A A Self & Boat Storage · A A Self & Boat Storage HOUSTON, TX This information has been secured from sources we believe to be reliable, but we make no representations or warranties,

HOUSTON, TX

A A Self & BoatStorage

OFFERING MEMORANDUM

CONFIDENTIALITY AND DISCLAIMER

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

HOUSTON, TX

A A Self & Boat Storage

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOURMARCUS & MILLICHAP AGENT FOR MORE DETAILS.

NON-ENDORSEMENT NOTICE

Section 1 PRICING AND FINANCIAL ANALYSIS

Section 2 PROPERTY DESCRIPTION

Section 3 RENT COMPARABLES

Section 4 MARKET OVERVIEW

Section 5 DEMOGRAPHIC ANALYSIS

TABLE OF CONTENTS


A A Self & Boat StorageHOUSTON, TX

PRICING AND FINANCIAL ANALYSIS

1

Price $2,750,000

Down Payment 35% / $962,500

Total Units 266

Price per Unit $10,338

Rentable Square Feet 49,539

Price per Rentable Square Foot $55.51

Average Rent per Square Foot (Existing) $6.00

Year Built 1974

Lot Size 2.32 Acres

Vital Data

CAP Rate - Current 6.13%

Net Operating Income - Current $168,645

Net Cash Flow After Debt Service - Current 17.52% / $168,645

Total Return - Current 17.52% / $168,645

CAP Rate - Pro Forma 9.61%

Net Operating Income - Pro Forma $264,156

Net Cash Flow After Debt Service - Pro Forma 27.44% / $264,156

Total Return - Pro Forma 27.44% / $264,156



Major Employers

CompanyLocal

Employees

Cemex Construction Mtls S LLC 2,600

Memorial Hrmann Healthcare Sys 2,010

Memorial South East 1,500

Raintree Resorts International 1,500

Uspl 1,500

Coburns 600

AT&T Corp 590

Walmart 509

Cemex Cement Inc 500

Radisson Inn 500

Memorial Hrmann Cntinuing Care 450

US Post Office 420

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Y0040113 Marcus & Millichap. All rights reserved.

Demographics

1-Mile 3-Miles 2-Miles

2014 Total

Population20,911 139,987 71,503

2019 Total

Population21,273 141,505 72,387

2014 Total

Households6,922 47,992 23,944

2019 Total

Households7,038 48,847 24,375

Median HH Income $39,156 $48,094 $45,678

Per Capita Income

(based on Total$25,044 $31,598 $28,047

Average (Mean) HH

Income$74,939 $91,932 $83,437

OFFERING SUMMARY

2


Income Current Per SF Pro Forma Per SF

GROSS POTENTIAL RENT $418,692 $8.45 $483,648 $9.76

GROSS POTENTIAL INCOME $418,692 $8.45 $483,648 $9.76

Vacancy/Collection Allowance 25.3% / $106,080 $2.14 (15.0%) 72,547 $1.46

EFFECTIVE GROSS INCOME $312,612 $6.31 $411,101 $8.30

Total Expenses $143,967 $2.91 $146,945 $2.97

% of EGI 46.1% 35.7%

NET OPERATING INCOME $168,645 $3.40 $264,156 $5.33


Total Number of Units 266

Total Rentable Square Feet 49,539


INCOME AND EXPENSES

3




Comments

Pro Forma estimates converting office space to climate control storage.

No. of

Units

Unit

Type SF/Unit

Current

Rent/Unit

Current

Monthly

Income

Current

Annual Income

Pro Forma

Rents/Unit

Pro Forma

Monthly

Income

Pro Forma

Annual

Income

2 5X5 Climate 25.0 $45.00 $90.00 $1,080.00 $50.00 $100.00 $1,200.00

6 5X10 Climate 50.0 $60.00 $360.00 $4,320.00 $66.00 $396.00 $4,752.00

2 8X8 Climate 64.0 $88.00 $176.00 $2,112.00 $97.00 $194.00 $2,328.00

2 8X9 Climate 72.0 $88.00 $176.00 $2,112.00 $97.00 $194.00 $2,328.00

1 9X10 Climate 90.0 $98.00 $98.00 $1,176.00 $108.00 $108.00 $1,296.00

37 10X10 Climate 100.0 $104.00 $3,848.00 $46,176.00 $114.00 $4,218.00 $50,616.00

1 7X15 Climate 105.0 $136.00 $136.00 $1,632.00 $150.00 $150.00 $1,800.00

1 9X14 Climate 126.0 $140.00 $140.00 $1,680.00 $154.00 $154.00 $1,848.00

1 10X13 Climate 130.0 $131.00 $131.00 $1,572.00 $144.00 $144.00 $1,728.00

24 10X15 Climate 150.0 $153.00 $3,672.00 $44,064.00 $168.00 $4,032.00 $48,384.00

8 10X17 Climate 170.0 $165.00 $1,320.00 $15,840.00 $182.00 $1,456.00 $17,472.00

20 10X20 Climate 200.0 $192.00 $3,840.00 $46,080.00 $212.00 $4,240.00 $50,880.00

2 15X15 Climate 225.0 $209.00 $418.00 $5,016.00 $230.00 $460.00 $5,520.00

1 15X20 Climate 300.0 $230.00 $230.00 $2,760.00 $250.00 $250.00 $3,000.00

1 12X28 Climate 336.0 $250.00 $250.00 $3,000.00 $275.00 $275.00 $3,300.00

2 15X24 Climate 360.0 $341.00 $682.00 $8,184.00 $375.00 $375.00 $4,500.00

34 5X15 NC 75.0 $50.00 $1,700.00 $20,400.00 $55.00 $1,870.00 $22,440.00

4 10X10 NC 100.0 $77.00 $308.00 $3,696.00 $85.00 $340.00 $4,080.00

55 10X15 NC 150.0 $90.00 $4,950.00 $59,400.00 $100.00 $5,500.00 $66,000.00

56 10X20 NC 200.0 $121.00 $6,776.00 $81,312.00 $133.00 $7,448.00 $89,376.00

2 15X20 NC 300.0 $180.00 $360.00 $4,320.00 $200.00 $400.00 $4,800.00

1 Office B-1 4,000.0 $2500.00 $2,500.00 $30,000.00 $4000.00 $4,000.00 $48,000.00

1 Office B-5 1,000.0 $400.00 $400.00 $4,800.00

1 Office B-8 4,000.0 $1500.00 $1,500.00 $18,000.00 $4000.00 $4,000.00 $48,000.00

1 Office B-6 2,000.0 $830.00 $830.00 $9,960.00

266 TOTAL 49,539 $34,891.00 $418,692.00 $40,304.00 $483,648.00

UNIT MIX

4


Comments

HCAD tax rate 2.6161 percent.

Pro Forma utilities estimates savings by converting office space to climate control storage.


Current Per SF Pro Forma Per SF

Real Estate Taxes $39,047 $0.79 $39,047 $0.79

Insurance $9,600 $0.19 $9,600 $0.19

Utilities $15,000 $0.30 $12,000 $0.24

Repairs & Maintenance $12,500 $0.25 $12,500 $0.25

Marketing & Promotion $3,600 $0.07 $3,600 $0.07

On-Site Payroll $36,000 $0.73 $36,000 $0.73

Management Fee $15,631 $0.32 $20,555 $0.41

General & Administration $5,500 $0.11 $5,500 $0.11

Telephone $2,400 $0.05 $2,400 $0.05

Credit Card Fees $4,689 $0.09 $5,743 $0.12

TOTAL EXPENSES $143,967 $2.91 $146,945 $2.97

% of EGI 46.1% 35.7%


EXPENSES

FIRST TRUST DEED

Loan Type Proposed New

Interest Rate 5.0%

Amortization 25 Years

Program Conventional

9021 Ruland Road

Houston, TX 77055

Price $2,750,000

Down Payment 35% / $962,500

Number of Units 266


CAP Rate - Current 6.13%

CAP Rate- Pro Forma 9.61%

Average Rent per Square Foot

(Existing)

$6.00

Year Built 1974

Lot Size 2.32 Acres

Type of Ownership Fee Simple

Annualized Operating Data

Current Pro Forma

Gross Potential Rent $418,692 $483,648

Gross Potential Income $418,692 $483,648

Less: Vacancy/Deductions 25.3% / $106,080 (15.0%) 72,547

Effective Gross Income $312,612 $411,101

Less: Expenses $143,967 $146,945

Net Operating Income $168,645 $264,156

Net Cash Flow Before Debt Service $168,645 $264,156

Net Cash Flow After Debt Service 17.52% / $168,645 27.44% / $264,156

Total Return 17.52% / $168,645 27.44% / $264,156

Location

Financing

Expenses

Real Estate Taxes $39,047 $39,047

Insurance $9,600 $9,600

Utilities $15,000 $12,000

Repairs & Maintenance $12,500 $12,500

Marketing & Promotion $3,600 $3,600

On-Site Payroll $36,000 $36,000

Management Fee $15,631 $20,555

General & Administration $5,500 $5,500

Telephone $2,400 $2,400

Credit Card Fees $4,689 $5,743

Total Expenses $143,967 $146,945

% of EGI 46.1% 35.7%

5


Loan information is time sensitive and subject to

change. Contact your local Marcus & Millichap Capital

Corporation representative.



FINANCIAL OVERVIEW


PROPERTY DESCRIPTION

AA Self & Boat Storage is a 49,539 net rentable square foot self-storage facility located in Houston, Texas. The property sits on approximately 2.32 acres of land and has five single story buildings. There are 262 units composed of 111 climate control units (12,299 net rentable square feet) and 151 non-climate units (26,240 net rentable square feet). Additionally, there is 11,000 square feet of office space. The asset is owned and operated by a local investment group and this is the only self-storage facility they own.

The property has amenities including a gated entry with digital keypad, a full-service manager’s office and asphalt driveways.

This investment offers an investor the opportunity to acquire a self-storage facility in a rapidly gentrifying, high demographic, high barrier to entry submarket where rents are 25 percent below the competition. In several cases, street rates at AA Self & Boat Storage are less than half of what some of the nearby competitors are charging. By converting the existing office space to climate control storage, an investor could increase revenue substantially at a relatively inexpensive cost. The opportunity to improve operations and increase yield is only part of the story; the highest and best use for the property could very well be the intrinsic land value. The 2.32 acres is one of the few pieces of land still available that is zoned for Memorial High School, one of the premier public high schools in greater Houston. Parcels of this size and location are hard to come by, and it provides an investor a myriad of options for future development.

AA Self & Boat Storage sits in the densely populated Spring Branch area of Houston where the population is around 140,000 within a three-mile radius and the average household income exceeds $91,000.

As of July 2017, AA Self & Boat Storage is approximately 78 percent physically occupied.

7



■ 49,539 Net Rentable Square Feet

■ 2.32 Acres | Ideal Redevelopment Opportunity

■ $91,932 Average Household Income (Three Mile Radius)

■ 140,000 Population Density (Three Mile Radius)

■ Below Market Rental Rates

■ 2.32 Acres Zoned for Memorial High School


INVESTMENT OVERVIEW

Investment Highlights

The Offering

Property A A Self & Boat Storage

Property Address 9021 Ruland Road

Houston, TX 77055

Site Description

Total Units 266

Units Sizes 5 x 5 to 15 x 20, Plus Boat


Year Built 1974

Lot Size 2.32 Acres

Type of Ownership Fee Simple

Number of Buildings 5

Number of Stories 1

Construction

Foundation Concrete

Framing Metal

Exterior Walls Metal

Parking Surface Asphalt

Roof Metal

Fencing Yes

Entry Coded Gate Access

Mechanical

Climate Control Available

Fire Protection Yes

Security Multiple Features

8




PROPERTY SUMMARY

9




PROPERTY PHOTOS

■ On-Site Management Office

■ Full Perimeter Fence

■ Video Surveillance and Lighting Throughout

■ Coded Gate Access

■ Asphalt Drives

10



■ Concrete Floors

■ Roll Up Doors

■ Drive Up Non Climate Storage

■ Climate Control Units


Common Area Amenities

PROPERTY AMENITIES

Unit Amenities

11




PROPERTY PHOTOS

Local Map Regional Map

12




AREA MAPS

13




AERIAL PHOTO

14




AERIAL PHOTO


RENT COMPARABLES

1)

2)

3)

4)


Public Storage

Life Storage

Houston Mini Storage

Spring Branch Mini Storage

16

RENT COMPARABLES



RENT COMPARABLES MAP

Average Occupancy

0

10

20

30

40

50

60

70

80

90

100

Subject PublicStorage

LifeStorage

HoustonMini

Storage

SpringBranch

MiniStorage

17

RENT COMPARABLES



OCCUPANCY

2

1

Subject Property

* See Unit Mix page for complete breakdown.

No. of Units Unit Type SF/Unit Rent/Unit Avg. Rent/SF

37 10X10 Climate 100.0 $104.00 $1.04

24 10X15 Climate 150.0 $153.00 $1.02

20 10X20 Climate 200.0 $192.00 $0.96

4 10X10 NC 100.0 $77.00 $0.77

55 10X15 NC 150.0 $90.00 $0.60

56 10X20 NC 200.0 $121.00 $0.61

266 Total 49,539 $0.90

Total Units: 266

Occupancy: 81%

Year Built: 1974


9021 Ruland Road

Houston, TX 77055

Total Units: 650

Occupancy: 88%

Year Built: 1975

Public Storage

9223 Long Point

Houston, TX 77055

Life Storage

8726 Long Point

Houston, TX 77055


10X10 Climate 100 $0.00

10X15 Climate 150 $0.00

10X20 Climate 200 $0.00

10X10 Non-Climate 100 $93.00 $0.93

10X15 Non-Climate 150 $193.00 $1.29

10X20 Non-Climate 200 $221.00 $1.11

Total 900 $1.11

NRSF: 68,915

Occupancy: 94%

Year Built: 2000

18


10X10 Climate 100 $185.00 $1.85

10X15 Climate 150 $0.00

10X20 Climate 200 $335.00 $1.68

10X10 Non-Climate 100 $170.00 $1.70

10X15 Non-Climate 150 $185.00 $1.23

10X20 Non-Climate 200 $229.00 $1.15

Total 900 $1.52

RENT COMPARABLES



RENT COMPARABLES

4

3

Comments

All non-climate facility

Total Units: 400

Occupancy: 95%

Year Built: 1981

Spring Branch Mini Storage

8900 Emnora

Houston, TX 77080


10X10 Climate 100 $0.00

10X15 Climate 150 $0.00

10X20 Climate 200 $0.00

10X10 Non-Climate 100 $95.00 $0.95

10X15 Non-Climate 150 $125.00 $0.83

10X20 Non-Climate 200 $155.00 $0.78

Total 900 $0.85


10X10 Climate 100 $136.00 $1.36

10X15 Climate 150 $0.00

10X20 Climate 200 $155.00 $0.78

10X10 Non-Climate 100 $85.00 $0.85

10X15 Non-Climate 150 $0.00

10X20 Non-Climate 200 $0.00

Total 900 $1.00

19

NSRF 26,888

Occupancy: 93%

Year Built: 1996

RENT COMPARABLES


Houston Mini Storage

1921 Hollister Street

Houston, TX 77080


RENT COMPARABLES


MARKET OVERVIEW

21

MARKET OVERVIEW


Geography

The Houston metro is located in southeastern Texas

and composed of Harris, Galveston, Brazoria, Fort

Bend, Chambers, Montgomery, Austin, Liberty and

Waller counties. Bordered on the southeast by the Gulf

Coast, the metro encompasses Galveston Bay. The

Houston Ship Channel links the city of Houston to the

Gulf of Mexico. The area’s terrain is level and drains

into a number of bayous and canals. Growth has

sprawled, primarily to the north and west, making

Houston the fifth-most populated metro in the nation.


Market Highlights

A city on the move

■ Houston will remain a top destination for corporate

relocations due to its business-friendly environment.

Low costs of living, doing business

■ Houston has one of the lowest costs of living among

major U.S. metro areas.

Abundant higher-education facilities

■ There are more than 40 post-secondary educational

institutions in the metro.

HOUSTON

Houston-The Woodlands-Sugar Land Metro

Largest Areas in Metro by Population

* ForecastSources: Marcus & Millichap Research Services, U.S. CensusBureau, Experian

22

Metro

The Houston metro consists of nine counties and has a

population of more than 6.5 million people. Houston is

the largest city, with approximately 2.2 million

residents, followed by Pasadena and Pearland.

MARKET OVERVIEW

Infrastructure

Great strides have been made to upgrade Houston’s

transportation infrastructure, with installments of

MetroRail and the completion of Interstate 10 in West

Houston now comprising sections of the state’s first

interstate toll road. A portion of U.S. 59 through

Houston has been upgraded and renamed Interstate 69.

When the 1,600-mile interstate is complete, Houston

will have better access to Canada and Mexico. Since

1994, construction on the massive State Highway 99, or

“Grand Parkway,” has driven growth in the metro. This

outer loop will be the largest beltway in the U.S.

Air service is provided by George Bush Intercontinental

Airport, one of the country’s busiest airports. Other

major airports include Ellington Field and William P.

Hobby Airport. The latter recently expanded to

accommodate Southwest Airlines’ international travel.

The Port of Houston contains 25 miles of facilities

located along the Houston Ship Channel and has

recently been expanded. The port is one of the world’s

busiest, moving more than 200 million tons of cargo,

and it records nearly 8,000 vessel calls annually. As the

closest gulf port to the Panama Canal, Houston will

benefit from the port’s increased capacity.



Houston 2,245,100

Pasadena 155,000

The Woodlands 103,100

Pearland 101,800

League City 93,500

Sugar Land 89,500

HOUSTON

Airports

■ George Bush Intercontinental Airport

■ William P. Hobby Airport

■ Ellington Field

Major Roadways

■ Interstates 10, 45, and 69 (new)

■ Sam Houston Tollway, 610 Loop, Hwy. 290.

■ Grand Parkway

Rail

■ Freight - Union Pacific, BNSF

■ Passenger - Amtrak

■ Commuter - MetroRail

Port

■ Port of Houston

The Houston Metro is:

■ 160 miles from Austin

■ 195 miles from San Antonio

■ 250 miles from Dallas

■ 310 miles from Mexico

■ 345 miles from New Orleans

■ 745 miles from El Paso

23

* ForecastSources: Marcus & Millichap Research Services, Bureau ofEconomic Analysis, Moody’s Analytics, U.S. Census Bureau,Fortune

MARKET OVERVIEW

Economy

The Houston economy has diversified since the 1980s

into industries such as biotechnology, distribution,

logistics and nanotechnology; the metro is still the

center of the U.S. petroleum industry. Today, energy

accounts for roughly 40 percent of the local economy.

Houston leads the nation in petrochemical production

and refining, and ranks highly in manufacturing

agricultural chemicals, fertilizers and pesticides. The

area is also the world’s primary producer of oil-field

equipment. Other products manufactured in Houston

are paper, electrical and electronic machinery, iron and

steel. Low oil prices will hinder economic gains this year

on the exploration or upstream side while downstream

activity such as petrochemicals and refining will benefit.

Healthcare is gaining economic prominence and several

new hospitals are opening. Specialized education and

training institutions provide an extraordinary economic

resource in the metro. The Texas Medical Center is one

of the largest medical complexes in the world. The

center is composed of more than 50 healthcare and

research institutions and treats 7 million patients

annually while employing more than 100,000 people.

The Port of Houston is one of the country’s busiest for

exports and is in the process of upgrading its facilities to

handle the larger supertankers that will come through

the widened Panama Canal. The port directly supplies

thousands of jobs and generates billions of dollars in

business revenue, and it is central to the region’s

ongoing development as a hub for international trade.



HOUSTON

24

Labor

Houston’s labor pool is made up of nearly 3 million individuals. The local economy has diversified over the past

decades, although energy-related employment still accounts for a sizable portion of jobs. The energy industry

consists of the following components: upstream energy (oil and gas exploration and production), midstream

energy (pipeline transportation and oil-field equipment manufacturing) and downstream energy (refining,

chemicals manufacturing). The recent downturn in crude oil prices will slow the local employment growth this

year; however, substantial structural shifts to diversify Houston’s employment base have reduced its vulnerability

to energy fluctuations.

The Port of Houston, George Bush Intercontinental Airport and a large retail segment contribute to making the

trade, transportation and utilities sector the largest employment sector in the metro; it comprises 20 percent of all

nonfarm jobs. The sector will expand 1.4 percent annually through 2020. Professional and business services

accounts for 16 percent of total employment, and annual gains of 3.2 percent in this sector should boost the local

office market.

The construction sector, which employs 205,200 workers, is expected to post average annual gains of 4 percent

through 2020.

MARKET OVERVIEW


* ForecastSources: Marcus & Millichap Research Services, BLS, Moody’s Analytics


HOUSTON

25

MARKET OVERVIEW


Major Private Employers

Employers

The metro serves as the headquarters for 27 Fortune

500 companies in industries such as energy,

transportation and technology. Corporations on the list

include ConocoPhillips, Sysco and Waste Management.

Houston is third among metros nationwide in the

number of Fortune 500 headquarters, behind only New

York City and Chicago. Additionally, many other

Fortune 500 companies maintain administrative

headquarters in the area. Of the world’s 100 largest

non-U.S.-based corporations, nearly half maintain non-

retail operations in the region.

Metrowide, employers grew payrolls by an average of

3.0 percent annually over the past five years. Average

annual growth of 1.8 percent is projected over the next

five years. Houston’s major employers include The

Kroger Co., ExxonMobil Corp., Shell Oil Co. and the

Methodist Hospital System. More than half of these

companies are headquartered locally. ExxonMobil’s new

385-acre campus in Spring is expected to house 10,000

workers.

Though Houston is home to many major corporations,

businesses with 250 or more workers account for only a

small portion of total employment. The metro has

hundreds of thousands of small businesses, which

provide jobs across all employment sectors.

* ForecastSources: Marcus & Millichap Research Services, BLS, Moody’sAnalytics, Experian


HOUSTON

Memorial Hermann Healthcare System

University of Texas

The Kroger Co.

ExxonMobil Corp.

Shell Oil Co.

Methodist Hospital System

United Continental Holdings

Baker Hughes Inc.

St. Luke’s Episcopal Health System

Hewlett-Packard

26

MARKET OVERVIEW


Demographics

The metro’s population grew by more than 600,000

residents between 2010 and 2015, and will outpace the

United States’ average growth through the next five

years, increasing 1.7 percent annually. A large portion of

the growth will come from in-migration, as an

expanding employment base attracts young workers to

the region. As a result, the area has one of the lowest

median ages among major U.S. metros, at 33.7 years.

Around 29.0 percent of residents fall within their prime

employment years of 25 to 44.

The availability of employees also helps attract

corporations seeking a large, affordable and skilled labor

pool. Approximately 29 percent of area residents age 25

and older have attained at least a bachelor’s degree and

10 percent hold a graduate or professional degree.

A skilled workforce along with the concentration of

Fortune 500 headquarters and major business

operations in the region contribute to income growth.

The metro’s median household income, currently at

$61,500 per year, is well above that of the nation at

$56,100 annually, and is expected to rise further over in

the next five years.

Relatively high incomes have afforded more than 62

percent of households in the metro to own their homes.

Through 2020, incomes are expected to rise faster than

home prices, making homeownership more affordable

for some residents.

* ForecastSources: Marcus & Millichap Research Services, AGS, Experian,Moody’s Analytics, U.S. Census Bureau


HOUSTON

The information contained in the market overview comes from sources deemed to be reliable, however, no representation, warranty or guarantee, express or implied, may be made as to the accuracy or reliability of the information contained herein. The most timely data available at time of production, including estimates and forecasts, were used and may be subject to revision.

Quality of Life

Outdoor activities abound in Houston as a result of the

city’s favorable location and climate. More than a dozen

state parks and recreation areas lie within a short drive

of Houston, and more than 500 parks and open spaces

are located in the immediate area.

For those seeking cultural activities, Houston is one of

few U.S. cities with permanent professional resident

companies in opera, ballet, orchestra and theater. The

area also has a strong collection of museums including

the Lawndale Art Center, the Children’s Museum of

Houston and the Museum of Fine Arts, Houston.

Houston is home to four professional sports teams: the

Houston Texans, the Houston Astros, the Houston

Rockets and the Houston Dynamo.

Educational opportunities play a key role in Houston’s

quality of life. The education and health services sector

accounts for 12 percent of total employment. Johnson

Space Center for instance, is a popular tourist and

educational destination. Houston offers distinguished

school districts and more than 40 colleges, universities

and educational institutions. The metro is also known

internationally for its medical community and is home

to the Texas Medical Center, the largest medical center

of its kind in the world.

27

* ForecastSources: Marcus & Millichap Research Services, NationalAssociation of Realtors®, Moody’s Analytics, U.S. CensusBureau

MARKET OVERVIEW



HOUSTON


DEMOGRAPHIC ANALYSIS

1 Mile 2 Miles 3 Miles

2000 Population 20,973 71,746 135,079

2010 Population 19,952 68,339 133,779

2014 Population 20,911 71,503 139,987

2019 Population 21,273 72,387 141,505

2000 Households 6,959 23,684 45,505

2010 Households 6,550 22,703 45,506

2014 Households 6,922 23,944 47,992

2019 Households 7,038 24,375 48,847

2014 Average Household Size 2.97 2.96 2.87

2014 Daytime Population 6,078 27,209 73,783

2000 Owner Occupied Housing Units 36.32% 43.56% 46.91%

2000 Renter Occupied Housing Units 58.80% 50.34% 47.33%

2000 Vacant 4.88% 6.11% 5.76%



2014 Vacant 8.48% 7.02% 7.37%



2019 Vacant 8.79% 7.20% 7.74%

$ 0 - $14,999 13.2% 12.4% 12.1%

$ 15,000 - $24,999 18.2% 15.3% 14.7%

$ 25,000 - $34,999 13.2% 11.7% 11.4%

$ 35,000 - $49,999 15.2% 14.2% 13.3%

$ 50,000 - $74,999 13.3% 15.1% 15.4%

$ 75,000 - $99,999 8.0% 9.2% 9.1%

$100,000 - $124,999 5.4% 6.6% 6.6%

$125,000 - $149,999 2.9% 4.1% 4.1%

$150,000 - $199,999 3.2% 3.5% 3.8%

$200,000 - $249,999 2.9% 2.8% 3.1%

$250,000 + 4.5% 5.2% 6.6%

2014 Median Household Income $39,156 $45,678 $48,094

2014 Per Capita Income $25,044 $28,047 $31,598

2014 Average Household Income $74,939 $83,437 $91,932

29




DEMOGRAPHIC REPORT

Demographic data © 2012 by Experian.

Geography: 5 miles

Population

In 2014, the population in your selected geography is 344,995. The population has changed by 6.84% since 2000. It is estimated

that the population in your area will be 353,219 five years from now, which represents a change of 2.38% from the current year. The

current population is 50.45% male and 49.54% female. The median age of the population in your area is 34.6, compare this to the

Entire US average which is 37.3. The population density in your area is 4,395.89 people per square mile.

Households

There are currently 142,691 households in your selected geography. The number of households has changed by 7.07% since 2000.

It is estimated that the number of households in your area will be 147,262 five years from now, which represents a change of 3.20%

from the current year. The average household size in your area is 2.41 persons.

Income

In 2014, the median household income for your selected geography is $52,970, compare this to the Entire US average which is

currently $51,972. The median household income for your area has changed by 19.24% since 2000. It is estimated that the median

household income in your area will be $62,015 five years from now, which represents a change of 17.07% from the current year.

The current year per capita income in your area is $37,997, compare this to the Entire US average, which is $28,599. The current

year average household income in your area is $91,703, compare this to the Entire US average which is $74,533.

Race & Ethnicity

The current year racial makeup of your selected area is as follows: 64.67% White, 9.66% Black, 0.05% Native American and 6.34%

Asian/Pacific Islander. Compare these to Entire US averages which are: 71.60% White, 12.70% Black, 0.18% Native American and

5.02% Asian/Pacific Islander.

People of Hispanic origin are counted independently of race. People of Hispanic origin make up 41.60% of the current year

population in your selected area. Compare this to the Entire US average of 17.13%.

Housing

In 2000, there were 59,955 owner occupied housing units in your area and there were 73,313 renter occupied housing units in your

area. The median rent at the time was $567.

Employment

In 2014, there are 357,014 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed

that 67.89% of employees are employed in white-collar occupations in this geography, and 31.96% are employed in blue-collar

occupations. In 2014, unemployment in this area is 4.64%. In 2000, the average time traveled to work was 26.3 minutes.


30




SUMMARY REPORT

Average income of all the people 15 years and older occupying a

single housing unit.


31




AVERAGE HOUSEHOLD INCOME

Two-way, average daily traffic volumes.Traffic Count data © 2012 by TrafficMetrix. All rights reserved.

32




TRAFFIC COUNTS

* Traffic Count Estimate

33

CLOSING PAGE



DISCLAIMER

HOUSTON, TX

OFFERING MEMORANDUM


Offices Throughout the U.S and Canada

www.MarcusMillichap.com

Exclusively Listed By:

Dave KnoblerVice President Investments

Director, National Self Storage GroupHouston Office

License: TX: 606252Tel: (713) 452-4293Fax: (713) 452-4210

[email protected]/DavidKnobler

Documents

A A Self & Boat Storage · A A Self & Boat Storage HOUSTON, TX This information has been secured from sources we believe to be reliable, but we make no representations or warranties,