ACE MINI STORAGE · 2018. 1. 30. · MARKETING PACKAGE ACE MINI STORAGE | FONTANA, CA Brandon M....

MARKETING PACKAGE

ACE MINI STORAGE | FONTANA, CA

Brandon M. RobinsonPresident & Broker

155 W. Hospitality Lane

Suite 265

San Bernardino, CA 92408

(909) 380-0073 Office

(760) 534-8135 Mobile

(909) 839-4531 Fax

Cal BRE# 01787727

Cal BRE# 02023477

[email protected] John 3:16

Area & Demographics…….

Disclosures….……………..

Property Tax Bill…….……..

Investment Overview……..

Property Profile……........…

Photos & Maps……............

Rental Survey……..............

Unit Mix...............................

Income & Expenses............

Pricing……………..………..

Comparable Sales...............

Broker Remarks…………….

TABLE OF CONTENTS

The information herein has been obtained from sources deemed reliable. We

have no reason to doubt its accuracy, but do not guarantee it. The prospective

buyer should carefully verify information contained herein. Romans 10:9

LOCAL AREA



buyer should carefully verify information contained herein. John 14:6

Total Population: 204,000 Average Household Income: $79,383

Population Per Sq. Mile: 4,800 Median Household Income: $64,824

Median Age: 30 Income Per Capita: $19,706

Male / Female Ratio: 49.0% Average Disposable Income: $62,556

High School Graduate: 24.7% Median Home Value: $374,000

2-Year Degree: 22.9% Average Household Size: 4.05

Bachelor Degree: 11.9% Owners: 64.0%

Post-Graduate Degree 4.7% Renters: 36.0%

Votes Democrat: 52.5% Unemployment Rate: 4.3%

Votes Republican: 45.1% Unemployment Number: 4,200

Demographics | Fontana, CA

Fontana is working class city of 204,003 residents located in San Bernardino County, CA. The City was

founded by Azariel Blanchard Miller in 1913 and has grown into the 19th largest city in the state ofCalifornia. Fontana is a regional hub of the trucking industry as Interstate 10, Route 210, and Interstate15 all passing through the city. There is a significant amount of Housing, Retail, and OfficeDevelopment that is bringing more business and people into the area.

Fontana has a rich history in steel and healthcare as industrialist Henry J. Kaiser opened the largeststeel mill on the West Coast in Fontana shortly after WWII. In addition, Henry J. Kaiser constructed the

Kaiser Permente Medical Facility to provide healthcare services for the steel mill workers. KaiserPermanente has now grown into the largest managed care organization in the United States.

Fontana is also home to the AAA Auto Cub Speedway, Kaiser Permanente Medical Center,

Steelworkers Auditorium, 59 sports fields, 36 parks, and 10 community centers.

Major Employers In FontanaKaiser Permanente | Fontana Unified School District | City of Fontana | Target | Manheim Auctions

Better Beverages | American Security Products | Coronado Stone Products | Firth Rixson | Reddaway

AAA Auto Club Speedway |

DISCLOSURES



buyer should carefully verify information contained herein. John 1:1-5

PRICE DETERMINATION The price of this property is not determined by cap rate, price per foot, or comparable sales. The price isbased on the replacement cost and assessed value. The assessed value of this property is $1,126,000 as seenon the most recent tax bill. In addition, the replacement cost is estimated to be around $55 per square foot.Due to it's current financial and physical condition, this property is being offered for sale below both theassessed and replacement value.

NEGLIGENT OWNERSHIPThe owner has had a series of personal issues that has caused him to neglect this property over the years such as; death of a family member and bad health. The property is in poor financial and phyical condition which is the reason for the below market sales price. Most Class C & B storages in this region are trading close to $100 per square foot.

DEFERRED MAINTENANCEOwner has not paid attention to the property and there is deferred maintenance and renovations required. Deferred maintenance that needs to be addressed includes Asphalt, Roof, Interior of Apartment, Fascia, Paint, Gate & Security System, Management Software, & Damaged Roll Up Doors.

FORMER MANAGEMENT THEFT

Former manager was stealing money and renting units without reporting in management records.

MANAGEMENT SOFTWAREThis site uses Rent Plus software which is no longer in business. they attempted to change to

another software but their system crashed. This caused a loss of many tenant records.

MANAGEMENT COMPUTERThe management computer crashed on 3 separate occassions causing a loss of tenant files.

UNKNOWN TENANTS & UNITSAs a result of the various issues with the previous manager, computer, and software; the propertyhas several units occupied by tenants who are unknown to the facility. Ownership has double locked

these units in an effort to contact these tenants; however, most tenants have not contactedmanagement or paid rent. There are roughly 34 units that fall under this category.

CURRENT INCOMEGross collected income as reported on the owner's profit and loss and tax return is $57,000. The potential income for this property at full occupancy is just over $150,000. The property is performing less than half of where it should be which is reflected in the low asking price.

PROPERTY TAX BILL



buyer should carefully verify information contained herein. John 11:25-26

OVERVIEW & HIGHLIGHTS



buyer should carefully verify information contained herein. Revelation 12:9

Investment Highlights

ACE MINI STORAGE is located at 8448 Cypress Avenue in the city of Fontana, CA. The property islocated just 1 mile south of Foothill Blvd on the corner of Cypress and Arrow Route. This single storyfacility consist of 19,024 rentable square feet of drive up storage space divided into 194 units. Theproperty consist of concrete partitions in the middle building and wood partitions with block wallson the exterior buildings.

ACE MINI STORAGE provides an opportunity to purchase a Value Add facility in a 90%+ storagemarket. It's a rare occurrence to find a property for sale in a market such as this and anyopportunity should be aggressively evaluated. With no future development of storages on the tablefor the city, there will always be a demand for storage rental space that benefits ownership. Theproperty comes equipped with an On Site Office, On Site Mangers Residence, Electronic Gate, RollUp Doors, Below Market Rents, and Significant Upside Potential.

ACE MINI STORAGE is a distressed asset priced below market offering the investor a "Value Add"investment opportunity.

Priced below replacement and assessed value

90%+ Occupancy Market

Close Proximity to Foothill Blvd & Downtown Fontana

Location in 20th largest city in Calfornia

Significant Value Add Opportunity

PROPERTY PROFILE



buyer should carefully verify information contained herein. Proverbs 3:5

Property Name: Ace Mini Storage

Address: 8448 Cypress Avenue, Fontana, CA 92335

Enclosed Square Feet: 19,024

Gross Income (Pro Forma): $135,540

Net Income (Pro Forma): $81,795

Number of Units: 194

Occupancy: 52% (Current) | 90% (Proforma)

Acreage: 1.00

Gross Square Feet: 43,560

Year Built: 1984

APN / Zoning: 0191-081-03-0000

Number of Buildings: 6

Number of Stories Single Story

Construction Type: Concrete Block, Metal, Wood, Stucco

Land for Expansion: None

Paving: Asphalt

Cross Streets: Arrow Route

Nearest Freeway: Interstate 10

Traffic Count: 15,000

Management Apartment: Yes

Security: N/A

Amenities: On-Site Office | Residence| Cameras | Roll Up Doors

Electronic Gate | High Traffic Count | Low Rents

Website: N/A

Proposed Financing: All Cash

PROPERTY PHOTOS



buyer should carefully verify information contained herein. Jeremiah 29:11

AERIAL MAPS



buyer should carefully verify information contained herein. Philippians 4:13

LOCATION MAPS



buyer should carefully verify information contained herein. Genesis 1:1

RENTAL SURVEY



buyer should carefully verify information contained herein.Romans 3:23

5x10 $40

10x10 $95

10x20 $115

# of Units 194

Occupancy 56%

Year Built 1984

NRSF 19,024

Acreage 1.00

Lot Size 43,560

Address 8448 Cypress Ave

Fontana, CA 92335

5x10 $50

10x10 $100

10x20 $120

# of Units 500

Occupancy 92%

Year Built 1988

NRSF 53,530

Acreage 2.62

Lot Size 114,127

Distance in Miles 1.4 Miles

Address 15723 Foothill Blvd Phone: (909) 822-1677

Fontana, CA 92335

5x10 $71

10x10 $100

10x20 $143

# of Units 330

Occupancy 91%

Year Built 1984

NRSF 38,267

Acreage 1.6

Lot Size 67,954


Address 8150 Tamarind Avenue Phone: 909-329-2772

Fontana, CA 92335

SUBJECT PROPERTY

Storemore Storage

LK Mini Storage

RENTAL SURVEY




5x10 $72

10x10 $117

10x20 $177

# of Units 532

Occupancy 90%

Year Built 1985

NRSF 54,785

Acreage 2.7

Lot Size 117,612

Distance in Miles 1 Mile

Address 16990 Ceres Avenue Phone: 909-302-1729

Fontana, CA 92335

5x10 $89

10x10 $125

10x20 $185

# of Units 408

Occupancy 90%

Year Built 2002

NRSF 40,872

Acreage 1.48

Lot Size 64,469


Address 8004 Palmetto Avenue Phone: 909-854-4598

Fontana, CA 92336

5x10 $60

10x10 $90

10x20 $150

# of Units 354

Occupancy 85%

Year Built 1988

NRSF 39,138

Acreage 1.79

Lot Size 77,972


Address 17400 Foothill Blvd Phone: 909-822-8622

Fontana, CA 92335

Acme Mini Storage

Storage Direct

Storage Solution

RENTAL SURVEY SUMMARY




Property Name Year Built

Square

Feet

# of

Units

Occupancy

Rates 5x10 10x10 10x20

SUBJECT PROPERTY 1984 19,024 194 56% $40 $95 $115

Storemore Storage 1988 53,530 500 92% $50 $100 $120

LK Mini Storage 1984 38,267 330 91% $71 $100 $143

Storage Direct 1985 54,785 532 90% $72 $117 $177

Storage Solution 2002 40,872 408 90% $89 $125 $185

Acme Mini Storage 1988 39,138 350 85% $60 $90 $150

Averages 1989 45,318 424 90% $68 $106 $155

UNIT MIX & INCOME SUMMARY




Size Number

Of Units

Sq. Ft. Rentable

Sq. Ft.

Rate Rate /

Sq. Ft.

Monthly

Income

Annual

Income

Self Storage

5x10 66 50 3,300 $40 $0.80 $2,640 $31,680

6x10 2 60 120 $55 $0.92 $110 $1,320

7x9 10 63 630 $50 $0.79 $500 $6,000

8x10 49 80 3,920 $60 $0.75 $2,940 $35,280

10x11 1 110 110 $95 $0.86 $95 $1,140

6x20 20 120 2,400 $70 $0.58 $1,400 $16,800

7x20 14 140 1,960 $85 $0.61 $1,190 $14,280

10x16 1 160 160 $120 $0.75 $120 $1,440

10x18 2 180 360 $105 $0.58 $210 $2,520

10x20 25 200 5,000 $115 $0.58 $2,875 $34,500

12x20 2 240 480 $105 $0.44 $210 $2,520

14x20 1 280 280 $120 $0.43 $120 $1,440

16x19 1 304 304 $140 $0.46 $140 $1,680

194 19,024 $12,550 $150,600

Units Sq. Ft. $0.66

Self Storage 194 19,024 98.06

RV 0 0

194

108

Delinquent 17

34

35

56%

Units Vacant & Empty

Occupancy

Occupied With No Tenant Contact

Average rate / sq. ft.

Average size / unit

Total Units

Units Paying

INCOME & EXPENSES



buyer should carefully verify information contained herein. John 10:10

Gross Potential Income: 150,600.00$

Vacancy: 15,060.00$ 10.00%

Rental Income: 135,540.00$

Other Income: -$

Pro-Forma Income 135,540.00$

New Real Estate Taxes: 11,236.00$ 1.1236%

On-Site Management: 20,800.00$

Payroll Taxes & Insurance: 1,500.00$

Advertisement: 3,000.00$

Property Insurance 1,500.00$

Bank & Credit Card Fees: 1,500.00$

Maintenance & Repair: 5,000.00$

Office Expense: 2,000.00$

Utilities 5,000.00$

Telephone: 1,200.00$

Postage & Delivery: 500.00$

License & Permits 500.00$

Other Fees: 9.00$

Total Expenses 53,745.00$ 39.65%

PRO-FORMA NET INCOME 81,795.00$

INCOME

EXPENSES

*Gross Income is Prorated (Actual Income is $57,000)*Expenses are estimated by broker

PRICING



buyer should carefully verify information contained herein. Galatians 5:16

PRICE $1,000,000

POTENTIAL REVENUE $135,540

POTENTIAL EXPENSES $53,745

POTENTIAL NET INCOME $81,795

POTENTIAL CAP RATE 8.18%

GROSS REVENUE MULTIPLIER 7.38

SELF STORAGE SQ. FT. 19,024

PRICE PER SQ. FT. $52.57

Numbers are all Pro Forma and Not Actuals.

Actual Gross Income is $57,000.

SALES COMPARABLES



buyer should carefully verify information contained herein. Acts 2:38

Closing Date On Market

Sales Price $1,000,000

Pro Forma Cap Rate 8.18%

Price Per Sq. Ft. $52.57

Rentable Sq. Ft. 19,024

Total Units 194

Occupancy at Sale 56%

Year Built 1984

Acreage 1.00

Lot Size 43,560

Address 8448 Cypress Avenue

Fontana, CA 92335

Closing Date 2/1/2018


Cap Rate 6.50%



Total Units 53


Year Built 1978

Acreage 0.82

Lot Size 35,719.20

Distance From Subject 50 Miles

Address 42000 Big Bear Blvd

Big Bear Lake, CA 92315

Closing Date 1/31/2018


Cap Rate 7.00%



Total Units 201


Year Built 1981

Acreage 2.56

Lot Size 111,514


Address 37228 10th Street E.

Palmdale, Ca 93550

SUBJECT PROPERTY

Martin Storage & Offices

U Stor All

SALES COMPARABLES



buyer should carefully verify information contained herein. James 2:26



Cap Rate 7.10%



Total Units 143


Year Built 1980

Acreage 1.56

Lot Size 67,954


Address 16430 K. Street

Mojave, CA 93501

Closing Date Pending Escrow


Cap Rate 5.04%



Total Units 217


Year Built 1999

Acreage 3.9

Lot Size 169,884


Address 32045 Yucaipa Blvd

Yucaipa, CA 92399



Cap Rate 6.31%



Total Units 385


Year Built 1970

Acreage 2.06

Lot Size 89,734


Address 2850 W. Foothill Blvd

Rialto, Ca 92376

Big Stuff RV & Mini Storage

Rialto Mini Storage

Mojave Storage

SALES COMPARABLE SUMMARY



buyer should carefully verify information contained herein. Matthew 22:37-40

Property Name

Year

Built Lot Size Square Feet

# of

Units

Occupancy

Rates Sales Price

Price /

Sq.Ft. Cap Rate Closing Date

SUBJECT PROPERTY 1984 43,560 19,024 194 56% 1,000,000$ 52.57$ 8.18% On Market

Martin Storage & Offices 1978 35,719 12,221 53 100% 1,495,000$ 122.33$ 6.50% 2/1/2018

U Stor All 1981 111,514 10,439 201 100% 1,400,000$ 134.11$ 7.00% 1/31/2018

Mojave Storage 1980 67,954 15,155 143 80% 1,050,000$ 69.28$ 7.10% On Market

Big Stuff RV & Mini Storage 1999 169,884 21,229 217 96% 4,500,000$ 211.97$ 5.04% Pending Escrow

Rialto Mini Storage 1970 89,734 36,925 385 97% 4,050,000$ 109.68$ 6.31% On Market

Market Averages 1982 94,961 19,194 200 95% 2,499,000$ 129.48$ 6.39%

The numbers and condition of this property are not pretty.

There are many maintenance and financial issues that will cost

around $100,000 to cure.

The issues with this deal are reflected in the below market

asking price. Comparable properties are selling around $100

per square foot while this property is priced at $52 per foot! The

asking price is below the assessed and replacement value.

Once this property is cleaned up the rents can be raised to

market. With monthly rents in this market around $1.00 per

foot, the monthly income from this property will be around

$19,000 per month and over $200,000 annually.

With a little work this asset will be valued between $1.5M to

$2M.

This is a great value add opportunity in a strong storage

market. Competitive facilities in Fontana are operating above

90%! There is a significant amount of existing and new multi

family and residential developments in Fontana; that will only

increase the demand for self storage.

Due to the condition of this property, I doubt traditional

financing would work.

This deal is best suited for “Cash” buyers.

BROKER REMARKS



buyer should carefully verify information contained herein. Matthew 28:19

LICENSE CERTIFICATION

National Association of Realtors ID: 157528386

Multiple Listing Service ID: CV37631

Broker License02023477

Agent License01787727



buyer should carefully verify information contained herein. James 1:22

ACE MINI STORAGE · 2018. 1. 30. · MARKETING PACKAGE ACE MINI STORAGE | FONTANA, CA Brandon M....

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