Self-Storage Facility Acquisition Analysis - Summary of
Self-Storage Facility Acquisition Analysis - Summary of Major Assumptions
Unit Type
# of Units 15 units 10 units 30 units 20 units 15 units 10 units 15 units 10 units 10 units 5 units 10 units 5 units
5x5 5 x 5 CC 5 x 10 5 x 10 CC 10 x 10 10 x 10 CC 10 x 15 10 x 15 CC 10 x 20 10 x 20 CC 15 x 25 15 x 25 CC 0 Average/Total
155 units
RENT GROWTH SCHEDULE 155 Units (Month 1) 8 Years 02/28/2021
UNIT MIX RSF Average Total 25 RSF 375 RSF 25 RSF 250 RSF 50 RSF 1,500 RSF 50 RSF 1,000 RSF 100 RSF 1,500 RSF 100 RSF 1,000 RSF 150 RSF 2,250 RSF 150 RSF 1,500 RSF 200 RSF 2,000 RSF 200 RSF 1,000 RSF 375 RSF 3,750 RSF 375 RSF 1,875 RSF
Ave. Monthly Market Rent $/Unit $/Month $/SF $60 $900 $2.40 $75 $750 $3.00 $110 $3,300 $2.20 $140 $2,800 $2.80 $200 $3,000 $2.00 $245 $2,450 $2.45 $280 $4,200 $1.87 $315 $3,150 $2.10 $375 $3,750 $1.88 $405 $2,025 $2.03 $600 $6,000 $1.60 $640 $3,200 $1.71
116 RSF
$229
18,000 RSF
$35,525
$1.97
ESTIMATED ANNUAL OTHER INCOME AND PASSTHROUGHS FOR 2013 Escalation from TTM Data
1.00% TTM Actuals
Other Income (2013) Late Fees Termination Fees Supplies/Point of Sale Retail Application Fee Other/Misc. Total
$/Year
$1,000 $1,250 $5,000 $0 $3,780 $11,030
Per Unit Per Year
$71.87
$1,010 $1,263 $5,050 $0 $3,818 $11,140
ESTIMATED ANNUAL EXPENSES FOR 2013 Escalation from TTM Data
0.00%
Operating Expenses Utilities Payroll Expenses General & Administrative Marketing and Advertising Contract Maintenance Turnover Costs Repairs and Maintenance Insurance Licenses/Permits/Other Total Oper. Expenses Taxes Management Fees Replacement Reserve Total Expenses Asset Management Fee (% of EGI) Annual Growth Rates OpEx, Fees and Reserves Year Gross Rent Deductions Loss to Lease (New Leases) Vacancy Loss Rent Concessions (Existing Tenants) Write Off Total
Non-Revenue Unit(s)
TTM 3.65% 4.18% 0.00% 0.37% 8.21%
$/Year $17,177 $14,700 $1,500 $500 $6,300 $4,725 $6,825 $4,614 $500 $56,841
Per Unit $111 $95 $10 $3 $41 $30 $44 $30 $3 $367
% of EGI 4.29% 3.67% 0.37% 0.12% 1.57% 1.18% 1.70% 1.15% 0.12% 14.19%
$45,972 $16,521 $4,200 $123,534
$297 $107 $27 $797
11.48% 4.12% 1.05% 30.84%
Real Estate Taxes
1.00% 3.00%
3.00% 1 2013 3.65% 4.18% 0.00% 0.37% 8.21% 1
2 2014 5% 4% 3% 0.37% 12.37% 1
Elapsed Yr / Start Month 0 TTM 1 Mar-13 2 Mar-14 3 Mar-15 4 Mar-16 5 Mar-17 6 Mar-18 7 Mar-19 8 Mar-20 9 Mar-21 10 Mar-22 11 Mar-23
Rent Growth 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%
CAGR 0.00% 3.00% 6.09% 9.27% 12.55% 15.93% 19.41% 22.99% 26.68% 30.48% 34.39% 38.42%
Monthly Net Operating Income
$30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0
1 9 17 25 33 41 49 57 65 73 81 89 97 105 113 121
GENERAL AND TIMING Property XYZ Storage, 123 Main Street, NY Facility Characteristics 18,000 RSF Transaction Timing Acquisition Closing Date 03/01/2013 (Month 0) Operations Start Date 03/01/2013 Asset Hold Period (Measured in whole years) Disposition of Asset Month # 96
ACQUISITION, REFINANCING & DISPOSITION Acquisition Price Current NOI $296,909 Closing Costs (Incl. Settlement, Feasibility, and Legal) Acquisition Fee 1.00% of Purchase Price Broker Fee 0.00% of Purchase Price Recording Fees/Misc. 0.05% of Purchase Price 0.550% of Purchase Price Transfer Tax Total Unleveraged Uses Loan Fee 0.50% of Loan Balance Total Leveraged Uses Debt: Acquisition Loan Loan Principal Amount Annual Interest Rate
70% LTC $1,450,400 4.75%
Equity 30% Acquisition Cost Owner / Sponsor/Owner Equity Third Party Investor Total Equity Contribution Permanent Loan (Refinancing) Refinancing Timing (Enter 0 if none) Interest Rate 5.75% Loan Amount * $2,800,526 Monthly Payment ($16,343) Disposition
25.00% 75.00% 100.00% Month 36
Capitalization Rate Gross Valuation Net Proceeds
Going-In Cap Rate: Purchase Price
14.85% $2,000,000 $40,000 $20,000 $0 $1,000 $11,000 $2,072,000 $7,252 $2,079,252
Interest-Only Period Amortization Period Monthly Payment Annual Debt Service
1 Years 30 Years ($7,566) ($90,792)
Initial $157,213 $471,639 $628,852
Deficits $7,001 $21,004 $28,006
Total $164,214 $492,643 $656,858
Year # 3 Interest-Only Period Amortization Period Loan/Broker Fees/Closing Costs Annual Debt Service
3/1/2015 1 Years 30 Years 1.00% ($196,117)
7.00% $4,553,449 $4,462,380
Selling Costs
2.00%
INVESTMENT SUMMARY Purchase Cap Rate GRM Per Unit Per RSF Levered Cash Flow Levered IRR Total Equity Multiple on Equity
GROSS RENT DEDUCTIONS AND NON-REVENUE UNITS 3 4 5 6 7 2015 2016 2017 2018 2019 5% 6% 6% 7% 7% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 0.37% 0.37% 0.37% 0.37% 0.37% 11.37% 12.37% 12.37% 13.37% 13.37% 1 1 1 1 1
14.85% 4.69x $12,903.23 $111.11 $2,233,169 34.99% $628,852 1.29x
8 2020 8% 3% 3% 0.37% 14.37% 1
9 2021 8% 3% 3% 0.37% 14.37% 1
10 2022 9% 3% 3% 0.37% 15.37% 1
11 2023 9% 3% 3% 0.37% 15.37% 1
Average 7% 3% 3% 0% 13% 1
XYZ Storage, 123 Main Street, NY Capital Structure For Acquisition and Operation
(Bar heights are not to scale.) Acquisition
Acquisition Debt
Acquisition Equity Amount **
% Equity
Sponsor/Owner Equity
$157,213
Third Party Investor Equity
$471,639
Acquisition Loan *
$1,450,400
Total
$1,450,400
Operation Total Acquisition Costs
Total Equity
% Total Acquisition Costs
Deficits, pro-rata
25.00%
7.56%
$7,001
$164,214
75.00%
22.68%
$21,004
$492,643
$28,006
$656,858
69.76%
$628,852
$2,079,252
100%
* The Loan total is calculated off of all uses of funds excluding the Loan Fee, which is funded by Equity. ** Equity amounts in this column do not include the pro-rata portion of any Deficits to be funded by the Equity investors. See Column N for adjusted totals.
Unit Mix Number of Unit Type Units (L. W. CC) 15 10 30 20 15 10 15 10 10 5 10 5 155
5.5.0 5.5.1 5.10.0 5.10.1 10.10.0 10.10.1 10.15.0 10.15.1 10.20.0 10.20.1 15.25.0 15.25.1
Rentable SF/Unit
Total SF
25 RSF 25 RSF 50 RSF 50 RSF 100 RSF 100 RSF 150 RSF 150 RSF 200 RSF 200 RSF 375 RSF 375 RSF
375 RSF 250 RSF 1,500 RSF 1,000 RSF 1,500 RSF 1,000 RSF 2,250 RSF 1,500 RSF 2,000 RSF 1,000 RSF 3,750 RSF 1,875 RSF 18,000 RSF
Lessee
John Doe John Doe John Doe John Doe John Doe John Doe John Doe John Doe John Doe John Doe John Doe John Doe
Lease From (optional) 11/07/2008 12/31/2008 04/01/2006 02/01/2009 10/30/2008 12/01/2005 06/01/2008 12/01/2008 12/01/2008 12/06/2008 07/01/2009 01/01/2009
Lease End Date (optional) 11/1/2013 11/1/2013 11/1/2013 11/1/2013 11/1/2013 11/1/2013 11/1/2013 2/1/2014 2/1/2014 2/1/2014 2/1/2014 2/1/2014
Lease Lease End End Year Month 11 11 11 11 11 11 11 2 2 2 2 2
2013 2013 2013 2013 2013 2013 2013 2014 2014 2014 2014 2014
Annual Rent Average Monthly Rent Average Monthly PSF
Current Rent Per Unit $60.00 $75.00 $110.00 $140.00 $200.00 $245.00 $280.00 $315.00 $375.00 $405.00 $600.00 $640.00 $35,525 $426,300 $229 $1.97
XYZ Storage, 123 Main Street, NY Equity Joint Venture Partnership Structure Total Required Equity (Purchase + Operation) Sponsor/Owner Third Party Investor
$628,852 (Includes any Deficit Funding) 25.00% 75.00% 100.00%
$157,213 $471,639 $628,852
Profit Sharing
100.00%
IRR-based Preferred Return
Residual Split
8.00% Partnership Structure Sponsor/Owner Equity Third Party Investor Total
% Equity 25.00% 75.00% 100.00%
Note: By its nature, the Preferred Return includes the Return of Capital.
Profit >> Sharing >> Splits >>
Sponsor/Owner Equity Sponsor/Owner Promote Investor Equity
25.00% 0.00% 75.00% 100.00%
50.00% 50.00% 100.00%
Disposition Date
2/28/21
XYZ Storage, 123 Main Street, NY Annual Cash Flow Forecast, Including the Year After the Year of Disposition Income Growth Rate OpEx, Fees and Reserve Growth Rate Real Estate Tax Growth Rate
Year Start Date Year End Date Elapsed Year
Data Series Profile
Total
Economic Occupancy %
TTM Actuals 95.2%
0.00% 3.00% 3.00% 2/28/2012 2/28/2013 0 NA
3.00% 3.00% 3.00% 3/1/2013 3/1/2014 1 95.1%
3.00% 3.00% 3.00% 3/2/2014 3/2/2015 2 92.2%
3.00% 3.00% 3.00% 3/3/2015 3/3/2016 3 93.2%
3.00% 3.00% 3.00% 3/4/2016 3/4/2017 4 93.1%
3.00% 3.00% 3.00% 3/5/2017 3/5/2018 5 93.1%
3.00% 3.00% 3.00% 3/6/2018 3/6/2019 6 93.1%
3.00% 3.00% 3.00% 3/7/2019 3/7/2020 7 93.1%
3.00% 3.00% 3.00% 3/8/2020 3/8/2021 8 93.0%
3.00% 3.00% 3.00% 3/9/2021 3/9/2022 9 93.0%
3.00% 3.00% 3.00% 3/10/2022 3/10/2023 10 NA
3.00% 3.00% 3.00% 3/11/2023 3/11/2024 11 NA
Disposition
GROSS INCOME Gross Potential Revenue Prepay Income Other Month's Rent Loss to Lease
$4,330,827 $522 $1,043 ($272,253)
$426,300 $50 $100 ($15,576)
$426,300 $50 $100 ($15,576)
$439,089 $53 $106 ($21,954)
$452,262 $55 $109 ($22,613)
$465,830 $56 $113 ($27,950)
$479,804 $58 $116 ($28,788)
$494,199 $60 $119 ($34,594)
$509,024 $61 $123 ($35,632)
$524,295 $63 $127 ($41,944)
$540,024 $65 $130 ($43,202)
$0 $0 $0 $0
$0 $0 $0 $0
TOTAL MINIMUM RENT
$4,060,139
$410,874
$410,874
$417,294
$429,812
$438,049
$451,190
$459,784
$473,577
$482,542
$497,018
$0
$0
($130,842) ($27,941) ($117,136)
($17,191) ($2,500) $0
($17,191) ($2,750) $0
($16,692) ($2,833) ($13,173)
($12,894) ($2,918) ($13,568)
($14,911) ($3,484) ($16,201)
$0 $0 $0
$0 $0 $0
$0
$0
$116,237 ($14,137)
$11,030 ($1,461)
$0 $0
$0 $0
Vacancy Loss Non-Revenue Unit(s) Rent Concessions EFFECTIVE RENTAL INCOME
$390,933
Other Income (Includes Point of Sale) Write Off
$11,140 ($1,460)
EFFECTIVE GROSS INCOME
$3,886,320
$420,443
$400,613
OPERATING EXPENSES Utilities Payroll Expenses General & Administrative Marketing and Advertising Contract Maintenance Turnover Costs Repairs and Maintenance Insurance Licenses/Permits/Other Taxes Management Fees Replacement Reserve
($174,503) ($149,339) ($15,239) ($5,080) ($64,002) ($48,002) ($69,336) ($46,874) ($5,080) ($467,034) ($167,839) ($42,668)
($17,177) ($14,700) ($1,500) ($500) ($6,300) ($4,725) ($6,825) ($4,614) ($500) ($45,972) ($16,521) ($4,200)
($17,177) ($14,700) ($1,500) ($500) ($6,300) ($4,725) ($6,825) ($4,614) ($500) ($45,972) ($16,521) ($4,200)
TOTAL OPERATING EXPENSES
($1,254,995)
($123,534)
NET OPERATING INCOME
$2,631,325
$296,909
Capital Expenditures Asset Management Fee
$0 ($34,111)
OPERATING CASH FLOW
$2,278,473
ACQUISITION/DISPOSITION Acquisition and Transaction Costs Disposition Net Proceeds
($2,079,252) $4,462,380
DEBT SERVICE Acquisition Loan Debt Service Permanent Loan Debt Service
Total ($242,911) ($964,766) Total $3,453,923
NET REVENUE AFTER DEBT SERVICE FINANCING CASH FLOWS Sponsor/Owner Draw Third Party Investor Draw Acquisition Loan Proceeds Acquisition Loan Repayment Permanent Loan Proceeds Permanent Loan Fees/Closing Costs Permanent Loan Repayment LEVERED CASH FLOW Unleveraged Yield (NOI/Cost) Annualized Leveraged Yield (Net Cash Flow/Equity) Acquisition Loan Debt Coverage Ratio (NOI/Debt Service) Permanent Loan Debt Coverage Ratio (NOI/Debt Service)
`
Total ($164,214) ($492,643) $1,450,400 ($1,406,550) $1,406,550 ($28,005) ($2,643,147) Net $2,233,169
$0 $2,500
$11,819 ($1,437) $394,978
$400,432 $12,173 ($1,496)
$407,927 $12,539 ($1,524)
($13,536) ($3,096) ($14,394) $420,165 $12,915 ($1,570)
($13,794) ($3,188) ($14,826) $427,976 $13,302 ($1,599)
$411,110
$418,941
$431,510
($17,692) ($15,141) ($1,545) ($515) ($6,489) ($4,867) ($7,030) ($4,752) ($515) ($47,351) ($17,017) ($4,326)
($18,223) ($15,595) ($1,591) ($530) ($6,684) ($5,013) ($7,241) ($4,895) ($530) ($48,772) ($17,527) ($4,456)
($18,770) ($16,063) ($1,639) ($546) ($6,884) ($5,163) ($7,458) ($5,042) ($546) ($50,235) ($18,053) ($4,589)
($19,333) ($16,545) ($1,688) ($563) ($7,091) ($5,318) ($7,682) ($5,193) ($563) ($51,742) ($18,595) ($4,727)
($19,913) ($17,041) ($1,739) ($580) ($7,303) ($5,478) ($7,912) ($5,349) ($580) ($53,294) ($19,152) ($4,869)
($123,534)
($127,240)
($131,057)
($134,989)
($139,039)
$277,079
$267,738
$280,053
$283,952
$292,471
$0 ($4,006) $0
$384,596
($13,141) ($3,005) ($13,975)
$0 ($3,950)
$0 ($4,111)
$0 ($4,189)
$0 ($4,315)
$439,679
($14,207) ($3,284) ($15,271) $440,815 $13,701 ($1,647)
$448,954 $14,112 ($1,677)
$462,423 $14,536 ($1,728)
$461,389
$475,231
$0
$0
($20,510) ($17,553) ($1,791) ($597) ($7,523) ($5,642) ($8,149) ($5,509) ($597) ($54,893) ($19,727) ($5,015)
($21,126) ($18,079) ($1,845) ($615) ($7,748) ($5,811) ($8,394) ($5,675) ($615) ($56,540) ($20,319) ($5,165)
($21,759) ($18,622) ($1,900) ($633) ($7,981) ($5,985) ($8,646) ($5,845) ($633) ($58,236) ($20,928) ($5,320)
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
($143,210)
($147,506)
($151,931)
($156,489)
$0
$0
$296,469
$305,363
$309,458
$318,741
$0
$0
$0 $0
$0 $0
$0 $0
$0 ($4,397)
$452,870
($14,476) ($3,383) ($15,729)
$0 ($4,529)
$0 ($4,614)
$273,072
$263,789
$275,941
$279,763
$288,156
$292,073
$300,835
$304,844
$0
$0
$0
($2,079,252) $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $4,462,380
$0 $0
$0 $0
$0 $0
$0 $0
($68,894) $0
($90,792) $0
($83,226) ($13,419)
$0 ($166,878)
$0 ($196,117)
$0 ($196,117)
$0 ($196,117)
$0 $0
$0 $0
$0 $0
($2,079,252)
$204,178
$172,997
$179,297
$112,885
$92,039
$95,955
$104,717
$4,571,107
$0
$0
$0
($157,213) ($471,639) $1,450,400 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 ($2,643,147)
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
($628,852)
$204,178
$172,997
$112,885
$92,039
$95,955
$104,717
$1,927,959
$0
$0
$0
0.00%
13.85% 31.08% 4.02x NA
13.39% 26.34% 2.95x NA
($7,001) ($21,004) $0 ($1,406,550) $1,406,550 ($28,005) $0 $151,290 14.00% 23.03% 3.36x 20.87x
14.20% 17.19% NA 1.70x
14.62% 14.01% NA 1.49x
14.82% 14.61% NA 1.51x
15.27% 15.94% NA 1.56x
$0 ($196,117)
15.47% 293.51% NA 1.58x
15.94% 0.00% NA NA
0.00% 0.00% NA NA
0.00% 0.00% NA NA
XYZ Storage, 123 Main Street, NY Joint Venture Return Detail Sponsor/ Owner
Equity Investment Share of Equity Investment Gross Return Net Profit (Return on Equity) Multiple on Equity Internal Rate of Return Time from Equity Investment to Final Return (months)
$157,213 25.00% $1,246,610 $1,089,397 7.93x 44.31% 96
Third Party Investor
$471,639 75.00% $1,615,411 $1,143,772 3.43x 30.25% 96
Total Project
$628,852 100.00% $2,862,021 $2,233,169 4.55x 34.99% 96
Profit Sharing Summary Tier
Profit Sharing Structure Sponsor/ Owner Cashflow
ROC and Pref Return Tier 1 Total Less Equity Investment Net Profit (Return on Equity)
Developer Share
Third Party Investor Cashflow
Third Party Investor Share
IRR Hurdle Ranges
$191,402 $1,062,210 $1,253,612
26% 50% 44%
$553,201 $1,062,210 $1,615,411
74% 50% 56%
$744,603 $2,124,419 $2,869,023
($157,213) $1,096,399
25% 49%
($471,639) $1,143,772
75% 51%
($628,852) $2,240,171
Third Party Investor
Preferred Return Residual Split
From
0%
through Above
p ner Equity Pro-Rata Share
0% 25%
25% 25%
Sponsor
Net Profits
Third Party Investor
$1,150,000 $1,140,000
25%
$1,130,000 $1,120,000
51%
49%
$1,110,000 $1,100,000 $1,090,000
75%
8% 8%
Sponsor/ Owner Promote
Share of Total Profit
Share of Total Equity Investment Sponsor
Total Cashflow
$1,080,000 $1,070,000
Sponsor Third Party Investor
Investor Total (must Profit Share be 100%) 75% 50%
100% 100%
Unit Type
# of Units 15 units 10 units 30 units 20 units 15 units 10 units 15 units 10 units 10 units 5 units 10 units 5 units
5x5 5 x 5 CC 5 x 10 5 x 10 CC 10 x 10 10 x 10 CC 10 x 15 10 x 15 CC 10 x 20 10 x 20 CC 15 x 25 15 x 25 CC 0 Average/Total
155 units
RENT GROWTH SCHEDULE 155 Units (Month 1) 8 Years 02/28/2021
UNIT MIX RSF Average Total 25 RSF 375 RSF 25 RSF 250 RSF 50 RSF 1,500 RSF 50 RSF 1,000 RSF 100 RSF 1,500 RSF 100 RSF 1,000 RSF 150 RSF 2,250 RSF 150 RSF 1,500 RSF 200 RSF 2,000 RSF 200 RSF 1,000 RSF 375 RSF 3,750 RSF 375 RSF 1,875 RSF
Ave. Monthly Market Rent $/Unit $/Month $/SF $60 $900 $2.40 $75 $750 $3.00 $110 $3,300 $2.20 $140 $2,800 $2.80 $200 $3,000 $2.00 $245 $2,450 $2.45 $280 $4,200 $1.87 $315 $3,150 $2.10 $375 $3,750 $1.88 $405 $2,025 $2.03 $600 $6,000 $1.60 $640 $3,200 $1.71
116 RSF
$229
18,000 RSF
$35,525
$1.97
ESTIMATED ANNUAL OTHER INCOME AND PASSTHROUGHS FOR 2013 Escalation from TTM Data
1.00% TTM Actuals
Other Income (2013) Late Fees Termination Fees Supplies/Point of Sale Retail Application Fee Other/Misc. Total
$/Year
$1,000 $1,250 $5,000 $0 $3,780 $11,030
Per Unit Per Year
$71.87
$1,010 $1,263 $5,050 $0 $3,818 $11,140
ESTIMATED ANNUAL EXPENSES FOR 2013 Escalation from TTM Data
0.00%
Operating Expenses Utilities Payroll Expenses General & Administrative Marketing and Advertising Contract Maintenance Turnover Costs Repairs and Maintenance Insurance Licenses/Permits/Other Total Oper. Expenses Taxes Management Fees Replacement Reserve Total Expenses Asset Management Fee (% of EGI) Annual Growth Rates OpEx, Fees and Reserves Year Gross Rent Deductions Loss to Lease (New Leases) Vacancy Loss Rent Concessions (Existing Tenants) Write Off Total
Non-Revenue Unit(s)
TTM 3.65% 4.18% 0.00% 0.37% 8.21%
$/Year $17,177 $14,700 $1,500 $500 $6,300 $4,725 $6,825 $4,614 $500 $56,841
Per Unit $111 $95 $10 $3 $41 $30 $44 $30 $3 $367
% of EGI 4.29% 3.67% 0.37% 0.12% 1.57% 1.18% 1.70% 1.15% 0.12% 14.19%
$45,972 $16,521 $4,200 $123,534
$297 $107 $27 $797
11.48% 4.12% 1.05% 30.84%
Real Estate Taxes
1.00% 3.00%
3.00% 1 2013 3.65% 4.18% 0.00% 0.37% 8.21% 1
2 2014 5% 4% 3% 0.37% 12.37% 1
Elapsed Yr / Start Month 0 TTM 1 Mar-13 2 Mar-14 3 Mar-15 4 Mar-16 5 Mar-17 6 Mar-18 7 Mar-19 8 Mar-20 9 Mar-21 10 Mar-22 11 Mar-23
Rent Growth 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%
CAGR 0.00% 3.00% 6.09% 9.27% 12.55% 15.93% 19.41% 22.99% 26.68% 30.48% 34.39% 38.42%
Monthly Net Operating Income
$30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0
1 9 17 25 33 41 49 57 65 73 81 89 97 105 113 121
GENERAL AND TIMING Property XYZ Storage, 123 Main Street, NY Facility Characteristics 18,000 RSF Transaction Timing Acquisition Closing Date 03/01/2013 (Month 0) Operations Start Date 03/01/2013 Asset Hold Period (Measured in whole years) Disposition of Asset Month # 96
ACQUISITION, REFINANCING & DISPOSITION Acquisition Price Current NOI $296,909 Closing Costs (Incl. Settlement, Feasibility, and Legal) Acquisition Fee 1.00% of Purchase Price Broker Fee 0.00% of Purchase Price Recording Fees/Misc. 0.05% of Purchase Price 0.550% of Purchase Price Transfer Tax Total Unleveraged Uses Loan Fee 0.50% of Loan Balance Total Leveraged Uses Debt: Acquisition Loan Loan Principal Amount Annual Interest Rate
70% LTC $1,450,400 4.75%
Equity 30% Acquisition Cost Owner / Sponsor/Owner Equity Third Party Investor Total Equity Contribution Permanent Loan (Refinancing) Refinancing Timing (Enter 0 if none) Interest Rate 5.75% Loan Amount * $2,800,526 Monthly Payment ($16,343) Disposition
25.00% 75.00% 100.00% Month 36
Capitalization Rate Gross Valuation Net Proceeds
Going-In Cap Rate: Purchase Price
14.85% $2,000,000 $40,000 $20,000 $0 $1,000 $11,000 $2,072,000 $7,252 $2,079,252
Interest-Only Period Amortization Period Monthly Payment Annual Debt Service
1 Years 30 Years ($7,566) ($90,792)
Initial $157,213 $471,639 $628,852
Deficits $7,001 $21,004 $28,006
Total $164,214 $492,643 $656,858
Year # 3 Interest-Only Period Amortization Period Loan/Broker Fees/Closing Costs Annual Debt Service
3/1/2015 1 Years 30 Years 1.00% ($196,117)
7.00% $4,553,449 $4,462,380
Selling Costs
2.00%
INVESTMENT SUMMARY Purchase Cap Rate GRM Per Unit Per RSF Levered Cash Flow Levered IRR Total Equity Multiple on Equity
GROSS RENT DEDUCTIONS AND NON-REVENUE UNITS 3 4 5 6 7 2015 2016 2017 2018 2019 5% 6% 6% 7% 7% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 0.37% 0.37% 0.37% 0.37% 0.37% 11.37% 12.37% 12.37% 13.37% 13.37% 1 1 1 1 1
14.85% 4.69x $12,903.23 $111.11 $2,233,169 34.99% $628,852 1.29x
8 2020 8% 3% 3% 0.37% 14.37% 1
9 2021 8% 3% 3% 0.37% 14.37% 1
10 2022 9% 3% 3% 0.37% 15.37% 1
11 2023 9% 3% 3% 0.37% 15.37% 1
Average 7% 3% 3% 0% 13% 1
XYZ Storage, 123 Main Street, NY Capital Structure For Acquisition and Operation
(Bar heights are not to scale.) Acquisition
Acquisition Debt
Acquisition Equity Amount **
% Equity
Sponsor/Owner Equity
$157,213
Third Party Investor Equity
$471,639
Acquisition Loan *
$1,450,400
Total
$1,450,400
Operation Total Acquisition Costs
Total Equity
% Total Acquisition Costs
Deficits, pro-rata
25.00%
7.56%
$7,001
$164,214
75.00%
22.68%
$21,004
$492,643
$28,006
$656,858
69.76%
$628,852
$2,079,252
100%
* The Loan total is calculated off of all uses of funds excluding the Loan Fee, which is funded by Equity. ** Equity amounts in this column do not include the pro-rata portion of any Deficits to be funded by the Equity investors. See Column N for adjusted totals.
Unit Mix Number of Unit Type Units (L. W. CC) 15 10 30 20 15 10 15 10 10 5 10 5 155
5.5.0 5.5.1 5.10.0 5.10.1 10.10.0 10.10.1 10.15.0 10.15.1 10.20.0 10.20.1 15.25.0 15.25.1
Rentable SF/Unit
Total SF
25 RSF 25 RSF 50 RSF 50 RSF 100 RSF 100 RSF 150 RSF 150 RSF 200 RSF 200 RSF 375 RSF 375 RSF
375 RSF 250 RSF 1,500 RSF 1,000 RSF 1,500 RSF 1,000 RSF 2,250 RSF 1,500 RSF 2,000 RSF 1,000 RSF 3,750 RSF 1,875 RSF 18,000 RSF
Lessee
John Doe John Doe John Doe John Doe John Doe John Doe John Doe John Doe John Doe John Doe John Doe John Doe
Lease From (optional) 11/07/2008 12/31/2008 04/01/2006 02/01/2009 10/30/2008 12/01/2005 06/01/2008 12/01/2008 12/01/2008 12/06/2008 07/01/2009 01/01/2009
Lease End Date (optional) 11/1/2013 11/1/2013 11/1/2013 11/1/2013 11/1/2013 11/1/2013 11/1/2013 2/1/2014 2/1/2014 2/1/2014 2/1/2014 2/1/2014
Lease Lease End End Year Month 11 11 11 11 11 11 11 2 2 2 2 2
2013 2013 2013 2013 2013 2013 2013 2014 2014 2014 2014 2014
Annual Rent Average Monthly Rent Average Monthly PSF
Current Rent Per Unit $60.00 $75.00 $110.00 $140.00 $200.00 $245.00 $280.00 $315.00 $375.00 $405.00 $600.00 $640.00 $35,525 $426,300 $229 $1.97
XYZ Storage, 123 Main Street, NY Equity Joint Venture Partnership Structure Total Required Equity (Purchase + Operation) Sponsor/Owner Third Party Investor
$628,852 (Includes any Deficit Funding) 25.00% 75.00% 100.00%
$157,213 $471,639 $628,852
Profit Sharing
100.00%
IRR-based Preferred Return
Residual Split
8.00% Partnership Structure Sponsor/Owner Equity Third Party Investor Total
% Equity 25.00% 75.00% 100.00%
Note: By its nature, the Preferred Return includes the Return of Capital.
Profit >> Sharing >> Splits >>
Sponsor/Owner Equity Sponsor/Owner Promote Investor Equity
25.00% 0.00% 75.00% 100.00%
50.00% 50.00% 100.00%
Disposition Date
2/28/21
XYZ Storage, 123 Main Street, NY Annual Cash Flow Forecast, Including the Year After the Year of Disposition Income Growth Rate OpEx, Fees and Reserve Growth Rate Real Estate Tax Growth Rate
Year Start Date Year End Date Elapsed Year
Data Series Profile
Total
Economic Occupancy %
TTM Actuals 95.2%
0.00% 3.00% 3.00% 2/28/2012 2/28/2013 0 NA
3.00% 3.00% 3.00% 3/1/2013 3/1/2014 1 95.1%
3.00% 3.00% 3.00% 3/2/2014 3/2/2015 2 92.2%
3.00% 3.00% 3.00% 3/3/2015 3/3/2016 3 93.2%
3.00% 3.00% 3.00% 3/4/2016 3/4/2017 4 93.1%
3.00% 3.00% 3.00% 3/5/2017 3/5/2018 5 93.1%
3.00% 3.00% 3.00% 3/6/2018 3/6/2019 6 93.1%
3.00% 3.00% 3.00% 3/7/2019 3/7/2020 7 93.1%
3.00% 3.00% 3.00% 3/8/2020 3/8/2021 8 93.0%
3.00% 3.00% 3.00% 3/9/2021 3/9/2022 9 93.0%
3.00% 3.00% 3.00% 3/10/2022 3/10/2023 10 NA
3.00% 3.00% 3.00% 3/11/2023 3/11/2024 11 NA
Disposition
GROSS INCOME Gross Potential Revenue Prepay Income Other Month's Rent Loss to Lease
$4,330,827 $522 $1,043 ($272,253)
$426,300 $50 $100 ($15,576)
$426,300 $50 $100 ($15,576)
$439,089 $53 $106 ($21,954)
$452,262 $55 $109 ($22,613)
$465,830 $56 $113 ($27,950)
$479,804 $58 $116 ($28,788)
$494,199 $60 $119 ($34,594)
$509,024 $61 $123 ($35,632)
$524,295 $63 $127 ($41,944)
$540,024 $65 $130 ($43,202)
$0 $0 $0 $0
$0 $0 $0 $0
TOTAL MINIMUM RENT
$4,060,139
$410,874
$410,874
$417,294
$429,812
$438,049
$451,190
$459,784
$473,577
$482,542
$497,018
$0
$0
($130,842) ($27,941) ($117,136)
($17,191) ($2,500) $0
($17,191) ($2,750) $0
($16,692) ($2,833) ($13,173)
($12,894) ($2,918) ($13,568)
($14,911) ($3,484) ($16,201)
$0 $0 $0
$0 $0 $0
$0
$0
$116,237 ($14,137)
$11,030 ($1,461)
$0 $0
$0 $0
Vacancy Loss Non-Revenue Unit(s) Rent Concessions EFFECTIVE RENTAL INCOME
$390,933
Other Income (Includes Point of Sale) Write Off
$11,140 ($1,460)
EFFECTIVE GROSS INCOME
$3,886,320
$420,443
$400,613
OPERATING EXPENSES Utilities Payroll Expenses General & Administrative Marketing and Advertising Contract Maintenance Turnover Costs Repairs and Maintenance Insurance Licenses/Permits/Other Taxes Management Fees Replacement Reserve
($174,503) ($149,339) ($15,239) ($5,080) ($64,002) ($48,002) ($69,336) ($46,874) ($5,080) ($467,034) ($167,839) ($42,668)
($17,177) ($14,700) ($1,500) ($500) ($6,300) ($4,725) ($6,825) ($4,614) ($500) ($45,972) ($16,521) ($4,200)
($17,177) ($14,700) ($1,500) ($500) ($6,300) ($4,725) ($6,825) ($4,614) ($500) ($45,972) ($16,521) ($4,200)
TOTAL OPERATING EXPENSES
($1,254,995)
($123,534)
NET OPERATING INCOME
$2,631,325
$296,909
Capital Expenditures Asset Management Fee
$0 ($34,111)
OPERATING CASH FLOW
$2,278,473
ACQUISITION/DISPOSITION Acquisition and Transaction Costs Disposition Net Proceeds
($2,079,252) $4,462,380
DEBT SERVICE Acquisition Loan Debt Service Permanent Loan Debt Service
Total ($242,911) ($964,766) Total $3,453,923
NET REVENUE AFTER DEBT SERVICE FINANCING CASH FLOWS Sponsor/Owner Draw Third Party Investor Draw Acquisition Loan Proceeds Acquisition Loan Repayment Permanent Loan Proceeds Permanent Loan Fees/Closing Costs Permanent Loan Repayment LEVERED CASH FLOW Unleveraged Yield (NOI/Cost) Annualized Leveraged Yield (Net Cash Flow/Equity) Acquisition Loan Debt Coverage Ratio (NOI/Debt Service) Permanent Loan Debt Coverage Ratio (NOI/Debt Service)
`
Total ($164,214) ($492,643) $1,450,400 ($1,406,550) $1,406,550 ($28,005) ($2,643,147) Net $2,233,169
$0 $2,500
$11,819 ($1,437) $394,978
$400,432 $12,173 ($1,496)
$407,927 $12,539 ($1,524)
($13,536) ($3,096) ($14,394) $420,165 $12,915 ($1,570)
($13,794) ($3,188) ($14,826) $427,976 $13,302 ($1,599)
$411,110
$418,941
$431,510
($17,692) ($15,141) ($1,545) ($515) ($6,489) ($4,867) ($7,030) ($4,752) ($515) ($47,351) ($17,017) ($4,326)
($18,223) ($15,595) ($1,591) ($530) ($6,684) ($5,013) ($7,241) ($4,895) ($530) ($48,772) ($17,527) ($4,456)
($18,770) ($16,063) ($1,639) ($546) ($6,884) ($5,163) ($7,458) ($5,042) ($546) ($50,235) ($18,053) ($4,589)
($19,333) ($16,545) ($1,688) ($563) ($7,091) ($5,318) ($7,682) ($5,193) ($563) ($51,742) ($18,595) ($4,727)
($19,913) ($17,041) ($1,739) ($580) ($7,303) ($5,478) ($7,912) ($5,349) ($580) ($53,294) ($19,152) ($4,869)
($123,534)
($127,240)
($131,057)
($134,989)
($139,039)
$277,079
$267,738
$280,053
$283,952
$292,471
$0 ($4,006) $0
$384,596
($13,141) ($3,005) ($13,975)
$0 ($3,950)
$0 ($4,111)
$0 ($4,189)
$0 ($4,315)
$439,679
($14,207) ($3,284) ($15,271) $440,815 $13,701 ($1,647)
$448,954 $14,112 ($1,677)
$462,423 $14,536 ($1,728)
$461,389
$475,231
$0
$0
($20,510) ($17,553) ($1,791) ($597) ($7,523) ($5,642) ($8,149) ($5,509) ($597) ($54,893) ($19,727) ($5,015)
($21,126) ($18,079) ($1,845) ($615) ($7,748) ($5,811) ($8,394) ($5,675) ($615) ($56,540) ($20,319) ($5,165)
($21,759) ($18,622) ($1,900) ($633) ($7,981) ($5,985) ($8,646) ($5,845) ($633) ($58,236) ($20,928) ($5,320)
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
($143,210)
($147,506)
($151,931)
($156,489)
$0
$0
$296,469
$305,363
$309,458
$318,741
$0
$0
$0 $0
$0 $0
$0 $0
$0 ($4,397)
$452,870
($14,476) ($3,383) ($15,729)
$0 ($4,529)
$0 ($4,614)
$273,072
$263,789
$275,941
$279,763
$288,156
$292,073
$300,835
$304,844
$0
$0
$0
($2,079,252) $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $4,462,380
$0 $0
$0 $0
$0 $0
$0 $0
($68,894) $0
($90,792) $0
($83,226) ($13,419)
$0 ($166,878)
$0 ($196,117)
$0 ($196,117)
$0 ($196,117)
$0 $0
$0 $0
$0 $0
($2,079,252)
$204,178
$172,997
$179,297
$112,885
$92,039
$95,955
$104,717
$4,571,107
$0
$0
$0
($157,213) ($471,639) $1,450,400 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 ($2,643,147)
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
($628,852)
$204,178
$172,997
$112,885
$92,039
$95,955
$104,717
$1,927,959
$0
$0
$0
0.00%
13.85% 31.08% 4.02x NA
13.39% 26.34% 2.95x NA
($7,001) ($21,004) $0 ($1,406,550) $1,406,550 ($28,005) $0 $151,290 14.00% 23.03% 3.36x 20.87x
14.20% 17.19% NA 1.70x
14.62% 14.01% NA 1.49x
14.82% 14.61% NA 1.51x
15.27% 15.94% NA 1.56x
$0 ($196,117)
15.47% 293.51% NA 1.58x
15.94% 0.00% NA NA
0.00% 0.00% NA NA
0.00% 0.00% NA NA
XYZ Storage, 123 Main Street, NY Joint Venture Return Detail Sponsor/ Owner
Equity Investment Share of Equity Investment Gross Return Net Profit (Return on Equity) Multiple on Equity Internal Rate of Return Time from Equity Investment to Final Return (months)
$157,213 25.00% $1,246,610 $1,089,397 7.93x 44.31% 96
Third Party Investor
$471,639 75.00% $1,615,411 $1,143,772 3.43x 30.25% 96
Total Project
$628,852 100.00% $2,862,021 $2,233,169 4.55x 34.99% 96
Profit Sharing Summary Tier
Profit Sharing Structure Sponsor/ Owner Cashflow
ROC and Pref Return Tier 1 Total Less Equity Investment Net Profit (Return on Equity)
Developer Share
Third Party Investor Cashflow
Third Party Investor Share
IRR Hurdle Ranges
$191,402 $1,062,210 $1,253,612
26% 50% 44%
$553,201 $1,062,210 $1,615,411
74% 50% 56%
$744,603 $2,124,419 $2,869,023
($157,213) $1,096,399
25% 49%
($471,639) $1,143,772
75% 51%
($628,852) $2,240,171
Third Party Investor
Preferred Return Residual Split
From
0%
through Above
p ner Equity Pro-Rata Share
0% 25%
25% 25%
Sponsor
Net Profits
Third Party Investor
$1,150,000 $1,140,000
25%
$1,130,000 $1,120,000
51%
49%
$1,110,000 $1,100,000 $1,090,000
75%
8% 8%
Sponsor/ Owner Promote
Share of Total Profit
Share of Total Equity Investment Sponsor
Total Cashflow
$1,080,000 $1,070,000
Sponsor Third Party Investor
Investor Total (must Profit Share be 100%) 75% 50%
100% 100%
