GOLDEN ARMOR SELF STORAGE 8216 Route 16 Framersville Station, NY United States

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1 Property Report GOLDEN ARMOR SELF STORAGE Presented by: Gary Greco 252 North Street Buffalo, New York Office: Mobile: (716) Fax: (716) The information above has been obtained from sources believed reliable. While we do not doubt its accuracy we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions, or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial, and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. 252 North Street, Buffalo, New York Office (716) Fax (716) Cell (716)

2 Overview GOLDEN ARMOR SELF STORAGE Purchase Info Square Feet 0 Purchase Price $525,000 Initial Cash Invested $175,000 Income Analysis Monthly Annual Net Operating Income $4,045 $48,545 Cash Flow $1,638 $19,654 Financial Metrics Cap Rate (Purchase Price) 9.2% Cash on Cash Return (Year 1) 11.2% Internal Rate of Return (Year 10) N/A Sale Price (Year 10) $705, Unit self Storage, Lg 2-br House, Rents below market with good upside. This analysis assumes a 75% occupancy rate which is easily obtainable. Apartment rented for $ and the tenant is on call to rent units. RV parking area currently vacant. 5x10-15, 8x10-2, 10x15-9,10x12-21,6x x20-15,10x40-5, 10x25-10 Balance of units miscellaneous sizes. 252 North Street, Buffalo, New York Office (716) Fax (716) Cell (716)

3 Purchase Analysis Purchase Info Purchase Price $525,000 - First Mortgage -$350,000 - Second Mortgage -$0 = Downpayment $175,000 + Buying Costs $0 + Initial Improvements $0 = Initial Cash Invested $175,000 Square Feet 0 Mortgages First Second Loan-To-Cost Ratio 66.67% 0% Loan-To-Value Ratio 66.67% 0% Loan Amount $350,000 $0 Loan Type Amortizing Term 20 Years Interest Rate 5.5% Payment $2, $0.00 Financial Metrics (Year 1) Annual Gross Rent Multiplier 4.9 Operating Expense Ratio 39.6% Debt Coverage Ratio 1.68 Cap Rate (Purchase Price) 9.2% Cash on Cash Return 11.2% Income Monthly Annual Gross Rent $8,935 $107,220 Vacancy Loss -$2,234 -$26,805 Operating Income $6,701 $80,415 Expenses (% of Income) Monthly Annual Insurance (4%) -$267 -$3,209 Maintenance (5%) -$335 -$4,021 Management Fees (9%) -$583 -$7,000 Reserve/Replacements (4%) -$250 -$3,000 Snow & Lawn (2%) -$167 -$2,000 Taxes (12%) -$803 -$9,640 Utilities (4%) -$250 -$3,000 Operating Expenses (40%) -$2,656 -$31,870 Net Performance Monthly Annual Net Operating Income $4,045 $48,545 - Mortgage Payments -$2,408 -$28,891 - Year 1 Improvements -$0 -$0 = Cash Flow $1,638 $19,654 Assumptions Appreciation Rate 3.0% Vacancy Rate 25.0% Income Inflation Rate 3.0% Expense Inflation Rate 3.0% LTV for Refinance 70.0% Selling Costs $0 252 North Street, Buffalo, New York Office (716) Fax (716) Cell (716)

4 Buy and Hold Projection Income Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30 Gross Rent $107,220 $0 $0 $0 $0 $0 $0 Vacancy Loss -$26,805 -$0 -$0 -$0 -$0 -$0 -$0 Operating Income $80,415 $0 $0 $0 $0 $0 $0 Expenses Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30 Insurance -$3,209 -$3,305 -$3,404 -$3,612 -$4,187 -$5,627 -$7,562 Maintenance -$4,021 -$0 -$0 -$0 -$0 -$0 -$0 Management Fees -$7,000 -$7,210 -$7,426 -$7,879 -$9,133 -$12,275 -$16,496 Reserve/Replacements -$3,000 -$3,090 -$3,183 -$3,377 -$3,914 -$5,261 -$7,070 Snow & Lawn -$2,000 -$2,060 -$2,122 -$2,251 -$2,610 -$3,507 -$4,713 Taxes -$9,640 -$9,929 -$10,227 -$10,850 -$12,578 -$16,904 -$22,717 Utilities -$3,000 -$3,090 -$3,183 -$3,377 -$3,914 -$5,261 -$7,070 Operating Expenses -$31,870 -$28,684 -$29,545 -$31,344 -$36,337 -$48,833 -$65,628 Income Analysis Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30 Net Operating Income $48,545 -$28,684 -$29,545 -$31,344 -$36,337 -$48,833 -$65,628 - Mortgage Payments -$28,891 -$28,891 -$28,891 -$28,891 -$28,891 -$28,889 -$0 - Improvements -$0 -$0 -$0 -$0 -$0 -$0 -$0 = Cash Flow $19,654 -$57,576 -$58,436 -$60,236 -$65,228 -$77,723 -$65,628 Cap Rate (Purchase Price) 9.2% -5.5% -5.6% -6.0% -6.9% -9.3% -12.5% Cap Rate (Market Value) 9.0% -5.2% -5.2% -5.2% -5.2% -5.2% -5.2% Cash on Cash Return 11.2% -32.9% -33.4% -34.4% -37.3% -44.4% -37.5% Return on Equity 9.8% -25.3% -22.9% -19.2% -13.5% -8.2% -5.2% Loan Analysis Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30 Market Value $540,750 $556,972 $573,682 $608,619 $705,556 $948,208 $1,274,313 - Loan Balance -$340,112 -$329,666 -$318,631 -$294,658 -$221,845 -$0 -$0 = Equity $200,638 $227,306 $255,051 $313,961 $483,711 $948,208 $1,274,313 Loan-to-Value Ratio 62.9% 59.2% 55.5% 48.4% 31.4% 0.0% 0.0% Potential Cash-Out Refi $38,413 $60,215 $82,946 $131,375 $272,045 $663,746 $892,019 Sale Analysis Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30 Equity $200,638 $227,306 $255,051 $313,961 $483,711 $948,208 $1,274,313 - Selling Costs -$0 -$0 -$0 -$0 -$0 -$0 -$0 = Proceeds After Sale $200,638 $227,306 $255,051 $313,961 $483,711 $948,208 $1,274,313 + Cumulative Cash Flow $19,654 -$37,922 -$96,358 -$215,916 -$531,777 -$1,249,743 -$1,826,358 - Initial Cash Invested -$175,000 -$175,000 -$175,000 -$175,000 -$175,000 -$175,000 -$175,000 = Net Profit $45,292 $14,385 -$16,307 -$76,956 -$223,065 -$476,535 -$727,045 Internal Rate of Return 25.9% 4.3% -3.1% -7.6% N/A N/A N/A Return on Investment 26% 8% -9% -44% -127% -272% -415% 252 North Street, Buffalo, New York Office (716) Fax (716) Cell (716)

5 Graphs GOLDEN ARMOR SELF STORAGE Monthly Cash Flow $2,000 $1,000 $0 -$1, $2,000 -$3,000 -$4,000 -$5,000 -$6,000 -$7, Year $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 Loan Balance + Equity = Market Value $ Year Internal Rate of Return (IRR) 0% -200% 0-400% Year % -800% -1,000% -1,200% -1,400% 252 North Street, Buffalo, New York Office (716) Fax (716) Cell (716)

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