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Capital Markets | Investment Properties
LIBERTY SELF STORAGE 1639 Guam Street | Ridgecrest, California
OFFERING MEMORANDUM
NICK WALKER
Vice President of Investments
W +1 909 418 2173
C +1 909 841 0546
Lic. 01827268
TREVOR ROBERTS
Senior Associate
W +1 909 418 2174
C +1 909 638 9648
Lic. 01801520
SELF STORAGE ADVISORY GROUP
Affiliated Business Disclosure and Confidentiality Agreement
Table of Contents
CBRE, Inc. operates within a global family of companies with many
subsidiaries and/or related entities (each an “Affiliate”) engaging in a
broad range of commercial real estate businesses including, but not
limited to, brokerage services, property and facilities management,
valuation, investment fund management and development. At times
different Affiliates may represent various clients with competing
interests in the same transaction. For example, this Memorandum
may be received by our Affiliates, including CBRE Investors, Inc. or
Trammell Crow Company. Those, or other, Affiliates may express an
interest in the property described in this Memorandum (the
“Property”) may submit an offer to purchase the Property and may be
the successful bidder for the Property. You hereby acknowledge that
possibility and agree that neither CBRE, Inc. nor any involved Affiliate
will have any obligation to disclose to you the involvement of any
Affiliate in the sale or purchase of the Property. In all instances,
however, CBRE, Inc. will act in the best interest of the client(s) it
represents in the transaction described in this Memorandum and will
not act in concert with or otherwise conduct its business in a way that
benefits any Affiliate to the detriment of any other offeror or
prospective offeror, but rather will conduct its business in a manner
consistent with the law and any fiduciary duties owed to the client(s) it
represents in the transaction described in this Memorandum.
This is a confidential Memorandum intended solely for your limited
use and benefit in determining whether you desire to express further
interest in the acquisition of the Property.
This Memorandum contains selected information pertaining to the
Property and does not purport to be a representation of the state of
affairs of the Property or the owner of the Property (the “Owner”), to
be all-inclusive or to contain all or part of the information which
prospective investors may require to evaluate a purchase of real
property. All financial projections and information are provided for
general reference purposes only and are based on assumptions
relating to the general economy, market conditions, competition and
other factors beyond the control of the Owner and CBRE, Inc.
Therefore, all projections, assumptions and other information
provided and made herein are subject to material variation. All
references to acreages, square footages, and other measurements
are approximations. Additional information and an opportunity to inspect
the Property will be made available to interested and qualified
prospective purchasers. In this Memorandum, certain documents,
including leases and other materials, are described in summary form.
These summaries do not purport to be complete nor necessarily accurate
descriptions of the full agreements referenced. Interested parties are
expected to review all such summaries and other documents of whatever
nature independently and not rely on the contents of this Memorandum in
any manner.
Neither the Owner or CBRE, Inc, nor any of their respective directors,
officers, Affiliates or representatives make any representation or warranty,
expressed or implied, as to the accuracy or completeness of this
Memorandum or any of its contents, and no legal commitment or
obligation shall arise by reason of your receipt of this Memorandum or
use of its contents; and you are to rely solely on your investigations and
inspections of the Property in evaluating a possible purchase of the real
property.
The Owner expressly reserved the right, at its sole discretion, to reject any
or all expressions of interest or offers to purchase the Property, and/or to
terminate discussions with any entity at any time with or without notice
which may arise as a result of review of this Memorandum. The Owner
shall have no legal commitment or obligation to any entity reviewing this
Memorandum or making an offer to purchase the Property unless and
until written agreement(s) for the purchase of the Property have been fully
executed, delivered and approved by the Owner and any conditions to
the Owner’s obligations therein have been satisfied or waived.
By receipt of this Memorandum, you agree that this Memorandum and its
contents are of a confidential nature, that you will hold and treat it in the
strictest confidence and that you will not disclose this Memorandum or
any of its contents to any other entity without the prior written
authorization of the Owner or CBRE, Inc. You also agree that you will not
use this Memorandum or any of its contents in any manner detrimental to
the interest of the Owner or CBRE, Inc.
If after reviewing this Memorandum, you have no further interest in
purchasing the Property, kindly return this Memorandum to CBRE, Inc.
ALL PROPERTY TOURS SHOULD BE SCHEDULED THROUGH THE LISTING AGENT. WE ASK THAT YOU DO NOT DISTURB THE ONSITE PERSONNEL.
Property Description 3 Property Description …...…………..… 4 Property Summary ...…………………. 5 Location Maps ………………………... 6 Aerial Map ……………..……………... 7 Property Photos …………….……..….. 8
Financials 10 Unit Mix ………………………………. 11
Income & Expenses ………………….. 12
Rent Comparables 13
Demographics 18
Property Description
Liberty Self Storage 4
PROPERTY DESCRIPTION
Liberty Self Storage is located in Ridgecrest, California. This 42,850 net
rentable square foot facility consists of 373 non-climate controlled self
storage units ranging in size from 5’x5’ to 20’x30’. The facility also
offers 40 uncovered RV and other vehicle parking spaces equating to
an additional 10,280 rentable square feet. As of February 9, 2015 the
property is 54.4 percent physically occupied and 47.6 percent
economically occupied.
Built in multiple phases, Liberty Self Storage consists of ten single story
buildings. Four of the buildings were constructed with a wood frame
and stucco exterior offering metal swing doors and a composite roof.
The other six buildings are of metal construction equipped with metal
roofs and rollup doors. The property also offers 1 acre of vacant land
which is located on the northeast corner of the parcel adjacent to
Highway 178. (See Site Plan)
Liberty Self Storage offers numerous amenities including a gated
entrance, an on-site resident manager’s apartment, and wide cement
and asphalt drive aisles for easy access. The facility is fully enclosed
with secured chain-link fencing.
The property is located on the corner of Guam Street and West
Inyokern Road and receives approximately 7,000 vehicles passing by
the facility on a daily basis. There are 32,035 people living within 5
miles of the property.
The city of Ridgecrest is located in Kern County, California and was
formerly know as Crumville. It is approximately 80 miles North of
Palmdale located on the East side of Highway 395. The Inyokern
airport is the closest airport to Ridgecrest.
• 42,850 Net Rentable Square Feet
• 373 Total Units
• 54.4 Percent Physically Occupied
• Built in 1977, 1983, 1990, 2003
• Wide Varity of Unit Sizes
• U-Haul Truck Rental On-Site
Liberty Self Storage 5
PROPERTY SUMMARY
ADDRESS: 1639 North Guam Street Ridgecrest, CA 93555
ASSESSORS’S PARCEL NUMBER: 454-011-03, 454-011-04
BUILDING SIZE: ± 42,850
TOTAL UNITS: 373
LAND AREA: ± 5.8 Acres
PHYSICAL OCCUPANCY: 54.4%
YEAR BUILT/EXPANDED: 1977, 1983, 1990, 2003
NUMBER OF BUILDINGS: Ten Buildings Buildings
NUMBER OF STORIES: Single Story
UNIT SIZES: See Unit Mix for Details
PARKING: Yes, See Unit Mix for Details
STREET FRONTAGE: North Guam Street
CROSS STREET: West Inyokern Road
TRAFFIC COUNTS: 6,647 (West Inyokern Road)
HIGHWAY ACCESS: U.S. Route 395
ENTRY: Gated Entry with Key Code Access
FRAMING: Metal/Wood
EXTERIOR WALLS: Metal/Stucco
PARKING SURFACE: Concrete/Asphalt/Gravel/Dirt
ROOF: Metal/Wood
FENCING: Chain Link
SECURITY: Resident Manager
6 Liberty Self Storage
LOCATION MAP
Liberty Self Storage 7
AERIAL/MAP
N S
8 Liberty Self Storage
PROPERTY PHOTOS
9 Liberty Self Storage
PROPERTY PHOTOS
Financials
Liberty Self Storage 11
FINANCIALS – UNIT MIX
Drive Up
No. of Units Unit Type SF/Unit Rent/Unit Monthly Income Annual Income
34 5x5 New 25 $33.00 $1,122.00 $13,464.00
66 5x10 New 50 $43.00 $2,838.00 $34,056.00
66 10x10 100 $68.00 $4,488.00 $53,856.00
10 10x10 New 100 $68.00 $680.00 $8,160.00
13 10x15 150 $88.00 $1,144.00 $13,728.00
13 10x15 New 150 $88.00 $1,144.00 $13,728.00
114 10x20 200 $98.00 $11,172.00 $134,064.00
13 10x20 New 200 $98.00 $1,274.00 $15,288.00
3 20x20 New 400 $200.00 $600.00 $7,200.00
1 20x30 New 600 $200.00 $200.00 $2,400.00
333 Total 42,850 $24,662.00 $295,944.00
RV & Vehicle
No. of Units Unit Type SF/Unit Rent/Unit Monthly Income Annual Income
39 10x12 $35.00 $1,365.00 $16,380.00
1 80x70 $125.00 $125.00 $1,500.00
40 Total $1,490.00 $17,880.00
Total
373 Total 42,850 $26,152.00 $313,824.00 Comments: “New” denotes a unit in the new phase with a rollup door. All other units have a swing door.
Liberty Self Storage 12
INCOME
January -December
2014 with Broker
Adjusted Expenses PER SF Pro Forma PER SF
GROSS POTENTIAL RENT $313,824 $7.32 $313,824 $7.32
Late, Letter, & NSF Fees $4,495 $0.10 $4,495 $0.10
Truck Rental (U-Haul) $14,862 $0.35 $16,048 $0.37
TOTAL OTHER INCOME $19,357 $0.45 $20,543 $0.48
Gross Potential Income $333,181 $7.78 $334,367 $7.80
Economic Vacancy/ Collection Allowance 52.4% $163,145 $3.81 25.0% $78,456 $1.83
EFFECTIVE GROSS INCOME $170,036 $3.97 $255,911 $5.97
EXPENSES
Property Taxes (1) $12,866 $0.30 $12,866 $0.30
Insurance (2) $4,285 $0.10 $4,285 $0.10
Utilities & Trash (3) $6,918 $0.16 $6,918 $0.16
Repairs, Maintenance and Reserves (4) $6,427 $0.15 $6,427 $0.15
Advertising (5) $5,000 $0.12 $5,000 $0.12
Salaries, Taxes, & Benefits (6) $34,011 $0.79 $34,011 $0.79
Management Fee (7) $8,502 $0.20 $12,796 $0.30
Office Supplies & Postage (8) $1,684 $0.04 $1,684 $0.04
Bank & Credit Card Fees (9) $1,863 $0.04 $1,863 $0.04
Telephone & Internet (10) $1,886 $0.04 $1,886 $0.04
Contract Services (11) $2,400 $0.06 $2,400 $0.06
Truck Expenses (12) $8,005 $0.19 $8,005 $0.19
Emove Commission (13) $2,247 $0.05 $2,247 $0.05
Miscellaneous (14) $924 $0.02 $924 $0.02
Total Expenses $97,018 $2.26 $101,312 $2.36
% of EGI 57.1% 39.6%
NET OPERATING INCOME $73,018 $1.70 $154,599 $3.61
Property Summary $/SF Price Cap Rate $/SF Price Cap Rate
42,850 NRSF $28.00 $1,200,000 6.08% $28.00 $1,200,000 12.88%
373 Units
FINANCIALS - INCOME AND EXPENSES
Comments:
(1) Property Taxes have been adjusted to the projected sale price. (8) Office Supplies & Postage are based on January through December 2014 expenses.
(2) Insurance has been adjusted by broker to industry standards.. (9) Bank & Credit Card Fees are based on January through December 2014 expenses.
(3) Utilities & Trash are based on January through December 2014 expenses. (10) Telephone & Internet are based on January through December 2014 expenses.
(4) Repairs, Maintenance, and Reserves have been adjusted to $0.15/SF/Year. (11) Contract Services have been adjusted up by Broker from $150 to $2,400 in 2014.
(5) Advertising has been adjusted up by Broker from $2,674 to $5,000 in 2014. (12) Truck Expenses are based on January through December 2014 expenses.
(6) Salaries, Taxes, & Benefits are based on January through December 2014 expenses. (13) Emove Commission is based on January through December 2014 expenses.
(7) Management Fee is based on 5% of the Effective Gross Income per industry standards. (14) Miscellaneous is based on January through December 2014 expenses.
Rent Comparables
14 Liberty Self Storage
RENT COMPARABLES MAP
15 Liberty Self Storage
RENT COMPARABLES GRAPHS
Liberty Self Storage 16
Liber ty Self Storage Unit Type 5x5 5x10 10x10 10x15 10x20 Avg. Rent/SF
Total Units: 373
Occupancy: 54.4%
Year Built: 1977
Distance: Subject
Ridgecrest Self Storage Unit Type 5x5 5x10 10x10 10x15 10x20 Avg. Rent/SF
Year Built: 2006
Distance: 0.5 Miles
All Amer ican Self Storage Unit Type 5x5 5x10 10x10 10x15 10x20 Avg. Rent/SF
Distance: 0.51 Miles
Zip Self Storage Unit Type 5x5 5x10 10x10 10x15 10x20 Avg. Rent/SF
Year Built: 2006
Distance: 1.33 Miles
Indian Wells Valley Self Storage Unit Type 5x5 5x10 10x10 10x15 10x20 Avg. Rent/SF
Year Built: 1979
Distance: 2.12 Miles
$0.51Ridgecrest CA 93555
Property Amenities: Resident Manager, Wide Drive Aisles.
Ridgecrest CA 93555
Property Amenities: Gated Entry with Key Code Access, Resident Manager, Wide
Drive Aisles.
808 W Ridgecrest BoulevardDr ive Up DNH 35.00 55.00 65.00 75.00
1300 N Mahan Street
Ridgecrest CA 93555
Property Amenities: Gated Entry with Key Code Access, Resident Manager, Wide
Drive Aisles.
1430 N Norma StreetDr ive Up DNH 50.00 65.00 85.00 $0.69
1639 N Guam Street
Ridgecrest CA 93555
Property Amenities: Gated Entry , Resident Manager, Wide Drive Aisles, Rental Truck.
1601 N Inyo Street
$0.43
Rent Specials: 10% Off Military Discount
Property Amenities: Gated Entry with Key Code Access, Video Surveillance, Individual
Door Alarms, Resident Manager, Wide Drive Aisles.
98.00 $0.79
Ridgecrest CA 93555
Drive Up 33.00
105.00
68.00 88.0043.00
Drive Up 45.00 65.00 85.00 $1.03
Drive Up DNH DNH DNH DNH 85.00
100.00 110.00
1
2
3
4
RENT COMPARABLES
Liberty Self Storage 17
A-American Self Storage Unit Type 5x5 5x10 10x10 10x15 10x20 Avg. Rent/SF
Year Built: 1987
Distance: 2.72 Miles
High Deser t Storage Unit Type 5x5 5x10 10x10 10x15 10x20 Avg. Rent/SF
Distance: 3.60 Miles
A Storage Vault Unit Type 5x5 *8x10 10x10 10x15 *8x20 Avg. Rent/SF
Distance: 3.81 Miles
59.00 $0.36Ridgecrest CA 93555
Property Amenities: Gated Entry, Resident Manager, Wide Drive Aisles.
4651 W Inyokern RoadDrive Up DNH 29.00 39.00 49.00
4331 W Inyokern RoadDrive Up DNH 35.00 45.00 55.00
Ridgecrest CA 9355565.00 $0.46
Property Amenities: Gated Entry, Resident Manager, Wide Drive Aisles.
149.00 $1.1871.00 98.00 116.00Ridgecrest CA 93555
Rent Specials: $19.95 First Months Rent
Property Amenities: Gated Entry with Key Code Access, Video Surveillance, Resident
Manager, Wide Drive Aisles, Rental Truck.
200 E Ridgecrest Boulevard Dr ive Up 49.00
5
66
67
RENT COMPARABLES
Demographics
Liberty Self Storage 19
ONE-MILE RADIUS THREE-MILE RADIUS FIVE-MILE RADIUS
PO
PU
LATIO
N
2014 Estimated Population 2,427 19,039 32,035
2019 Projected Population 2,446 19,382 32,566
2010 Census Population 2,416 18,789 31,662
2000 Census Population 2,207 17,001 28,908
Growth 2010-2014 0.47% 1.33% 1.18%
Growth 2014-2019 0.78% 1.80% 1.66%
2014 Estimated Median Age 37.10 35.55 35.63
2014 Estimated Average Age 38.58 37.65 37.54
HO
USEH
OLD
S
2014 Estimated Households 1,032 7,493 12,608
2019 Projected Households 1,040 7,640 12,831
2010 Census Households 1,027 7,377 12,430
2000 Census Households 932 6,811 11,425
Growth 2010-2014 0.43% 1.58% 1.43%
Growth 2014-2019 0.77% 1.96% 1.78%
2014 Est. Average Household Size 2.38 2.49 2.53
INC
OM
E
2014 Est. Median Household Income $62,168 $57,009 $57,529
2019 Prj. Median Household Income $65,076 $61,677 $63,564
2000 Cen. Median Household Income $52,609 $41,744 $45,294
2014 Est. Average Household Income $75,725 $69,267 $71,918
2014 Estimated Per Capita Income $32,185 $27,262 $28,304
HO
USIN
G
2014 Estimated Housing Units 1,110 8,382 13,956
2014 Estimated Occupied Units 1,032 7,493 12,608
2014 Estimated Vacant Units 79 888 1,348
2014 Est. Owner Occupied Units 623 4,563 7,976
2014 Est. Renter Occupied Units 409 2,930 4,632
2014 Est. Median Housing Value $180,066 $159,468 $158,273
2014 Est. Average Housing Value $192,964 $170,356 $170,036
DEMOGRAPHIC REPORT
Liberty Self Storage 20
TRAFFIC COUNTS
Ca
pital M
ark
ets
| In
vest
ment Pro
pert
ies
Nick Walker
Vice President of Investments
W + 1 909 418 2173
C + 1 909 841 0546
Lic. 01827268
CBRE © 2014 All Rights Reserved. All information included in this proposal pertaining to CBRE including but not limited to its operations, employees, technology and clients are proprietary and confidential, and are supplied with the understanding that they will be held in confidence and not disclosed to third parties without the prior written consent of CBRE. This letter/proposal is intended solely as a preliminary expression of general intentions and is to be used for discussion purposes only. The parties intend that neither shall have any contractual obligations to the other with respect to the matters referred herein unless and until a definitive agreement has been fully executed and delivered by the parties. The parties agree that this letter/proposal is not intended to create any agreement or obligation by either party to negotiate a definitive lease/purchase and sale agreement and imposes no duty whatsoever on either party to continue negotiations, including without limitation any obligation to negotiate in good faith or in any way other than at arm’s length. Prior to delivery of a definitive executed agreement, and without any liability to the other party, either party may (1) propose different terms from those summarized herein, (2) enter into negotiations with other parties and/or (3) unilaterally terminate all negotiations with the other party hereto. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.
“Specializing in Self Storage Brokerage Throughout the United States”
Trevor Roberts
Senior Associate
W + 1 909 418 2174
C + 1 909 638 9648
Lic. 01801520
CBRE THE WORLDS LARGEST COMMERCIAL REAL ESTATE FIRM
Self Storage Advisory Group