KLEINDALE BUSINESS PARK SELF STORAGE€¦ · Proposed Financing: 70% LTV, 25-year amortization, 6%...

KLEINDALE BUSINESS PARK SELF STORAGE TUCSON, AZ

OFFERING MEMORANDUM

Presented by:

Bobby Loeffler Tyler Skelly President National Director

The Loeffler Self-Storage Group, Inc. The Loeffler Self-Storage Group, Inc. P.O. Box 4950 P.O. Box 4950 El Dorado Hills, CA 95762 El Dorado Hills, CA 95762 Tel.: 916.467.7330 Tel.: 916.801.7734 Fax: 888.289.0703 Fax: 888.289.0703 Cell: 916.337.4856 Cell: 916.801.7734 Email: [email protected] Email: [email protected] Web: www.LS-SG.com Web: www.LS-SG.com License: CA Corp. 2001725, CA 01264390, License: CA 01765509

NV 1000942, AZ 663333000, TX Corp. 9005386, TX 664479


The information contained herein has been obtained from sources we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it. References to square footage or age are approximate. Buyer must verify the information and bears all risk for inaccuracies.

- 1 -

Section One Executive Summary Page 2 Section Two Investment Highlights Page 3 Section Three Aerial Photography Page 4 Section Four Property Photographs Page 5-9 Section Five Physical Description Page 10 Section Six Location Maps Page 11 Section Seven Site Description & Parcel Map Page 12 Section Eight Demographics Page 13 Section Nine Rent Comparables Page 14 Section Ten Sale Comparables Page 15-16 Section Eleven Financial Analysis Page 17-20

TA

BL

E O

F C

ON

TE

NT

S

OF

CO

NT

EN

TS



- 2 -

Property Name: Kleindale Business Park Self Storage Property Address: 3434 E. Kleindale Road, Tucson, AZ 85716 Property Type: Business park & self-storage facility Project Size: 22,675 net rentable square feet; 70 storage units; 12 warehouse units; 4 parking stalls; 1 apartment;

87 total units Year Built: 1974 & 1983 Average Rent/SF: $0.71 Current Occupancy: 87% by square footage (As of 02/28/19) 97% by units

92% by dollars collected (economic occupancy) Purchase Price: $1,750,000 Current NOI / Capitalization Rate: $115,405 / 6.59% Proposed Financing: 70% LTV, 25-year amortization, 6% fixed rate,

due in ten years Price/NRSF: $77.18 Traffic Counts: Dodge Boulevard @ Kleindale Road: 7,678

vehicles per day (Pima Association of Governments, 2012)

Investment Highlights:

➢ Great infill location surrounded by dense residential and retail

➢ Concrete block, and poured concrete construction

➢ Diverse unit mix ➢ History of high occupancy ➢ Located in a heavily traveled corridor with

several national retailers nearby

EX

EC

UT

IVE

SU

MM

AR

Y



- 3 -

Kleindale Business Park Self Storage is a well-located, functionally sound, self-storage facility located in Tucson, Arizona which is approximately 115 miles southeast of Phoenix. For the potential investor, Kleindale Business Park Self Storage serves as an ideal project with the following features: Opportunity: Occupancies in the greater Tucson submarket currently trend very

close to 94% physical occupancy. Operationally, the property is a great opportunity for the experienced operator who will act as a “hands-on” owner to dictate management directives to the onsite staff. Vacancies in the area are relatively stable and upside exist in bringing seasoned tenants up to market rates.

Financing: Prevailing market rates indicate that the property should qualify for

the following loan: 70% LTV, 25-year amortization, 6% fixed rate, due in ten years.

Signage: Kleindale Business Park Self Storage offers excellent signage and

visibility to Kleindale Road. Competition: The competitors in the Tucson market are typically properties of

newer age and of larger scale when compared to that of the Subject Property. The Subject Property’s quality construction, its variety of units, and its prominence in the local community help insure that it will remain a competitive project in the marketplace.

Location: The project is located on Kleindale Road just west of Palo Verde

Avenue. The property’s location is proximate to several familiar retailers, employers, and housing developments.

INV

ES

TM

EN

T H

IGH

LIG

HT

S



- 4 -

AE

RIA

L P

HO

TO

GR

AP

HY

O

F

CO

NT

EN

TS



- 5 -

PR

OP

ER

TY

PH

OT

OG

RA

PH

S



- 6 -

PR

OP

ER

TY

PH

OT

OG

RA

PH

S



- 7 -

PR

OP

ER

TY

PH

OT

OG

RA

PH

S



- 8 -

PR

OP

ER

TY

PH

OT

OG

RA

PH

S



- 9 -

PR

OP

ER

TY

PH

OT

OG

RA

PH

S



- 10 -

Property Location: 3434 E. Kleindale Road, Tucson, AZ 85716 Assessor’s Parcel Number: 111-04-187B, 0.551 acres (western parcel)

111-04-187C, 0.551 acres (middle parcel) 111-04-187D, 0.294 acres (eastern parcel) 1.396 total acres, (Pima County)

Gross Site Area: 1.396 acres, 60,810 square feet of land Zoning: Use: Warehouse Project Type: Commercial Year Built: 1974 & 1983 Project Description: Seven (7) single-level self-storage buildings, plus an

office and residence totaling approximately 25,000 gross square feet of building area.

Building Description: Total Gross Building Area: 25,000 Rentable Square Feet: 22,675 Total Units: 70 storage units averaging 100 net rentable square feet Construction Type: Concrete block, poured concrete Roof Material: Composition shingle & flat rolled Interior Partitions/Doors: Plywood on storage units; concrete on warehouses Paving/Parking: Asphalt Security: Keycode gate, fenced grounds, onsite resident

manager Climate Control: None Management Software: WinSen (Sentinel Systems) Website: www.kleinsdaleselfstorage.com

PH

YS

ICA

L D

ES

CR

IPT

ION



- 11 -

LO

CA

TIO

N M

AP

S



- 12 -

Property Location: 3434 E. Kleindale Road, Tucson, AZ 85716 Distance to Freeway: Located 5.9 miles east of Interstate 10 Gross Site Area: 1.396 acres, 60,810 square feet of land Shape: Rectangular Topography: Generally flat Street Frontage: Approximately 304 feet along E. Kleindale Road and

200 feet along Palo Verde Avenue

Parcel Map

SIT

E D

ES

CR

IPT

ION

& P

AR

CE

L M

AP



- 13 -

Demographics for 3434 E. Kleindale Road, Tucson, AZ 85716

DE

MO

GR

AP

HIC

S



- 14 -

Property Name #

Units Yr. Blt.

Occ. Unit Type

SF/U Rent/U Rent/SF

Kleindale Bus. Park S.S. 199 1975 77% 5x10 50 $20 $1.00

3434 E. Kleindale Road 10x10 100 $102 $1.02

Tucson, AZ 85716 10x20 200 $152 $0.76

Fort Lowell Self Storage 600 94% 5x10 50 $85 $1.70

4104 E. Fort Lowell Road 10x10 100 $125 $1.25

Tucson, AZ 85712 10x20 200 $185 $0.93

1.1 miles from Subject

Extra Space Storage 5x10 50 $131 $2.62

2525 N. Tucson Boulevard 10x10 100 $256 $2.56

Tucson, AZ 85716 10x20 200 $301 $1.51


CubeSmart Self Storage 5x10 50 $81 $1.62

3265 E. Speedway Blvd. 10x10 100 $117 $1.17

Tucson, AZ 85716 10x20 200 $243 $1.22


Public Storage 5x10 50 $78 $1.56

1159 N. Columbus Blvd. 10x10 100 $138 $1.38

Tucson, AZ 85712 10x20 200 $178 $0.89


RightSpace Storage 600 93% 5x9 45 $64 $1.42

2850 N. Tuttle Avenue 10x12 120 $140 $1.17

Tucson, AZ 85705 13x12 156 $204 $1.31


RE

NT

CO

MP

AR

AB

LE

S



- 15 -

KLEINDALE BUSINESS PARK SELF STORAGE

SUBJECT

3434 E. Kleindale Road Tucson, AZ 85716 Total Units: 87 Asking Price: $1,750,000 Rentable SF: 21,800 Price/SF: $77.18 Year Built/Reno: ’74 & ‘83 CAP rate: 6.59%

U-STOR-IT SELF-STORAGE 3970 S. Palo Verde Road

COMP #1

Tucson, AZ 85714 Close of Escrow 12/13/17 Price: $3,000,000 Total Units: 439 Price/SF: $48.51 Rentable SF: 61,835 CAP rate: 6.54% Year Built/Reno: 1973

BRIGHT STAR RV & MINI STORAGE 1165 Bright Star Boulevard

COMP #2

Chino Valley, AZ 86323 Close of Escrow: 08/03/17 Price: $3,223,718 Total Units: 248 Price/SF: $106.75 Rentable SF: 30,200 CAP rate: 6.37% Year Built/Reno: 2005

SA

LE

CO

MP

AR

AB

LE

S



- 16 -

TUCSON SELF STORAGE COMP #3 6459 E. Golf Links

Road

Tucson, AZ 85730 Close of Escrow 06/02/17 Price: $2,775,000 Total Units: 585 Price/SF: $57.92 Rentable SF: 47,911 CAP rate: 5.05% Year Built/Reno: 1976

R-SAFE SELF STORAGE

COMP #4

9620 W. Van Buren St. Tolleson, AZ 85353 Close of Escrow: 04/18/17 Price: $2,425,000 Total Units: 234 Price/SF: $79.31 Rentable SF: 30,575 CAP rate: 6.00% Year Built/Reno: 2009

ALLSTATE SELF STORAGE

COMP #5

7048 N. 43rd Avenue Phoenix, AZ 85051 Close of Escrow: 12/27/16 Price: $3,300,000 Total Units: 668 Price/SF: $58.32 Rentable SF: 51,437 CAP rate: 5.73% Year Built/Reno: 1977

SA

LE

CO

MP

AR

AB

LE

S (co

nt’d

.)



- 17 -

Unit Mix

No. of Units

Unit Type

SF/Unit Current

Rent/Unit

Current/Pro Forma

Monthly Income

Current/Pro Forma Annual Income

Self Storage

38 5x10 50 $50.00 $1,900 $22,800

12 10x10 100 $102.00 $1,224 $14,688

1 10x10 XC 100 $102.00 $102 $1,224

19 10x20 200 $152.00 $2,888 $34,656

Warehouse Units

1 20x40 SW 800 $450.00 $450 $5,400

1 20x80 BW 1,600 $650.00 $650 $7,800

4 20x60 OWF 1,200 $630.00 $2,520 $30,240

1 20x80 OW 1,600 $725.00 $725 $8,700

4 20x60 OWB 1,200 $775.00 $3,100 $37,200

1 20x60 MGT 1,200 $2,000.00 $2,000 $24,000

Parking

4 12x25 Open 300 $30.00 $120 $1,440

Apartment

1 25x35 875 $325.00 $325 $3,900

TOTAL

87 22,675 $16,004 $192,048

COMMENTS SW = Small Warehouse, BW = Big Warehouse, OWF = Office/Warehouse Front, OW = Office/Warehouse, OWB = Office/Warehouse Back, MGT = Management Office

FIN

AN

CIA

L A

NA

LY

SIS



- 18 -

Expenses

COMMENTS * Management Fee projected at 4% of gross collections for appraisal underwriting and buyer valuation.

CURRENT % EGI INDUSTRY AVERAGE

Marketing & Promotion $2,001 1.11% 3.18%

Insurance $3,141 1.74% 2.27%

Repairs & Maintenance $2,921 1.62% 1.88%

Real Estate Taxes $22,514 12.46% 6.82%

Utilities $9,545 5.28% 2.23%

General & Administration $6,020 3.33% 3.00%

On-Site Payroll $9,470 5.24% 8.64%

Management Fee* $7,228 4.00% 5.00%

Miscellaneous $2,454 1.36% 0.22%

TOTAL EXPENSES $65,294 36.13% 35.48%

FIN

AN

CIA

L A

NA

LY

SIS



- 19 -

Income & Expenses INCOME CURRENT PER

SF

GROSS POTENTIAL RENT $192,048 $8.47

Miscellaneous Sales/Fees 2,881 0.13 Banner Rent ($62.50/month) 750 0.03 TOTAL OTHER INCOME

$3,631

$0.16

GROSS POTENTIAL INCOME $195,679 $8.63

Vacancy/Collection Allowance (% GPR) (7.8%) 14,980 0.66

EFFECTIVE GROSS INCOME $180,699 $7.97

Total Expenses

$65,294

$2.88

% of EGI 36.13%

NET OPERATING INCOME (NOI) $115,405 $5.09

COMMENTS

FIN

AN

CIA

L A

NA

LY

SIS



- 20 -

Financial Overview

LOCATION 3434 E. Kleindale Road INCOME CURRENT

Tucson, AZ 85716

Price $1,750,000

Gross Potential Rent $192,048

Down Payment 30% $525,000

Other Income 3,631

Number of Units 87

Gross Potential Income 195,679

Gross Square Feet 25,000

Less: Vacancy/Deductions 7.8% 14,980

Rentable Square Feet 22,675

Effective Gross Income 180,699

Price per Rentable SF $77.18

Less: Expenses 36.1% (65,294)

Net Operating Income $115,405

CAP Rate – Current 6.59%

Debt Service (94,712)

Net Cash Flow After Debt 3.94% 20,693

Principal Reduction 21,805

Total Return 8.09% 42,498

EXPENSES

Marketing & Promotion $2,001

Insurance $3,141

FINANCING

Repairs & Maintenance $2,921

FIRST TRUST DEED

Real Estate Taxes $22,514

Loan Amount 70% $1,225,000

Utilities $9,545

Loan Type Proposed New

General & Administration $6,020

Interest Rate 6%

On-Site Payroll $9,470

Amortization 25 Years

Management Fee $7,228

Program 70%, LTV, 25/10

Miscellaneous $2,454

Loan to Value 70%

Total Expenses $65,294

Loan information is time sensitive and subject to change.

36.1%

FIN

AN

CIA

L A

NA

LY

SIS



- 21 -

P.O. BOX 4950 EL DORADO HILLS, CA 95762 CORPORATE LIC.# 2001725

WWW.LS-SG.COM

BOBBY LOEFFLER TYLER SKELLY PRESIDENT NATIONAL DIRECTOR

TEL: 916.467.7330 TEL: 916.801.7734 FAX: 888.289.0703 FAX: 888.289.0703

CELL: 916.337.4856 CELL: 916.801.7734 [email protected] [email protected]

LICENSE: CA CORP 2001725, CA 01264390, NV 1000942, AZ

663333000, TX CORP 9005386, TX 664479

LICENSE: CA 01765509, TX 691434

Date post:	13-Jun-2020
Category:	Documents
Upload:	others
View:	1 times
Download:	0 times

KLEINDALE BUSINESS PARK SELF STORAGE€¦ · Proposed Financing: 70% LTV, 25-year amortization, 6%...

Documents