Last Revision: 01.24.2019

LISTING OVERVIEW: RV STORAGE & SELF STORAGE FACILITIES 3000 Centerpointe E Dr. & 2899 Venture Dr.

HIGHLIGHTS:

• NO OTHER STORAGE FACILITY OF THIS CALIBER WITHIN 101 MILES FROM PRESCOTT! • CURRENT DEMAND FOR STORAGE UNITS IN THE AREA IS 966! • Full set of APPROVED plans completed for both projects (RV/Boat & Self Storage) in Centerpointe East. • Both projects (RV & Self Storage) are ready to be built with permits issued now. Owner has kept them renewed. • Both projects are approved to be built in phases with the ability to sell/lease units upon completion and move to

next phase to generate operating cash flow. • Current zoning allows for RV/Boat units to be either SOLD (condos) or LEASED. • Owner wants BOTH projects to sell & close concurrently. Has no interest in selling them individually. • Listing Price for BOTH projects is $1,800,000.00. • Seller may offer seller financing. $1MM down and Seller would subordinate to a construction loan for the RV/Boat

project. Seller is willing to consider creative financing deals (JV, Seller financing, subordination, etc.) • Seller has been in escrow twice (as of 1/8/19) for $1.8MM, but previous Buyers were not able to obtain the

financing to purchase both projects concurrently. PHYSICAL/PROJECT DETAILS:

• Two contiguous vacant parcels totaling approx. 7.39 acres off of HWY 89A. • 103-01-655B: RV Storage, 103-01-823A: Self Storage. • Subject property is an EXCEPTIONAL location considering several residential subdivisions being developed in

the vicinity. These subdivisions predominantly target retirees moving into town or existing local residents (see attached area map).

• City water, sewer, electricity & telephone/internet on-site. Concrete curbs and sidewalks already installed. • TOPO: Street grade, level. • Total RV Storage Units = 128 • Total Self Storage Units = 353 • Self Storage projects includes the construction of a 1,600sf (under roof) on-site residential residence with 15x20

enclosed units for equipment, tools & storage for manager, 4 parking spaces and a 1,200sf office space for conducting daily business with an additional 300sf space that can generate additional revenue if leased to a business.

Self Storage Unit Sizes & AvailabilitySize of Units Number of Units Number of Units

5x10 80 10x25 53

10x10 88 15x20 4

10x15 61 10x30 27

10x20 40 TOTAL UNITS 353

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MARKET FEASIBILITY DETAILS:

• Subject property is an EXCEPTIONAL location considering several residential subdivisions being developed in the vicinity. These subdivisions predominantly target retirees from out of state and local residents. It has been frequently said that approx. 10,000 homes are slated to be constructed around this area within the coming years. “The subject is near amenities that are significant to RV/boat storage users (commercial and residential type uses, as well as two main thoroughfares (AZ State Route 89A and 89) and would have good functional utility as an RV/boat storage” (Feasibility Study Analysis Report 2/7/2018).

• “There are no future RV/boat storage developments in the Prescott market area or in the pipeline for development” (Feasibility Study Analysis Report 2/7/18).

• Reports notes that there is a CURRENT unmet demand for 966 RV/Boat Units needed for the surrounding market by 2020. Demand for RV/Boat units will remain strong increase through 2020.

FINANCIAL PERFORMANCE DETAILS:

RV/Boat Storage BreakdownINCOME CAPITALIZATION APPROACH Total

Potential Gross Income (82,000sf x $0.60/sf x 12 months) $590,400

10% Vacancy & Collection Loss $59,040

Effective Gross Income $531,360

Total Expenses $73,568

Net Operating Income $457,792

Cap Rate 7.00%

“As if Stabilized” Value $6,539,886

*Lease-up period estimated at approx. 12 months based on market analysis absorption rates. **$0.60 per SF is approx. $0.15-$0.19 per SF less than comparable projects.

Self Storage BreakdownINCOME CAPITALIZATION APPROACH Avg. Price per SF Total

COMPS

Store-It (Prescott & Chino Valley) $1.06

Budget Mini Storage #1 (Prescott Valley) $1.05

Budget Mini Storage #2 (Prescott Valley) $1.26

Budget Mini Storage #3 (Prescott Valley) $1.14

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SUPPLEMENTAL DOCUMENTS:

• Upon accepted offer, owner can furnish the following documents that have been completed for the buyer’s consideration. Seller does not want a drawn out Due Diligence period, considering the readiness of both projects.

• Excel sheet pro forma of reflecting the construction cost totals for RV Storage. • Excel sheet pro forma reflecting the construction cost totals for Self Storage by contractor. • Excel sheet lender pro forma with ALL costs (hard & soft) to finance RV/Boat construction project. • A 95-page Market Study & Feasibility Analysis Report dated 2/2/2018 from IS Appraisal Services performed

for the RV/Boat Storage project ONLY. Self Storage valuation & pro forma based on comparative market. • Full Set of construction plans for BOTH RV/Boat & Self Storage projects. • Documentation evidencing the issuances of ACTIVE building permits for both projects. • Documentation evidencing entitlements and agreements with the City of Prescott.

LISTING BY: JON ROCHA, PRESCOTT REALTY, INC.

Don’t hesitate to contact me for any questions, concerns or offers. 928.851.4500

jon@prescottrealty.com *Co-Broke being offered is 3% of $1,800,000 (total for projects).

Willow Lake Storage (Prescott) $1.02

Granite Dells Storage (Prescott) $1.03

AVG. Calculated from Comps $1.09

Total Leasable SF 52,500

Potential Gross Income $686,700

10% Vacancy & Loss $68,670

Effective Gross Income $618,030

30% Operating Expenses $216,311

Net Operating Income $401,720

Cap Rate 9.00%

“As if Stabilized” Value $4,464,000

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