Self Storage Pro Investment Summary

EXCLUSIVE SELF STORAGE OFFERING
Freeway Visability Self Storage
Los Angeles, CA. 90066
Asking Price $5,000,000
538 Spaces + RV Storage
>> A Class Asset/Building
>> Good Signage
>> Freeway Visability
>> Easy Access
>> On Site Office/Retail Center
>> Stable Occupancy
>> Heavy Daily Traffic Volume
>> Climate Controlled
Presented by David Condon of NAI Capital
www.naidavidcondon.com
Offering Highlights / Property Description
NAI is pleased to offer for sale Freeway Highway Self Storage, located at 12345 Freeway Highway in Los Angeles, California. The “Class A” self storage facility consists of four masonry block buildings containing approximately 61,530 total rentable square feet of which 70% of those units are climate controlled. The property also includes an additional 1,000 square feet of exterior RV storage for a total of 62,298 rentable square feet. The
property is located in the Playa Vista area of Los Angeles, offering significant barriers to entry enhancing the project’s competitive ability. Freeway Highway Self Storage was completed in December 2005 and is situated on approximately 2.50 acres. In addition to a superior location and a unique blend of amenities, the property offers attractive curb appeal with manicured landscaping, excellent signage and a state of the art retail sales office with a cutting edge security system that involves 24 hour multicamera surveillance, individual unit alarms and
perimeter motion detectors. The property is currently in lease up phase with 70% physical occupancy based on total square footage, and 70% physical occupancy based on units available. The rare combination of location, image, quality, revenue growth, occupancy growth, attractive features and amenities makes this offering an ideal investment opportunity for an investor looking to acquire a self storage facility located in the Los Angeles area.
Type of Construction
The storage facility is constructed of split face block and consists of four separate buildings. The roof is constructed primarily from metal with some mission tile portions. The individual storage unit doors are metal roll up with individual door alarms. The partitions between the units are metal, allowing managers to easily convert and change the unit mix according to the market demand. The second floors of the two‐story buildings have store front windows installed at the hallways. The driveways are asphalt. The total net rentable square footage is approximately 62,298. There are an additional 10 RV spaces consisting of 1,000 square feet, which brings the total net rentable square footage to 62,298. The two largest buildings run parallel to the Arden Garden Connector. Building (A) is one story and contains approximately 11,363 gross square feet including the apartment and office consisting of approximately 2,557 square feet. Building (B) is also a climate controlled two story building containing approximately 39,012 gross square feet. The two story buildings each have one elevator. Building (C) is a climate controlled two story structure and contains
approximately 30 972 square feet Building (D) is one story and contains approximately 4 298 gross square
contains approximately 30,972 square feet. Building (D) is one story and contains approximately 4,298 gross square feet. In between the buildings, on the exterior perimeter, wrought iron fences have been installed to keep trespassers out. There are two wrought iron access gates to the property. One of the gates operates on an automated computerized security system. The computerized security system also consists of surveillance cameras and individual alarms on each storage unit.
There are a total of 538 units of which 443 units are climate controlled, and 6 are outdoor vehicle parking.
LAND DESCRIPTION:
The land parcel contains 2.69 acres and is triangular in shape. The land slopes slightly to the east. The facility has high visibility from three sides of the parcel with easy access to and from the neighborhood. The parcel’s best
visibility is from the Freeway Garden connector, which serves as a connector to Freeway and Interstate 1. It is located in the southern part of Los Angeles County.
Access & Visability:
Vehicles heading in both directions on Freeway Boulevard and the Old Highway have easy ingress and egress to the property.
Traffic Volume:
The average daily traffic flow past the property is approximately 44,000 vehicles.
Signage:
Good signage with freeway visability provides good marketing exposure.
ZONING:
The property is zoned C‐2 (P/C), which allows for storage and light commercial development. The property is located in the major residential, retail and light commercial district of Northgate. Two hundred yards away is a major shopping center and an office complex. The property is also heavily surrounded by residential with R1
and R2 zoning.
SELF STORAGE INVESTMENT SUMMARY
Project Name:
Freeway Visability Self Storage DEMO
Property Address
12345 Freeway Highway
Total Building Sq Ft
City, State, Zip Code
Los Angeles, CA. 90066
Cost / Sq Ft
Proposed Sales Price
$5,000,000
Proposed Financing (1ST TD)
$3,500,000
70.00%
Secondary Financing
$64,929
$77
Cap Rate
9.12%
Market Cap Rate
10.09%
% Occupancy (Current Rents)
75.00%
% Occupancy (Stabilized Rents)
80.00%
Total Financing
$3,500,000
70.00%
Land Area
Cash Down Payment
$1,500,000
30.00%
Average Rent per Sq Ft
2.25 Acres
$1.26
PROPERTY FEATURES
# of Storage Units
538
# of Stories
2
Net Rentable Area
62,322
# of Buildings
5
Gross Building Area
64,929
Elevator Served
No
Video Surveillance
Yes
Year Built
1988
Climate Control
Yes
RV, Boat or Car Storage
Yes
Avg Unit Size (Sq Ft)
473
Security Gate
Yes
Good signage & freeway visability
Heavy Daily Traffic Count (44,000)
y
( g
g
)
Easy access (Ingress & Egress)
Automated Entrance Gate
CASH FLOW ANALYSIS
Current Occupancy
Occupancy:
75.00%
Total Monthly Income Storage Units
Stabilized Occupancy
80.00%
$78,460
$78,460
Other Income
$1,000
$1,000
Ancillary Income
$1,000
$1,000
$500
$500
$80,960
$80,960
$971,520
$971,520
Outside Parking
Total Monthly Income
Total Annual Scheduled In
Vacancy
($242,880)
Gross Operating Income
$728,640
Less Expenses
($269,334)
Net Operating Income (NOI)
Debt Service 1st TD
25%
$459,306
7.250%
($286,514)
($194,304)
$777,216
36.96%
($269,334)
Cash Flow
% Cash on Cash Return (ROE)
34.65%
$504,615
($286,514) (30 Year Amortization)
Debt Service 2nd TD
Total Debt Service
20%
(Interest Only)
($286,514)
($286,514)
$172,792
$218,101
11.30%
Principal Reduction
$32,764
Depreciation
$111,111
14.54%
$32,764
STABILIZED OPERATING EXPENSES
% Expenses
Real Estate Taxes
Expenses Per Sq Ft
$61,100
7.86%
$0.94
Other Taxes & Assessments
$5,000
0.64%
$0.08
Business License
$1,500
0.19%
$0.02
$28,800
3.71%
$0.44
Trash
$3,500
0.45%
$0.05
Utilities (Combined)
$7,500
0.96%
$0.12
Maintenance & Repairs
$25,000
3.22%
$0.39
Elevator Maintenance
$7,200
0.93%
$0.11
Operating Supplies
$5,000
0.64%
$0.08
$36,000
4.63%
$0.55
Gardening / Landscaping
$3,600
0.46%
$0.06
Property Management $35,122
4.52%
$0.54
General & Administrative
$12,680
1.63%
$0.20
Advertising & Marketing
$5,000
0.64%
$0.08
Contract Services
$3,600
0.46%
$0.06
Miscellaneous expenses
$7,024
0.90%
$0.11
Replacement Reserves
$21,708
2.79%
$0.33
$269,334
34.65%
$4.15
Insurance
Payroll (Janitorial, Salaries)
Total Operating Expenses
ADDITIONAL PHOTOS
AERIAL PHOTOS
MAP LOCATION
CONFIDENTIALITY AGREEMENT
PLEASE DO NOT DISTURB THE TENANTS. PLEASE CALL THE LISTING AGENT FOR AN APPOINTMENT FOR A PREVIEW OF THE SUBJECT PROPERTY. ALL INSPECTIONS ARE SUBJECT TO OFFER AND ACCEPTANCE.
The information contained in the following Investment Summary & Marketing Package is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving and should not be made available to any other person or entity without the written consent of NAI Capital.
This Marketing Package 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 complete due diligence investigation. NAI Capital 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 .
The information contained in the Marketing Package has been obtained from sources we believe to be reliable; however, this information has not been verified and we make no warranty or representation regarding the accuracy or completeness of the information provided. All potential buyers must conduct their own investigation. 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 above information is from sources deemed to be reliable. Please complete your own due diligence and investigations.
This “Class A” property is offered on an as‐is basis. Legal documents and reports summarized in this Offering Memorandumare
not intended to be comprehensive statements of the terms or contents of such documents and
Memorandumare not intended to be comprehensive statements of the terms or contents of such documents and reports. Interested partiesshould conduct an independent investigation to reach conclusions without reliance on materials contained herein. The material contained in this Offering Memorandum is confidential, furnished solely for the purpose of considering the purchase of Freeway Highway Self Storage and is not to be copied and/or used for any other purpose, or made available to any other person without the express written consent of broker. This Offering Memorandum is delivered under the terms and conditions of a Confidentiality Agreement, which has been executed by the recipient as Reviewer. All terms and conditions of the Confidentiality Agreement apply to the information contained herein.
Offers should be delivered to the office of the Exclusive Listing Broker via Fax. Tours of the Property can be arranged through the Exclusive Listing Broker.
Real Estate Software Services provided by:
www.WebVest.Info
SELF STORAGE RENT ROLL SUMMARY
Project Name:
Freeway Visability Self Storage DEMO
12345 Freeway Highway
ADDRESS
# UNITS
Climate Controlled
Climate Controlled
Climate Controlled
Climate Controlled
Climate Controlled
65
Climate Controlled
Climate Controlled
Climate Controlled
Climate Controlled
Vechicle
Total:
Total Monthly Storage Units Income
Los Angeles, CA. 90066
DIMENSION'S
L.A. County
SIZE
RENT
TOTAL
RENT / SF
NRA
VACANT
%
UNITS
VACANCY
5
X
5
25
$65
$4,225
$2.60
1,625
7
11%
116
5
X
10
50
$100
$11,600
$2.00
5,800
30
26%
71
5
X
15
75
$125
$8,875
$1.67
5,325
7
10%
107
10
X
10
100
$150
$16,050
$1.50
10,700
50
47%
44
10
X
15
150
$185
$8,140
$1.23
6,600
4
9%
23
10
X
20
200
$200
$4,600
$1.00
4,600
2
9%
9
10
X
25
250
$200
$1,800
$0.80
2,250
1
11%
15
10
X
30
300
$260
$3,900
$0.87
4,500
2
13%
5
12
X
25
300
$290
$1,450
$0.97
1,500
1
20%
23
12
X
30
360
$340
$7,820
$0.94
8,280
2
9%
17
10
X
20
200
$180
$3,060
$0.90
3,400
2
12%
12
10
X
30
300
$230
$2,760
$0.77
3,600
1
8%
2
15
X
20
300
$230
$460
$0.77
600
1
50%
16
10
X
10
100
$135
$2,160
$1.35
1,600
8
50%
6
10
X
15
150
$165
$990
$1.10
900
6
100%
1
10
X
25
250
$210
$210
$0.84
250
1
100%
6
12
X
11
132
$60
$360
$0.45
792
6
100%
X
0
$0
#DIV/0!
0
#DIV/0!
X
0
$0
#DIV/0!
0
#DIV/0!
X
0
$0
#DIV/0!
0
#DIV/0!
538
62,322
$78,460
Other Income
$1,000
Ancillary Income
$1,000
Outside Parking
$500
Facility Total Monthly / Average
$80,960
Total Annual Scheduled Income
$971,520
Total # Storage Units:
538
Average Unit Size:
473
Average Rent per Sq Ft:
$1.26
Total Net Rentable Sq Ft:
62,322
% Vacant Units
24.35%
Economic Vacancy
23.09%
Economic Occupancy
76.91%
131
Subject Property
Sales Comp #1
Sales Comp #2
Sales Comp #3
Situs Address
12345 Freeway Highway
100 "A" Street
200 "B" Street
300 "C" Street
City, State, Zip
Los Angeles, CA. 90066
Los Angeles, CA. 90066
Los Angeles, CA. 90066
Los Angeles, CA. 90066
Project Name
Freeway Visability Self Storage DEMO
Superior Self Storage
ABC Self Storage Facility
U Stor It Self Storage
$5,000,000
$5,250,000
$5,500,000
$5,000,000
07/01/09
06/01/09
05/01/09
Sales Price
Sale Date
538
565
600
550
64,929
66,500
70,000
65,000
Bldg Sq Ft (NRA)
62,322
65,500
68,500
64,000
Cost per Sq Ft
$77.01
$78.95
$78.57
$76.92
Actual Occupancy
75.00%
70.00%
65.00%
75.00%
Market Occ
Occupancy
panc
80
00%
80.00%
75
00%
75.00%
70
00%
70.00%
80
00%
80.00%
Actual Cap Rate
9.12%
9.00%
9.50%
9.00%
# Storage Units
Bldg Sq Ft (GBA)
Market Cap Rate
Lot Size
Year Built
10.09%
10.00%
10.50%
10.00%
2.25 Acres
2.35 Acres
2.50 Acres
3.25 Acres
1988
1990
1995
2000
2
2
1 Story
2 Story
Climate Controlled
Yes
Yes
Yes
Yes
Video Surveillance
Yes
Yes
Yes
Yes
Security Gate
Yes
Yes
Yes
Yes
Yes (Freeway Visability)
Yes (Commercial Frontage)
Yes (Commercial Frontage)
Yes (Freeway Visability)
Yes (Signalized Commercial Frontage)
Yes (Commercial Frontage)
Yes (Commercial Frontage)
Yes (Signalized Commercial Frontage)
Yes, on premises
Yes, on premises
Yes, on premises
Yes, on premises
Comments
Stable operating history
Stable operating history
Stable operating history
Stable operating history
Comments
Strong economic performance
Average economic performance
Average economic performance
Strong economic performance
# of Stories
Freeway Visability
Signage
Management Office
Comments / Amenities:
Subject Property
The subject property has good unit mix with average unit size of 115 Sq Ft and very stron occupancy due to freeway visability and commercial frontage.
Comparable #1
Average unit size 115 Sq Ft. Location and signage is inferior to subject property.
Comparable #2
Average unit size 114 Sq Ft. Location and signage is inferior to subject property.
Comparable #3
Average unit size 116 Sq Ft. Location and signage is simular to subject property.
Financing Options Addendum
www.WilshireLenders.com
www.WebVest.info
Prepared for:
RE:
Freeway Visability Self Storage DEMO
Date:
6/1/2007
12345 Freeway Highway
Lee O'Donnell, Senior Underwriter
Wilshire Finance Partners
(866) 575-5070 Toll Free
(310) 736-1370 Local
(310) 362-8989 Fax
[email protected]
Los Angeles, CA. 90066
CURRENT / MARKET RENTS
Current Rents
Current Rents
Current Rents
Current Rents
Current Rents
LOAN PROGRAM OPTIONS
ARM- 12 MAT
3-Year Fixed / ARM
5-Year Fixed / Balloon
7-Year Fixed / Balloon
10-Year Fixed / Balloon
PURCHASE PRICE / VALUE
$5,000,000
$5,000,000
$5,000,000
$5,000,000
$5,000,000
LOAN AMOUNT
$3,500,000
$3,500,000
$3,500,000
$3,500,000
$3,500,000
70.00%
70.00%
70.00%
70.00%
70.00%
LOAN TO VALUE (Guidelines)
70%
70%
70%
70%
70%
DEBT COVERAGE RATIO
1.35
1.35
1.35
1.35
1.35
CURRENT INTEREST RATE
5.250%
7.250%
7.500%
7.875%
8.000%
VARIABLE RATE MARGIN
2.55%
2.65%
0.00%
0.00%
0.00%
10.700%
11.250%
0.000%
0.000%
0.000%
30/30
30/30
30/5
30/7
30/10
30
30
30
30
30
$19,327
$23,876
$24,473
$25,377
$25,682
RECOURSE
Negotiable
Negotiable
Negotiable
Negotiable
Negotiable
IMPOUNDS
Taxes & Insurance
Taxes & Insurance
Taxes & Insurance
Taxes & Insurance
Taxes & Insurance
1.25, 1.25, 1.25
1.25, 1.25, 1.25
Yield Maintenance
Yield Maintenance
Yield Maintenance
1.00%
1.00%
1.00%
1.00%
1.00%
LOAN TO VALUE (DCR)
CEILING (First Adjustment)
LOAN TERM
AMORTIZATION IN YEARS
MONTHLY PAYMENT
PRE-PAYMENT
LOAN FEE
Current financing options from preliminary underwriitng as of above date. Please call for current update. To complete a preliminary submission
(underwriitng pre-qual), please provide the following documentation: Current Rent Roll, 2007-2008 and 2009-YTD Income & Expense (operating history),
current Financial Statement or 1003 loan application for the borrowing entity and all applicable individuals, copy of schedule of real estate owned with
resume and or profile of property management experience and current credit report if available.
Rates & Terms are subject to change without notice with market conditions.