self storage easy storage · 2020. 12. 31. · mr. van heuvel and mr. rhea are licensed in oregon...

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INVESTMENT OPPORTUNITY

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Easy Storage Woodburn, Oregon

• 79,913 NRA • 647 Units • 84% Occupancy • Revenue $793k* • NOI $591k* (Storage Operations) • PLUS .75+/- Acre Single

Family Residence for possible expansion

• 4.91 Acres, Total • U.S. Hwy 99 Frontage • Growing, Thriving Community • No on-site manager residence • Includes 92 Modular units, 13,120 NRA

* Revenues and Earnings based upon trailing 12 expenses and the assumption that current tenants are, or will be, paying the facility’s standard rates.

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Disclaimer | Confidentiality J. Dwaine Rhea, Principal Broker | Oregon, Managing Broker | Washington CENTURY 21 COMMERCIAL Cascade. Mark Van Heuvel, Principal Broker, Laren Group LLC. Independent Professional Representation: Company cannot and does not offer Buyer or Seller legal, tax, accounting, appraisal, survey, zoning, or regulatory advice in the sales, acquisition, or merger process. Buyer and Seller are advised to seek independent professional advisors that are familiar with Buyer’s or Seller’s particular factual situation, for all aspects of this transaction before exe-cuting agreements/documents, or making any investment decision. Buyer and Seller are always encouraged and are free to use/retain the service of any Independent Professional of their choice. Confidentiality: The material contained in this document is furnished solely for the purpose of considering the listing of the subject property and is not to be used for any other purpose. Recipient agrees not, under any circumstances, be photocopied or disclosed to any third party without the written consent of Firm or Broker, or used for any purpose whatsoever other than to evaluate the possible sale of the Property. If the Recipi-ent / person receiving these materials does not choose to pursue a sale of the Property, this document and its accompanying materials must be immediately returned to Broker. Approach: In determining the recommended listing price for the Self-storage Facility and included business entity we largely rely upon the income method after reviewing financial and management reports provided by the principals. We may take prior sales and comparable properties into consideration if there are similar Self-storage properties within an appropriate distance and window of time. Additionally, we may compare the financial performance of the company to typical industry performance, including an assumption of fees associated with the use of a third party management company. Our opinion is calculated by applying a Capitaliza-tion (CAP) rate to the adjusted Net Operating Income of the business. The determination of the CAP rate is guided by several elements, some of which are demonstrated herein. Broker has relied upon information provided by the Property Owner (“Owner”) in arriving at Broker’s Price Opinion. This document may include certain statements and estimates by Broker with respect to the projected future performance of the Property. These Assumptions may or may not be proven to be correct, and there can be no assurance that such estimates will be achieved. Firm or Broker make no representation or warranty, express or implied, as to the accura-cy or completeness of the information contained herein. Disclaimer: Broker may (a) provide sources of assistance, refer professionals or provide links to services offered by companies that may be of assistance to the parties. (b) provide generic and general information on selling, buying, or merging, a business, sample forms or contract language, model financial statements, checklists, or other documentation and information. (c) provide information provided by Title Companies, counties, cities, and other reporting companies. All information is provided “As Is”, any such information or any referral shall not in any manner be construed as an endorsement by Broker/Firm of that individual, website, or of the products or services. Broker makes no representation or warranty as to the accuracy, value, integrity, completeness, or authenticity of the information or opinions of other individuals, companies or linked web sites, and with respect to the information contained or provided and takes no responsibility for investigating, verifying, supplementing, updating, or correcting such information. Broker and Firm disclaim any and all liability for representations or warranties, expressed or implied, contained in or omitted from this document, or any other written or oral communication transmitted or made availa-ble to the recipient. The information contained herein is subject to change without notice and the recipient of these materials shall not look to Firm or Broker, nor any of their officers, employees, representatives, inde-pendent contractors or affiliates, for the accuracy or completeness thereof. Maps may be copied from the public records and provided solely for the purpose of assisting in locating the premises. Firm and Broker assumes no liability for variations, if any, in dimensions, area, description, or loca-tion of the property, or the location of improvements ascertained by actual survey. Annotations are for illustration purposes only, and may not be relied upon. Sellers and Buyers are advised to obtain independent survey and professional advice. Seller and Prospective purchasers should investigate the availability and location of utilities. development and zoning restrictions and feasibility to for any development plan prior to investing. Brokerage Fees anticipated for the service of Listing / Selling Property do not include Compensation for Testimony, or support consulting or valuation results in court or in an arbitration proceeding. Firm / Broker shall be under no obligation to provide such testimony or support and Recipient may not use this document in connection with any legal proceeding. If Firm / Broker is compelled to testify by subpoena or court order related to this BPO/Letter of Opinion, Use of this document implies Recipient’s agreement to pay Firm/Broker liquidated damages in the amount of five thousand dollars per day of part thereof, plus business class airfare and reasonable accommodations such as lodging and transportation. Under NO circumstances will Firm/Broker be required to release ANY proprietary information such as specific valuation methodologies, supporting data, market comparables or other Seller’s information. If Firm/Broker is compelled by subpoena or court order to produce documents, you may or may not be notified in advance of such production of documents for an opportunity to quash such subpoena.

Storage Brokers NW is an Alliance of independently licensed professionals Mr. Van Heuvel and Mr. Rhea are Licensed in Oregon

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EXPANSION AREA +/- .75 ACRE Included in sale

Family Home: The Northeast corner of the property is occupied by the family farm-house. The family matriarch still resides in the home. The house and .75+/- acre on which it sets are part of the Parcel and is included in the sale. The matriarch must, however, be allowed to remain in the home.

The home has significant frontage on US-99 and could possibly be redeveloped in the future. Zoned CG-LU.

The P&L on page 11 does not include any income, nor assume any value to the home. When developed as Self Storage the parcel could potentially add another $100k in revenue, or in the short term, be rented when vacated.

Note: There is one water and sewer system for the property, used for both the facility and the home. We are told that the logistics for partitioning of this parcel would be complicated.

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Easy Storage, Woodburn

Easy Storage is located on Hwy 99, a heavily traveled arterial road, just miles from Interstate 5. Competitors are indicated by flag markers.

Easy Storage

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Woodburn, Oregon

Woodburn is a culturally diverse community located in the heart of the Willamette Valley. It hosts Oregon's #1 retail tourism destination, Woodburn Premium Outlet Mall and additionally, numerous events and activities, includ-ing the Wooden Shoe Tulip Festival, Taste of Woodburn, Fiesta Mexicana and many, many more.

Population 41,512, (5 mile) Median Household Income $53,593 Average age 32.8 Largest Age Segment 25-34 (14.4%) Daily Traffic at Facility 14,800

https://youtu.be/ZeFf198S0mg

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Woodburn Premium Outlets is the top destination for tax-free outlet shopping in Oregon, featuring 110 stores including Adidas, Coach, Columbia Sportswear, Michael Kors, Nike, The North Face and more. It is an economic engine for Woodburn, providing employment, shopping and dining. Source: www.premiumoutlets.com/outlet/woodburn

Woodburn Amenities Woodburn Premium Outlet Mall

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Woodburn Housing Tukwila Neighborhood Oregon Golf Association

Woodburn is enjoying growth in housing with a great livability index and housing to meet every need. Tukwila is one of two Golf Course Communities; home to the Oregon Golf Association. The word “Tukwila” is the Chinook name for Filbert, Hazelnut, as it is known now, the official Oregon State Nut.

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Current Inventory • 79,913 NRA • 647 Units • Includes 92 Modular

units, 13,120 NRA • Office • No Manager’s Apt.

*Storage Operations does not account for the value of the .75+/- acre Homestead. T12, 10/31/20. Occupancy 11/30/2020. Modular units highlighted in beige . RV Parking highlighted in Blue.

Mark J. Van Heuvel

Direct - 503.897.0740 Principal Broker, Laren Group LLC Licensed in Oregon [email protected] 32549 Arbor Lake Drive Wilsonville, OR 97070

J. Dwaine Rhea

Direct - 503.636.1234 Managing Broker, Washington Principal Broker, Oregon Century 21 Commercial, Cascade [email protected] 12901 SE 97th Ave. Clackamas, OR 97015

Easy Storage Woodburn, Oregon Unit Size Units Occupied

Standard Rate PSF

Current Rev. Annualized,

T12 Expenses

Currently Occupied Potential*

5 x 5 38 33 $49 1.96 $1,486 $19,404

5 x 7 16 15 $55 1.57 $751 $9,900

5 x 8 1 1 $60 1.50 $55 $720

5 x 10 82 72 $75 1.50 $4,417 $64,800

6 x 10 63 44 $79 1.32 $2,976 $41,712

7 x 10 24 20 $81 1.16 $1,488 $19,440

8 x 10 19 16 $90 1.13 $1,335 $17,280

8 x 10 20 16 $90 1.13 $1,335 $17,280

8 x 20 72 38 $150 0.94 $5,212 $68,400

9 x 10 1 1 $100 1.11 $91 $1,200

10 x 5 8 6 $77 1.54 $404 $5,544

10 x 10 121 112 $110 1.10 $10,629 $147,840

10 x 15 67 59 $139 0.93 $7,567 $98,412

10 x 17 9 9 $155 0.91 $1,311 $16,740

10 x 20 18 17 $180 0.90 $2,844 $36,720

10 x 25 9 9 $200 0.80 $1,645 $21,600

10 x 15 1 1 $139 0.93 $110 $1,668

10 x 15 1 1 $139 0.93 $110 $1,668

11 x 25 1 1 $205 0.75 $185 $2,460

12 x 10 9 7 $125 1.04 $827 $10,500

12 x 15 5 5 $165 0.92 $765 $9,900

12 x 20 14 14 $195 0.81 $2,504 $32,760

12 x 25 7 6 $220 0.73 $1,210 $15,840

12 x 27 2 2 $225 0.69 $424 $5,400

12 x 30 22 21 $250 0.69 $4,656 $63,000

12 x 35 4 4 $290 0.69 $1,081 $13,920

12 x 40 10 10 $330 0.69 $3,037 $39,600

12 x 30 3 3 $250 0.69 $169 $9,000

Sub Total 647 543 $703,471 $792,708

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in Self Storage

Mark J. Van Heuvel


J. Dwaine Rhea


* “Currently Occupied @ Standard Rate” is based upon trailing 12 ex-penses and the assumption that current tenants are, or will be, paying the facility’s standard rates. Forward looking assumptions are for discussion purposes only and are not a guarantee of future performance. Investors must conduct their own due diligence. Buyer to verify zoning and suitability for future development.


FINANCIAL

Current Rev. Annualized,

T12 Expenses %

Currently Occupied

@ Standard Rate* % Full Potential

REVENUE $703,471 $792,708 $933,840

EXPENSES

Advertising $3,355 0% $3,355 0% $3,355

Bank Service Charges $37 0% $37 0% $37

Credit Card Processing Fees $22,203 3% $22,203 3% $22,203

Dues & Subscriptions $1,137 0% $1,137 0% $1,137

Total Payroll $61,713 9% $61,713 8% $61,713

Workers Comp. Ins. $288 0% $288 0% $288

Foreclosure $124 0% $124 0% $124

Inventory Supplies $1,435 0% $1,435 0% $1,435

License & Permits $100 0% $100 0% $100

Office Supplies $2,639 0% $2,639 0% $2,639

Postage & Delivery $599 0% $599 0% $599

Utilities $7,172 1% $7,172 1% $7,172

Professional Fees $775 0% $775 0% $775

Computer & Software $1,756 0% $1,756 0% $1,756

Telephone $3,734 1% $3,734 0% $3,734

Travel & Entertainment $15 0% $15 0% $15

Maintenance & Repair $10,378 1% $10,378 1% $10,378

Property Insurance (Intercompany) $5,878 1% $5,878 1% $5,878

Property Taxes (intercompany) $38,632 5% $38,632 5% $38,632

Property Management, Optional $35,174 5% $39,635 5% $46,692

EXCLUDED, Lease to Parent $561,000 80% $561,000 71% $561,000

EXCLUDED, Payment to Stockholder $12,000 2% $12,000 2% $12,000

Total Expenses $197,143 28% $201,605 25% $208,661

Net Operating Income $506,328.31 72% $591,103.38 75% $725,178.78

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Mark J. Van Heuvel


J. Dwaine Rhea


Easy Storage

Offering Price $10,000,000 (including .75+/- acre expansion)

Summary

NOI Storage Operations (as operated w/o Property Management) $631k*

Allowance for 3rd Party Property Management $40k

Portion of Offering Price Attributed to Storage Operations $9.4m

Allocation of value to Homestead .75+/- Acre $600k

Total Offering Price $10.0m

Capitalization Rate based upon storage operations (as operated) 6.61%

Capitalization Rate based upon storage operations (w/ Property Mgt.) 6.29%

The Property’s value includes both the Storage Operation and the Homestead detailed earlier, and is offered at $10.0m for the facility including the homestead. The facility is currently operated without a 3rd party property manager. The redevelopment of the .75+/- acre homestead could potentially add another $100k in revenue, or in the short term, be rented when vacated. * Revenues and Earnings based upon trailing 12 expenses and the assumption that current tenants are, or will be, paying the facility’s standard rates. Proforma and forward looking statements are for illustration and discussion purposes only and are not a guarantee of future performance. Investors must conduct their own due diligence. Buyer to verify zoning and suitability for future development.

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Storage Brokers NW, an affiliate of CENTURY 21 Commercial, is a boutique Commercial Real Estate Group dedicated to helping owners of Self Storage Facilities and Investment Clients achieve their Real Estate Goals. Our primary focus is the sale of Self Storage Facilities and other Commercial Projects that meet our client’s objectives. Contact either Dwaine or Mark to learn more about this investment opportunity.

Mark J. Van Heuvel


J. Dwaine Rhea

Direct - 503.636.1234 Managing Broker, Washington

Principal Broker, Licensed in Oregon CENTURY 21 COMMERCIAL, Cascade

[email protected] 12901 SE 97th Ave.

Clackamas, OR 97015

Forward looking assumptions are for discussion purposes only and are not a guarantee of future performance. Investors must conduct their own due diligence.. All information is assumed accurate, but not guaranteed .

self storage easy storage · 2020. 12. 31. · mr. van heuvel and mr. rhea are licensed in oregon...

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