OFFERING MEMORANDUM FOR SALE AA Self Storage Yuba City Self Storage Yuba City, CA $40,500,000
FOR SALE Disclaimer & Confidentiality The information that is contained in the following Marketing Brochure is proprietary and strictly confidential information. It is intended to be reviewed only by the party receiving it from Performance Self Storage Inc. ( PSSG ) BRE# 01903721 and should not be made available to any other person or entity without the written consent of PSSG. This Marketing Brochure has been prepared to provide a summary of 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. PSSG 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, storage projects currently in planning or under construction, 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. Any references to proforma are strictly speculative. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, PSSG has not verified, and will not verify, any of the information contained herein, nor has PSSG 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 the information set forth herein and the property is being sold as-is where-is. All Property Showings Are by Appointment Only. Please DO NOT Disturb or Contact On-Site Management. Please Contact PSSG for Additional Information and to Arrange a Site Visit. Page 2 of 26
Table of Contents Section 1 Executive Summary Section 2 Investment Highlights Section 3 Property & Location Description Section 4 Financial Analysis Section 5 Current Unit Mix Section 6 Rent Survey Competitor Map Section 7 Demographics Section 8 Property Photographs Aerial Photos Section 9 Parcel & Location Maps EXCLUSIVELY REPRESENTED BY: Carl E. Touhey Page 3 of 26 Jason Jay Allen President Vice President Office: 650-368-2216 Office: 650-260-2242 ctouhey@earthlink.net storagespecialist@gmail.com BRE# 01222278 BRE#01444702 Performance Self Storage Group Inc. BRE#: 01903721 570 El Camino Real #150-411 Redwood City, CA 94063 www.performanceselfstoragegroup.com
Executive Summary INVESTMENT INFORMATION: Listing Price: $40,500,000 Price Per Foot: $89.04 Sale Terms: Gross Potential Income: Net Operating Income: Cap Rate: PROPERTY INFORMATION: Cash or Cash to New Loan $4,808,603 - Current $2,161,004-2017 Annualized $2,953,136 - Pro Forma Annual 5.3% 2017 Annualized 7.3% Pro Forma Annual Property Address: 850 Tharp Road, Yuba City CA 95993 1788 Lassen Blvd., Yuba City CA 95993 APN#: Tharp Road: 58-050-086 Lassen Blvd: 58-050-052 Land Size (Per title co. report): County: City Population: Net Rentable Sq.Ft.: Number of Units: 6.99 Acres Tharp Road 14.2 Acres Lassen Blvd. Sutter County 65,773 (2010 Per Google) 454,867 (Self Storage) 3,333 Storage Units 50 Parking Spaces 2 Apartments & Garage Physical Occupancy: 89% October 2017 (Some units in the new phase are labeled unrentable on the Occupancy Statistics report but are available and being released as needed) Year Built: AA Self Storage 1997-1998-1999-2000-2002-2004 Yuba City Self Storage 2007, Bldg. 7-9 Opened 2017 Construction: Page 4 of 26 Single-Story All Metal Buildings Concrete Drive-Isles, Electronic Gate Entry with PTI, Video Surveillance, 2 Residences & 2 Offices
Investment Highlights INVESTMENT HIGHLIGHTS All Ground Level Units Metal Construction Competitive Unit Mix Over 454,00 Net Square Feet New Phase Just Opened Electronic Gate Entry Video Surveillance Performance Self Storage Group Inc. is pleased to present this incredible two property self storage investment opportunity in Yuba City CA. AA Self Storage and Yuba City Self Storage offers the storage investor a fantastic opportunity to purchase two adjoining storage facilities that have already been merged together to form the largest self storage operation in town. The facilities combined, have over 454,000 net rentable square feet of storage. Both properties feature a competitive unit mix with all ground level units and are in a market where physical occupancy s have all been reported to be at or above, 95%. Page 5 of 26
Property & Location Description Located at 850 Tharp Road and 1788 Lassen Blvd. in Yuba City CA, AA Self Storage and Yuba City Self Storage are both single-story self storage properties consisting of over 454,000 net rentable square feet of storage demised into 3,333 units along with 50 uncovered parking spaces. Sizes range from 2x2 s up to 28x50 and the facilities are approximately 89% physically rented as of October 2017. The other surrounding storage properties in the market all report occupancy in 95%+ range. (Please contact the city/county of Yuba City/Sutter regarding any storage properties that may currently be in planning or under construction). AA Self Storage was built in multiple phases from 1997 to 2004. Yuba City Self Storage was constructed in 2007 and a new phase at this location consisting of over 50,000 net square feet, just recently opened and is steadily leasing up. Both facilities feature all metal construction with concrete drive-isles throughout and gravel for the open parking area. The facilities feature many amenities including electronic gate access with PTI pin-pads, video surveillance with DVR, two large manager s offices (1 is currently closed) and merchandise areas along with two 2-bedroom 2 bath manager s quarters with one two-car garage. On-site operations are automated using web based SiteLink software. The facilities are conveniently located along Lassen Blvd. and Tharp Road in Yuba City CA just off Colusa Hwy, with major retailers in close proximity including Walmart, The Home Depot, Lowe s Home Improvement and Sam s Club. Yuba City is the county seat of Sutter County and is approximately 40 miles north of Sacramento. The city has the largest dried fruit processing plant in the world (Sunsweet Growers) along with a diversity of businesses and professional services. It s location near the Beale Air Force base and the state capitol have made it a regional hub attracting entrepreneurs, manufactures and green technologies. Page 6 of 26
Financial Analysis Combined Combined New Phase Open PROPERTY INCOME: 2016 2017 Annualized Pro Forma Annual Jan. - September Annual GROSS POTENTIAL RENT: $3,869,853 $4,808,603 $4,808,603 Less Economic Vacancy Factor 30.0% -1,159,924 37.6% -1,805,756 20.0% -961,721 Adjusted Storage Income $2,709,929 3,002,847 $3,846,882 Other Income 1% $17,752 3% $85,012 2% $84,631 Effective Gross Income: $2,727,681 $3,087,859 $3,931,514 Less Expenses: 35% $949,899 30% $926,855 25% $978,378 Net Operating Income: $1,777,782 $2,161,004 $2,953,136 Value: $40,500,000 $40,500,000 $40,500,000 Cap Rate: 4.4% 5.3% 7.3% Price Per Ft.: $89.04 $89.04 $89.04 EXPENSES: Payroll Expenses $163,841 $140,695 # $150,000 Insurance $28,355 $29,651 # $30,000 Advertising/Promotions $14,647 $14,008 # $20,000 Office Administration / Supplies $15,106 $7,423 # $10,000 Postage $6,188 $6,575 # $7,000 Telephone $7,993 $3,988 # $5,000 Credit Card / Bank Charges $37,675 $32,324 # $35,000 Repairs & M aintenance (1) $40,000 $40,000 # $40,000 Utilities/Trash $36,764 $32,455 # $37,000 Property M anagement 3% $81,830 3% $92,636 3% $117,945 Property Taxes (2) 1.11% $449,024 1.11% $449,024 1.11% $449,024 Direct Property Tax Charges (2) $1,409 $1,410 $1,409 Sutter Butte Flood Control (2) $48,294 $49,000 $49,000 Security $7,667 $4,881 # $6,000 Outside Services $811 $0 $1,000 License/Fees $7,579 $11,284 # $10,000 M iscellaneous $2,716 $11,503 # $10,000 (1) P&L included some capx items. Amount estimated. (2) Buyer to confirm new property tax amount Page 7 of 26
Current Unit Mix No. Of Unit Rentable Current Current Current Units Type Sq.Ft. Sq.Ft. Rent/Unit Monthly Rent Annual Rent AA Parking 7 12 X 25 300 2100 $65.00 $455.00 $5,460.00 43 12 X 30 360 15480 $75.00 $3,225.00 $38,700.00 50 TOTALS 17,580 $3,680 $44,160 AA Self Storage 10 2 X 2 4 40 $9.95 $99.50 $1,194.00 24 3 X 3 9 216 $19.95 $478.80 $5,745.60 66 5 X 5 25 1650 $39.95 $2,636.70 $31,640.40 66 5 X 5 25 1650 $42.95 $2,834.70 $34,016.40 19 5 X 7 35 665 $49.95 $949.05 $11,388.60 1 5 X 8 40 40 $52.95 $52.95 $635.40 443 5 X 10 50 22150 $59.95 $26,557.85 $318,694.20 21 10 X 5 50 1050 $59.95 $1,258.95 $15,107.40 80 7 X 10 70 5600 $89.95 $7,196.00 $86,352.00 3 10 X 7 70 210 $84.95 $254.85 $3,058.20 44 5 X 15 75 3300 $79.98 $3,519.12 $42,229.44 1 5 X 20 100 100 $84.95 $84.95 $1,019.40 428 10 X 10 100 42800 $119.95 $51,338.60 $616,063.20 317 10 X 15 150 47550 $129.95 $41,194.15 $494,329.80 48 8 X 19 152 7296 $119.95 $5,757.60 $69,091.20 3 12 X 15 180 540 $139.95 $419.85 $5,038.20 357 10 X 20 200 71400 $159.95 $57,102.15 $685,225.80 2 12 X 19 228 456 $149.95 $299.90 $3,598.80 41 10 X 25 250 10250 $179.95 $7,377.95 $88,535.40 1 12 X 23 276 276 $189.95 $189.95 $2,279.40 27 10 X 30 300 8100 $199.95 $5,398.65 $64,783.80 54 12 X 25 300 16200 $199.95 $10,797.30 $129,567.60 62 12 X 30 360 22320 $209.95 $13,016.90 $156,202.80 29 10 X 40 400 11600 $229.95 $6,668.55 $80,022.60 1 36 X 12 432 432 $229.95 $229.95 $2,759.40 10 10 X 45 450 4500 $249.95 $2,499.50 $29,994.00 16 12 X 38 456 7296 $249.95 $3,999.20 $47,990.40 2174 TOTALS 287,687 $252,214 $3,026,563 R & H (Apartments & Garage) 1 30 X 25 750 750 $450.00 $450.00 $5,400.00 1 30 X 40 1200 1200 $900.00 $900.00 $10,800.00 1 40 X 40 1600 1600 $800.00 $800.00 $9,600.00 3 TOTALS 3,550 $2,150 $25,800 Page 8 of 26
YC Self Storage 116 5 X 5 25 2900 $39.95 $4,634.20 $55,610.40 31 5 X 5 25 775 $42.95 $1,331.45 $15,977.40 58 5 X 7 35 2030 $49.95 $2,897.10 $34,765.20 45 5 X 8 40 1800 $52.95 $2,382.75 $28,593.00 2 10 X 5 50 100 $42.95 $85.90 $1,030.80 47 10 X 5 50 2350 $59.95 $2,817.65 $33,811.80 15 10 X 7 70 1050 $84.95 $1,274.25 $15,291.00 156 5 X 15 75 11700 $79.95 $12,472.20 $149,666.40 20 8 X 10 80 1600 $99.95 $1,999.00 $23,988.00 16 5 X 20 100 1600 $84.95 $1,359.20 $16,310.40 1 10 X 10 100 100 $99.95 $99.95 $1,199.40 1 10 X 10 100 100 $109.95 $109.95 $1,319.40 103 10 X 10 100 10300 $119.95 $12,354.85 $148,258.20 141 10 X 10 100 14100 $124.95 $17,617.95 $211,415.40 20 10 X 15 150 3000 $129.95 $2,599.00 $31,188.00 2 15 X 10 150 300 $129.95 $259.90 $3,118.80 4 10 X 17 170 680 $134.95 $539.80 $6,477.60 164 10 X 20 200 32800 $159.95 $26,231.80 $314,781.60 45 20 X 10 200 9000 $179.95 $8,097.75 $97,173.00 2 17 X 13 221 442 $159.95 $319.90 $3,838.80 2 15 X 15 225 450 $159.95 $319.90 $3,838.80 42 10 X 23 230 9660 $169.95 $7,137.90 $85,654.80 1 11.5 X 20 230 230 $159.95 $159.95 $1,919.40 6 12 X 20 240 1440 $159.95 $959.70 $11,516.40 2 14.5 X 17 246.5 493 $159.95 $319.90 $3,838.80 5 10 X 25 250 1250 $179.40 $896.98 $10,763.70 3 13.5 X 20 270 810 $179.95 $539.85 $6,478.20 5 12 X 23 276 1380 $179.95 $899.75 $10,797.00 1 14 X 20 280 280 $179.95 $179.95 $2,159.40 2 12 X 25 300 600 $199.95 $399.90 $4,798.80 8 12 X 30 360 2880 $209.95 $1,679.60 $20,155.20 1 13 X 30 390 390 $219.95 $219.95 $2,639.40 10 10 X 40 400 4000 $229.95 $2,299.50 $27,594.00 2 12 X 35 420 840 $249.95 $499.90 $5,998.80 21 12 X 40 480 10080 $279.95 $5,878.95 $70,547.40 2 24 X 20 480 960 $259.95 $519.90 $6,238.80 23 14 X 40 560 12880 $329.95 $7,588.85 $91,066.20 14 14.5 X 40 580 8120 $359.95 $5,039.30 $60,471.60 9 12 X 50 600 5400 $349.95 $3,149.55 $37,794.60 1 31 X 20 620 620 $349.95 $349.95 $4,199.40 1 32 X 20 640 640 $349.95 $349.95 $4,199.40 7 14 X 50 700 4900 $399.95 $2,799.65 $33,595.80 1 15 X 50 750 750 $399.95 $399.95 $4,799.40 1 28 X 50 1400 1400 $599.95 $599.95 $7,199.40 1159 TOTALS 167,180 $142,673 $1,712,079 TOTALS: Units/Spaces: 3,386 Income: $400,717 $4,808,603 Storage Units: 3,333 Average Rent: $0.87 Per Sq.Ft. Storage Square Feet: 454,867 Average Storage Size: 136 Sq.Ft. Page 9 of 26
Rent Survey YUBA CITY & AA SELF STORAGE 1788 Lassen Blvd., Yuba City CA Square Feet: 454,867 Total Units: 3,333 Physical Occupancy: 89% Comments: Unit Type: 5x5 5x10 10x10 10x15 10x20 10x30 Ground Level $40 $60 $119 $130 $160 $200 HIGHWAY 20 SELF STORAGE 3276 Colusa Highway, Yuba City CA Square Feet: 60,000 Total Units: 482 Physical Occupancy: 95% Other: Unit Type: 5x5 5x10 10x10 10x15 10x20 10x30 Ground Level $40 $50 $69 $104 $120 $151 BEST CHOICE I 875 Forbes, Yuba City CA Square Feet: 95,284 Total Units: 427 Physical Occupancy: Other: Unit Type: 5x5 5x10 10x10 10x15 10x20 10x30 Ground Level $45 $60 $105 $155 $215 STORE-MOR MINI STORAGE 767 Kiley Avenue, Yuba City CA Square Feet: 51,000 Total Units: 450 Physical Occupancy: 94% Other: Some rates converted Unit Type: 5x5 5x10 10x10 10x15 10x20 10x30 Ground Level $45 $70 $88 $110 $113 GREAT AMERICAN SELF STORAGE 1233 Hunn Road, Yuba City CA Square Feet: 79,905 Total Units: 711 Physical Occupancy: 93% Other: Unit Type: 5x5 5x10 10x10 10x15 10x20 10x30 Ground Level $45 $80 $90 $115 Page 10 of 26
STORAGE 4 LESS 1272 Market Street, Yuba City CA Square Feet: 61,107 Total Units: 598 Physical Occupancy: 99% Other: Unit Type: 5x5 5x10 10x10 10x15 10x20 10x30 Ground Level $30 $50 $100 $120 $130 $145 YUBA CITY 99 SELF STORAGE 1268 Stewart Road, Yuba City CA Square Feet: 95,875 Total Units: 750 Physical Occupancy: 99% Other: Unit Type: 5x5 5x10 10x10 10x15 10x20 10x30 Ground Level $42 $75 $85 $105 AVERAGES: 5x5 5x10 10x10 10x15 10x20 10x30 Subject: $40 $60 $119 $130 $160 $200 Rent Comps: $38 $49 $83 $107 $116 $156 100% Average Physical Occupancy 95% 90% 85% 80% Averages Subject Rent Comp #1 Rent Comp #2 Rent Comp #3 Rent Comp #4 Rent Comp #5 Rent Comp #6 Page 11 of 26
Competitor Map Page 12 of 26
Demographics Page 13 of 26
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Property Photographs Page 15 of 26
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(New phase which recently opened on Tharp Road @ Yuba City Self Storage) Page 20 of 26
Aerial Photographs Page 21 of 26
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Parcel Map Page 23 of 26
Location Maps Page 24 of 26
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