EXCLUSIVE SELF STORAGE OFFERING

Transcription

1 ECLUSIVE SELF STORAGE OFFERING Freeway Visability Self Storage Los Angeles, CA. 966 Asking Price $5,, 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 >> Presented by David Condon of NAI Capital

2 Offering Highlights / Property Description NAI is pleased to offer for sale Freeway Highway Self Storage, located at 345 Freeway Highway in Los Angeles, California. The Class A self storage facility consists of four masonry block buildings containing approximately 6,53 total rentable square feet of which 7% of those units are climate controlled. The property also includes an additional, square feet of exterior RV storage for a total of 6,98 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 5 and is situated on approximately.5 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 4 hour multicamera surveillance, individual unit alarms and perimeter motion detectors. The property is currently in lease up phase with 7% physical occupancy based on total square footage, and 7% 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 6,98. There are an additional RV spaces consisting of, square feet, which brings the total net rentable square footage to 6,98. The two largest buildings run parallel to the Arden Garden Connector. Building (A) is one story and contains approximately,363 gross square feet including the apartment and office consisting of approximately,557 square feet. Building (B) is also a climate controlled two story building containing approximately 39, gross square feet. The two story buildings each have one elevator. Building (C) is a climate controlled two story structure and contains approximately 3,97square feet. Building (D) is one story and contains approximately 4,98 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.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. 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, vehicles. Signage: Good signage with freeway visability provides good marketing exposure. ZONING: The property is zoned C (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 R and R zoning.

3 SELF STORAGE INVESTMENT SUMMARY Project Name: Freeway Visability Self Storage DEMO Property Address 345 Freeway Highway Total Building Sq Ft $64,99 City, State, Zip Code Los Angeles, CA. 966 Cost / Sq Ft $77 Cap Rate 9.% Proposed Sales Price $5,, Market Cap Rate.9% Proposed Financing (ST TD) $3,5, 7.% % Occupancy (Current Rents) 75.% Secondary Financing % Occupancy (Stabilized Rents) 8.% Total Financing $3,5, 7.% Land Area.5 Acres Cash Down Payment $,5, 3.% Average Rent per Sq Ft $.6 PROPERTY FEATURES # of Storage Units 538 # of Stories Net Rentable Area 6,3 # of Buildings 5 Gross Building Area 64,99 Elevator Served No Year Built 988 Video Surveillance Climate Control RV, Boat or Car Storage Avg Unit Size (Sq Ft) 473 Security Gate Good signage & freeway visability Easy access (Ingress & Egress) Heavy Daily Traffic Count (44,) Automated Entrance Gate CASH FLOW ANALYSIS Current Occupancy Stabilized Occupancy Occupancy: 75.% 8.% Total Monthly Income Storage Units $78,46 $78,46 Other Income $, $, Ancillary Income $, $, Outside Parking $5 $5 Total Monthly Income $8,96 $8,96 Total Annual Scheduled In $97,5 $97,5 Vacancy ($4,88) 5% ($94,34) % Gross Operating Income $78,64 $777,6 Less Expenses ($69,334) 36.96% ($69,334) 34.65% Net Operating Income (NOI) $459,36 $54,65 Debt Service st TD 7.5% ($86,54) ($86,54) (3 Year Amortization) Debt Service nd TD (Interest Only) Total Debt Service ($86,54) ($86,54) Cash Flow $7,79 $8, % Cash on Cash Return (ROE).3% 4.54% Principal Reduction $3,764 $3,764 Depreciation $,

4 STABILIZED OPERATING EPENSES % Expenses Expenses Per Sq Ft Real Estate Taxes $6, 7.86% $.94 Other Taxes & Assessments $5,.64% $.8 Business License $,5.9% $. Insurance $8,8 3.7% $.44 Trash $3,5.45% $.5 Utilities (Combined) $7,5.96% $. Maintenance & Repairs $5, 3.% $.39 Elevator Maintenance $7,.93% $. Operating Supplies $5,.64% $.8 Payroll (Janitorial, Salaries) $36, 4.63% $.55 Gardening / Landscaping $3,6.46% $.6 Property Management $35, 4.5% $.54 General & Administrative $,68.63% $. Advertising & Marketing $5,.64% $.8 Contract Services $3,6.46% $.6 Miscellaneous expenses $7,4.9% $. Replacement Reserves $,78.79% $.33 Total Operating Expenses $69, % $4.5

5 ADDITIONAL PHOTOS

6 AERIAL PHOTOS

7 MAP LOCATION

8 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 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:

9 SELF STORAGE RENT ROLL SUMMARY Project Name: Freeway Visability Self Storage DEMO 345 Freeway Highway Los Angeles, CA. 966 L.A. County ADDRESS # UNITS DIMENSION'S SIZE RENT TOTAL RENT / SF NRA VACANT % Vechicle 6 UNITS VACANCY $65 $ $5 $5 $85 $ $ $6 $9 $34 $8 $3 $3 $35 $65 $ $6 $4,5 $,6 $8,875 $6,5 $8,4 $4,6 $,8 $3,9 $,45 $7,8 $3,6 $,76 $46 $,6 $99 $ $36 $ $ $ $.6 $. $.67 $.5 $.3 $. $.8 $.87 $.97 $.94 $.9 $.77 $.77 $.35 $. $.84 $.45,65 5,8 5,35,7 6,6 4,6,5 4,5,5 8,8 3,4 3,6 6, % 6% % 47% 9% 9% % 3% % 9% % 8% 5% 5% % % % Total: 538 6,3 3 Total Monthly Storage Units Income Other Income Ancillary Income Outside Parking Facility Total Monthly / Average Total Annual Scheduled Income $78,46 $, $, $5 $8,96 $97,5 Total # Storage Units: 538 Average Unit Size: 473 Average Rent per Sq Ft: $.6 Total Net Rentable Sq Ft: 6,3 % Vacant Units Economic Vacancy 4.35% 3.9% Economic Occupancy 76.9%

10 Situs Address City, State, Zip Subject Property Sales Comp # Sales Comp # Sales Comp #3 345 Freeway Highway "A" Street "B" Street 3 "C" Street Los Angeles, CA. 966 Los Angeles, CA. 966 Los Angeles, CA. 966 Los Angeles, CA. 966 Project Name Sales Price Sale Date # Storage Units Bldg Sq Ft (GBA) Bldg Sq Ft (NRA) Cost per Sq Ft Actual Occupancy Market Occupancy Actual Cap Rate Market Cap Rate Lot Size Year Built # of Stories Video Surveillance Security Gate Freeway Visability Signage Management Office Comments Comments Subject Property Comparable # Comparable # Comparable #3 Freeway Visability Self Storage DEMO Superior Self Storage ABC Self Storage Facility U Stor It Self Storage $5,, $5,5, $5,5, $5,, 7//9 6//9 5// ,99 66,5 7, 65, 6,3 65,5 68,5 64, $ % $ % $ % $ % 8.% % 75.% 7.% % 8.% % 9.% 9.% 9.5% 9.%.9%.%.5%.%.5 Acres.35 Acres.5 Acres 3.5 Acres Story Story (Freeway Visability) (Commercial Frontage) (Commercial Frontage) (Freeway Visability) (Signalized Commercial Frontage) (Commercial Frontage) (Commercial Frontage) (Signalized Commercial Frontage), on premises, on premises, on premises, on premises Stable operating history Stable operating history Stable operating history Stable operating history Strong economic performance Average economic performance Average economic performance Strong economic performance Comments / Amenities: The subject property has good unit mix with average unit size of 5 Sq Ft and very stron occupancy due to freeway visability and commercial frontage. Average unit size 5 Sq Ft. Location and signage is inferior to subject property. Average unit size 4 Sq Ft. Location and signage is inferior to subject property. Average unit size 6 Sq Ft. Location and signage is simular to subject property.

11 Prepared for: Financing Options Addendum Lee O'Donnell, Senior Underwriter Wilshire Finance Partners (866) Toll Free (3) Local (3) Fax RE: Freeway Visability Self Storage DEMO 345 Freeway Highway Los Angeles, CA. 966 Date: 6//7 CURRENT / MARKET RENTS Current Rents Current Rents Current Rents Current Rents Current Rents LOAN PROGRAM OPTIONS ARM- MAT 3-Year Fixed / ARM 5-Year Fixed / Balloon 7-Year Fixed / Balloon -Year Fixed / Balloon PURCHASE PRICE / VALUE $5,, $5,, $5,, $5,, $5,, LOAN AMOUNT $3,5, $3,5, $3,5, $3,5, $3,5, LOAN TO VALUE (DCR) 7.% 7.% 7.% 7.% 7.% LOAN TO VALUE (Guidelines) 7% 7% 7% 7% 7% DEBT COVERAGE RATIO CURRENT INTEREST RATE 5.5% 7.5% 7.5% 7.875% 8.% VARIABLE RATE MARGIN.55%.65%.%.%.% CEILING (First Adjustment).7%.5%.%.%.% LOAN TERM 3/3 3/3 3/5 3/7 3/ AMORTIZATION IN YEARS MONTHLY PAYMENT $9,37 $3,876 $4,473 $5,377 $5,68 RECOURSE Negotiable Negotiable Negotiable Negotiable Negotiable IMPOUNDS Taxes & Insurance Taxes & Insurance Taxes & Insurance Taxes & Insurance Taxes & Insurance PRE-PAYMENT.5,.5,.5.5,.5,.5 Yield Maintenance Yield Maintenance Yield Maintenance 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, 7-8 and 9-YTD Income & Expense (operating history), current Financial Statement or 3 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.