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25040 US-12Sturgis MI 49091

Sturgis SelfStorage

Sturgis Self StorageCONTENTS

Mark FloriaSelf Storage Advisor (248) 420-4612 mfloria@pogodaco.com

We obtained the following information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions,change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice.  We include projections, opinions, assumptions or estimates for example only, and they may not represent the current or future performance of theproperty. You and your tax and legal advisors should conduct your own investigation of the property and transaction.

01 Executive Summary Executive Summary 5

Property Features 6

Unit Mix Summary 7

Income & Expense Analysis 8

02 Property Description Location Summary 10

Property Images 11

Aerial Map 12

Survey Map 13

03 Rent Comps Rent Comparables Summary 15

Rent Comparables Map 17

04 Sale Comps Sale Comparables Summary 19

Sale Comparables Map 21

Jesse LukePartner - Self Storage Advisory Group(630) 696 - 7281jesse@equicapcommercial.com

Exclusively Marketed by:

The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to bereviewed only by the party receiving it from Pogoda Group and it should not be made available to any other person or entitywithout the written consent of Pogoda Group.

By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such informationin the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offeringmemorandum. If you have no interest in the subject property, please promptly return this offering memorandum to Pogoda Group.This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospectivepurchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not asubstitute for a thorough due diligence investigation. Pogoda Group has not made any investigation, and makes no warranty orrepresentation with respect to the income or expenses for the subject property, the future projected financial performance of theproperty, the size and square footage of the property and improvements, the presence of absence of contaminating substances,PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, orfinancial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subjectproperty. The information contained in this offering memorandum has been obtained from sources we believe reliable; however,Pogoda Group has not verified, and will not verify, any of the information contained herein, nor has Pogoda Group conducted anyinvestigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy orcompleteness of the information provided. All potential buyers must take appropriate measures to verify all of the information setforth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

Sturgis Self Storage Confidentiality and Disclaimer | 03

CONFIDENTIALITY AND DISCLAIMER:

PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.

PLEASE CONTACT POGODA GROUP FOR MORE DETAILS.

Copyright © 2018 CREOP, LLC. All Rights Reserved.

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Executive Summary

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Property Features

Unit Mix Summary

Income & Expense

Executive Summary | 05Sturgis Self Storage

OFFERING SUMMARY ADDRESS 25040 US-12 Sturgis MI 49091COUNTY St. Joseph CountyRENTABLE SQUARE FEET 25,500LAND ACRES 2.60NUMBER OF UNITS 186

FINANCIAL SUMMARY OFFERING PRICE $1,200,000PRICE PSF $47.06PRICE PER UNIT $6,452NOI (CURRENT) $95,363NOI (Pro Forma) $109,993CAP RATE (CURRENT) 7.94 %CAP RATE (Pro Forma) 9.16 %

PROPOSED FINANCING LOAN TYPE Fully Amortized

DOWN PAYMENT $240,000

LOAN AMOUNT $960,000

INTEREST RATE 5.50 %

ANNUAL DEBT SERVICE $70,740

LOAN TO VALUE 80 %

Remotely Run

Room to Expand

Pogoda Group, along with EquiCap Commercial, are proud to present the 100% fee simple sale of Sturgis Self Storage. Located in Sturgis, MI near the border of Indiana, the property has 186 self storage units and is 25,500 square feet. The property is run remotely with no office hours. There is room on the property to expand both in front of the gate and to the west of the buildings.

The current owners purchased the property in 2013 as a distressed sale. At the time, the operation was totally vacant. In 2016, they installed a new fence, new gate and keypad, fixed all of the unit doors (most were broken when the facility was purchased), and they put in new lights and new gravel. Additionally, they added a large sign out in front on a well-traveled highway.

CASH ON CASH (CURRENT) 10.25 %

CASH ON CASH (Pro Forma) 16.35%

Sturgis Self Storage Property Features |06

Site Description

NUMBER OF UNITS 186

NUMBER OF BUILDINGS 4

RENTABLE SQUARE FEET 25,500

LAND ACRES 2.60

PHYSICAL OCCUPANCY 86%

ECONOMIC OCCUPANCY 75.6%

Sturgis Self Storage Unit Mix Summary | 07

Unit Type SF MonthlyRent

TotalUnits

Total Rent UnitsOccupied

UnitsVacant

% ofProperty

Rent/SF Total SF Notes

5X10 50 $42 24 $1,008 19 5 12.9% $0.84 1,200

10X10 100 $54 78 $4,212 74 4 41.9% $0.54 7,800

15X9 135 $69 4 $276 3 1 2.2% $0.51 540

15X12 180 $74 2 $148 2 0 1.1% $0.41 360

10X20 200 $84 78 $6,552 68 10 41.9% $0.42 15,600

Totals/Avgs 186 $12,196 166 20 $0.48 25,500

Sturgis Self Storage Income & Expense Analysis | 08

CURRENTINCOME

$110,613 $126,641

Late Fees $12,930 $14,804

Other Income $4,068 $4,657

Tenant Insurance $7,428 $8,504

Gross Potential Income $146,352

PRO FORMA

$167,588

Effective Gross Income $135,039 $154,606

Less: Expenses $39,676 $44,613

Net Operating Income $95,363 $109,993

Annual Debt Service $70,740 $70,740

Debt Coverage Ratio 1.35 1.55

Cash Flow After Debt Service $24,623 $39,253

Principal Reduction $17,940 $17,940

Total Return 17.7 % $42,563 23.8 % $57,193

CURRENT PROFORMA

EXPENSES

Real Estate Taxes $4,148 $8,500

Property Insurance $1,566 $1,566

Advertising $701 $701

Repairs & Maintenance $4,144 $4,144

Utilities & Trash $2,191 $2,191

Bank & Credit Card Fees $1,409 $1,700

Telephone & Internet $2,190 $2,190

Payroll $16,085 $16,085

Misc. $3,605 $3,899

Office Expense $3,637 $3,637

Total Operating Expense $39,676 $44,613

Expense / SF $1.55 $1.74

% of EGI 29.38 % 28.86 %

REVENUE ALLOCATION

DISTRIBUTION OF EXPENSES

Rental Income

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Property Images

Aerial Map

Additional Maps

Sturgis Self Storage Location Summary | 10

Located in St. Joseph, Michigan, Sturgis, Michigan issituated on the Michigan-Indiana border at theintersection of U.S. Highway 12 and M-66. Sturgis islocated about 20 miles southeast of the LangleyCovered Bridge, the oldest remaining woodencovered bridge in the state of Michigan. Nicknamedthe “Electric City” because of its 109-year-oldhydroelectric dam, this 120-year-old city is home toabout 11,000 residents. With a population density of1,672 per square mile, Sturgis possesses a higheraverage than both other Michigan cities and thenational average in the number of people per squaremile. Combining a quaint downtown with access tonumerous rivers and lakes, Sturgis blendsconvenience and country.

Sturgis has seen an upward trend of 1.76% in itsnumber of employees over the past five years, andrelies on both the manufacturing field withcompanies such as VCI and Iceberg Molding and thehealthcare and social services field to employ abouthalf the city’s work force. In terms of housing andliving, 44% of Sturgis’s population rents and 56%owns.

Regional Map

Local Map

Sturgis Self Storage Property Images | 11

Signage Perimeter Fence & Gate

Unit Interior Office

Sturgis Self Storage Aerial Map | 12

Sturgis Self Storage Survey Map | 13

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Rent Comparables Map

Sturgis Self Storage Rent Comparables Summary | 15

Sturgis Self Storage 25040 US-12 | Sturgis, MI

33

Unit Type SF Asking Rent Rent/SF

50100

Klinger Lake Storage 69004 Klinger Lake Road | Sturgis

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Unit Type SF Asking Rent Rent/SF

5X10

50

$42 $0.8410X10

100

$54 $0.5415X9 135 $69 $0.5115X12 180 $74 $0.4110X20 200 $84 $0.42

1

$355X10 DU $0.70

$55 $0.5510x10 DU

10x20 DU 200 $70 $0.35

Sturgis Self Storage Rent Comparables Summary | 16

White Pigeon Mini Storage 131 US-131 | White Pigeon, MI

2

Unit Type SF Asking Rent Rent/SF

5x10 DU 50 $35 $0.70

10x10 DU 100 $55 $0.55

10x20 DU 200 $75 $0.37

Meyers Mini Storage

1520 S. Lakeview St. | Sturgis, MI

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Unit Type SF Asking Rent Rent/SF

5x10 DU 50 $40 $0.80

10x10 DU 100 $50 $0.50

10x20 DU 200 $70 $0.35

Sturgis Self Storage Rent Comparables Map | 17

# Property Name Address City

S Sturgis Self Storage 25040 US-12 Sturgis

1 Klinger Lake Storage 69004 Klinger Lake Road Sturgis

2 White Pigeon Mini Storage 131 US-131 White Pigeon

3 Meyers Mini Storage 1520 S. Lakeview St. Sturgis

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Sale Comparables Map

Sturgis Self Storage Sale Comparables Summary | 19

Sturgis Self Storage 25040 US-12 | Sturgis

S

Price Per SF

$67/Sq. Ft.

Main's Mini Storage 2302 A Jarco Drive | Holt, MI

1

Number of Units 186Rentable Square Feet 25,500Asking Price $1,200,000

Price PSF

$47.06Cap Rate 7.95 %Cap Rate 8.9%

Building SF 21,608Closing Date 08-23-2017Asking Price $1,458,000

$67.48

Sturgis Self Storage Sale Comparables Summary | 20

R&A Storage5620 Hoover St. | Trenton, MI

2

Building SF 25,400Closing Date 04-19-2018Asking Price $1,600,000Price Per SF $62.99

$63/Sq. Ft.

North River Mini Storage100 Macomb Daily Dr. | Mt. Clemens, MI

3

Building SF 31,500Closing Date 12-01-2017Asking Price $1,550,000Price Per SF $49.21

$49/Sq. Ft.

Sturgis Self Storage Sale Comparables Map | 21

# Property Name Address City

S Sturgis Self Storage 25040 US-12 Sturgis

1 Main's Mini Storage 2302 A Jarco Dr Holt

2 North River Mini Storage 100 Macomb Daily Dr. Mt. Clemens

3 R&A Storage 5620 Hoover St. Trenton

Sturgis Self Storage

Mark FloriaSelf Storage Advisor (248) 420-4612mfloria@pogodaco.com

powered by CREOP

Jesse LukePartner - Self Storage Advisory Group(630) 696-7281jesse@equicapcommercial.com

Exclusively Marketed by: