EXCLUSIVE OFFERING AKC STORAGE & DEVELOPMENT, EL CENTRO, CA Brandon M. Robinson President & Broker 715 N. Mountain Ave Suite 200 Upland, CA 91786 Mobile: (760) 534-8135 Fax: (909) 839-4531 Cal BRE# 01787727 Cal BRE# 02023477 Brobinson@CalvaryRealty.com John 3:16
TABLE OF CONTENTS Investment Overview.. Property Profile... Photos & Maps... Rental Survey... Unit Mix... Income & Expenses... Pricing..... Comparable Sales... Portable Storage Storage Development Lenders. Broker Remarks...... buyer should carefully verify information contained herein. Romans 10:9
INVESTMENT OVERVIEW Imperial County is a middle class agricultural based community located just east of San Diego and South of Riverside Counties. Being formed in 1907, Imperial was the last county to be established in the State of California. The county has since grown to a population over 200,000 people. Imperial county was broken off of San Diego County and named after the Imperial Land Company, a Subsidiary of the California Land Company. The County is home to the Salton Sea which is the largest body of water in the State of California. Anza-Borrego State Park is located on the western part of the county and is the largest State Park in California. Imperial County is a growing area with significant upside in terms of population growth and future development. AKC Storage is located in the most populous city in Imperial county with over 43,000 residents and counting! The property is across the street from two of the largest shopping centers in Imperial County; The Imperial Valley Mall and The Plaza Imperial. AKC Storage consists of 22,200 square feet of enclosed storage divided into 138 units, a 1,250 sq. ft. warehouse, and 41,200 sq. ft. of Outdoor & RV Storage divided into 50 units. The property sits on 8.53 acres and comes a significant amount of room for future expansion. AKC Storage is currently 100% occupied with frontage on one of the busiest streets in the area! The property consists of many long term tenants that are paying rental rates up to 50% below market! Major Employers & Local Attractions El Centro Regional Medical Center Pioneers Memorial Hospital Imperial Valley College Imperial Date Gardens Imperial County Sheriff Walmart Fort Yuma Blue Angels U.S. Navy Flight Squadron Anza-Borrego State Park Imperial Valley Expo & Fairgrounds Salton Sea Algodones San Dunes Colorado River Imperial Valley Mall San Diego State University El Centro Campus The Plaza Imperial Shopping Center Imperial Valley Swap Meet Demographics El Centro, CA Total Population: 44,602 Average Household Income: $60,375 Population Per Sq. Mile: 3,930 Median Household Income: $41,356 Median Age: 31 Income Per Capita: $19,043 Male / Female Ratio: 49.0% Average Disposable Income: $48,454 High School Graduate: 20.0% Median Home Value: $235,000 2-Year Degree: 31.0% Average Household Size: 3.24 Bachelor Degree: 12.0% Owners: 50.0% Post-Graduate Degree 7.0% Renters: 50.0% Votes Democrat: 65.2% Unemployment Rate: N/A Votes Republican: 33.1% Unemployment Number: N/A buyer should carefully verify information contained herein. John 14:6
IMPERIAL VALLEY MALL & THE PLAZA The Imperial Valley Mall opened for business on March 9 th, 2005. This 761,275 square foot facility consists of a total of 81 stores. The center is owned and managed by CBL & Associates (NYSE: CBL). The Imperial Valley Mall is the premier shopping destination in Imperial County and includes Sears, J.C. Penney, Dillard s, Cinemark, and Macy s as anchor tenants. Many of the mall s customers cross the border from the city of Mexicali to shop for American products. The city of Mexicali has nearly 700,000 residents; many who travel across the border to shop and conduct business. http://www.imperialvalleymall.com/ The Plaza at Imperial Valley is a 350,000 square foot power center adjacent to the Imperial Valley Mall. Current tenants include Kohls, Marshalls, Bed Bath & Beyond, Best Buy, 99 Cent Stores, Buffalo Wild Wings, Burlington Coat Factory, Kirklands, Subway, Ross, Michaels, Staples, DD s Discounts, DSW, Petco, Olive Garden, Ulta Beauty, BevMo, & Vitamin Shoppe. buyer should carefully verify information contained herein. John 1:1
MEXICALI Mexicali is the Sister City to Calexico and a key player in the economy of the Imperial Valley. Residents from Mexicali cross the border to work, shop, and conduct business within Imperial County on a daily basis. In addition, international corporations have invested in Mexicali and surrounding cities to take advantage of it s tax-free status given to industry. Founded March 14 th, 1903 Population 689,775 Schools & Universities Mexicali is home to 22 colleges and universities including Autonomous University of Baja California and Instituto Tecnologic De Mexicali Travel 5.9M Vehicles Cross the International Border at Mexicali & Calexico 15M individuals enter the Imperial County through the Mexicali Border. Major Corporations Operating in Mexicali Coca Cola Honeywell Kellogg s GKN Aerospace Gulfstream SunPower Rockwell Collins LG Electronics Mitsubishi Nestle Goodrich buyer should carefully verify information contained herein. Ephesians 5:1
PROPERTY PROFILE Property Name: AKC Storage & Development Address: 1540 Dogwood Road, El Centro, CA Price: $1,725,000 Price Per Square Foot: $73.56 Actual Cap Rate: 4.82% Rentable Square Feet: 23,450 (Enclosed) 41,200 (Outdoor) Gross Income: $129,889 Net Income: $83,152 Number of Units: 139 (Enclosed) 50 (Outdoor) Storage Physical Occupancy: 100% Storage Economic Occupancy: 94% Acreage: 8.53 Gross Square Feet: 371,567 Year Built: 1980 Zoning / Use: Industrial & Commercial Vacant Land APN: 054-360-056 054-360-057 054-360-036 Number of Buildings / Stories: 3 Single Story Structures Construction Type: Metal Management Software: Web Self Storage Room for Expansion: Yes Cross Streets: Danenberg Drive Nearest Freeway: Interstate 8 Traffic Count: 20,000+ Amenities: On-Site Office Drive Up Access High Traffic Electronic Gate Below Market Rents Expansion Website: http://www.elcentrostorage.com/ buyer should carefully verify information contained herein. Proverbs 3:5
PROPERTY PHOTOS buyer should carefully verify information contained herein. Jeremiah 29:11
LOCATION MAP buyer should carefully verify information contained herein. Philippians 4:13
AERIAL MAPS buyer should carefully verify information contained herein. Acts 4:12
RENTAL SURVEY SUBJECT PROPERTY 10x10 $45 10x10 $99 10x15 $55 10x15 $115 10x20 $65 10x20 $129 RV $40 RV $100 AM-PM Storage # of Units 189 # of Units 385 Occupancy 100% Occupancy 55% Year Built 1980 Phone: Year Built 1986 Phone: NRSF 23,450 (760) 681-6555 NRSF 49,200 (760) 352-3322 Acreage 8.53 Acreage 10.1 Lot Size 371,567 Lot Size 439,956 Distance Subject Distance 1.4 Miles Address 1540 Dogwood Road Address 502 E. Ross Ave El Centro, CA 92243 El Centro, CA 92243 U Stor It 10x10 $75 10x10 $72 10x15 $100 10x15 $95 10x20 $115 10x20 $135 RV $35 RV N/A Royale Palms # of Units 490 # of Units 440 Occupancy 89% Occupancy 84% Year Built 1985 Phone: Year Built 1996 Phone: NRSF 51,771 (760) 353-9855 NRSF 44,301 (760) 352-8602 Acreage 3.20 call back Acreage 3.39 call back Lot Size 139,392 Lot Size 147,668 Distance 2.7 Miles Distance 5 Miles Address 1111 South 3rd Street Address 1857 W. Euclid Ave El Centro, CA 92243 El Centro, CA 92243 Super Storage 10x10 $85 10x10 $99 10x15 $99 10x15 $129 10x20 $109 10x20 $145 RV $75 RV $54 Interstate Mini Storage # of Units 275 # of Units 500 Occupancy 65% Occupancy 86% Year Built 1984 Phone: Year Built 2008 Phone: NRSF 25,015 (760) 352-6859 NRSF 55,475 (760) 353-4141 Acreage 1.42 Acreage 4.12 Lot Size 61,855 Lot Size 179,467 Distance Distance 2.2 Miles Address 1299 North Imperial Ave Address 1845 S. 4th Street El Centro, CA 92243 El Centro, CA 92243 10x10 $85 10x15 $95 10x20 $120 RV $55 Stax Up # of Units 284 Occupancy 85% Year Built 1986 Phone: NRSF 25,000 (760) 884-4271 Acreage 2.60 Lot Size 113,256 Distance 8.3 Miles Address 902 E. Evan Hewes Higway El Centro, CA 92243 buyer should carefully verify information contained herein. Romans 3:23
RENTAL SURVEY SUMMARY Property Name Year Built Square Feet # of Units Occupancy Rates 10x10 10x15 10x20 RV SUBJECT PROPERTY 1980 23,450 189 100% $45 $55 $65 $40 AM-PM Storage 1986 49,200 385 55% $99 $115 $129 $100 U Stor It 1985 51,771 490 89% $75 $100 $115 $35 Royale Palms 1996 44,301 440 84% $72 $95 $135 N/A Super Storage 1984 25,015 275 65% $85 $99 $109 $75 Interstate Mini Storage 2008 55,475 500 86% $99 $129 $145 $54 Stax Up 1986 25,000 284 85% $85 $95 $120 $55 Averages 1991 41,794 396 77% $86 $106 $126 $64 buyer should carefully verify information contained herein. Romans 6:23
CURRENT UNIT MIX Size Sq. Ft. # Of Units Rentable Sq. Ft. Rate Rate / Sq. Ft. Monthly Income Annual Income Self Storage 10x10 100 33 3,300 $45 $0.45 $1,485 $17,820 10x10 100 3 300 $45 $0.45 $135 $1,620 10x15 150 32 4,800 $55 $0.37 $1,760 $21,120 10x15 150 4 600 $55 $0.37 $220 $2,640 10x20 200 58 11,600 $65 $0.33 $3,770 $45,240 10x20 200 8 1,600 $65 $0.33 $520 $6,240 Boat / RV 12x20 240 1 240 $35 $0.15 $35 $420 12x20 240 23 5,520 $40 $0.17 $920 $11,040 12x20 240 10 2,400 $40 $0.17 $400 $4,800 12x20 240 1 240 $50 $0.21 $50 $600 15x20 300 13 3,900 $40 $0.13 $520 $6,240 50x50 2500 1 2,500 $500 $0.20 $500 $6,000 Warehouse 25x50 1250 1 1,250 Storage Yard $1,200 $0.04 $1,200 $14,400 120x220 26400 1 26,400 (Warehouse & Storage Yard Are Leased to Same Tenant at $1,200 / Month Combined) Total 189 64,650 $2,235 $11,515 $138,180 Units Sq. Ft. Average rate / sq. ft. $0.18 Self Storage 138 22,200 Average size / sq. ft. 342.06 Warehouse 1 1,250 Outdoor Storage 50 41,200 Total Units 189 Total 189 64,650 Owner Occupied N/A Units Rented 189 Occupancy 100% Collections 94% buyer should carefully verify information contained herein. Matthew 7:21
PROFORMA UNIT MIX (INCREASED RATES) Size Sq. Ft. # Of Units Rentable Sq. Ft. Rate Rate / Sq. Ft. Monthly Income Annual Income Self Storage 10x10 100 33 3,300 $70 $0.70 $2,310 $27,720 10x10 100 3 300 $70 $0.70 $210 $2,520 10x15 150 32 4,800 $90 $0.60 $2,880 $34,560 10x15 150 4 600 $90 $0.60 $360 $4,320 10x20 200 58 11,600 $100 $0.50 $5,800 $69,600 10x20 200 8 1,600 $100 $0.50 $800 $9,600 Boat / RV 12x20 240 1 240 $50 $0.21 $50 $600 12x20 240 23 5,520 $50 $0.21 $1,150 $13,800 12x20 240 10 2,400 $50 $0.21 $500 $6,000 12x20 240 1 240 $50 $0.21 $50 $600 15x20 300 13 3,900 $50 $0.17 $650 $7,800 50x50 2500 1 2,500 $500 $0.20 $500 $6,000 Warehouse 25x50 1250 1 1,250 $2,000 $0.07 $2,000 $24,000 Storage Yard 120x220 26400 1 26,400 (Warehouse & Storage Yard Are Leased to Same Tenant) Total 189 64,650 $17,260 $207,120 Units Sq. Ft. Average rate / sq. ft. $0.27 Self Storage 138 22,200 Average size (sq. ft.) 342.06 Warehouse 1 1,250 Outdoor Storage 50 41,200 Total Units 189 Total 189 64,650 Owner Units N/A Units Rented 189 Occupancy 100% Collections 95% buyer should carefully verify information contained herein. 2 Timothy 1:7
CURRENT INCOME & EXPENSES INCOME Gross Potential Income: $ 138,180 Vacancy: 8,291 Gross Storage Income (2016): $ 129,889 Admin & Late Fees: $ - $ 6.0% Merchandise Sales: $ - Other Income: $ - Total 2016 $ 129,889 EXPENSES New Real Estate Taxes: 17,250.00 Special Assessments: 2,016.53 Property Insurance: $ 3,000.00 Payroll Expense: $ 15,722.00 Employee Benefits: $ 2,000.00 Maintenance & Repairs: $ 1,500.00 Office Supplies: $ 249.00 Utilities $ 5,000.00 Other Operating Expenses: $ - Total Expenses 46,737.53 $ 1.0000% $ 0.1169% $ 35.98% NET INCOME $ 83,151.68 buyer should carefully verify information contained herein. John 10:10
PRICING & CLOSING COSTS Current Proforma PRICE RANGE $1,725,000 $1,725,000 GROSS COLLECTED INCOME $129,889 $221,764 EXPENSES $46,738 $46,738 NET INCOME $83,152 $175,026 CAP RATE 4.82% 10.15% GROSS REVENUE MULTIPLIER 13.28 7.78 ENCLOSED SQ. FT. 23,450 23,450 OUTDOOR STORAGE SQ. FT. 41,200 41,200 PRICE / SQ. FT. (Enclosed Only) $73.56 $73.56 PRICE / SQ. FT. (Enclosed & Outdoor) $26.68 $26.68 buyer should carefully verify information contained herein. Galatians 5:16
SALES COMPARABLES SUBJECT PROPERTY Closing Date On Market Closing Date 11/2/2015 Sales Price $1,725,000 Sales Price $4,100,000 Cap Rate 4.82% Cap Rate 7.00% Price / Sq. Ft. $73.56 Price / Sq. Ft. $71.96 Sq. Ft. 23,450 Sq. Ft. 56,975 Total Units 189 Total Units 584 Occupancy 100% Occupancy 95% Year Built 1980 Year Built 1998 Acreage 8.53 Acreage 6.91 Lot Size 371,567 Lot Size 301,000 Distance Subject Distance 6 Miles Address 1540 Dogwood Road Address 95 West US Highway 98 El Centro, CA 92243 Calexico, CA 92249 Portico Self Storage Calexico Mini Storage Amigo Mini Storage Closing Date 9/6/2016 Closing Date On Market Sales Price $4,100,000 Sales Price $3,000,000 Cap Rate 7.00% Cap Rate 5.02% Price / Sq. Ft. $85.94 Price / Sq. Ft. $90.24 Sq. Ft. 47,710 Sq. Ft. 33,244 Total Units 451 Total Units 271 Occupancy 88% Occupancy 70% Year Built 1998 Year Built 1970 Acreage 3.46 Acreage 6.87 Lot Size 150,718 Lot Size 299,257 Distance 6.3 Miles Distance 6.5 Miles Address 2420 Enterprise Blvd Address 2360 Portico Blvd Calexico, CA 92231 Calexico, CA 92231 buyer should carefully verify information contained herein. Acts 2:38
SALES COMPARABLE SUMMARY Property Name Year Built Lot Size Square Feet # of Units Occupancy Rates Sales Price Price / Sq.Ft. Cap Rate Closing Date SUBJECT PROPERTY 1980 371,567 371,567 189 100% $ 1,725,000 $ 73.56 4.82% On Market Calexico Mini Storage 1998 301,000 56,975 584 95% $ 4,100,000 $ 71.96 7.00% 11/2/2015 Portico Self Storage 1998 150,718 47,710 451 88% $ 4,100,000 $ 85.94 7.00% 9/6/2016 Amigo Mini Storage 1970 299,257 33,244 271 70% $ 3,000,000 $ 90.24 5.02% On Market Market Averages 1989 250,325 45,976 435 84% $ 3,733,333 $ 82.71 6.34% buyer should carefully verify information contained herein. Matthew 22:37-40
PORTABLE STORAGE CONTAINER COMPANIES Below are companies that manufacture and sell portable storage in California. The rough cost of the shipping container units are between $10 - $15 per sq. ft. The traditional self storage units range between $30 - $40 per sq. ft. Please contact the companies below for exact pricing. Company Contact Phone Email Janus Blake Robinson (479) 601-2452 Blaker@janusintl.com Mako Steel Caesar Wright (760) 448-1760 cwright@makosteel.com USC John Cooley (303) 818-8835 john.cooley@universalstorage containers.com Aztec Container Steve Hyndman (800) 865-9189 info@azteccontainer.com Pac-Van Rob McDaniel (909) 829-5977 RMcDaniel@pacvan.com Mobile Mini Peter Synn (909) 685-5949 psynn@mobilemini.com Cube Depot Tara (562) 202-5180 LongBeach@CubeDepot.com Instant Storage Charles McCann (661) 393-7005 info@instantstorage.com Traditional Self Storage Style Shipping Container Style buyer should carefully verify information contained herein. Genesis 1:1
PERMANENT STORAGE CONSTRUCTION Two of the biggest names in self storage development are Kiwi Construction and Mako Steel. Both companies have been in business for over 20 years and are the preferred contractor for the largest storage operators in the country. Feel free to contact them for information regarding construction. 28177 Keller Rd, Murrieta, CA 92563 (951) 301-8975 Phone (951) 301-4096 Fax sales@kiwiconstruction.com www.kiwiconstruction.com 5650 El Camino Real, #100 Carlsbad, CA 92008 (760) 448-1760 Phone (760) 448-1761 Fax info@makosteel.com www.makosteel.com buyer should carefully verify information contained herein. Philippians 2:10
STORAGE LENDERS Bank of Hope (SBA) Gene Pac Senior Vice President 3200 Wilshire Blvd., 7th Floor Los Angeles, CA 90010 (213) 819-4242 Phone (213) 639-8049 Fax Gene.pak@bankofhope.com Pacific Premier Bank (SBA) Francisco Navas Senior Vice President 1249 E. Katella Ave, Orange, CA 92867 (805) 231-1246 Mobile (714) 538-8330 Fax FNavas@ppbi.com Nortmarq Capital Michael Elmore Executive Vice President 500 Newport Center Drive Suite 650 Newport Beach, CA 92660 (949) 717-5213 Phone (949) 729-4620 Fax melmore@northmarq.com Talonvest Capital, Inc Thomas Sherlock Principal 18881 Von Karman Ave Suite 1650 Irvine, CA 92612 (949) 251-9900 Phone tsherlock@talonvest.com buyer should carefully verify information contained herein. Matthew 6:33
BROKER REMARKS AKC Storage is a property with good in-place income and significant upside potential. The property has great visibility and access which is reflected in the 100% occupancy. With it s location across the street from the Imperial Valley Mall and The Plaza at Imperial, AKC has exposure and traffic unlike any other storage facility in El Centro. These two centers are major shopping hubs and attract many customers from Mexico and areas outside of El Centro. The property also has rents that are 50% below market! An investor can raise rents by 40% and still remain below market averages. With rental raises and the addition of U-Haul Truck Rental, the income for this property can increase to $200K within the first year of ownership! Furthermore, the new owner has room to expand the self storage as only half of the 8.53 acres is utilized. Expanding the storage can double or triple the potential income! AKC Storage is an excellent opportunity that will make an investor money now and more in the future! National Association of Realtors ID: 157528386 Multiple Listing Service ID: CV37631 buyer should carefully verify information contained herein. Matthew 28:19