real estate sample presentation

SummarySummaryThis XXX unit self-storage complex sits on approximately XX acres in a business park in the growing community of Rio Rancho, New Mexico. The facility, built in 19XX, offers a large two bedroom manager’s living quarters, 24 hour secure gate access, paved site, with masonry walls, and chain link fence. A free truck is offered for move-in’s.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify information and bears all risk for any inaccuracies. Copyright © 2014 Mercadyne Investments LLC

Mercadyne Investments LLC515 116th AVE NE Suite 255 Bellevue WA 98004Tel: 206.552.0978 Fax: 1.877.592.3410www.mercadyne.com

Property HighlightsProperty Highlights

Location: Rio Rancho, New MexicoTotal Square Feet: 42,795 Sq. Ft.Unit Occupancy: 94%Financial Occupancy: 81.6%Number of Buildings: 10Exterior Construction: Masonry Interior Construction: Metal Foundation: ConcretePaving: GabelTraffic Exposure: Business ParkSecurity: Falcon Controlled Access GateManager’s Office/Residence: Yes

Location: Rio Rancho, New MexicoTotal Square Feet: 42,795 Sq. Ft.Unit Occupancy: 94%Financial Occupancy: 81.6%Number of Buildings: 10Exterior Construction: Masonry Interior Construction: Metal Foundation: ConcretePaving: GabelTraffic Exposure: Business ParkSecurity: Falcon Controlled Access GateManager’s Office/Residence: Yes

Self Storage Rio Rancho, New Mexico

Investment HighlightsInvestment Highlights

Asking Price*: $X,XXX,000 Est. Purchase Price:

$X,XXX,000 Down Payment: $XXX,750

(25%) Loan Amount: $X,XXX,250 Interest: 4.867% Amortization: 25 Years Price/Square Feet: $39.14 Price/Unit: $5602.01 Pro Forma Cap Rate**: X.XX

% Cash-on-Cash Return:

36.30% ROI (15 Years): 1074.89% Annualized ROI: 17.13% Leveraged IRR: 29.12%

Asking Price*: $X,XXX,000 Est. Purchase Price:

$X,XXX,000 Down Payment: $XXX,750

(25%) Loan Amount: $X,XXX,250 Interest: 4.867% Amortization: 25 Years Price/Square Feet: $39.14 Price/Unit: $5602.01 Pro Forma Cap Rate**: X.XX

% Cash-on-Cash Return:

36.30% ROI (15 Years): 1074.89% Annualized ROI: 17.13% Leveraged IRR: 29.12%

*From Loopnet.com**Based upon Est. Purchase Price

http://www.mercadyne.com/



Demographic FactsDemographic Facts

Rio Rancho, New Mexico, “City of Vision”, is one of the fastest growing communities with the Albuquerque metro area, and in the nation. Rio Rancho is building a national reputation based on its commitment to sustainable economic development; technology based employment; affordable housing; a premier public education system; and its ongoing support for quality-of-life initiatives. Relocating retirees, and others seeking quality of life and opportunity have transformed this once bedroom community into the fourth largest city in New Mexico growing at a pace of 20% year to year. Current population as of 2012 is 90,818. Rio Rancho is home to several high tech firms such as Intel Corporation, Letrosonics, and Xynatech and recently has diversified with the addition of several motion picture firms, including the New Lionsgate Entertainment Studio & Campus on 52 acres, insuring that Rio Rancho becomes the new motion picture production mecca for the intermountain west.

The City of Rio RanchoThe City of Rio Rancho

Population: 90,818 (2012) – 80% rise from 2000Median Age: 35 years oldMedian Income for individual: $47,169Median Income for household: $52,233Unemployment: 7.3% (Aug 2013)Travel Time: •20 minutes to Journal Center Business District•25 minutes to downtown Albuquerque•30 minutes to uptown financial/retail district•30 minutes to Albuquerque International Airport•45 minutes to Santa Fe

Rio Rancho PopulationRio Rancho Population





2013 Operating Summary 2013 Operating Summary Potential Increase Rental IncomePotential Increase Rental Income

Current Unit Mix And Rent ScheduleCurrent Unit Mix And Rent Schedule

RV & Boat RV & Boat

Mix Unit Income PercentagesMix Unit Income Percentages





Vacancy RatesVacancy Rates





Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Totals

Income $266,650 $274,650 $282,889 $291,376 $300,117 $309,121 $318,395 $327,946 $337,785 $347,918 $358,356 $369,106 $380,180 $391,585 $403,333 $4,959,407

Expenses

Accounting $7,632 $7,822 $8,018 $8,218 $8,424 $8,634 $8,850 $9,072 $9,298 $9,531 $9,769 $10,013 $10,264 $10,520 $10,783 $136,849 On Site Automated Management

$20,500 $21,013 $21,538 $22,076 $22,628 $23,194 $23,774 $24,368 $24,977 $25,602 $26,242 $26,898 $27,570 $28,259 $28,966 $367,604

Off Site Management $13,333 $13,732 $14,144 $14,569 $15,006 $15,456 $15,920 $16,397 $16,889 $17,396 $17,918 $18,455 $19,009 $19,579 $20,167 $247,970 Advertising & Promotion $5,683 $5,825 $5,971 $6,120 $6,273 $6,430 $6,590 $6,755 $6,924 $7,097 $7,275 $7,456 $7,643 $7,834 $8,030 $101,905 Bank Charges $258 $265 $271 $278 $285 $292 $300 $307 $315 $323 $331 $339 $347 $356 $365 $4,632 Computer & Internet $588 $602 $617 $633 $649 $665 $681 $698 $716 $734 $752 $771 $790 $810 $830 $10,536 Credit Card Fees $5,159 $5,288 $5,420 $5,556 $5,695 $5,837 $5,983 $6,132 $6,286 $6,443 $6,604 $6,769 $6,938 $7,112 $7,290 $92,510 Insurance $4,217 $4,322 $4,430 $4,541 $4,655 $4,771 $4,890 $5,013 $5,138 $5,266 $5,398 $5,533 $5,671 $5,813 $5,958 $75,616 License & Fee $415 $425 $436 $447 $458 $469 $481 $493 $505 $518 $531 $544 $558 $572 $586 $7,437 Wages, Taxes and Benefits

$10,024 $10,275 $10,532 $10,795 $11,065 $11,342 $11,625 $11,916 $12,214 $12,519 $12,832 $13,153 $13,482 $13,819 $14,164 $179,759

Total Expenses $67,808 $69,570 $71,378 $73,233 $75,137 $77,090 $79,095 $81,151 $83,262 $85,428 $87,651 $89,932 $92,272 $94,674 $97,139 $1,224,819

Net Operating Income $198,842 $205,080 $211,512 $218,143 $224,981 $232,031 $239,300 $246,795 $254,522 $262,490 $270,705 $279,175 $287,907 $296,911 $306,194 $3,734,588

Debt Service $93,453 $93,453 $93,453 $93,453 $93,453 $93,453 $93,453 $93,453 $93,453 $93,453 $93,453 $93,453 $93,453 $93,453 $93,453 $1,401,788

Net Cash Flow Before Tax After Debt Service

$105,390 $111,628 $118,059 $124,691 $131,528 $138,578 $145,847 $153,342 $161,070 $169,038 $177,252 $185,722 $194,455 $203,458 $212,741 $2,332,800

Cash-on-Cash Return 24.80% 26.27% 27.79% 29.35% 30.96% 32.62% 34.33% 36.09% 37.91% 39.79% 41.72% 43.71% 45.77% 47.89% 50.07% 36.60%

15-Year Pro Forma Financial Projection (2014 – 2028)15-Year Pro Forma Financial Projection (2014 – 2028)

36.60%




Return EnhancementReturn Enhancement

Financing TermsFinancing Terms End of 15 YearsEnd of 15 Years Return Ratios Return Ratios




Year 1: 2014Year 1: 2014

Year 7: 2020 Year 7: 2020

Year 4: 2017Year 4: 2017• Asset Value: $X,X10,454• Loan Balance: $1,142,480• Equity Value: $767,974• Equity Available for

Distribution: $575,980

• Asset Value: $X,X10,454• Loan Balance: $1,142,480• Equity Value: $767,974• Equity Available for

Distribution: $575,980

Equity Available For DistributionEquity Available For Distribution

Assumptions:•Asset Value Growth: 1.5% Annually•Re-Financing: 75% LTV


• Asset Value: $X,997,721

• Loan Balance: $X,041,411

• Equity Value: $956,310

• Equity Available for Distribution: $717,232

• Asset Value: $X,997,721

• Loan Balance: $X,041,411

• Equity Value: $956,310

• Equity Available for Distribution: $717,232

• Initial Investment: $700,000

• Asset Value: $X,X00,000

• Loan Amount: $X,X56,250

• Amortization: 25 years

• Initial Investment: $700,000

• Asset Value: $X,X00,000

• Loan Amount: $X,X56,250

• Amortization: 25 years



Sale Comparables Sale Comparables

Juan Tabo Self Storage1777 Juan Tabo Blvd NEAlbuquerque, NM

Asking Price $1,900,000 Rentable SF 28,516Price/SF $66.63 NOI $171,000 Cap Rate 9.00%Built Year 1977

Subject Self Storage Rio Ranch, NM

Asking Price $X,X00,000 Rentable SF 42,795Price/SF $42.06 NOI $162,698 Cap Rate X.71%Built Year 1995

Aardvark Self Storage4036 Cerrillos RdSanta Fe, NM

Asking Price $1,075,000

Rentable SF 32,032

Price/SF $33.56

NOI $99,975

Cap Rate 9.30%

Built Year 1980

North Coors Self Storage615b Coors Blvd. NW Albuquerque, NM 87121

Offering Price $1,800,000

Rentable SF 24,960

Price/SF $72.12

NOI $155,220

Cap Rate 8.24%

Built Year 2007




Comparables GeographyComparables Geography

Price/Square Feet

Cap Rates

Comparables AnalysisComparables Analysis




World Wide WebWorld Wide Web

Call Center•Provide clients reliable support 24/7•Answer questions, adjust client account, enter payments, and make reservations

Call Center•Provide clients reliable support 24/7•Answer questions, adjust client account, enter payments, and make reservations

Clients•Make reservations on line•Create new accounts online•Make online payments •View payment histories •Change contact profiles•Set up automatic billing •Email site managers

Clients•Make reservations on line•Create new accounts online•Make online payments •View payment histories •Change contact profiles•Set up automatic billing •Email site managers

Automated Management SystemAutomated Management System

Central Management•Instant access to data, transaction, rate structure from anywhere•View all activities in real time from anywhere•Automatically create letters and reports for managers, clients, accountants and investors.

Central Management•Instant access to data, transaction, rate structure from anywhere•View all activities in real time from anywhere•Automatically create letters and reports for managers, clients, accountants and investors.

• Reduce Operating Costs

• Optimize Management Efficiency • Minimize Human Resource Participation

• Increase NOI and Cash Flow

• Increase ROE, IRR and Cash-On-Cash Return,

• Enhance Asset Value and Shareholder Value


Rapid Growing Business with Underlying Asset Value That Are Highly Susceptible to Automation, To Reduce Operating Costs

Extremely Capable and Forward Thinking Management Team

Asset Acquisition That Provides Immediate Cash Flow And Recurring Revenue

Replicable Strategy to Build Significant Portfolio of Assets



Purchase Undervalued Self-Storage Business Where Management Participation Can Materially Improve Operating Results

Reasons To InvestReasons To Invest


real estate sample presentation

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