Preliminary Investment Information · enhancements to web-based marketing and blogging, (v) $6,000...

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9400 N. Central Expressway Suite 500 Dallas, TX 75231 A Big Toy Self Storage 1832 FM 66 Waxahachie, TX 75167 Sponsored By: Move It Management, LLC. Exclusive: Stephen A. Scott, CCIM Bradford Commercial Real Estate Services 9400 N Central Expressway, #500 Dallas, TX 75231 972.776.7022 - O 214.334.1486 - C [email protected] Preliminary Investment Information

Transcript of Preliminary Investment Information · enhancements to web-based marketing and blogging, (v) $6,000...

Page 1: Preliminary Investment Information · enhancements to web-based marketing and blogging, (v) $6,000 for third-party reports, and (vi) $15,000 for title company closing costs . ...

9400 N. Central Expressway Suite 500Dallas, TX 75231

A Big Toy Self Storage1832 FM 66

Waxahachie, TX 75167

Sponsored By:Move It Management, LLC.

Exclusive:Stephen A. Scott, CCIM

Bradford Commercial Real Estate Services9400 N Central Expressway, #500

Dallas, TX 75231972.776.7022 - O214.334.1486 - C

[email protected]

Preliminary InvestmentInformation

Page 2: Preliminary Investment Information · enhancements to web-based marketing and blogging, (v) $6,000 for third-party reports, and (vi) $15,000 for title company closing costs . ...

Stephen A. Scott, CCIM, Senior Vice President Bradford Commercial Real Estate Services

972.776.7022 M: 214.334.1486

[email protected]

October 21, 2014

Move It Self-Storage, LLC Programmatic Investment Opportunity

Bradford Commercial Real Estate Services, LLC (Bradford) has been engaged as an exclusive financial consultant for Move It Self-Storage, LLC, an Addison, Texas-based management company. http://moveitstorage.com/ The goal is to identify qualified investors for a programmatic investment in the self-storage business. Move It Self-Storage, LLC (Move It), and its primary principal, Tracy Taylor, have over 35 years of successful experience operating and investing in self-storage. Move It currently manages 42 self-storage properties in four states; 34 of these are owned. Over this period, Move It and its principals have owned and operated over 100 self-storage properties. Move It’s market knowledge is unsurpassed. Each prospective investment’s trade area is carefully securitized before a recommendation is made. Their tract record is exemplary – so far, no investor losses. The typical deal size is anticipated to be approximately $4 million, and the goal is to close 10-12 transactions per year, making the total deal volume between $40 and $48 million per year. As the typical equity requirement is about $1,250,000, the requested equity capital in the next year should be in the range of $12-$15 million. The investor should expect (not guaranteed, of course):

• Very conservative underwriting, • No losses over the long-term, • Professional, thorough and timely reporting, • Realized 8% preferred return, and • An IRR of 18-20% over the projected five-year hold.

Here is the programmatic investment opportunity in a nutshell:

• Equity capital investors need a safe place to invest where returns are relatively high (high teens +), but risks are minimal.

• The opportunity is to acquire (usually, not to develop) under-performing/mismanaged assets in growth areas in Texas, add value by applying Move It’s proven management, redevelopment and marketing expertise, and then sell when the anticipated returns are achieved. (Long-term investors may decide to keep the asset for cash flow. It’s their decision.)

• There are several REITs that are ready buyers when the properties reach stabilization. Move It just sold a ten-asset portfolio to one such REIT in August of this year.

• Move It places the investor’s interest ahead of its own. And the investor’s return is assured before Move It receives any cash flow or profit.

• A detailed report of sold assets is available to qualified prospects.

The attached self-storage investment presentation for a property in Waxahachie, Texas is meant to be the first of many. The information contained in this document has been obtained from sources believed reliable. While Bradford Commercial Real Estate Services (“Bradford”) does not doubt its accuracy, Bradford has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.

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Investment Summary

Sponsor:

Property’s Current Name:

Address:

Size:

Ownership Structure:

Contract Effective Date:

Closing Date:

Proposed Financing:

Contract Price as a % of Replacement Cost:

Contract Purchase Price:

Total Project Cost:

Closing Expenses:

Proposed Loan Amount:

Amortization:

Term:

Interest Rate:

Equity Amount:

Projected Annual Cash on Cash Return:

Projected IRRs: (Assumes sale @ EOY 5)

Move It Management, LLC (www.moveitstorage.com)

A Big Toy Self Storage (name will change upon acquisition)

1832 FM 66, Ellis County near Waxahachie, Texas 75167

385-units, 42,480 net rentable square feet (NRSF)

After an 8% Preferred Return and return of their equity capital, the Limited Partner(s) receives 70% of the cash flow and profit and the General Partner receives 30%.

October 6, 2014

First week of December 2014

Conventional loan from Texas Exchange Bank

78%

$2,600,000 ($6,753 per unit and $61.21 per NRSF)

$2,842,000 (approximately)

$242,000, comprised of (i) $85,000 to Move It Management, LLC for an acquisition fee, (ii) $16,000 for a 1.0% lender origination fee, (iii) $100,000 for Capital Improvements to the Property, (iv) $20,000 for enhancements to web-based marketing and blogging, (v) $6,000 for third-party reports, and (vi) $15,000 for title company closing costs

$1,950,000 (75.0% of contract price)

Interest-only for the first 18 months followed by principal and interest payments predicted upon 25-year amortization thereafter.

5 years

4.75% (floating)

$891,000 from Limited Partner + $1,000 from General Partner

Year 1 Year 2 Year 3 Year 4 Year 5 12.1% 10.4% 10.4% 12.4% 14.2%

IRR @ 6.5 Sale Cap 25.9% IRR @ 7.0 Sale Cap 23.7% IRR @ 7.5 Sale Cap 21.5%

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CONFIDENTIALITY AGREEMENT FOR

Move It Self-Storage, LLC Investment Opportunity

1832 FM 66, Waxahachie, TX 75167

We understand that your organization (the “Company”) is interested in pursuing the acquisition of the above referenced property (the “Acquisition”) involving Owner (collectively the “Owner”). To assist in your evaluation of a potential acquisition of that certain property currently managed or controlled by Owner, we will provide you with certain information concerning the acquisition. As a condition to furnishing you with such information, Company agrees to treat confidentially such information and any other information (collectively the “Evaluation Material”) which Owner, its affiliates, partners, lenders, employees, agents, attorney, accountants, advisors or references (collectively, the “Representatives”), furnish to your Company. The term Evaluation Material will also include any analysis, compilations, studies or other documents prepared by Company or Company’s Representatives containing, or based in whole or in part on, any information furnished by Owner. Company agrees that the Evaluation Material will be kept confidential by it and its Representatives and shall not, except as hereinafter provided, with the prior written consent of Owner, be disclosed by it or its Representatives other than for the purpose of evaluating the Acquisition. Moreover, Company further agrees to transmit Evaluation Material only to those of its Representatives who need such information for the purpose of evaluating the Acquisition. Moreover, Company further agrees to transmit Evaluation Material only to those of its Representatives who need such information for the purpose of evaluating the Acquisition and who shall (i) be advised by Company of this letter agreement (the “Agreement”, and (ii) agree with Company to be bound by the provisions hereof. Company shall be responsible for any breach of this Agreement by its Representatives. In the event that the acquisition is not effected after Company has been furnished with Evaluation Material, Company will promptly deliver to Owner the Evaluation Material and all copies thereof, except for the portion of compilations, studies or other documents prepared by Company or its Representatives, without retaining any copy thereof. That portion of the Evaluation Material which consists of analysis, compilations, studies or other documents prepared by Company or its Representatives will be held by it and kept confidential and subject to the terms of this agreement, or destroyed at the request of Owner. Such destruction will be confirmed by Owner. The term Evaluation Material does not include information which (i) becomes generally available to the public other than as a result of disclosure by Company or its Representatives, (ii) was available to Company on a non-confidential basis prior to its disclosure to Company by Owner or its Representatives, or (iii) becomes available to Company on a non-confidential basis from a source other than Owner or its Representatives, provided, however, that such source is not bound by a confidentiality agreement with Owner or its Representative. Although Company understands that Owner has endeavored to include in the Evaluation Material information known to it which it believes to be relevant for the purposes of Company’s investigation, Company further understands that except as may otherwise be agreed in writing, Owner does not make any representation or warranty as to the accuracy or completeness of the Evaluation Material. Company agrees that neither Owner nor its Representatives shall have any liability to Company or any of its Representatives under this agreement for any cause whatsoever. This agreement shall be governed and construed in accordance with the laws of the State of Texas, may not be changed, waived or terminated orally, and shall be binding upon the parties and their successors or assigns.

The Company confirms the understanding that any agreements between the Company and Owner concerning the Acquisition will exist only when such agreement is in writing and duly executed by the parties thereto. AGREED TO AND ACCEPTED BY: (Please Print Clearly) COMPANY: _____________________________ Address: ______________________________ ______________________________ City, ST, Zip: ______________________________ Phone: ______________________________________ E-Mail: ______________________________________ Please provide to receive important updates about this offering. By: ______________________________________ Title: ______________________________________ Date: ______________________________________ Signature: ______________________________________ (If Applicable) Any fees to Purchaser’s Broker are to be paid by Purchaser; Bradford shall not be responsible for any commission or fees to Purchaser’s Broker. BROKER: ______________________________________ Address: _____________________________________ _____________________________________ City, ST, Zip: _____________________________________ Phone: ______________________________________ E-Mail: ______________________________________ Please provide to receive important updates about this offering. By: ______________________________________ Title: ______________________________________ Date: ______________________________________ Signature: ______________________________________

BRADFORD COMPANIES Exclusive Marketing Advisor: 9400 North Central Exp. Stephen A. Scott 972-776-7022 Suite 500 214-334-1486 Dallas, TX 75231

PLEASE EXECUTE AND RETURN TO Stephen A. Scott, CCIM

Phone 214-334-1486 Fax 972-776-7083

Email [email protected]

Page 5: Preliminary Investment Information · enhancements to web-based marketing and blogging, (v) $6,000 for third-party reports, and (vi) $15,000 for title company closing costs . ...