800 9

16 PRICING AND FINANCIAL ANALYSIS FINANCIAL OVERVIEW Location 3020 Duncanville Road Dallas, TX Price $1,295,000 Down Payment 20% / $259,000 Number of Units 170 Rentable Square Feet 18,587 CAP Rate - Current 8.23% CAP Rate- Pro Forma 10.22% Average Rent per Square Foot $7.40 (Existing) Year Built 1978 Lot Size Type of Ownership Financing 1.33 Acres Fee Simple FIRST TRUST DEED Loan Amount $1,036,000 Loan Type Proposed New Interest Rate 4.5% Amortization 25 Years Program Conventional Loan to Value 75% 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 $198,684 $239,220 Gross Potential Income $198,684 $239,220 Less: Vacancy/Deductions 15.0% / $29,803 (17.5%) 41,864 Effective Gross Income $168,881 $197,357 Less: Expenses $62,240 $65,050 Net Operating Income $106,641 $132,307 Net Cash Flow Before Debt Service $106,641 $132,307 Debt Service $69,101 $69,101 Debt Coverage Ratio Net Cash Flow After Debt Service 14.49% / $37, % / $63,205 Principal Reduction $22,951 $22,951 Total Return 23.36% / $60, % / $86,156 Expenses Real Estate Taxes $15,080 $18,500 Insurance $6,777 $6,777 Electricity - TXU Energy $4,650 $3,900 Repairs & Maint. $0.10/NRSF $1,882 $1,882 On-Site Manager's Payroll $22,164 $22,164 On-Site Maintenance Personnel*1 $6,500 $6,500 E-Move Software Expense $540 $540 AT&T (Phone, Fax, Internet) $842 $867 IESI - Dumpster $752 $752 Water $405 $417 Supplies $265 $265 Dues/Subscriptions $300 $300 Accounting/Legal Expense $600 $600 Bank Charges/Credit Card Fees $1,483 $1,586 Total Expenses $62,240 $65,050 % of EGI 36.9% 33.0% 1. On-Site Manager Payroll 2. On-Site Maintenance Personnel (Lives on Property) 10

17 PRICING AND FINANCIAL ANALYSIS FINANCING Existing Financing Loan Type Free and Clear Proposed Financing First Trust Deed Loan Amount $1,036,000 Loan Type Proposed New Interest Rate 4.5% Amortization 25 Years Program Conventional Lender Financing Loan to Value 75% Index 4.50 Fixed Due Date Five-Year Term Debt Coverage Ratio

18 PRICING AND FINANCIAL ANALYSIS UNIT MIX Current Monthly Income Pro Forma Monthly Income Pro Forma Annual Income No. of Unit Current Current Pro Forma Units Type SF/Unit Rent/Unit Annual Income Rents/Unit 4 5x $49.00-$49.00 $ $2, $55.00-$55.00 $ $2, x $54.00-$54.00 $54.00 $ $59.00-$59.00 $59.00 $ x $57.00-$57.00 $1, $14, $65.00-$65.00 $1, $16, x $63.00-$63.00 $1, $17, $75.00-$75.00 $1, $20, x $66.00-$66.00 $66.00 $ $80.00-$80.00 $80.00 $ x $69.00-$69.00 $ $2, $84.00-$84.00 $ $3, x $74.00-$74.00 $ $2, $87.00-$87.00 $ $3, x $77.00-$77.00 $ $2, $92.00-$92.00 $ $3, x $77.00-$77.00 $ $9, $92.00-$92.00 $ $11, x $79.00-$79.00 $ $5, $96.00-$96.00 $ $6, x $77.00-$77.00 $ $9, $96.00-$96.00 $ $11, x $82.00-$82.00 $ $9, $ $ $1, $12, x $ $ $ $10, $ $ $ $11, x $ $ $ $6, $ $ $ $7, x $ $ $ $2, $ $ $ $3, x $ $ $2, $26, $ $ $2, $35, x $ $ $ $1, $ $ $ $1, x $ $ $ $5, $ $ $ $6, x $ $ $ $1, $ $ $ $2, x $ $ $ $1, $ $ $ $2, x $ $ $1, $22, $ $ $2, $27, x $ $ $2, $30, $ $ $2, $35, x $ $ $ $9, $ $ $ $10, Open Parking $68.00-$68.00 $ $2, $75.00-$75.00 $ $2, TOTAL 18,587 $16, $198, $19, $239, Comments Total Units is 167 with 3 Open Parking Spaces Rent increase effective on Current Rents as of

19 PRICING AND FINANCIAL ANALYSIS INCOME AND EXPENSES Total Number of Units 170 Total Rentable Square Feet 18,587 Income Current Per SF Pro Forma Per SF GROSS POTENTIAL RENT $198,684 $10.69 $239,220 $12.87 GROSS POTENTIAL INCOME $198,684 $10.69 $239,220 $12.87 Vacancy/Collection Allowance 15.0% / $29,803 $1.60 (17.5%) 41,864 $2.25 EFFECTIVE GROSS INCOME $168,881 $9.09 $197,357 $10.62 Total Expenses $62,240 $3.35 $65,050 $3.50 % of EGI 36.9% 33.0% NET OPERATING INCOME $106,641 $5.74 $132,307 $7.12 Comments Revenue is based upon effective Rent Increase as of projected forward Effective annualized collected income was at 86.4% Economic Occupancy for 2015 The current physical occupancy as of is reported at 98%. 13

20 PRICING AND FINANCIAL ANALYSIS EXPENSES Current Per SF Pro Forma Per SF Real Estate Taxes $15,080 $0.81 $18,500 $1.00 Insurance $6,777 $0.36 $6,777 $0.36 Electricity - TXU Energy $4,650 $0.25 $3,900 $0.21 Repairs & Maint. $0.10/NRSF $1,882 $0.10 $1,882 $0.10 On-Site Manager's Payroll $22,164 $1.19 $22,164 $1.19 On-Site Maintenance Personnel*1 $6,500 $0.35 $6,500 $0.35 E-Move Software Expense $540 $0.03 $540 $0.03 AT&T (Phone, Fax, Internet) $842 $0.05 $867 $0.05 IESI - Dumpster $752 $0.04 $752 $0.04 Water $405 $0.02 $417 $0.02 Supplies $265 $0.01 $265 $0.01 Dues/Subscriptions $300 $0.02 $300 $0.02 Accounting/Legal Expense $600 $0.03 $600 $0.03 Bank Charges/Credit Card Fees $1,483 $0.08 $1,586 $0.09 TOTAL EXPENSES $62,240 $3.35 $65,050 $3.50 % of EGI 36.9% 33.0% Comments 1. On-Site Maintenance Personnel (Lives on Property) 2. On-Site Maintenance Personnel (Lives on Property) ~*~Property Manager has been managing and overseeing this facility and it's operations for 23 years! 14

21 MARKET OVERVIEW Insure Self Storage

22 MARKET OVERVIEW DALLAS/FORT WORTH Market Highlights High population growth Dallas/Fort Worth s population growth in recent years ranks among the highest in the U.S. for a major metro. Heavy concentration of headquarters The Metroplex is home to 21 Fortune 500 companies and many regional headquarters. High median household income The annual median household income in Dallas/Fort Worth, at $61,600, is well above the U.S. median of $56,100. Geography Centrally located in the southern portion of the United States, Dallas/Fort Worth is one of the largest metros in the nation, stretching across 9,300 square miles in northern Texas. The eastern portion of the Metroplex is situated in the Blackland Prairie region, so named for its fertile black soil. This area contains streams, creeks, rivers and manufactured lakes. The western portion of the Metroplex falls within the Fort Worth Prairie. Much of this former ranchland sits atop a natural oil field and the Barnett Shale geological formation. Dallas-Fort Worth-Arlington Metro 16

23 MARKET OVERVIEW DALLAS/FORT WORTH Metro The Dallas/Fort Worth Metroplex is the fourth-largest metro in the nation and is composed of 12 counties, with an aggregate of more than 6.9 million residents. Population growth in the region was tremendous during the past decade, outpacing most U.S. metros. The population of the Metroplex is forecast to expand 1.6 percent per year through Infrastructure The region s transportation network is continually evolving. To improve traffic flow, freeways are being expanded and miles are being added to tollways and turnpikes. Six projects totalling $1 billion will be underway by mid Dallas Area Rapid Transit operates buses and an 85- mile light-rail system that serve Dallas and surrounding cities. Trinity Railway Express is a commuter rail that connects Dallas, Fort Worth and the Dallas/Fort Worth International Airport. The business community has easy access to major commercial centers around the globe via the Dallas/Fort Worth International Airport, home to American Airlines, and Southwest Airlines operates from Dallas Love Field. The Metroplex s strategic location on Interstate 35 and the NAFTA Superhighway, its home to BNSF Headquarters, intermodal facilities and the International Inland Port of Dallas ensure its status as a national distribution hub for years to come. Largest Cities in Metro by Population Dallas 1,280,500 Fort Worth 810,400 Arlington 387,400 Plano 277,500 Garland 240,400 Irving 234,600 Airports Dallas/Fort Worth International Airport Dallas Love Field Airport Fort Worth Alliance Airport 13 smaller airports Major Roadways Interstates 20, 30, 35, 45, 635 and 820 Toll roads, turnpikes Rail Freight - Union Pacific, BNSF, Kansas City Southern Passenger - Trinity Railway Express, Amtrak Light rail - DART Port International Inland Port of Dallas The Dallas/Fort Worth Metroplex is: 200 miles from Austin 230 miles from Houston 880 miles from Denver 925 miles from Chicago * Forecast Sources: Marcus & Millichap Research Services, U.S. Census Bureau, Experian 17

24 MARKET OVERVIEW DALLAS/FORT WORTH Economy The Dallas/Fort Worth economy continues to evolve. Companies migrating to the area are attracted by warm weather, no state income tax and a right-to-work labor policy. These qualities, combined with an educated workforce, diverse population and low housing costs, have led to extraordinary growth in the Metroplex and will continue to draw new businesses. Economic expansion will be further fueled by a rise in financial services and high-tech companies. Dallas/Fort Worth is home to 21 Fortune 500 companies in diverse economic sectors, including energy, food, healthcare services, telecommunications and retail. Some top names are ExxonMobil, American Airlines Group, Southwest Airlines, Fluor, AT&T, Tenet Healthcare, Kimberly-Clark and JCPenney. There is also a high concentration of privately held companies headquartered locally. Toyota plans to move its North American headquarters to Plano by next year. Dallas/Fort Worth s central location and vast intermodal facilities have elevated the Metroplex to the preeminent distribution hub for the burgeoning Southwest. Trade and transportation companies provide roughly one-fifth of total employment and infuse billions of dollars each year into the local economy. * Forecast Sources: Marcus & Millichap Research Services, Bureau of Economic Analysis, Moody s Analytics, U.S. Census Bureau, Fortune 18

25 MARKET OVERVIEW DALLAS/FORT WORTH Labor Dallas/Fort Worth is one of the nation s largest employment markets, with more than 3.4 million jobs. The Metroplex fared better than most of the nation during the past five years, with 3.0 percent job growth annually; it is forecast to add jobs at an annual rate of 2.5 percent through Employment growth can be attributed to the continuation of north-to-south migration, the Metroplex s quality of life, the lack of state income taxes and a probusiness climate, which has drawn both businesses and workers. Through 2020, all business sectors are expected to add employees. During this period, the rapidly growing professional and business services sector, which comprises 17 percent of total payrolls, will expand at a fast clip of 4 percent annually. Only the construction sector will register a faster gain, at 6.1 percent, as development accelerates to accommodate the area s expanding population and economy. The trade, transportation and utilities sector is the largest employment segment and is a major economic driver in the region. The sector provides 21 percent of all jobs, employing nearly 714,600 workers, and is forecast to grow 1.8 percent annually through 2020, adding 66,000 positions during this time. * Forecast Sources: Marcus & Millichap Research Services, BLS, Moody s Analytics 19

26 MARKET OVERVIEW DALLAS/FORT WORTH Employers Dallas/Fort Worth has evolved from a commoditiesbased economy to a haven for corporate headquarters and a high-tech and telecommunications hub. Two major airlines are headquartered locally. American Airlines operates out of Dallas/Fort Worth International Airport, and Southwest Airlines operates from Dallas Love Field. Texas Instruments is one of the primary employers of high-tech workers. The majority of technology-based companies in the region are smaller firms. Telecommunications and financial services are growing industries. Most of the major telecom companies maintain offices in the region, and State Farm signed the area s largest lease in history and will be housing nearly 8,000 employees at their regional office campus in Richardson. Major Employers Wal-Mart American Airlines Texas Health Resources Baylor Health Care System JPMorgan Chase Lockheed Martin Texas Instruments Bank of America HCA North Texas Division Lockheed Martin Corp., based in Fort Worth, anchors the defense-related manufacturing sector. Other major defense firms include Bell Helicopter Textron Inc. and Raytheon Co. The latter is underway on its sizable new headquarters in Richardson. Gas exploration and extraction from the Barnett Shale formation has produced an energy sector including companies such as ExxonMobil, Fluor and Atmos Energy. Short-term gains in this segment will likely be affected by the reduced price of oil. * Forecast Sources: Marcus & Millichap Research Services, Moody s Analytics, BLS 20

27 MARKET OVERVIEW DALLAS/FORT WORTH Demographics Dallas/Fort Worth s population has grown significantly since 2010 with the addition of 577,800 people, placing the metro among the largest in the nation. Over the next five years, the population is expected to grow by another 529,900 residents. The Metroplex s phenomenal population growth is fueled by strong natural increases and the nation s north-to-south migration. The region will continue to benefit from companies and people moving to the South for more favorable weather and economic prospects. The Metroplex remains relatively young; the median age, at 34.2 years, is well below that of 37.5 years for the nation. Citizens age 65 and older account for just 10.0 percent of the region s population. Unlike many other fast-growing Sun Belt metros, Dallas/Fort Worth boasts high educational attainment percent of residents age 25 years and older have attained at least a bachelor s degree, while 10.2 percent hold a graduate or professional degree. The median household income sits at $61,600 per year, above the U.S. median of $56,100 annually. Housing prices are relatively low compared with many other cities nationwide, which has afforded 62 percent of households homeownership. * Forecast Sources: Marcus & Millichap Research Services, AGS, Experian, Moody s Analytics, U.S. Census Bureau 21

28 MARKET OVERVIEW DALLAS/FORT WORTH Quality of Life The Metroplex provides residents with an unparalleled lifestyle at a reasonable cost. The region continually ranks high for its affordability when compared with other large metros. A temperate climate provides ample opportunities for sports enthusiasts to enjoy the outdoors. The region has 150 public and private golf courses, along with several reservoirs. Dallas/Fort Worth hosts professional teams in baseball, football, hockey and basketball. Dallas/Fort Worth is not only recognized for its sports teams accomplishments, but also for its cultural institutions. There are more than 150 museums and art galleries, including the internationally renowned Kimbell Art Museum, Perot Science Museum and Modern Art Museum of Fort Worth. Metroplex residents are proximate to nationally recognized health centers: Parkland Memorial Hospital, Baylor University Medical Center and Texas Health Harris Methodist Hospital Fort Worth. Four medical schools also contribute to Dallas/Fort Worth s excellent healthcare providers. The University of Texas at Dallas, University of North Texas, Texas Women s University-Denton, Southern Methodist University, Texas Christian University and the University of Texas at Arlington are among the 19 higher education institutions in the Metroplex. * Forecast Sources: Marcus & Millichap Research Services, National Association of Realtors, Moody s Analytics, U.S. Census Bureau The information contained in the market overview comes from sources deemed to be reliable, however, no representation, warranty or guarantee, express or implied, may be made as to the accuracy or reliability of the information contained herein. The most timely data available at time of production, including estimates and forecasts, were used and may be subject to revision. 22

29 MARKET OVERVIEW DALLAS Employment Trends Population Trends Employers in Dallas will add 78,000 workers to their payrolls by the end of the year, representing a 3.4 percent year-over-year gain. In 2014, job growth increased 4.0 percent with 89,000 positions added. Retail spending will rise 3.8 percent in 2015 following a 4.4 percent gain last year. Vacancy Trends In 2015, single-family home completions in Dallas will rise by 28.5 percent year over year, while multifamily completions have increased by 26.4 percent. During the six-year period from the pre-recession peak in 2009, multifamily completions will expand by 5 percent. As rentals are filled, demand for self-storage facilities will likely strengthen. Rent Trends Strengthening demand for self-storage properties will tighten vacancy 80 basis points in 2015 to 10.6 percent, placing the rate 50 basis points below the national rate. Last year, strong employment gains and steady population growth slashed vacancy 80 basis points. This year, average asking rents at climate controlled and non-climate controlled facilities will rise 5.1 percent to $1.40 per square foot and 5.8 percent to $1.05 per square foot, respectively. Asking rents in 2014 for climate controlled spaces rose 3.7 percent, and rents for non-climate controlled units climbed 3.9 percent. * Forecast Note: Rent based on 10x10 units Sources: Marcus & Millichap Research Services; BLS; REIS Services, LLC; U.S. Census Bureau 23

30 DEMOGRAPHIC ANALYSIS Insure Self Storage

31 DEMOGRAPHIC ANALYSIS DEMOGRAPHIC REPORT 1 Mile 3 Miles 5 Miles 2000 Population 5,933 70, , Population 9,169 80, , Population 9,514 84, , Population 10,691 89, , Households 1,902 19,964 67, Households 2,752 22,923 73, Households 2,868 24,109 78, Households 3,239 25,702 81, Average Household Size Daytime Population 1,904 25,700 68, Owner Occupied Housing Units 41.36% 51.46% 51.25% 2000 Renter Occupied Housing Units 52.54% 43.97% 43.91% 2000 Vacant 6.11% 4.57% 4.84% 2014 Owner Occupied Housing Units 54.55% 53.08% 53.30% 2014 Renter Occupied Housing Units 45.45% 46.92% 46.70% 2014 Vacant 2.21% 4.17% 4.37% 2019 Owner Occupied Housing Units 54.48% 52.64% 52.90% 2019 Renter Occupied Housing Units 45.52% 47.36% 47.10% 2019 Vacant 1.99% 4.16% 4.37% $ 0 - $14, % 15.2% 15.6% $ 15,000 - $24, % 16.1% 15.4% $ 25,000 - $34, % 18.0% 15.4% $ 35,000 - $49, % 17.8% 17.5% $ 50,000 - $74, % 17.2% 17.3% $ 75,000 - $99, % 8.0% 8.9% $100,000 - $124, % 3.9% 4.8% $125,000 - $149, % 1.7% 2.2% $150,000 - $199, % 1.2% 1.6% $200,000 - $249, % 0.3% 0.4% $250, % 0.6% 0.8% 2014 Median Household Income $34,064 $35,496 $37, Per Capita Income $13,635 $13,710 $16, Average Household Income $44,778 $47,464 $50,800 Demographic data 2012 by Experian. 25

32 DEMOGRAPHIC ANALYSIS SUMMARY REPORT Geography: 5 miles Population In 2014, the population in your selected geography is 247,229. The population has changed by 14.40% since It is estimated that the population in your area will be 255,936 five years from now, which represents a change of 3.52% from the current year. The current population is 48.95% male and 51.04% female. The median age of the population in your area is 29.7, compare this to the Entire US average which is The population density in your area is 3, people per square mile. Households There are currently 78,063 households in your selected geography. The number of households has changed by 14.85% since It is estimated that the number of households in your area will be 81,230 five years from now, which represents a change of 4.05% from the current year. The average household size in your area is 3.13 persons. Income In 2014, the median household income for your selected geography is $37,777, compare this to the Entire US average which is currently $51,972. The median household income for your area has changed by 5.65% since It is estimated that the median household income in your area will be $41,851 five years from now, which represents a change of 10.78% from the current year. The current year per capita income in your area is $16,179, compare this to the Entire US average, which is $28,599. The current year average household income in your area is $50,800, 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: 46.40% White, 25.47% Black, 0.03% Native American and 1.44% 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 60.24% of the current year population in your selected area. Compare this to the Entire US average of 17.13%. Housing In 2000, there were 36,605 owner occupied housing units in your area and there were 31,359 renter occupied housing units in your area. The median rent at the time was $510. Employment In 2014, there are 68,769 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 51.48% of employees are employed in white-collar occupations in this geography, and 48.77% are employed in blue-collar occupations. In 2014, unemployment in this area is 5.64%. In 2000, the average time traveled to work was 29.0 minutes. Demographic data 2012 by Experian. 26

33 DEMOGRAPHIC ANALYSIS POPULATION DENSITY Demographic data 2012 by Experian. Number of people living in a given area per square mile. 27

34 DEMOGRAPHIC ANALYSIS EMPLOYMENT DENSITY Demographic data 2012 by Experian. The number of people employed in a given area per square mile. 28

35 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. 29

36 DEMOGRAPHIC ANALYSIS TRAFFIC COUNTS Traffic Count data 2012 by TrafficMetrix. All rights reserved. Two-way, average daily traffic volumes. * Traffic Count Estimate 30

37 OFFERING MEMORANDUM Roger Hendricks Senior Associate Member, National Self Storage Group Dallas Office License: TX: Tel: (972) Fax: (972) Offices Throughout the U.S and Canada