SELF STORAGE INVESTMENT OPPORTUNITY

S ELF S TORAGE S ALES N ETWORK

SELF STORAGEINVESTMENT

OPPORTUNITY

Linda Cinelli, CCIM & John MulhollandLC Realty1214 Route 28North Branch, NJ 08876(908) [email protected]@lcrealtyusa.com

Berlin General Storage399 Cooper Rd.

West Berlin, NJ 08091

$5,400,000

CONFIDENTIALITY & DISCLAIMER

Parties: Linda Cinelli, CCIM, and John Mulholland, of LC Realty, are the listing Brokers for the property and agents of the Seller. Except as indicated herein, no other parties are or will become agent of or for the Seller in the contemplated transaction. Brokers will not employ any sub-agents unless such agents are employed by Broker’s real estate firm. Brokers will cooperate (sharing commissions on a negotiated basis) with third party brokers who present a purchaser for the listed property.

The Argus Self Storage Sales Network (Argus) is not the listing agent for this property. Offers to buy or sell this property can only be made through the listing agent identified herein. Argus is a marketing consultant that provides certain marketing assistance to the listing broker and is not a party to the listing agreement or any other agreement relating to the property. The Seller is the owner or the authorized agent of the owner, of the property offered for sale and the subject of the listing agreement between Broker and Seller.

Disclaimer: Neither the Seller, Owner, Broker, or Argus represents, warrants, either by implication nor express statement, the accuracy or completeness of the information contained in this property presentation.

The information contained herein has been prepared from sources believed to be reliable but has not been independently verified by the Broker or Argus as to accuracy or completeness. No warranties or representations, express or implied, are made as to the information presented herein. Warranties or representations can only be made by the Seller or Owner in a written and fully executed purchase and sales agreement between Seller and purchaser. Projections in the presentation are based on assumptions and interpretations based on future events, market conditions, managerial operations beyond the control of Argus, Broker, Seller or Owner, and, therefore, subject to error and change without notice. The prospective purchaser is encouraged to perform such independent due diligence as he or she finds appropriate . Typically, due diligence activities provide a more comprehensive review and analysis of all aspects of the property (including, but not limited to, financial matters, market conditions, physical condition, regulatory issues and title status) than the material contained herein. This presentation is for information purposes only and is not a solicitation of any nature whatsoever. Seller and Owner reserve the right, at their sole and absolute discretion, to reject any offer.

Confidentiality: The information contained in this presentation is confidential and proprietary and is for the exclusive use of the party receiving the information (whether in printed, electronic, or facsimile format) for the sole purpose of determining if the recipient desires to acquire more information regarding the Property. By acceptance of this information in any format or from any source, the recipient agrees to not distribute nor to disclose this information in any form to any other person or entity without the prior written consent of the Broker.

For further information, please contact:Argus Self Storage Sales Network2993 S. Peoria St., Suite 105Aurora, CO 80014800-55-STOREwww.argus-selfstorage.comE-mail: [email protected]

TABLE OF CONTENTS

This information is subject to the Identification of the Parties, Disclaimer and Confidentiality statements on the second page of this document. If you do not have such a page, call 1-800-55-STORE and a replacement page will be provided.

Offering Summary Page 4

Property Details Page 5

Unit Mix & Scheduled Income Page 6

Financial Information Pages 7-9

Maps Page 10

Photos Page 11

Site Plans Page 12

Demographics Page 13

Competition Analysis Pages 14-15

Broker Information Page 16

OFFERING SUMMARY


GENERAL DESCRIPTION

Under Managed-Under Performing-Buyer Upside Potential

Berlin General Storage is a modern three story self storage facility offering over 50,237 rentable square feet of self storage space. The perimeter of the building offers non-climate controlled drive up units in a variety of sizes, while the interior of the building is fully climate controlled. Additionally, a section of the building that originally consisted of 1,350 rentable square feet of storage space has been converted to offer record storage.

The facility located just 8/10’s of a mile off of Route 73 at the intersection of Cooper Road and Taunton Avenue was originally opened in 2009. The facility is one of the newest facilities within the market area and offers an on-site office, perimeter fencing, electronic gate access, video cameras and recording, and two elevators.

The facility is currently staffed by a single part-time employee. Besides being responsible for the self storage operation, the part-time manager is also responsible for the processing, shipping, and receiving of record storage boxes. The facility previously offered U-Haul truck rentals, but with limited staffing, it no longer offers trucks.

Listed at less than $108.00 per square foot for the self storage alone, this site represents the opportuni-ty for a new owner to simplify the operation by eliminating the record storage operation and converting the space back to self storage space. By using professional management techniques and expanding the business operating hours, a new owner will have the opportunity to succeed by increasing occupancy, actively managing rental rates and discounts, and increasing retail, insurance and ancillary income.

Through the implementation of the above changes, the new owner should be able to increase revenue which will in turn dramatically increase the net operating income.

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TRANSACTION DETAILS

Sales Price $5,400,000 Storage + $800,000 Approved Land

Terms Cash

Down Payment 25%

PROPERTY DETAILS


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PROPERTYName Berlin General Storage, LLCAddress 399 Cooper Rd., West Berlin, NJ 08091County CamdenParcel Numbers Block 1910; Lot 1Zoning L-I Light IndustrialProperty Type CommercialYear Built 2009Total Square Feet 69,000Rentable Square Feet 50,237Land Area 2.09 acres (tax bill)Land for Expansion Yes, available through separate purchaseOCCUPANCYTotal Units 506Unit Occupancy 60%Economic Occupancy 55%Physical Occupancy 78%PHYSICALFoundation ConcreteExterior Construction MasonryInterior Construction Walls-gypsum, floors-vinyl tile, ceiling- acoustic tilesRoof Structure MetalSite Access Controls YesOffice YesSecurity Video monitoring/alarmAccounting Software YesFire Protection SprinkersNumber of Buildings one 3-story Doors/Access 2 entrance/7 exitPower ElectricRestrooms YesParking Asphalt 15 spaces, 1 handicap, gatedTraffic Exposure Route 73Office Hours 9:30am-11:30am Wed; 9:30am-5:30pm Thurs; 9:30am-4:30pm Fri; 8am-4pm

SatGate Hours 7am-9pm dailyOther Business Operations U-Haul, file storage

UNIT MIX AND SCHEDULED INCOME


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Unit Size# of

UnitsSF Per Unit

Total SF

Rental Rates

Rent PSF Monthly

Rent PSF Annually

Potential Monthly Income

Potential Annual Income

1x1 120 1 120 $6.00 $6.00 $72.00 $720.00 $8,640.001x1 1 1 1 $1.00 $1.00 $12.00 $1.00 $12.001x1 41 1 41 $9.00 $9.00 $108.00 $369.00 $4,428.00

5x5 Locker 4 25 100 $20.00 $0.80 $9.60 $80 $9605x5 Locker 2 25 50 $20.00 $0.80 $9.60 $40 $4805x5 Interior 23 25 575 $29.00 $1.16 $13.92 $667 $8,0045x5 Interior 30 25 750 $34.00 $1.36 $16.32 $1,020 $12,2405x5 Interior 3 25 75 $40.00 $1.60 $19.20 $120 $1,44010x5 Interior 7 50 350 $59.00 $1.18 $14.16 $413 $4,9565x10 Drive Up 2 50 100 $88.00 $1.76 $21.12 $176 $2,1125x10 Interior 36 50 1,800 $55.00 $1.10 $13.20 $1,980 $23,7605x10 Interior 7 50 350 $70.00 $1.40 $16.80 $490 $5,8805x10 Interior 58 50 2,900 $65.00 $1.30 $15.60 $3,770 $45,2405x15 Interior 5 75 375 $79.00 $1.05 $12.64 $395 $4,7405x15 Interior 19 75 1,425 $89.00 $1.19 $14.24 $1,691 $20,2925x15 Interior 1 75 75 $105.00 $1.40 $16.80 $105 $1,26010x10 Drive Up 15 100 1,500 $120.00 $1.20 $14.40 $1,800 $21,60010x10 Interior 72 100 7,200 $100.00 $1.00 $12.00 $7,200 $86,40010x10 Interior 79 100 7,900 $115.00 $1.15 $13.80 $9,085 $109,02010x10 Interior 13 100 1,300 $149.00 $1.49 $17.88 $1,937 $23,24410x15 Interior 9 150 1,350 $189.00 $1.26 $15.12 $1,701 $20,41210x15 Interior 20 150 3,000 $100.00 $0.67 $8.00 $2,000 $24,00010x15 Interior 20 150 3,000 $165.00 $1.10 $13.20 $3,300 $39,60010x15 Drive Up 9 150 1,350 $149.00 $0.99 $11.92 $1,341 $16,09210x20 Drive Up 27 200 5,400 $159.00 $0.80 $9.54 $4,293 $51,51610x20 Interior 4 200 800 $190.00 $0.95 $11.40 $760 $9,12010x20 Interior 4 200 800 $190.00 $0.95 $11.40 $760 $9,12010x20 Interior 29 200 5,800 $179.00 $0.90 $10.74 $5,191 $62,29210x25 Interior 2 250 500 $244.00 $0.98 $11.71 $488 $5,85610x25 Interior 4 250 1,000 $229.00 $0.92 $10.99 $916 $10,99210x30 Interior 1 300 300 $289.00 $0.96 $11.56 $289 $3,468Total Storage 667 50,287 $53,098 $637,176

Mailboxes

Storage

FIVE YEAR PROFORMA AND INTERNAL RATE OF RETURN


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Dec 2016 - Year Year Year Year Year CumulativeDescription Nov-17 1 2 3 4 5 IRR

Potential gross rental income 639,772 671,761 705,349 740,616 777,647 816,529 Vacancy, discounts and credit loss (190,193) (167,940) (141,070) (111,092) (77,765) (81,653)

Gross rental income 449,579 503,820 564,279 629,524 699,882 734,876Late fees income 9,042 15,115 16,928 18,886 20,996 22,046Retail product sales (locks, boxes, insurance, etc.) 2,778 5,000 5,150 5,305 5,464 5,628Other revenues 5,685 5,969 6,268 6,581 6,910 7,256

Effective Gross Revenue 467,084 529,904 592,625 660,295 733,252 769,806

Marketing and advertising 4,816 4,960 5,109 5,263 5,420 5,583Retail product costs 60 62 64 66 68 70Bank and credit card charges 9,185 9,461 9,744 10,037 10,338 10,648Insurance 11,152 11,487 11,831 12,186 12,552 12,928Licenses and permits 1,335 1,375 1,416 1,459 1,503 1,548Off-site management fees 23,354 26,495 29,631 33,015 36,663 38,490Office supplies and expenses 1,571 1,618 1,667 1,717 1,768 1,821Postage and handling 112 115 119 122 126 130Cost of on-site management and payroll costs 20,580 50,000 51,500 53,045 54,636 56,275Repairs and maintenance 15,026 15,477 15,941 16,419 16,912 17,419Taxes-real estate 78,455 80,809 83,233 85,730 88,302 90,951Telephone, internet and web 3,001 3,091 3,184 3,279 3,378 3,479Utilities 27,068 27,880 28,716 29,578 30,465 31,379Other expenses-Courier fees for record storage 1,677 1,727 1,779 1,833 1,887 1,944

Total Operating Expenses 197,392 234,557 243,935 253,747 264,017 272,666

Capital reserves 10,047 10,047 10,349 10,659 10,979 11,308

Net Operating Cash Flow 259,645 285,300 338,341 395,888 458,256 485,832

Going In Cap Rate 4.80%Unleveraged Financial Summary

Net operating cash flow 285,300 338,341 395,888 458,256 485,832 Acquisition (5,409,271) Residual value Year 5 7,474,334

Total Cash Flow Before Taxes (5,409,271) 285,300 338,341 395,888 458,256 7,960,166 UnleveragedIRR

Return on Investment 5.27% 6.25% 7.32% 8.47% 47.16% 12.93%

Leveraged Financial Summary

Net operating cash flow 285,300 338,341 395,888 458,256 485,832 Acquisition (5,409,271) Loan principal 3,786,490 Loan origination fees and costs (75,730) Debt service (principal and interest) (251,615) (251,615) (251,615) (251,615) (251,615) Residual value Year 5 7,474,334 Residual remaining loan value (3,314,302)

Total Cash Flow Before Taxes (1,698,511) 33,685 86,726 144,273 206,641 4,394,249 LeveragedIRR

Return on Investment 1.98% 5.11% 8.49% 12.17% 158.71% 24.72%

ANNUALIZED REVENUE AND OPERATING EXPENSES


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Dec 2016 -Description Nov-17

Potential gross rental income 639,772 Vacancy, discounts and credit loss (190,193)

Gross rental income 449,579Late fees income 9,042Retail product sales (locks, boxes, insurance, etc.) 2,778Other revenues 5,685

Effective Gross Revenue 467,084

Marketing and advertising 4,816Retail product costs 60

Bank and credit card charges 9,185Insurance 11,152

Licenses and permits 1,335Off-site management fees 23,354

Office supplies and expenses 1,571Postage and handling 112

Cost of on-site management and payroll costs 20,580Repairs and maintenance 15,026

Taxes-real estate 78,455Telephone, internet and web 3,001

Utilities 27,068Other expenses-

Courier fees for record storage 1,677

Total Operating Expenses 197,392

Capital reserves 10,047

Net Operating Cash Flow 259,645

CASH FLOW ASSUMPTIONS


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PRICE & FINANCING ASSUMPTIONS PURCHASE PRICE: $5,400,000

FINANCIAL ASSUMPTIONS: Loan-To-Value 70% Amount Financed $3,780,000 Initial Leveraged Equity $1,620,000 Interest Rate 4.75% Amortization Length 25 years Monthly Debt Service $22,658 Annual Debt Service $251,615 Loan Fees (2%) $20,967

EFFECTIVE GROSS INCOME ASSUMPTIONS Storage Gross Potential Rent: Year 1 based on current Gross Potential Rental Revenue with annual increases of 5% starting in Year 1

Annual Average Economic Occupancy: Year 1: 75.00% Year 2: 80.00% Year 3: 85.00% Year 4 : 90.00% Year 5: 90.00%

OPERATING EXPENSES ASSUMPTIONSOperating Expenses: Year 1 based on Seller's Actuals with annual

increases of 3% starting in Year 1

Management Fee: 5% of Effective Gross IncomeCAPITAL COST ASSUMPTIONS

Capital Reserves: Estimated at .20 per square foot by total net rentable space of 50,237 square feet

RESIDUAL SUMMARY VALUE ASSUMPTIONSTermination Capitalization Rate: 6.5%

Terminal Value Year 5: Based on dividing Year 5 Net Operating Income by the Terminal Capitalization Rate. Cost of Sale Not Included

MAPS


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4.3 acres forexpansion

PHOTOS


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SITE PLANS: ADDITIONAL 4.3 ACRES ADDITIONAL-APPROVED SITE PLANS


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DEMOGRAPHICS: 3-5-7 MILES


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3 Miles % 5 Miles % 7 Miles %

Population

2027 Forecast 33,017 106,947 254,342

2022 Projection 32,343 104,925 249,199

2017 Estimate 31,575 102,869 243,854

Households

2027 Forecast 11,533 39,751 94,662

2022 Projection 11,291 38,996 92,689

2017 Estimate 11,016 38,239 90,625

Current Year Estimated Households by Household Income 11,016 38,239 90,625

Less than $10,000 428 4% 1,786 5% 3,845 4%

$10,000 to $14,999 371 3% 1,347 4% 2,982 3%

$15,000 to $19,999 344 3% 1,436 4% 3,015 3%

$20,000 to $24,999 352 3% 1,450 4% 3,005 3%

$25,000 to $29,999 270 2% 1,166 3% 2,951 3%

$30,000 to $34,999 300 3% 1,357 4% 3,332 4%

$35,000 to $39,999 287 3% 1,274 3% 3,282 4%

$40,000 to $44,999 294 3% 1,214 3% 2,960 3%

$45,000 to $49,999 319 3% 1,200 3% 3,203 4%

$50,000 to $54,999 391 4% 1,335 3% 3,255 4%

$55,000 to $59,999 399 4% 1,394 4% 3,241 4%

$60,000 to $64,999 371 3% 1,333 3% 3,223 4%

$65,000 to $69,999 335 3% 1,172 3% 2,758 3%

$70,000 to $74,999 309 3% 1,114 3% 2,573 3%

$75,000 to $79,999 330 3% 1,148 3% 2,692 3%

$80,000 to $84,999 354 3% 1,167 3% 2,724 3%

$85,000 to $89,999 312 3% 1,085 3% 2,530 3%

$90,000 to $94,999 297 3% 1,005 3% 2,369 3%

$95,000 to $99,999 274 2% 945 2% 2,202 2%

$100,000 to $124,999 1,387 13% 4,352 11% 10,403 11%

$125,000 to $149,999 1,003 9% 3,141 8% 7,467 8%

$150,000 to $174,999 666 6% 2,332 6% 5,563 6%

$175,000 to $199,999 625 6% 1,814 5% 4,341 5%

$200,000 to $249,999 559 5% 1,499 4% 3,766 4%

$250,000 to $499,999 239 2% 642 2% 1,608 2%

$500,000 or more 197 2% 531 1% 1,336 1%

Median Household Income $85,841 $77,354 $78,135

Average Household Income $108,806 $97,742 $99,064

2017 Estimated Per Capita Income $38,363 $36,811 $37,187

2017 Estimated Housing Units by Tenure 11,500 40,527 95,709

Vacant Housing Units 485 4% 2,288 6% 5,084 5%

Occupied Housing Units 11,016 96% 38,239 94% 90,625 95%

Owner-Occupied 9,317 81% 28,958 71% 68,495 72%

Renter-Occupied 1,698 15% 9,281 23% 22,131 23%

COMPETITION ANALYSIS: COMPETITOR MAP: 1-3-5 MILES


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COMPETITION ANALYSIS: RENTAL RATES


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Type Website Rates

PSF On-Site Rates

PSF

5 x 10 Climate Control, Inside, Elevator $56.00 $1.12 $65.00 $1.3010 x 10 Climate Control, Inside, Elevator $94.00 $0.94 $109.00 $1.0910 x 15 Climate Control, Inside, Elevator $118.00 $0.79 $134.00 $0.8910 x 20 Climate Control, Inside, Elevator $137.00 $0.69 $158.00 $0.79

5 x 10 Drive up $65.00 $1.30 $71.50 $1.4310 x 10 Drive up $89.00 $0.89 $97.90 $0.98

10 x 15 Drive up $125.00 $0.83 $137.50 $0.9210 x 20 Drive up $155.00 $0.78 $170.50 $0.85

BERLIN SELF STORAGE: 294 S WHITE HORSE PIKE5 x 10 Inside, 1st Floor $70.00 $1.405 x 10 Climate Control, 2nd Floor $75.00 $1.50

10 x 10 Inside, 1st Floor $130.00 $1.3010 x 10 Climate Control, 2nd Floor $140.00 $1.4010 x 10 Drive up $150.00 $1.5010 x 15 Inside, 1st Floor $145.00 $0.9710 x 15 Climate Control, 2nd Floor $150.00 $1.0010 x 20 Drive up $220.00 $1.1010 x 20 Climate Control, 2nd Floor $220.00 $1.10

U-HAUL CO: 270 WHITE HORSE PIKE5 x 10 Drive up $64.95 $1.30

10 x 10 Drive up $104.95 $1.0510 x 15 Drive up $129.95 $0.8710 x 20 Drive up $139.95 $0.70

PRIME STORAGE: 901 EGG HARBOR RD5 x 10 Drive up $60.00 $1.20

10 x 10 Drive up $100.00 $1.0010 x 15 Drive up $106.00 $0.7110 x 20 Drive up $169.00 $0.85

Subject10 x 10 Climate Control, 2nd Floor $115.00 $1.1510 x 10 Climate Control, 1st Floor $149.00 $1.4910 x 15 Climate Control, 2nd Floor $165.00 $1.1010 x 15 Climate Control, 1st Floor $189.00 $1.26

*only priced available units

Unit Size

PUBLIC STORAGE: 55 HARKER AVE

MINI U STORAGE: 565 N ROUTE 73

THE ARGUS ADVANTAGE


Linda Cinelli began in 1989 as a professional real estate broker in commercial real estate and land sales. Since 1994, she has specialized in investments and the self-storage industry. Her area of expertise includes real estate acquisition, asset disposition, development and institu-tional representation. She is a CCIM whose other professional affiliations include CIREI, CBA, IREOBA. She has achieved the designation of CEA, a Certified Exchange Advisor, for those cli-ents performing 1031 exchanges. Linda is the founder and President of the Northern New Jer-sey CCIM District, which merged into the Metro New York CCIM Chapter, where she served on the Board of Directors. She is a member of the New Jersey, New York and National Self Storage Associations. In August of 2003, she left a firm specializing in corporate real estate to open her own company, LC Realty, a boutique real estate firm. The client list is comprised of many local and nationally recognized names in both the private and public sector. She is an affiliate Broker of the Argus Self Storage Sales Network for the Northern New Jersey, New York City and Long Island territory. Linda is licensed in New York, New Jersey and Florida.

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Since 1994, the Argus Self Storage Sales Network has been the only national network of commercial real estate brokers who specialize in self storage properties. The network assists buy-ers and sellers of self storage real estate by combining the knowledge and expertise of a local broker with the exposure of our national sales and marketing program. Through our National Network of Broker Affiliates, the Argus Self Storage Sales Network aims to assist buyers and sellers by helping complete real estate transactions in a timely manner and provide a best in class service to our clients. Since its beginning, ASSSN has completed over 1,000 self storage transactions totaling over $2 Billion.

John Mulholland recently joined LC Realty as one of their newest sales people. But, John’s rela-tively short term with the firm belies his vast experience in the self storage industry.

In a career dating back to 1986, John has filled many roles. Starting as an assistant site manag-er for Manhattan Mini Storage, John was rapidly promoted to manager of one of the nation’s largest self storage facilities. In that capacity John helped manage the facility and helped over-see it during construction. John later served as the Director of Operations for Tuck It Away Self Storage and later International Management Services which operated under the A Space Sta-tion brand. During his time spent with International Management Services John took the lead in development for new company locations along with providing consulting and development services to third parties.

When in 1996 International Management Services was sold to a REIT John took his experience and started his own consulting/management company. John’s company for almost 20 years op-erated facilities that he developed with third party clients as well as several that he developed with a partner.

Additionally, John served several terms on the New Jersey Self Storage Association’s Board of Directors as Treasurer.

With John’s experience in acquiring property, developing and managing self storage facilities for himself and third party clients, performing feasibility studies, and general consulting, he brings an extensive list of industry contacts and a unique experience to the real estate market.

Documents

SELF STORAGE INVESTMENT OPPORTUNITY