Highway 77 Self Storage2251 W. O Street Lincoln, NE 68522

Legal disclaimerThis confidential offering memorandum (“memorandum”) is solely for the use of the prospective purchasers in determining a threshold level of interest in the subject property/asset. The information contained in the memorandum is strictly confidential and is intended to be reviewed only by the party receiving it. The Memorandum should not be made available to any other person, entity, or affiliates without the written consent of Peterson Gastelum partners. By taking possession of an reviewing the contents of the memorandu m the recipient agrees to hold and treat all such information with the strictest confidence. While the information contained in this memoran dum has been complied from sources we believe to be reliable, neither Peterson Gastelum Partners nor its representatives make any representations or warranties as to the accuracy or completeness of the information contained in this memorandum. All the financial information and projections are provided for reference only and are based on assumptions relating to the general economy, market conditions, and other factors beyond our control. Prospective purchasers are encouraged to conduct an independent due diligence investigation, prepare independent financial projections, and consult with their legal, tax and other professional advisors before making an investment decision. Peterson Gastelum Partners does not have authority to legally bind the seller and no contract or agreement providing for any transacti on shall be deemed to exist unless and until a final definitive contract of sale has been executed and delivered to you by the seller. This offering is subject to prior placement, withdrawal, cancellation or modification without notice.

All references to measurements including but not limited to square footage, acreage, distance are approximations must be independently verified. The presence of any corporations or tenants logo or name is not intended to imply affiliation with, or endorsement by Peterson Gastelum partners and is solely included for the purpose of providing information in the offering memorandum.

Offer processTraditional Offering process: Offers Submitted should be in the form of a non-binding Letter of intent addressed to Mr. Bob Peterson terms and conditions should include at minimum: Offering Price Ernest Money Due Diligence and Closing Period Description of purchaser and Proof of funds Tours need to be scheduled prior with an Loi submitted

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Capital Markets Real Estate www.pgpartnerscm.com

Contact Information

Mr. Boomer Peterson – PartnerLic. #20150894(402) 430.2318Boomer.Peterson@prglincoln.com

Mr. Blake Gastelum – PartnerLic. #SL3284346(402) 786.8297Blake.gastelum@prglincoln.com

Mr. Bob Peterson – PartnerLic. #0800114

Table of contents

Ex ecutive summary

introductionInvestment summary

Property overview

Property detailsSite planConstruction detailsUnit description and mix

Financial Analysis

Rent roll

Expense analysis Cash flow pro forma analysis

Market overview

Site mapMetro area mapMetro overviewDemographics and market information

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Executive summary

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Peterson Gastelum Partners, LLC. ("PGP") a division of Pinnacle Commercial Group is pleased to present this offering for the fee-simple interest in Highway 77 Self Storage, a brand new construction development at a core arterial location in Lincoln, NE. This property boasts quality construction and technology that enhances the quality of this offering to prospective buyers.

Situated at Highway 77 and West O Street the property provides for direct frontage on one of the main streets that feeds into Lincoln's downtown. Furthermore, there is direct sight from Highway 77 to the property to allow for ample visibility. West O Street leads directly into downtown Lincoln and the University of Nebraska, the states flagship university approximately 3 miles away. three multi-family properties lie directly across West O Street, Lakeside Village Apartments, Lakeview Apartments Homes and mercy western manor.

Highway 77 Self Storage is a single story self storage property developed in 2018 by an experienced developer in Lincoln, NE. The property offers 116 rentable units totaling 23,450 square feet with five different concepts for prospective tenants. The quality of the construction is well noted including a state of the art kiosk system for ownership to have passivity and a high end standing seam metal roof. The developer at the request of the city put in extensive infrastructure work to allow for direct access to West O Street. The offering also includes a vacant piece of land approximately 0.5 acres with the potential to further expand.

Building Summary

Address: 2251 West O Street., Lincoln, Nebraska 68522

Year Built: 2018

Building Size: ±23,450 RsF

Property Area:: ±69,971 RSF

Units: 116

Buildings: 4

Submarket: northwest

Investment summary

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Offering summary

Pricing total $2,250,000

Pro Forma gross income $250,620

Projected NOI $174,021

Capitalization rate 7.72% NOI

This real estate is well situated at the interchange of west o street and highway 77 in Lincoln. The property has direct access off west o street, frontage and quality exposure from highway 77 and the southeast off ramp. The property lies approximately 3 miles from downtown Lincoln and the states major flagship university, the university of Nebraska (enrollment: 26,079)

The developer took extensive measures to ensure the property was quality construction. This includes a higher end standing seam metal roof to mitigate risk against leaking. Additionally, the concrete slab is 6”, brand new wrought iron fencing, measures to prevent unit flooding and a quality retaining wall to ensure this property will serve potential buyers and tenants well. Furthermore, the developer personally built infrastructure to give direct access to west o street that did not previously exist.

The offering is unique in that traditional on-site property management is all but eliminated. With the insomniac kiosk incorporated into this property it allows for tenants to access the property, pay in a variety of ways and denies access to non-performing tenants. The technology synchronizes with the gate to give access to tenants only if they are paid-up on their rent. This features is new to the market and creates a passive nature to owning and managing a self storage asset

This opportunity also comes with the option to purchase an additional 25,002± sf lot ($300,000) which allows prospective buyers the opportunity for future expansion with direct frontage on west o street. Uhaul also has a contract with highway 77 allowing for additional income to ownership. This arrangement does not require uhaul personnel to be on site maintaining passivity.

Property overview

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Address: 2245 West O Street Lincoln, NE 68522

Legal description:: G&G first Addition, Lot 1

Property Id: 10-28-118-001-000

Property Lot: 1.61 Acres – ±69,971

Additional Lot: 0.57 Acres - ±25,002

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Property Details

Building a: 12’ x 30’ x 10’6” door height 10 units

Building B: 10’ x 25’ x 8’ door height 10 units

10’ x 15’ x 8’ door height 7 units

Building C: 10’ x 20’ x 8’ door height 50 units

10’ x 10’ x 8’ door height 3 units

5’ x 10’ x 8’ door height 8 units

Utility room no rent 10’ x 10’ x 8’ door height 1 unit

Building d: 10’ x 20’ x 8’ door height 28 units

Property unit mix

Site Plan

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Construction details

Trachte building systems – 115 years of experience in manufacturing self storage 12’x12’x30’ units allow for boat storage – exterior outlets Developer used 6” concrete slab Standing seam metal roof

Raised slab lip at unit to minimize water entry Wrought iron fencing and gate Well constructed retention wall Insomniac kiosk technology

Site Plan

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Property DetailsConceptual design on additional land

Property overview

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Technology

Insomiac kiosk 300 by opentech alliance

Accepts New Rentals Megan virtual assistant

Take Payments (cash Credit check) Speakers

Update account in real time On- screen keyboard

Offers tenant insurance Pedestal mount

Prints receipts Printer 2.5” wide

Gives virtual tours Credit cards

Provide voice prompts Bill acceptor

Interfaces with dvr Check acceptor

Color touch screen Digital signature capture

ViOP phone

Opentech alliance has changed the way you manage self storage by utilizing technology that creates a more passive investment for owners. The same way atm’s made banking more convenient insomniac kiosks make self storage renting more convenient. The benefits to owners are you can rent out units 24/7 while reducing staffing costs. Management can have a digital recording of all transactions. The gate on the property is also synchronized with the kiosk so that non-performing tenants will not be granted access.

www.opentechalliance.com/kiosks

Financial analysis

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Building Unit type Number of units Per unit/mo Annual total

Building a: 12’ x 30’ x 10’6” door height 10 units $295 $35,400

Building B: 10’ x 25’ x 8’ door height 10 units $225 $27,00

10’ x 15’ x 8’ door height 7 units $135 $11,340

Building C: 10’ x 20’ x 8’ door height 50 units $180 $108,000

10’ x 10’ x 8’ door height 3 units $100 $3,600

5’ x 10’ x 8’ door height 8 units $50 $4,800

Utility room no rent 10’ x 10’ x 8’ door height 1 unit

Building d: 10’ x 20’ x 8’ door height 28 units $180 $60,480

Rent roll - Income breakdownExpense Detail

Year 1 Pro forma year 3

Real estate Taxes $18,046 $18,775

Insurance (per quote) $2,600 $2,705

Electric Utilities $2,400 $2,497

Contract Services (Kiosk Software) $1,800 $1,873

Allo – 100mg internet/phone $2,160 $2,247

Cam snow removal $2,000 $2,081

Part time Management $10,000 $10,404

Totals $39,006 $40,582

Financial analysisCont

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10 year - dcf

StabilizedGrowth Rate Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

2.00% + Base Rent $250,620 $255,632 $260,745 $265,960 $271,279 $276,705 $282,239 $287,884 $293,641 $299,514 2.00% + Recovery Income $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

1.00% + Other Income $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 2.00%Potential Gross Income $250,620 $255,632 $260,745 $265,960 $271,279 $276,705 $282,239 $287,884 $293,641 $299,514

1.00% - Rent Abatement $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 - Vacancy 15.0% ($37,593) ($38,345) ($39,112) ($39,894) ($40,692) ($41,506) ($42,336) ($43,183) ($44,046) ($44,927)+/- Adjustment $0 $0 $0

2.00% Effective Gross Revenue $213,027 $217,288 $221,633 $226,066 $230,587 $235,199 $239,903 $244,701 $249,595 $254,587

2.00% - Marketing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 2.00% - Administrative $1,800 ($1,836) ($1,873) ($1,910) ($1,948) ($1,987) ($2,027) ($2,068) ($2,109) ($2,151)2.00% - Utilities $4,560 ($4,651) ($4,744) ($4,839) ($4,936) ($5,035) ($5,135) ($5,238) ($5,343) ($5,450)2.00% - Payroll $10,000 ($10,200) ($10,404) ($10,612) ($10,824) ($11,041) ($11,262) ($11,487) ($11,717) ($11,951)2.00% -Repair and maintenance $2,000 ($2,040) ($2,081) ($2,122) ($2,165) ($2,208) ($2,252) ($2,297) ($2,343) ($2,390)

- Mgmt (% of EGR) 0.0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 2.00% -Insurance $2,600 ($2,652) ($2,705) ($2,759) ($2,814) ($2,871) ($2,928) ($2,987) ($3,046) ($3,107)2.00% -Taxes $18,046 ($18,407) ($18,775) ($19,151) ($19,534) ($19,924) ($20,323) ($20,729) ($21,144) ($21,567)2.00%Operating Expenses ($39,006) ($39,786) ($40,582) ($41,393) ($42,221) ($43,066) ($43,927) ($44,806) ($45,702) ($46,616)

2.00%Net Operating Income $174,021 $177,501 $181,051 $184,672 $188,366 $192,133 $195,976 $199,895 $203,893 $207,971

2.00% Cash Flow From Operations $174,021 $177,501 $181,051 $184,672 $188,366 $192,133 $195,976 $199,895 $203,893 $207,971

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Property Level Returns – based on 10 year dcf

Property Metrics Financing AssumptionsPurchase Price* $2,250,000 Loan Amount $1,353,021

DCF Value $2,518,929 Lender Fees ($) $20,295

Replacement Cost $1,524,250 Equity Required $1,029,423

Unlevered IRR 8.56% Interest Rate 5.00 %

Unlevered Equity Multiple 1.90x Years I/O 0 years

Avg. Free and Clear Return 8.00% Amo. Period 20 years

Term 5 years

Levered IRR 11.99% LTV 60.00%

Levered Equity Multiple 2.55x Lender Fees (%) 1.50%

Avg. Cash-on-Cash Return 8.10%

Annual Amo. Payment $107,152

Min. DSCR (NOI) 1.62x Annual I/O Payment $67,651

Min. Debt Yield (NOI) 13.44%

*the returns include the acquisition of the land in the purchase price and do not include the additional income from uhaul or the potential for expansion thus providing additional returns upon the initial investment.

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comparables

status Address City State Pricing Square feet Units Cap rate Price per unit Price psf Date

On market 3206 N 102nd street Omaha ne $7,500,000 110,870 652 6.72% $11,503 $67.65

On market 1930 fletcher ave Lincoln ne $9,250,000 98,957 587 5.51% $15,758 $93.47

Sold 20809 Cumerland Omaha ne $11,600,000 122,070 802 Na $14,464 $95.03 03/27/2018

Sold 3434 harry Langdon blvd Council Bluff s IA $3,350,000 54,993 345 6.83% $9,710 $64.38 01./10/2017

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Site Map

Lakeside Village Apartments

Mercy Western manor

Capitol beach community

Lakeview Park Apartment Homes

University of Nebraska and downtown

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Site Map II

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Metro Area Map

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Metro overview map

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Demographics and asset class information

1 m ile 3 m ile 5 m ile

Population 3,441 46,274 121,371

Median hh income $35,843 $31,698 $37,182

Housing Units 1,613 18,183

Renter occupied units 782 8,400

Owner occupied units 731 8,200

West O Street Traffic 19,170

Interstate 80 35,820

Highway 77 43,420

The self storage market in the united states represents +$27.2B in sales annually. This asset class has wide appeal with one in ten households currently renting a self storage space. Self storage usage is relatively even across income groups. According to minico, ssa the number one way a renter finds a self storage facility is driving by. The majority of self storage spaces are operated by independent small operators with the top 100 operators owning 18.95% of US facilities. The average demand of space is currently at 6.9 sf/person. In 2017 self storage reports mention the rent growth rate at 4% and expense growth rate at 2.83%. The biggest rise in expenses are the cost of construction and rising expenses associated with labor/payroll costs. Presently institutional ownership is at 13%.

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Market information

Lincoln Is a growing robust college town in the big ten conference. In 2016 the population was 280,369 with an average median age of 32.6 years old and a median household income of $55,792. between 2015-2016 Lincoln grew 1.09% and the household income saw an 8.33% increase. Lincoln offers growing wages with lower cost of living. The median property value in Lincoln is $160,600. the economy employs 155,439 people with the largest sectors represented being public administration, educational services and financial & insurance. The finance sector employs 1.37 times more people than what would be expected in a location of this size. According to the bureau of labor statistics the unemployment rate of Lincoln, ne is 2,6%.

The university of Nebraska has been the states flagship university for 150 years offering a great education and access to its students. the university is an economic engine with a $3.9B impact annually. It also is responsible for $385mm in research and 34,730 jobs both directly and indirectly. The total potential tenant base for the university is 14,823.

The Lincoln multifamily market has been strong which adds to the strength of the self storage asset class. Self storage has benefited overall from the growth and development of multifamily. Locally 84% of properties have seen positive asking rent growth. Newly developed properties (after 2009) have seen average rents rise to $1,076 where as the overall Lincoln market is at $823. The Lincoln multifamily market is forecasted to have stable consistent growth over the next five year period. Year to date asking rent growth is +0.6% which falls in line with the Midwest at 0.9% YTD. The three year asking rent growth for the Lincoln market is +3.0% and the five year forecast is +2.0%.

L incoln’s largest employers

Company Industry Employment

Lincoln Public Schools Education 5000-7000

State of Nebraska Government 5000-9999

University of Nebraska Education 2500-4999

Bryan health medical center Health care 2500-4999

Saint Elizabeth health systems Health care 2500-4999

Ameritas life insurance corp. Insurance 1000-2499

Duncan aviation Aviation 1000-2499

BnSF Railway Transpiration 1000-2499

Dell Services Policy Administration 1000-2499

Kawasaki motors manufacturing Light rail/vehicles 1000-2499

Hy-Vee Food Stores Retail grocer 1000-2499

Molex inc Technology 1000-2499

B&R Stores inc Retail grocer 1000-2499

City of linocln Government 1000-2499

Horizon holdings inc Restaurant franchisee 1000-2499

Nelnet inc Student loan origination 1000-2499

State farm insurance Insurance 1000-2499

Lancaster county Government 1000-2499

Madonna rehabilitation hospital Health care 1000-2499

US Government Government 1000-2499

Hudl Infogressive Five nines technology group Executive travel Lincoln industries Pen-link Heme management

Contact Information

Mr. Boomer Peterson – Partner(402) 430.2318Boomer.Peterson@Prglincoln.com

Mr. Blake Gastelum – Partner(402) 786.8297Blake.gastelum@prglincoln.com Capital Markets Real Estate www.pgpartnerscm.com

Mr. Bob Peterson – PartnerLic. #0800114