LIBERTY SELF STORAGE 1639 Guam Street | Ridgecrest, California · with secured chain-link fencing. The property is located on the corner of Guam Street and West Inyokern Road and

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

[email protected]

TREVOR ROBERTS

Senior Associate

W +1 909 418 2174

C +1 909 638 9648

Lic. 01801520

[email protected]

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


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


AERIAL/MAP

N S


PROPERTY PHOTOS


PROPERTY PHOTOS

Financials


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.


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


RENT COMPARABLES MAP


RENT COMPARABLES GRAPHS


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


Indian Wells Valley Self Storage Unit Type 5x5 5x10 10x10 10x15 10x20 Avg. Rent/SF

Year Built: 1979


$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


A-American Self Storage Unit Type 5x5 5x10 10x10 10x15 10x20 Avg. Rent/SF

Year Built: 1987


High Deser t Storage Unit Type 5x5 5x10 10x10 10x15 10x20 Avg. Rent/SF


A Storage Vault Unit Type 5x5 *8x10 10x10 10x15 *8x20 Avg. Rent/SF


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


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


TRAFFIC COUNTS

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Nick Walker

Vice President of Investments

W + 1 909 418 2173

C + 1 909 841 0546

Lic. 01827268

[email protected]

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

[email protected]

CBRE THE WORLDS LARGEST COMMERCIAL REAL ESTATE FIRM

Self Storage Advisory Group

Documents

LIBERTY SELF STORAGE 1639 Guam Street | Ridgecrest, California · with secured chain-link fencing. The property is located on the corner of Guam Street and West Inyokern Road and