Offering Memorandum WASH LAND LAUNDROMAT: STOREMORE MINI-STORAGE 3451 Ward Blvd Wilson, NC 27893 1
NON- E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E 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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. Â 2017 Marcus & Millichap. All rights reserved. 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. WASH LAND LAUNDROMAT: STOREMORE MINI-STORAGE Wilson, NC ACT ID Y0230730 2
TABLE OF CONTENTS SECTION INVESTMENT OVERVIEW 01 Offering Summary Regional Map Local Map Aerial Photo MARKET OVERVIEW 02 Market Analysis Demographic Analysis Traffic Count Map MARKET COMPARABLES 03 Rent Comparables Sales Comparables FINANCIAL ANALYSIS 04 Unit Mix Pricing Detail 3
INVESTMENT OVERVIEW 4
EXECUTIVE SUMMARY VITAL DATA CURRENT YEAR 1 Price $1,020,000 CAP Rate 9.91% 11.02% Down Payment 30% / $306,000 Net Operating Income $101,065 $112,403 Loan Amount $714,000 Net Cash Flow After Debt Service 15.83% / $48,450 19.54% / $59,788 Interest Rate / Amortization 5.50% / 25 Years Total Units 145 Rentable SF 16,425 Price Per Rentable SF $62.10 Year Built / Renovated 1999 Lot Size 3.4 acre(s) OFFERING SUMMARY PROPOSED FINANCING FIRST TRUST DEED Loan Amount $714,000 Loan Type Financed Interest Rate 5.50% Amortization 25 Years Loan Term 10 Years Loan to Value 70% TRAFFIC COUNTS STREET NAME CROSS STREET YEAR COUNT Ward Blvd Corbett Ave N 2016 14,000 MAJOR EMPLOYERS EMPLOYER # OF EMPLOYEES Wilson Medical Center 975 BB&T 670 Smithfield Packing Company Inc 650 Interim Services 603 Vf 600 Mgi of NC Inc 500 Kidde Technologies Inc 325 McDonalds 310 Ardagh Glass Inc 300 N C Special Care Center 300 Walmart 300 Fenwal Safety Systems 285 # 5
INVESTMENT OVERVIEW OFFERING SUMMARY Wash Land Laundromat and Mini-Storage is an 16,425 net rentable square foot self-storage facility and coin operated laundromat situated on approximately 3.4 acres in Wilson, North Carolina. The subject property was built in 1999 and currently enjoys a 93 percent physical occupancy (sf). This investment has 145 self-storage units as well as a 30 washer laundromat. Storage units range from 50 to 400 square feet and are traditional drive-up units. The facility has excellent visibility and ingress/egress from Ward Boulevard which is the loop around Wilson, NC. In addition, a third component of this investment is the very strong U-Haul business which has grown remarkably and now contributes approximately $30,000.00 to the bottom line. Amenities at this property include, but are not limited to: perimeter fencing, video surveillance, and roll-up doors, as well as vending machines for laundry detergent and snacks and a television for the laundromat customers. This investment is in the city of Wilson, N.C. which is the county seat of Wilson County, N.C. Wilson is located approximately 40 miles east of Raleigh, the capital city of North Carolina. Wilson is the birthplace of Branch Banking and Trust (BB&T). Now headquartered in Winston-Salem, N.C., BB&T remains among Wilson County s top employers. Also, Bridgestone Americas operates a plant in Wilson that employs more than 1,800 people who make radial tires for cars and light trucks. Other large employers include Wilson County Schools, Wilson Medical Center, Smithfield Packing Co., and Sandoz, a division of Merck. Presently, the self-storage facility is 90% occupied based on unit count. The laundromat and self-storage facility each contribute approximately 40-45% of the revenues with the remainder coming for the U-Haul commissions. The property is in good condition, but a new Owner will have an opportunity to put his or her stamp on the aesthetics. Furthermore, there is some room to increase rents on the self-storage units and using the latest revenue management strategies will maximize the return on this portion of the investment. Offered at $1,020,000, which represents a 9.9% current CAP rate, this asset, presents a unique opportunity for an investor to acquire a self-storage facility and laundromat in Wilson, North Carolina. The current revenue is based on the trailing six months storage rent from Octobers P&L statements and Trailing 12 revenue for all other income sources. Expenses are based on year end 2016. This property will provide a prudent investor positive cash flow from day one of operation and with tighter control of discounts and concessions the near term Pro Forma Cap rate rises to 11 percent. This property is ideal for an entrepreneurial minded investor looking for a high yield opportunity who is familiar with the eastern North Carolina region. INVESTMENT HIGHLIGHTS 16,425 Net Rentable Square Feet Coin Operated Laundromat 93 Percent Occupancy List Price: $1,020,000 9.9% CAP Rate 6
PROPERTY SUMMARY THE OFFERING Property Wash Land Laundromat: Storemore Mini-Storage Price $1,020,000 Property Address 3451 Ward Blvd, Wilson, NC Assessors Parcel Number 3722-39-1823.000 Zoning GC (General Commercial) SITE DESCRIPTION Total Units 145 Number of Buildings Six Storage Buildings Number of Stories Single-Story Year Built/Renovated 1999 Rentable Square Feet 16,425 Lot Size 3.41 Type of Ownership Fee Simple Highway Access 3 mi to US-301 Street Frontage 350 ft Cross Street Dartmore Dr N CONSTRUCTION Foundation Poured Concrete Framing Steel Exterior Walls Metal with Brick Facade Parking Surface Asphalt/Concrete Roof Screw Down Fencing Chain Link Entry Keypad Entry MECHANICAL Security Digital Video Surveillance OFFERING SUMMARY DEMOGRAPHICS 1-Miles 3-Miles 5-Miles 2016 Estimate Pop 4,778 39,953 55,459 2016 Census Pop 4,719 39,665 54,955 2016 Estimate HH 2,107 15,941 22,167 2016 Census HH 2,070 15,763 21,890 Median HH Income $37,951 $41,349 $41,988 Per Capita Income $24,742 $24,495 $23,691 Average HH Income $55,172 $60,351 $58,434 7
REGIONAL MAP 8
LOCAL MAP 9
AERIAL PHOTO 10
MARKET OVERVIEW 11
MARKET OVERVIEW REGIONAL OVERVIEW South Atlantic In 2017, vacancy in the South Atlantic will backtrack from last year s stellar performance as rising construction levels begin to have an effect on operations. The regionwide vacancy rate will move up 110 basis points to 11.3 percent this year. Despite weakening vacancy, the region will still achieve rent growth in line with the national level. This year, the average asking rent for climate-controlled and non-climatecontrolled space will rise 2.5 percent to $1.61 per square foot and 2.2 percent to $1.18 per square foot, respectively. South Atlantic Region Sales Highlights Property Name City, State NRSF** Sales Price Price Per Sq. Ft. Acorn Mini Storage Portfolio Melbourne, FL 155,057 $20,250,000 $131 Patriot Self Storage North Port, FL 104,960 $11,000,000 $105 Gaithersburg Storehouse Gaithersburg, MD 55,002 $8,899,900 $162 Florida Mall Self Storage C/O Orlando, FL 70,360 $8,500,000 $121 Winston-Salem Self-Storage Winston-Salem, NC 70,692 $7,850,000 $111 Southern Storage Loganville, GA 41,500 $5,500,000 $133 Treasure Coast Self-Storage Jensen Beach, FL 39,119 $4,950,000 $127 Safe Storage Johns Island, SC 29,205 $3,100,000 $106 *** Net Rentable Square Footage Sources: Marcus & Millichap Research Services; CoStar Group, Inc.; REIS Services LLC * Forecast ** Trailing 12 months through 2Q Note: CC stands for Climate-Controlled 12
PROPERTY WASH LAND NAME LAUNDROMAT: STOREMORE MINI-STORAGE Created on November 2017 POPULATION 1 Miles 3 Miles 5 Miles 2021 Projection Total Population 4,829 40,894 57,910 2016 Estimate Total Population 4,778 39,953 55,459 2010 Census Total Population 4,719 39,665 54,955 2000 Census Total Population 4,795 39,129 50,706 Daytime Population 2016 Estimate 5,015 43,668 67,003 HOUSEHOLDS 1 Miles 3 Miles 5 Miles 2021 Projection Total Households 2,131 16,421 23,297 2016 Estimate Total Households 2,107 15,941 22,167 Average (Mean) Household Size 2.31 2.42 2.43 2010 Census Total Households 2,070 15,763 21,890 2000 Census Total Households 2,142 15,268 19,755 MARKETING DEMOGRAPHICS TEAM HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles 2016 Estimate $250,000 or More 1.23% 1.43% 1.17% $200,000 - $249,999 0.76% 1.00% 0.87% $150,000 - $199,999 1.30% 3.36% 3.04% $125,000 - $149,999 3.88% 3.79% 3.35% $100,000 - $124,999 4.55% 5.27% 5.18% $75,000 - $99,999 9.24% 10.16% 10.72% $50,000 - $74,999 17.64% 16.94% 17.73% $35,000 - $49,999 14.73% 15.34% 16.01% $25,000 - $34,999 14.31% 11.57% 11.14% $15,000 - $24,999 15.45% 12.70% 12.84% Under $15,000 16.91% 18.45% 17.96% Average Household Income $55,172 $60,351 $58,434 Median Household Income $37,951 $41,349 $41,988 Per Capita Income $24,742 $24,495 $23,691 Source: 2016 Experian 13
PROPERTY WASH LAND NAME LAUNDROMAT: STOREMORE MINI-STORAGE Created on November 2017 POPULATION PROFILE 1 Miles 3 Miles 5 Miles Population by Age 0 to 4 Years 6.83% 6.12% 6.35% 5 to 14 Years 13.46% 13.18% 13.48% 15 to 17 Years 3.57% 3.83% 3.90% 18 to 19 Years 3.21% 2.77% 2.62% 20 to 24 Years 7.30% 6.76% 6.74% 25 to 29 Years 6.25% 5.84% 6.02% 30 to 34 Years 6.45% 5.76% 5.95% 35 to 39 Years 5.44% 5.44% 5.67% 40 to 49 Years 12.72% 12.53% 12.52% 50 to 59 Years 13.59% 14.11% 13.76% 60 to 64 Years 6.05% 6.55% 6.42% 65 to 69 Years 4.65% 5.40% 5.26% 70 to 74 Years 3.12% 3.84% 3.78% 75 to 79 Years 2.83% 3.08% 2.97% 80 to 84 Years 2.16% 2.27% 2.17% Age 85+ 2.38% 2.52% 2.37% Median Age 37.72 40.25 39.35 MARKETING DEMOGRAPHICS TEAM POPULATION PROFILE 1 Miles 3 Miles 5 Miles Population 25+ by Education Level 2016 Estimate Population Age 25+ 3,136 26,903 37,103 Elementary (0-8) 2.79% 6.10% 6.21% Some High School (9-11) 11.13% 12.48% 12.53% High School Graduate (12) 28.59% 29.04% 30.20% Some College (13-15) 21.72% 19.22% 19.74% Associate Degree Only 9.37% 7.71% 7.84% Bachelors Degree Only 17.55% 17.02% 16.11% Graduate Degree 8.41% 6.68% 5.88% Source: 2016 Experian 14
PROPERTY WASH LAND NAME LAUNDROMAT: STOREMORE MINI-STORAGE MARKETING DEMOGRAPHICS TEAM Population In 2016, the population in your selected geography is 4,778. The population has changed by -0.35% since 2000. It is estimated that the population in your area will be 4,829.00 five years from now, which represents a change of 1.07% from the current year. The current population is 45.82% male and 54.18% female. The median age of the population in your area is 37.72, compare this to the US average which is 37.68. The population density in your area is 1,519.94 people per square mile. Race and Ethnicity The current year racial makeup of your selected area is as follows: 43.34% White, 50.80% Black, 0.00% Native American and 1.24% Asian/Pacific Islander. Compare these to US averages which are: 70.77% White, 12.80% Black, 0.19% Native American and 5.36% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin make up 5.13% of the current year population in your selected area. Compare this to the US average of 17.65%. Households There are currently 2,107 households in your selected geography. The number of households has changed by -1.63% since 2000. It is estimated that the number of households in your area will be 2,131 five years from now, which represents a change of 1.14% from the current year. The average household size in your area is 2.31 persons. Housing The median housing value in your area was $128,164 in 2016, compare this to the US average of $187,181. In 2000, there were 1,029 owner occupied housing units in your area and there were 1,113 renter occupied housing units in your area. The median rent at the time was $383. Income In 2016, the median household income for your selected geography is $37,951, compare this to the US average which is currently $54,505. The median household income for your area has changed by 31.61% since 2000. It is estimated that the median household income in your area will be $46,366 five years from now, which represents a change of 22.17% from the current year. Employment In 2016, there are 1,272 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 51.18% of employees are employed in white-collar occupations in this geography, and 48.60% are employed in blue-collar occupations. In 2016, unemployment in this area is 8.27%. In 2000, the average time traveled to work was 20.00 minutes. The current year per capita income in your area is $24,742, compare this to the US average, which is $29,962. The current year average household income in your area is $55,172, compare this to the US average which is $78,425. Source: 2016 Experian 15
8 DEMOGRAPHICS 5 Mile 3 Mile 1 Mile 16
PROPERTY WASH LAND NAME LAUNDROMAT: STOREMORE MINI-STORAGE PRICING AND LOCATION VALUATION TENANT MARKETING TRAFFIC SUMMARY OVERVIEW MATRIX COUNT PLAN 14,000 (2016) Source: 2016 Experian 17 #
MARKET COMPARABLES 18
8 RENT COMPARABLES MAP WASH LAND LAUNDROMAT: STOREMORE MINI-STORAGE (SUBJECT) 1 SecurCare Self Storage 2 3 4 5 6 7 8 9 10 11 12 13 Home Place Storage Center Paxton Mini Storage AB Mini-Storage SecurCare Self Storage SecurCare Self Storage Ample Storage Center Storage Central Gregory's Mini Storage Elton Smith Mini Storage M and M Storage SecurCare Self Storage Storage Depot 14 15 16 17 18 20 19
Distance from Property Name Address City State Zip Phone Sq. Ft. Subject Wash Land Mini-Storage 3451 Ward Blvd Wilson NC 27893 (252) 291-2000 0.0 Miles 16,425 1) SecurCare Self Storage 3105 Ward Blvd Wilson NC 27893 (252) 237-0646 0.6 Miles 78,595 2) Home Place Storage Center 612 Park Ave W Wilson NC 27893 (252) 237-6108 1.8 Miles 20,110 3) Paxton Mini Storage 715 Tarboro St W Wilson NC 27893 (252) 360-1004 2.2 Miles 34,300 4) AB Mini-Storage 3420 US-301 Wilson NC 27893 (252) 237-9338 2.2 Miles 30,505 5) SecurCare Self Storage 3941 Lake Wilson Rd Wilson NC 27896 (252) 399-1337 2.3 Miles 66,400 6) SecurCare Self Storage 1900 Westwood Ave W Wilson NC 27893 (252) 206-9968 2.5 Miles 53,450 7) Ample Storage Center 3213 Airport Blvd NW Wilson NC 27896 (252) 291-0138 2.6 Miles 29,023 8) Storage Central 4001 Ashpark Ct Wilson NC 27896 (252) 243-7867 3.3 Miles 34,475 9) Gregory's Mini Storage 2716 Gregory Ln Wilson NC 27893 (252) 291-2730 3.5 Miles 18,670 10) Elton Smith Mini Storage 3061 NC-42 Wilson NC 27893 (252) 243-5273 3.6 Miles 16,135 11) M and M Storage 2804 Crabtree St Wilson NC 27893 (252) 243-1780 4.2 Miles 25,770 12) SecurCare Self Storage 4371 Raleigh Rd Pkwy W Wilson NC 27896 (252) 206-7008 4.4 Miles 47,610 13) Storage Depot 4021 Old Stantonsburg Rd Wilson NC 27893 (252) 991-1301 5.0 Miles 7,040 PROPERTY WASH LAND NAME LAUNDROMAT: STOREMORE MINI-STORAGE RENT COMPARABLES Property Name Address City State Zip Phone Distance from Subject Wash Land Mini-Storage 3451 Ward Blvd Wilson NC 27893 (252) 291-2000 0.0 Miles 16,425 1) SecurCare Self Storage 3105 Ward Blvd Wilson NC 27893 (252) 237-0646 0.6 Miles 78,595 2) Home Place Storage Center 612 Park Ave W Wilson NC 27893 (252) 237-6108 1.8 Miles 20,110 3) Paxton Mini Storage 715 Tarboro St W Wilson NC 27893 (252) 360-1004 2.2 Miles 34,300 4) AB Mini-Storage 3420 US-301 Wilson NC 27893 (252) 237-9338 2.2 Miles 30,505 5) SecurCare Self Storage 3941 Lake Wilson Rd Wilson NC 27896 (252) 399-1337 2.3 Miles 66,400 6) SecurCare Self Storage 1900 Westwood Ave W Wilson NC 27893 (252) 206-9968 2.5 Miles 53,450 7) Ample Storage Center 3213 Airport Blvd NW Wilson NC 27896 (252) 291-0138 2.6 Miles 29,023 8) Storage Central 4001 Ashpark Ct Wilson NC 27896 (252) 243-7867 3.3 Miles 34,475 9) Gregory's Mini Storage 2716 Gregory Ln Wilson NC 27893 (252) 291-2730 3.5 Miles 18,670 10) Elton Smith Mini Storage 3061 NC-42 Wilson NC 27893 (252) 243-5273 3.6 Miles 16,135 11) M and M Storage 2804 Crabtree St Wilson NC 27893 (252) 243-1780 4.2 Miles 25,770 12) SecurCare Self Storage 4371 Raleigh Rd Pkwy W Wilson NC 27896 (252) 206-7008 4.4 Miles 47,610 13) Storage Depot 4021 Old Stantonsburg Rd Wilson NC 27893 (252) 991-1301 5.0 Miles 7,040 Sq. Ft. 20
Climate Controlled - Ground Level Distance Property from Subject Avg. $/SF per Unit Size Rate Unit Size Rate Unit Size Rate Unit Size Rate Unit Size Rate Month SecurCare Self Storage 0.6 Miles 5x5 c/c 25 Sq Ft - 5x10 c/c 50 Sq Ft $65.00 10x10 c/c 100 Sq Ft $90.00 10x15 c/c 150 Sq Ft $110.00 10x20 c/c 200 Sq Ft - $0.98 $11.73 Paxton Mini Storage 2.2 Miles 5x5 c/c 25 Sq Ft N/A 5x10 c/c 50 Sq Ft $55.00 10x10 c/c 100 Sq Ft $75.00 10x15 c/c 150 Sq Ft $85.00 10x20 c/c 200 Sq Ft $115.00 $0.75 $8.98 SecurCare Self Storage 2.3 Miles 5x5 c/c 25 Sq Ft - 5x10 c/c 50 Sq Ft $62.00 10x10 c/c 100 Sq Ft $103.00 10x15 c/c 150 Sq Ft $124.00 10x20 c/c 200 Sq Ft - $1.03 $12.39 Storage Central 3.3 Miles 5x5 c/c 25 Sq Ft N/A 5x10 c/c 50 Sq Ft $65.00 10x10 c/c 100 Sq Ft $90.00 10x15 c/c 150 Sq Ft $120.00 10x20 c/c 200 Sq Ft $150.00 $0.94 $11.25 Average Comparable $/SF N/A $1.24 $0.90 $0.73 $0.66 $0.88 $10.57 "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 Property Distance Unit Size Rate Unit Size Rate Unit Size Rate Unit Size Rate Unit Size Rate from Subject Avg. $/SF per Month Avg. $/SF per Year Avg. $/SF per Year Wash Land Mini-Storage - 5x5 25 Sq Ft N/A 5x10 50 Sq Ft $48.00 10x10 100 Sq Ft $67.00 10x15 150 Sq Ft $78.00 10x20 200 Sq Ft $92.00 $0.65 $7.83 SecurCare Self Storage 0.6 Miles 5x5 25 Sq Ft - 5x10 50 Sq Ft - 10x10 100 Sq Ft $70.00 10x15 150 Sq Ft $95.00 10x20 200 Sq Ft - $0.67 $8.00 Home Place Storage Center 1.8 Miles 5x5 25 Sq Ft N/A 5x10 50 Sq Ft $25.00 10x10 100 Sq Ft $45.00 10x15 150 Sq Ft $55.00 10x20 200 Sq Ft $65.00 $0.41 $4.93 Paxton Mini Storage 2.2 Miles 5x5 25 Sq Ft $35.00 5x10 50 Sq Ft $40.00 10x10 100 Sq Ft $50.00 10x15 150 Sq Ft $60.00 10x20 200 Sq Ft $90.00 $0.71 $8.52 AB Mini-Storage 2.2 Miles 5x5 25 Sq Ft N/A 5x10 50 Sq Ft $31.00 10x10 100 Sq Ft $50.00 10x15 150 Sq Ft $70.00 10x20 200 Sq Ft $90.00 $0.51 $6.11 SecurCare Self Storage 2.3 Miles 5x5 25 Sq Ft - 5x10 50 Sq Ft $45.00 10x10 100 Sq Ft $63.00 10x15 150 Sq Ft - 10x20 200 Sq Ft $105.00 $0.69 $8.22 SecurCare Self Storage 2.5 Miles 5x5 25 Sq Ft $30.00 5x10 50 Sq Ft $50.00 10x10 100 Sq Ft - 10x15 150 Sq Ft $90.00 10x20 200 Sq Ft - $0.93 $11.20 Storage Central 3.3 Miles 5x5 25 Sq Ft N/A 5x10 50 Sq Ft $50.00 10x10 100 Sq Ft $70.00 10x15 150 Sq Ft $85.00 10x20 200 Sq Ft $110.00 $0.70 $8.45 Elton Smith Mini Storage 3.6 Miles 5x5 25 Sq Ft N/A 5x10 50 Sq Ft $35.00 10x10 100 Sq Ft $50.00 10x15 150 Sq Ft - 10x20 200 Sq Ft - $0.60 $7.20 M and M Storage 4.2 Miles 5x5 25 Sq Ft N/A 7x7 50 Sq Ft $50.00 10x10 100 Sq Ft $60.00 10x15 150 Sq Ft $70.00 10x20 200 Sq Ft $80.00 $0.49 $5.87 SecurCare Self Storage 4.4 Miles 5x5 25 Sq Ft $37.00 5x10 50 Sq Ft $46.00 10x10 100 Sq Ft $63.00 10x15 150 Sq Ft $81.00 10x20 200 Sq Ft $105.00 $0.82 $9.83 Storage Depot 5 Miles 5x5 25 Sq Ft N/A 5x10 50 Sq Ft $30.00 10x10 100 Sq Ft $40.00 10x15 150 Sq Ft N/A 10x20 200 Sq Ft $70.00 $0.45 $5.40 Subject $/SF N/A $0.96 $0.67 $0.52 $0.46 $0.65 $7.83 Average Comparable $/SF $1.36 $0.80 $0.56 $0.51 $0.45 $0.74 $8.82 PROPERTY WASH LAND NAME LAUNDROMAT: STOREMORE MINI-STORAGE RENT COMPARABLES Climate Controlled - Ground Level Property Distance from Subject Unit Size Rate Unit Size Rate Unit Size Rate Unit Size Rate Unit Size Rate Avg. $/SF per Month Avg. $/SF per Year SecurCare Self Storage 0.6 Miles 5x5 c/c 25 Sq Ft - 5x10 c/c 50 Sq Ft $65.00 10x10 c/c 100 Sq Ft $90.00 10x15 c/c 150 Sq Ft $110.00 10x20 c/c 200 Sq Ft - $0.98 $11.73 Paxton Mini Storage 2.2 Miles 5x5 c/c 25 Sq Ft N/A 5x10 c/c 50 Sq Ft $55.00 10x10 c/c 100 Sq Ft $75.00 10x15 c/c 150 Sq Ft $85.00 10x20 c/c 200 Sq Ft $115.00 $0.75 $8.98 SecurCare Self Storage 2.3 Miles 5x5 c/c 25 Sq Ft - 5x10 c/c 50 Sq Ft $62.00 10x10 c/c 100 Sq Ft $103.00 10x15 c/c 150 Sq Ft $124.00 10x20 c/c 200 Sq Ft - $1.03 $12.39 Storage Central 3.3 Miles 5x5 c/c 25 Sq Ft N/A 5x10 c/c 50 Sq Ft $65.00 10x10 c/c 100 Sq Ft $90.00 10x15 c/c 150 Sq Ft $120.00 10x20 c/c 200 Sq Ft $150.00 $0.94 $11.25 Average Comparable $/SF N/A $1.24 $0.90 $0.73 $0.66 $0.88 $10.57 "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 Property Distance from Subject Unit Size Rate Unit Size Rate Unit Size Rate Unit Size Rate Unit Size Rate Avg. $/SF per Month Avg. $/SF per Year Wash Land Mini-Storage - 5x5 25 Sq Ft N/A 5x10 50 Sq Ft $48.00 10x10 100 Sq Ft $67.00 10x15 150 Sq Ft $78.00 10x20 200 Sq Ft $92.00 $0.65 $7.83 SecurCare Self Storage 0.6 Miles 5x5 25 Sq Ft - 5x10 50 Sq Ft - 10x10 100 Sq Ft $70.00 10x15 150 Sq Ft $95.00 10x20 200 Sq Ft - $0.67 $8.00 Home Place Storage Center 1.8 Miles 5x5 25 Sq Ft N/A 5x10 50 Sq Ft $25.00 10x10 100 Sq Ft $45.00 10x15 150 Sq Ft $55.00 10x20 200 Sq Ft $65.00 $0.41 $4.93 Paxton Mini Storage 2.2 Miles 5x5 25 Sq Ft $35.00 5x10 50 Sq Ft $40.00 10x10 100 Sq Ft $50.00 10x15 150 Sq Ft $60.00 10x20 200 Sq Ft $90.00 $0.54 $6.45 AB Mini-Storage 2.2 Miles 5x5 25 Sq Ft N/A 5x10 50 Sq Ft $31.00 10x10 100 Sq Ft $50.00 10x15 150 Sq Ft $70.00 10x20 200 Sq Ft $90.00 $0.51 $6.11 SecurCare Self Storage 2.3 Miles 5x5 25 Sq Ft - 5x10 50 Sq Ft $45.00 10x10 100 Sq Ft $63.00 10x15 150 Sq Ft - 10x20 200 Sq Ft $105.00 $0.69 $8.22 SecurCare Self Storage 2.5 Miles 5x5 25 Sq Ft $30.00 5x10 50 Sq Ft $50.00 10x10 100 Sq Ft - 10x15 150 Sq Ft $90.00 10x20 200 Sq Ft - $0.80 $9.60 Storage Central 3.3 Miles 5x5 25 Sq Ft N/A 5x10 50 Sq Ft $50.00 10x10 100 Sq Ft $70.00 10x15 150 Sq Ft $85.00 10x20 200 Sq Ft $110.00 $0.70 $8.45 Elton Smith Mini Storage 3.6 Miles 5x5 25 Sq Ft N/A 5x10 50 Sq Ft $35.00 10x10 100 Sq Ft $50.00 10x15 150 Sq Ft - 10x20 200 Sq Ft - $0.60 $7.20 M and M Storage 4.2 Miles 5x5 25 Sq Ft N/A 7x7 50 Sq Ft $50.00 10x10 100 Sq Ft $60.00 10x15 150 Sq Ft $70.00 10x20 200 Sq Ft $80.00 $0.49 $5.87 SecurCare Self Storage 4.4 Miles 5x5 25 Sq Ft $37.00 5x10 50 Sq Ft $46.00 10x10 100 Sq Ft $63.00 10x15 150 Sq Ft $81.00 10x20 200 Sq Ft $105.00 $0.65 $7.85 Storage Depot 5 Miles 5x5 25 Sq Ft N/A 5x10 50 Sq Ft $30.00 10x10 100 Sq Ft $40.00 10x15 150 Sq Ft N/A 10x20 200 Sq Ft $70.00 $0.45 $5.40 Subject $/SF N/A $0.96 $0.67 $0.52 $0.46 $0.65 $7.83 Average Comparable $/SF $1.36 $0.80 $0.56 $0.51 $0.45 $0.58 $6.95 21
PROPERTY WASH LAND NAME LAUNDROMAT: STOREMORE MINI-STORAGE RENT COMPARABLES 22
SALES COMPARABLES MAP WASH LAND LAUNDROMAT: STOREMORE MINI-STORAGE (SUBJECT) 1 A-1 Mini Storage 2 Enterprise Self Storage 3 Shelby Storage CTR 4 5 AAA Storage Hwy 59 Mini-Storage SALES COMPARABLES 23
PROPERTY WASH LAND NAME LAUNDROMAT: STOREMORE MINI-STORAGE SALES COMPARABLES SALES COMPS AVG SALES COMPARABLES Average Cap Rate Average Price Per Square Foot 13 $68.00 12 $61.20 10 9 8 Avg. 8.87% $54.40 $47.60 $40.80 Avg. $38.85 7 $34.00 5 $27.20 4 $20.40 3 $13.60 1 $6.80 0 Wash Land Laundromat: Storemore Mini-Storage A-1 Mini Storage Enterprise Self Storage Shelby Storage CTR AAA Storage Hwy 59 Mini-Storage $0.00 Wash Land Laundromat: Storemore Mini-Storage A-1 Mini Storage Enterprise Self Storage Shelby Storage CTR AAA Storage Hwy 59 Mini-Storage 24
PROPERTY WASH LAND NAME LAUNDROMAT: STOREMORE MINI-STORAGE SALES MARKETING COMPARABLES TEAM SALES COMPARABLES WASH LAND LAUNDROMAT: STOREMORE MINI-STORAGE 3451 Ward Blvd, Wilson, NC, 27893 A-1 MINI STORAGE 202 Roxboro Rd, Oxford, NC, 27565 1 ENTERPRISE SELF STORAGE 2800 Enterprise Ave, Fayetteville, NC, 28306 2 rentpropertyname1 rentpropertyname1 Offering Price $1,020,000 Price/SF $62.10 CAP Rate 9.91% Total Units 145 Year Built 1999 Close of Escrow 1/22/2016 Sales Price $1,200,000 Rentable SF 23,700 Price/SF $50.63 CAP Rate 7.25% Total Units 269 Year Built 1985 Close of Escrow 3/30/2016 Sales Price $1,700,000 Rentable SF 47,500 Price/SF $35.79 CAP Rate 8.82% Total Units 450 Year Built 2006 rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1 25
PROPERTY WASH LAND NAME LAUNDROMAT: STOREMORE MINI-STORAGE SALES MARKETING COMPARABLES TEAM SALES COMPARABLES SHELBY STORAGE CTR 612 Smith Street, Shelby, NC, 28150 3 AAA STORAGE 804 Junction Road, Durham, NC, 27703 4 HWY 59 MINI-STORAGE 2110 John McMillan Rd, Hope Mills, NC, 28348 5 rentpropertyname1 rentpropertyname1 rentpropertyname1 Close of Escrow 6/15/2016 Sales Price $525,000 Rentable SF 28,330 Price/SF $18.53 CAP Rate 9.74% Total Units 235 Year Built 1978 Close of Escrow 12/1/2016 Days On Market 87 Sales Price $1,950,000 Rentable SF 29,500 Price/SF $66.10 CAP Rate 7.46% Total Units 296 Year Built 2000 Close of Escrow 4/26/2016 Sales Price $370,000 Rentable SF 15,940 Price/SF $23.21 CAP Rate 11.10% Total Units 59 Year Built 2008 rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1 26
FINANCIAL ANALYSIS 27
FINANCIAL ANALYSIS 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 10x5 11 8 50 550 400 $48.00 $528 $384 $6,336 $0.96 72.7% 72.7% 72.7% 5x10 25 21 50 1,250 1,050 $48.00 $1,200 $1,008 $14,400 $0.96 84.0% 84.0% 84.0% 10x10 1 0 100 100 0 $48.00 $48 $0 $576 $0.48 0.0% 0.0% 0.0% 10x10 75 70 100 7,500 7,000 $67.00 $5,025 $4,690 $60,300 $0.67 93.3% 93.3% 93.3% 10x15 11 11 150 1,650 1,650 $78.00 $858 $858 $10,296 $0.52 100.0% 100.0% 100.0% 10x20 1 1 200 200 200 $90.00 $90 $90 $1,080 $0.45 100.0% 100.0% 100.0% 10x20 10 9 200 2,000 1,800 $92.00 $920 $828 $11,040 $0.46 90.0% 90.0% 90.0% 15x15 3 3 225 675 675 $97.00 $291 $291 $3,492 $0.43 100.0% 100.0% 100.0% 15x20 7 7 300 2,100 2,100 $119.00 $833 $833 $9,996 $0.40 100.0% 100.0% 100.0% 20x20 1 1 400 400 400 $170.00 $170 $170 $2,040 $0.43 100.0% 100.0% 100.0% T OT ALS 145 131 16,425 15,275 $9,963 $9,152 $119,556 $0.61 90.3% 93.0% 91.9% 28
Income Marcus & Millichap Underwriting Pro Forma Scheduled Base Rental $119,556 $119,556 Scheduled Economic Vacancy ($9,732) 8.1% ($8,967) 7.5% Discounts and Concessions T-6 ($15,607) 13.1% ($5,978) 5.0% Scheduled Gross Rental Income $94,217 $104,612 U-Haul Income $28,686 $28,686 Other Storage Income $17,566 $19,504 Laundromat Revenue $99,357 $99,357 COGS ($6,067) ($6,168) Effective Gross Income $233,759 $245,990 Monthly Revenue $19,480 Monthly Revenue $20,499 Expense Annual Expenses Annual Expenses Real Estate Taxes $0.65 $10,628 $0.70 $11,459 ** Insurance $0.61 $10,080 $0.61 $10,080 Utilities $1.88 $30,875 $1.88 $30,875 Repairs and Maintenance $1.10 $18,134 $1.10 $18,134 Marketing & Promotion $0.26 $4,345 $0.26 $4,345 On-Site Management $2.77 $45,517 $2.77 $45,517 General & Administration $0.43 $7,125 $0.43 $7,125 Reserve for Capital Improvements $0.10 $1,643 * $0.10 $1,643 * Bank Charges $0.07 $1,189 $0.08 $1,251 * Telephone $0.19 $3,158 $0.19 $3,158 Total Operating Expenses $8.08 $132,693 56.8% $8.13 $133,586 54.3% ** Taxes have been adjusted to reflect a sale * Expense has been adjusted to reflect current industry standards Net Operating Income Effective Gross Income $233,759 $245,990 Total Operating Expenses $132,693 $133,586 Net Operating Income $101,066 $112,405 Pricing Analysis FINANCIAL ANALYSIS $/NRSF Sale Price Cap Rate $/NRSF Sale Price Cap Rate $62.10 $1,020,000 9.91% $62.10 $1,020,000 11.02% 29
ACQUISITION FINANCING MARCUS & MILLICHAP CAPITAL CORPORATION CAPABILITIES MMCC our fully integrated, dedicated financing arm is committed to providing superior capital market expertise, precisely managed execution, and unparalleled access to capital sources providing the most competitive rates and terms. We leverage our prominent capital market relationships with commercial banks, life insurance companies, CMBS, private and public debt/equity funds, Fannie Mae, Freddie Mac and HUD to provide our clients with the greatest range of financing options. Our dedicated, knowledgeable experts understand the challenges of financing and work tirelessly to resolve all potential issues to the benefit of our clients. WHY MMCC? Optimum financing solutions to enhance value Our ability to enhance buyer pool by expanding finance options Our ability to enhance seller control Through buyer qualification support Our ability to manage buyers finance expectations Ability to monitor and manage buyer/lender progress, insuring timely, predictable closings Closed 1,651 debt and equity financings in 2016 National platform operating within the firm s brokerage offices $5.1 billion total national volume in 2016 Access to more capital sources than any other firm in the industry By relying on a world class set of debt/equity sources and presenting a tightly underwritten credit file 30
P R E S E N T E D B Y Bruce Lynch Associate Associate Member - National Self Storage Group Raleigh Office Tel: (919) 674-1102 Fax: (336) 217-7970 bruce.lynch@marcusmillichap.com Licenses: NC 105858, SC 18172, VA 0225032900 Mike MacManus Senior Associate Director - National Self Storage Group Atlanta Office Tel: (678) 808-2751 Fax: (678) 808-2710 michael.macmanus@marcusmillichap.com Licenses: GA 330576, SC 86205, NC 277396 Stacey Gorman First Vice President Investments Senior Director - National Self Storage Group Atlanta Office Tel: (678) 808-2700 Fax: (678) 808-2710 stacey.gorman@marcusmillichap.com Licenses: GA 257960, TN 00305042 www.marcusmillichap.com