Tom de JongSenior Vice President+1 408 282 [email protected] License #01889017
Self-Storage Opportunity
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2SELF-STORAGE OPPORTUNITY 1325 Martin Avenue // Modesto // California
CONTENTS Executive SummaryOffering Procedures
Investment DetailsSite Description
Project DetailsInvestment Highlights
Projected IncomeDemographics
Modesto Area OverviewProperty Overview
Unit MixProjected P&L
Competitive Map
1325 Martin Ave, Modesto, CA
3SELF-STORAGE OPPORTUNITY 1325 Martin Avenue // Modesto // California
EXECUTIVE SUMMARY Colliers International Self-Storage Group has been retained as the exclusive advisor by the ownership to offer for sale the property located at 1325 Martin Ave in Modesto, California. This is an opportunity to acquire a fully stabilized and recently upgraded self-storage facility in Northern California. This is an ideal 1031 exchange or first-time buyer opportunity to enter the self-storage market. The property also sits in a Qualified Opportunity Zone (QOZ) making it an ideal opportunity for acquisition by a qualified opportunity zone fund.
The Modesto Self Store-It property incorporates a total of 19,827 rentable square feet of storage in a total of 127 units, including 109 fixed storage units, 9 container storage units, 2 separate executive office units and 7 RV/boat parking spaces. Current potential rents on an annual basis is $237,720 with in-place rents of approximately $15,000/month. Investor is afforded upside thru rental rate management, the addition of storage containers and the leasing of the executive office units currently occupied by the owners.
The property at 1325 Martin Ave sits at the intersection of Highway 99 and Orangeburg Rd in Modesto on a 1.04 acre parcel and will be offered free and clear of any debt.
4SELF-STORAGE OPPORTUNITY 1325 Martin Avenue // Modesto // California
OFFERING PROCEDURESThis property is being offered for sale on a strict “As-Is, Where-Is” basis. Project financials, occupancy reports and other due diligence materials will be made available upon request.
Offers Considered as Submitted Offers should be addressed to: Modesto Self Store-Itc/o Tom de Jong Colliers International 5520 Kietzke Lane, Suite 300 Reno, NV 89511 [email protected] +1 408 282 3829
Offers to be presented in Letter of Intent (LOI) form and include:
· Offered price
· Earnest Money Deposit
· Due Diligence Time Period
· Closing Period
· Buyer Source of Funds and/or Qualifications
General Modesto Self Store-It
Status 1325 Martin Ave, Modesto, CA 95350
County Stanislaus County
Tax Lot 029-005-027
Zoning C-3 PD
Parcel Size 1.04 Acres
Owner Donald P. Pensotti
3 mile population 113,037
Population Growth (2016-2021) 5.30%
Est. SF/Capita (3-mile) - TOTAL 8.69
Traffic Count (AADT) US 99 136,000
Household Income (3-mile) $52,837
Year Built 1985
Units 127 Units
Rentable Area 19,827 SF
Weighted Average Rental Rates $1.00/SF
SITE DESCRIPTION
INVESTMENT DETAILS
PROJECT DETAILS
DEMOGRAPHICS - OPPORTUNITY ZONE LOCATION!!
5SELF-STORAGE OPPORTUNITY 1325 Martin Avenue // Modesto // California
2019 Actual
2020 Projected 2021 2022
Average Rental Rate/SF $1.00 $1.05 $1.10 $1.16
Rental Rate projections - 3.00% 3.00% 3.00%
Economic Occupancy % 70.8% 70.0% 75.0% 80.0%
Effective Gross Income $163,181 $170,082 $191,868 $214,748
Total Operating Expenses $65,921 $67,649 $69,423 $71,243
Net Operating Income $97,260 $102,433 $122,445 $143,505
• Owner-Managed Facility, currently at 92% occupancy
• Recent addition of 9 container storage units (1 each 8x20 and 8 each 5x8)
• Many recent improvements including new electronic gate with access code, new paint, updated LED lighting
• New 16 camera security system
• Added pedestrian gate
• Plumbing and outside watering recently upgraded
• Recently converted to EZ Storage management software
• Current part-time office hours Tuesday – Saturday 8:30 am – 1:30 pm
INVESTMENT HIGHLIGHTS
PROJECTED INCOME
6SELF-STORAGE OPPORTUNITY 1325 Martin Avenue // Modesto // California
Modesto, officially the City of Modesto, is the county seat and largest city of Stanislaus County, California, United States. With a population of approximately 215,030 in 2018, it is the 18th largest city in the state of California and forms part of the Modesto–Merced combined statistical area.
Modesto has a large agricultural industry which is based on the fertile farmland surrounding the city. Modesto is home to the largest winery in the world: E & J Gallo Winery. The Gallo Glass Company, a company of Gallo Winery, is the largest wine bottle manufacturing company in the world. The company provides thousands of office and manufacturing jobs to Stanislaus County residents. Other major privately owned companies based in Modesto include Foster Farms Dairy, Royal Robbins, international award winner Fiscalini Cheese, Sciabica Olive Oil, Acme Construction, Aderholt Specialty, and 511 Tactical (formerly a part of Royal Robbins, a United States brand of clothing consisting of uniforms and tactical equipment for military). A cannery downtown produces food which is usually shipped to Sacramento and Fresno for transfer to rail or ship. Ceres has a few cereal and snack factories in the area. There are several small steel working companies in Modesto. Blue Diamond Almonds, the world’s largest Almond Growers coop has a significant presence in the Modesto area which is considered the Almond Capital of the World.
1325 Martin AveModesto, CA
MODESTO AREA OVERVIEW
7SELF-STORAGE OPPORTUNITY 1325 Martin Avenue // Modesto // California
PROPERTY OVERVIEW
Location: 1325 Martin Ave is surrounded by retailers, including FoodMax, PetCo, Home Depot and other regional and national retailers. Modesto Junior College is across Highway 99 from the subject property.
Recent Improvements: The owner has made numerous recent improvements including new paint throughout, electric gate access with keypad control, new LED lighting, new 16-camera security monitoring system, new pedestrian gate access and more. Additionally multiple storage containers were recently added.
Upside Potential: Rents remain below local market rents allowing a buyer to increase rents. There are two executive offices, one occupied by a long-term tenant and the other occupied by the current owner which would be vacated at time of sale.
Resilient Asset Class: Self-Storage has proven to be one of the most resilient asset classes, partly because of the strong performance during the most recent recessions, with minimal foreclosure activity, occupancy and rental rates that were less severely impacted than all the other commercial real estate property types and continued growth in overall demand for self-storage space from both consumers and small businesses.
UNIT MIX
8SELF-STORAGE OPPORTUNITY 1325 Martin Avenue // Modesto // California
DRIVE-UP
CONTAINER
OFFICE SPACERV PARKING
Unit Mix # Units Sq Ft Rate $/SF Monthly Total
5 x 10 5 250 $85 $1.70 $425 7 x 10 1 70 $90 $1.29 $90 5 x 15 30 2,250 $95 $1.27 $2,850 8 x 10 3 240 $100 $1.25 $300 10 x 10 8 800 $125 $1.25 $1,000 8 x 15 1 120 $140 $1.17 $140 10 x 15 4 600 $165 $1.10 $660 8 x 24 1 192 $175 $0.91 $175 10 x 20 35 7,000 $190 $0.95 $6,650 10 x 25 19 4,750 $230 $0.92 $4,370 15 x 20 2 600 $300 $1.00 $600 5 x 8 8 320 $70 $1.75 $560
8 x 20 1 160 $160 $1.00 $160 12.5 x 15 2 375 $600 $3.20 $1,200 10 x 30 7 2,100 $90 $0.30 $630
Totals: 127 19,827 - $1.00 $19,810
*Totals include RV parking spaces as they may be replaced by additional containers at a higher $/SF rental rate by a buyer.
PROJECTED P&L
9SELF-STORAGE OPPORTUNITY 1325 Martin Avenue // Modesto // California
* 2019 vacancy rate equals potential rents less 2019 effective gross income** Adjusted to a post-sale estimate of $16,000 ($1,800,000 projected sales price with 20% goodwill application at 1.1% rate)*** 2.5% annual increases in expenses, except property taxes at 3.0%
10SELF-STORAGE OPPORTUNITY 1325 Martin Avenue // Modesto // California
Subject Property (1) Address Est. SF (3) Distance 5x5 (CC if avail) 5x10 (CC if avail) 10x10 (CC if avail) 10x15 (CC if avail) 10x20 (CC if avail) 10x20 (CC if avail)
1 Valley Public Storage 1100 Carver Rd 38,047 0.42 - - - - - -
2 Public Storage 2012 W Briggsmore Ave 49,083 0.50 $2.96 $2.12 $1.75 $1.35 $0.98 $0.98
3 Extra Space Storage 1533 Cummins Dr 71,652 0.54 $3.24 $2.38 $1.94 $1.85 $1.96 $1.96
(1) Data provided by YARDI Matrix on September 1, 2020 (survey rental rates June and July 2020). Blank lines means no data surveyed for that facility(2) Facility opened early 2020 and is currently in lease-up, pushing rental rates below market to obtain faster occupancy(3) YARDI Matrix estimate of square footages by facility. Not to be relied upon as these are only estimated SF based on a standard formula, not actual SF
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COMPETITIVE MAP
colliers.com/renoSELF-STORAGE OPPORTUNITY 1325 Martin Avenue // Modesto // California
