60% stabilized facility -new construction...income current pro forma rental income $211,680 $320,220...

OFFERING MEMORANDUM

Storage 1 1331 24th Avenue SENorman OK 73071

60% STABILIZED FACILITY -NEW CONSTRUCTION

Storage 1CONTENTS

Exclusively Marketed by:

Jason NedrowReal Estate Consultant405-922-2968License # [email protected]

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 Investment Summary 4 Unit Mix Summary 5 Location Summary 6

02 Property Description Property Features 8 Aerial Map 9 Survey - Lot 2 Block 1 10 Site Plan 11 Property Images 12

03 Sale Comps Storage Comparables 19

04 Financial Analysis Income & Expense Analysis 26 Multiyear Cash Flow Assumptions 27 Cash Flow Analysis 28 Disposition Sensitivity Analysis 30

05 Demographics Demographics 32 Demographic Charts 33

06 Additional Information Available Footage Per Sq Ft 36

Storage 1 | Execu

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Executive Summary

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Unit Mix Summary

Location Summary

Storage 1 Investment Summary | 04

OFFERING SUMMARYADDRESS 1331 24th Avenue SE

Norman OK 73071

COUNTY Cleveland

MARKET Norman

GROSS SQUARE FEET 57,800

LAND ACRES 4.50

NUMBER OF UNITS 367

FINANCIAL SUMMARYOFFERING PRICE CALL FOR OFFERS

NOI (CURRENT) $132,563

NOI (Pro Forma) $217,532

GRM (CURRENT) 16.40

GRM (Pro Forma) 10.69

PROPOSED FINANCINGLOAN TYPE Interest Only

DOWN PAYMENT $1,382,500

LOAN AMOUNT $2,567,500

INTEREST RATE 4.25 %

ANNUAL DEBT SERVICE $109,119

LOAN TO VALUE 65 %

DEMOGRAPHICS 1 MILE 3 MILE 5 MILE2016 Population 11,832 57,982 97,977

2016 Median HH Income $40,810 $40,827 $46,742

2016 Average HH Income $56,424 $59,530 $66,402

Storage 1 Unit Mix Summary | 05

Unit Type SF MonthlyRent

TotalUnits

Total Rent UnitsOccupied

UnitsVacant

% ofProperty

Rent/SF Total SF Notes

5x5x8.6NON-

CLIMATE

25 $48 14 $672 6 8 3.8% $1.92 350

5x5x8.6CLIMATE

25 $54 6 $324 3 3 1.6% $2.16 150

5x10x8.6CLIMATE

50 $72 8 $576 8 0 2.2% $1.44 400

5x10x8.6NON-

CLIMATE

50 $66 26 $1,716 26 0 7.1% $1.32 1,300

10x10x8.6NON-

CLIMATE

100 $96 67 $6,432 46 21 18.3% $0.96 6,700

10x10x8.6CLIMATE

100 $106 19 $2,014 10 9 5.2% $1.06 1,900

10x15x8.6C.LIMATE

150 $118 27 $3,186 8 19 7.4% $0.79 4,050

10x15x8.6NON-

CLIMATE

150 $111 46 $5,106 21 25 12.6% $0.74 6,900

10x20x8.6NON-

CLIMATE

200 $126 79 $9,954 23 56 21.6% $0.63 15,800

10x25x8.6NON-

CLIMATE

250 $142 34 $4,828 6 28 9.3% $0.57 8,500

10x30x8.6NON-

CLIMATE

300 $156 35 $5,460 17 18 9.6% $0.52 10,500

10x20x8.6CLIMATE

200 $129 5 $645 4 1 1.4% $0.65 1,000

Totals/Avgs 1,600 366 $40,913 178 188 $0.71 57,550

Storage 1 Location Summary | 06

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Property Description

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Aerial Map

Parcel Map

Additional Maps

Property Images

Storage 1 Property Features | 08

Site DescriptionNUMBER OF UNITS 367

NUMBER OF BUILDINGS 12

GROSS SQUARE FEET 57,800

LAND ACRES 4.50

Storage 1 Aerial Map | 09

Storage 1 Survey - Lot 2 Block 1 | 10

Storage 1 Site Plan | 11

Storage 1 Property Images | 12

Storage 1 | Sale C

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Sale Comps

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Sale Comparables

Sale Comparables Charts

Sale Comparables Map

Storage 1 Storage Comparables | 19

Storage 1 | Fin

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Financial Analysis

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Multiyear Cash Flow Assumptions

Multiyear Cash Flow Projections

Disposition Sensitivity Analysis

Storage 1 Income & Expense Analysis | 26

INCOME CURRENT PRO FORMA

Rental Income $211,680 $320,220

Late Fees $6,840 $12,312

Merchandise $2,148 $3,221

Adminstrative Fees $4,896 $7,560

Insurance Revenue $13,679 $23,425

Other Income $1,620 $2,916

Gross Potential Income $240,863 $369,654

Vacancy & Collection Loss $32,022

Effective Gross Income $240,863 $337,632

Less: Expenses $108,300 $120,100

Net Operating Income $132,563 $217,532

Annual Debt Service $109,119 $109,119

Debt Coverage Ratio 1.21 1.99

Cash Flow After Debt Service $23,444 $108,413

EXPENSES CURRENT PROFORMA

Real Estate Taxes $74 $27,000 $90 $33,000

Property Insurance $48 $17,500 $41 $15,000

Management $57 $21,000 $57 $21,000

Repairs & Maintenance $3 $1,200 $23 $8,400

Pest Control $5 $1,800 $8 $2,900

Phone/Internet/Cable $7 $2,400 $7 $2,400

Electric/Water $29 $10,500 $29 $10,500

Credit Card Processing $33 $12,000 $33 $12,000

Lawn Care $9 $3,200 $9 $3,200

Office Supplies $7 $2,400 $7 $2,400

Other Expenses $25 $9,300 $25 $9,300

Total Operating Expense $295 $108,300 $327 $120,100

Expense / SF $1.87 $2.07

% of EGI 44.96 % 35.57 %

Per Unit Per Unit

Expense Notes: Dumpster - $1800; Advertising/Legal Addition - $1500; Misc - $6000

REVENUE ALLOCATION

DISTRIBUTION OF EXPENSES

Storage 1 Multiyear Cash Flow Assumptions | 27

GLOBALAnalysis Period 10 year(s)

Commencement Date Mar. 1, 2017

Millage Rate 3.00000 %

Exit CAP Rate 7.00 %

INCOMERental Income 5.00 %

EXPENSESReal Estate Taxes 1.500 %

Property Insurance 2.00 %

Management 2.00 %

Repairs & Maintenance 2.00 %

Pest Control 2.00 %

Phone/Internet/Cable 2.00 %

Electric/Water 2.00 %

Credit Card Processing 2.00 %

Lawn Care 2.00 %

Office Supplies 2.00 %

Other Expenses 2.00 %

Total Operating Expense 2.00 %

PROPOSED FINANCINGLoan Type Interest Only

Down Payment $1,382,500

Loan Amount $2,567,500

Interest Rate 4.25 %

Annual Debt Service $109,119

Loan to Value 65 %

Storage 1 Cash Flow Analysis | 28

CASH FLOWCalendar Year CURRENT Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Gross Potential RevenueRental Income $211,680 $320,220 $336,231 $353,043 $370,695 $389,229 $408,691 $429,125 $450,582 $473,111Late Fees $6,840 $12,312 $12,312 $12,312 $12,312 $12,312 $12,312 $12,312 $12,312 $12,312Merchandise $2,148 $3,221 $3,221 $3,221 $3,221 $3,221 $3,221 $3,221 $3,221 $3,221Adminstrative Fees $4,896 $7,560 $7,560 $7,560 $7,560 $7,560 $7,560 $7,560 $7,560 $7,560Insurance Revenue $13,679 $23,425 $23,425 $23,425 $23,425 $23,425 $23,425 $23,425 $23,425 $23,425Other Income $1,620 $2,916 $2,916 $2,916 $2,916 $2,916 $2,916 $2,916 $2,916 $2,916Gross Potential Income $240,863 $369,654 $385,665 $402,477 $420,129 $438,663 $458,125 $478,559 $500,016 $522,545Vacancy & Collection Loss $32,022 $33,623 $35,304 $37,069 $38,923 $40,869 $42,913 $45,058 $47,311Effective Gross Income $240,863 $337,632 $352,042 $367,172 $383,059 $399,740 $417,256 $435,647 $454,958 $475,234Operating ExpensesReal Estate Taxes $27,000 $33,000 $33,495 $33,997 $34,507 $35,025 $35,550 $36,084 $36,625 $37,174Property Insurance $17,500 $15,000 $15,300 $15,606 $15,918 $16,236 $16,561 $16,892 $17,230 $17,575Management $21,000 $21,000 $21,420 $21,848 $22,285 $22,731 $23,186 $23,649 $24,122 $24,605Repairs & Maintenance $1,200 $8,400 $8,568 $8,739 $8,914 $9,092 $9,274 $9,460 $9,649 $9,842Pest Control $1,800 $2,900 $2,958 $3,017 $3,078 $3,139 $3,202 $3,266 $3,331 $3,398Phone/Internet/Cable $2,400 $2,400 $2,448 $2,497 $2,547 $2,598 $2,650 $2,703 $2,757 $2,812Electric/Water $10,500 $10,500 $10,710 $10,924 $11,143 $11,366 $11,593 $11,825 $12,061 $12,302Credit Card Processing $12,000 $12,000 $12,240 $12,485 $12,734 $12,989 $13,249 $13,514 $13,784 $14,060Lawn Care $3,200 $3,200 $3,264 $3,329 $3,396 $3,464 $3,533 $3,604 $3,676 $3,749Office Supplies $2,400 $2,400 $2,448 $2,497 $2,547 $2,598 $2,650 $2,703 $2,757 $2,812Other Expenses $9,300 $9,300 $9,486 $9,676 $9,869 $10,067 $10,268 $10,473 $10,683 $10,896Total Operating Expense $108,300 $120,100 $122,337 $124,616 $126,939 $129,305 $131,716 $134,172 $136,675 $139,226Net Operating Income $132,563 $217,532 $229,705 $242,556 $256,121 $270,436 $285,540 $301,475 $318,282 $336,008Annual Debt Service $109,119 $109,119 $109,119 $109,119 $109,119 $109,119 $109,119 $109,119 $109,119 $109,119Cash Flow $23,444 $108,413 $120,586 $133,437 $147,002 $161,317 $176,421 $192,356 $209,163 $226,889

Effective Gross Income vs Operating Expenses Cash Flow

Storage 1 Disposition Sensitivity Analysis | 30

5 YEAR SENSITIVITY ANALYSISEXIT CAP RATE PROJECTED SALES

PRICESALES PRICE/UNIT PROCEEDS AFTER

LOAN PAYOFFIRR

6.00% $4,268,677 $11,631 $1,701,177 10.99%6.25% $4,097,930 $11,166 $1,530,430 9.14%6.50% $3,940,317 $10,737 $1,372,817 7.31%6.75% $3,794,379 $10,339 $1,226,879 5.48%7.00% $3,658,866 $9,970 $1,091,366 3.65%7.25% $3,532,698 $9,626 $965,198 1.82%7.50% $3,414,941 $9,305 $847,441 -0.04%7.75% $3,304,782 $9,005 $737,282 -1.91%8.00% $3,201,508 $8,723 $634,008 -3.83%

10 YEAR SENSITIVITY ANALYSISEXIT CAP RATE PROJECTED SALES

PRICESALES PRICE/UNIT PROCEEDS AFTER

LOAN PAYOFFIRR

6.00% $5,600,132 $15,259 $3,032,632 15.13%6.25% $5,376,127 $14,649 $2,808,627 14.54%6.50% $5,169,353 $14,085 $2,601,853 13.97%6.75% $4,977,895 $13,564 $2,410,395 13.41%7.00% $4,800,113 $13,079 $2,232,613 12.87%7.25% $4,634,592 $12,628 $2,067,092 12.33%7.50% $4,480,106 $12,207 $1,912,606 11.81%7.75% $4,335,586 $11,814 $1,768,086 11.30%8.00% $4,200,099 $11,444 $1,632,599 10.80%

Calendar Year CURRENT Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Financial MetricsDebt Coverage Ratio 1.21 1.99 2.11 2.22 2.35 2.48 2.62 2.76 2.92 3.08Operating Expense Ratio 44.96 % 35.57 % 34.75 % 33.93 % 33.13 % 32.34 % 31.56 % 30.79 % 30.04 % 29.29 %Gross Multiplier (GRM) 16.40 10.69 10.24 9.81 9.40 9.00 8.62 8.25 7.90 7.56Loan to Value 65.08 % 65.03 % 65.05 % 64.99 % 64.96 % 65.03 % 65.01 % 64.98 % 65.02 % 65.03 %Breakeven Ratio 90.27 % 67.89 % 65.75 % 63.66 % 61.62 % 59.64 % 57.72 % 55.85 % 54.03 % 52.26 %Price / SF $68.34 $68.34 $68.34 $68.34 $68.34 $68.34 $68.34 $68.34 $68.34 $68.34Price / Unit $10,763 $10,763 $10,763 $10,763 $10,763 $10,763 $10,763 $10,763 $10,763 $10,763Expense / SF $1.87 $2.07 $2.11 $2.15 $2.19 $2.23 $2.27 $2.32 $2.36 $2.40Income / SF $4.16 $5.84 $6.09 $6.35 $6.62 $6.91 $7.21 $7.53 $7.87 $8.22

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Demographic Charts

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POPULATION 1 MILE 3 MILE 5 MILE

2000 Population 7,966 44,988 77,246

2010 Population 11,117 52,391 88,661

2016 Population 11,832 57,982 97,977

2021 Population 12,653 62,024 104,709

2016 African American 1,145 4,207 5,716

2016 American Indian 594 2,872 5,066

2016 Asian 691 3,417 4,386

2016 Hispanic 981 4,493 8,239

2016 White 8,215 42,276 73,881

2016 Other Race 383 1,412 2,605

2016 Multiracial 790 3,742 6,234

2016-2021: Population: Growth Rate 6.75 % 6.80 % 6.70 %

2016 HOUSEHOLD INCOME 1 MILE 3 MILE 5 MILE

less than $15,000 821 4,387 6,092

$15,000-$24,999 730 3,119 4,574

$25,000-$34,999 535 2,242 3,806

$35,000-$49,999 852 3,464 6,175

$50,000-$74,999 893 3,511 6,745

$75,000-$99,999 513 2,268 4,329

$100,000-$149,999 412 2,274 4,362

$150,000-$199,999 103 855 1,719

$200,000 or greater 120 632 1,422

Median HH Income $40,810 $40,827 $46,742

Average HH Income $56,424 $59,530 $66,402

HOUSEHOLDS 1 MILE 3 MILE 5 MILE

2000 Total Housing 3,756 19,452 33,834

2010 Total Households 4,719 20,572 35,711



2016 Average Household Size 2.38 2.27 2.33

2000 Owner Occupied Housing 1,366 7,376 15,737

2000 Renter Occupied Housing 2,119 10,676 15,764



2016 Vacant Housing 440 2,063 3,207

2016 Total Housing 5,419 24,824 42,440



2021 Vacant Housing 467 2,171 3,382

2021 Total Housing 5,773 26,617 45,346

2016-2021: Households: Growth Rate 6.40 % 7.20 % 6.75 %

Source: esri

Storage 1 Demographic Charts | 33

1 Mile Radius 3 Mile Radius 5 Mile Radius

2016 Household Income

1 Mile Radius 3 Mile Radius 5 Mile Radius

2016 Population by Race

Storage 1 Demographic Charts | 34

2016 Household Occupancy - 1 Mile Radius

Average Income Median Income

2016 Household Income Average and Median

Storage 1 | A

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Storage 1CONFIDENTIALITY and DISCLAIMERThe information contained in the following offering memorandum is proprietary and strictlyconfidential. It is intended to be reviewed only by the party receiving it from RJ Real Estate and itshould not be made available to any other person or entity without the written consent of RJ RealEstate.

By taking possession of and reviewing the information contained herein the recipient agrees tohold and treat all such information in the strictest confidence. The recipient further agrees thatrecipient will not photocopy or duplicate any part of the offering memorandum. If you have nointerest in the subject property, please promptly return this offering memorandum to RJ RealEstate. This offering memorandum has been prepared to provide summary, unverified financialand physical information to prospective purchasers, and to establish only a preliminary level ofinterest in the subject property.

The information contained herein is not a substitute for a thorough due diligence investigation.RJ Real Estate has not made any investigation, and makes no warranty or representation withrespect to the income or expenses for the subject property, the future projected financialperformance of the property, the size and square footage of the property and improvements, thepresence of absence of contaminating substances, PCBs or asbestos, the compliance with local,state and federal regulations, the physical condition of the improvements thereon, or financialcondition or business prospects of any tenant, or any tenant’s plans or intentions to continue itsoccupancy of the subject property.

The information contained in this offering memorandum has been obtained from sources webelieve reliable; however, RJ Real Estate has not verified, and will not verify, any of the informationcontained herein, nor has RJ Real Estate conducted any investigation regarding these mattersand makes no warranty or representation whatsoever regarding the accuracy or completeness ofthe information provided. All potential buyers must take appropriate measures to verify all of theinformation set forth herein. Prospective buyers shall be responsible for their costs and expensesof investigating the subject property.

Exclusively Marketed by:

Jason NedrowReal Estate Consultant405-922-2968License # [email protected]

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60% stabilized facility -new construction...income current pro forma rental income $211,680 $320,220...

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