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25040 US-12Sturgis MI 49091
Sturgis SelfStorage
Sturgis Self StorageCONTENTS
Mark FloriaSelf Storage Advisor (248) 420-4612 [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 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 - [email protected]
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 Description
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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 Comps
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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
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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) [email protected]
powered by CREOP
Jesse LukePartner - Self Storage Advisory Group(630) [email protected]
Exclusively Marketed by: