Victorville, CA 92394

VICTORVILLE STORAGE DEVELOPMENT

Mojave Drive, Victorville, CA 92394

Brandon M. Robinson President & Broker

155 W. Hospitality Lane Suite 265 San Bernardino, CA 92407

(909) 380-0073 Office (760) 534-8135 Mobile (909) 839-4531 Fax

Cal BRE# 01787727 Cal BRE# 02023477 [email protected] John 3:16 TABLE OF CONTENTS

Local Area………………….

Investment Overview……..

Property Profile……...... …

Photos & Maps……......

Rental Survey……......

Site Plan……………………

Building Fees & Costs…….

City Planning Info…………

Unit Mix…………......

Income & Expenses......

Value Analysis……………..

Lender & Developer Info….

Broker Remarks…...……….

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

Victorville is a city of 126,000 residents in the high desert of San Bernardino County. The city is 20 minutes north of the Ontario Airport and is the 4th most populated city in the County and 49th most populated city in California. Named after railroad pioneer Jacob Nash Victor, the city of Victorville was incorporated on September 21st of 1962.

Victorville is one of the fastest growing areas in California having witnessed a population increase of 80% since the year 2000 and 154% since 1990. This rapid growth in population is due in part to affordable housing and convenient access to inland empire cities such as San Bernardino, Ontario, Rancho Cucamonga, Fontana, and Riverside. The City is also a major transportation Hub located along the 15 freeway between Los Angeles and Las Vegas.

The Victorville area has been the location of several TV & Film productions such as Grand Theft Auto, The Hitcher, Lethal Weapon, From Dusk Till Dawn, Face Off, Kill Bill: Volume 2, and Fast and the Furious Tokyo Drift. Notable people from the Victorville area include Roy Rogers, Dale Evans, Steve Ryan, & Earl Bascom.

Demographics | Victorville, CA

Total Population: 126,267 Average Household Income: $67,870 Population Per Sq. Mile: 1,709 Median Household Income: $54,768 Median Age: 30.2 Income Per Capita: $19,201 Male / Female Ratio: 49.8% / 50.2% Average Disposable Income: $55,019 High School Graduate (Only): 29.2% Median Home Value: $263,490 2-Year Degree (Only): 37.8% Average Household Size: 3.49 Bachelor Degree (Only): 7.8% Owners: 54.0% Post-Graduate Degree: 4.6% Renters: 46.0% Votes Democrat: 52.5% Unemployment Rate: 6.0% Votes Republican: 45.1% Unemployment Number: 43,200

MOJAVE DRIVE STORAGE DEVELOPMENT is a 8.52 acre parcel of land that is approved for mini storage development. The site was fully approved in 2007 for 46,000 square feet of enclosed storage and 136,000 square feet of RV Storage. Due to the economic downturn of 2008, ownership stopped plans to develop the mini storage.

The property is located 1/2 mile east of highway 395 and 4 miles west of Interstate 15. This opportunity is surrounded by existing and new single family and commercial developments. Victorville's local storage market is stable with most facilities operating above 90% occupancy! The storage square feet per capita in Victorville is 13.05. Current rental rates are roughly $1 per square foot for enclosed storage and $0.50 persquare foot for RV Storage.

The project is estimated to cost $6M in both land and building costs. The facility is projected to gross over$1M in revenue and nearly $700K innet income; producingdoubledigit returns!

INVESTMENT HIGHLIGHTS 90% Market Occupancy

Adjacent to New Development

High Traffic Count

Major Corridor

Double Digit Return on Investment

Property Name: Victorville Storage Development Address On Title: Mojave Road, Victorville, CA 92394 Land Acquisition Price: $595,000 Land Price Per Square Foot: $1.60 Land Price Per Acre: $69,836 *Construction Cost: $5,508,175 Market Rate Per Square Foot: $0.99 Self Storage Sq. Ft. Per Capita: 13.05 *Projected Gross Revenue: $964,602 *Projected Net Income: $688,729 Enclosed Rentable Square Feet: 183,095 *Number of Units: 591 *Projected Occupancy: 95% Acreage: 8.52 Gross Land Square Feet: 371,131 *Year Built (Proposed): 2020 Zoning: M1 Industrial APN: 3128-621-04-0000 Construction Type: Metal Paving: Concrete Cross Streets: Mojave & Highway 395 Nearest Freeway: Interstate 15 Traffic Count: 20,000 Plans & Approvals: Site Was Approved in 2007 (Expired CUP).

SUBJECT PROPERTY* Anacapa Storage 5x10 $60 5x10 $65 10x10 $100 10x10 $95 10x15 $130 10x15 $120 10x20 $150 10x20 $145

# of Units* 591 # of Units 106 Occupancy* 91% Occupancy 96% Year Built* 2020 Year Built 2007 NRSF* 183,095 NRSF 14,200 Phone: Acreage 8.52 Acreage 1.07 (760) 951-0141 Lot Size 371,131 Lot Size 46,609 Address Mojave Drive Address 15139 Anacapa Road Victorville, CA 92394 Victorville, CA 92392

StorAmerica Self Storage Cubesmart Self Storage 5x10 $69 5x10 $75 10x10 $119 10x10 $147 10x15 $142 10x15 $165 10x20 $170 10x20 $189

# of Units 404 # of Units 568 Occupancy 95% Occupancy 93% Year Built 1990 Year Built 1984 NRSF 57,135 Phone: NRSF 70,383 Phone: Acreage 2.57 (760) 383-2654 Acreage 2.70 (760) 241-7401 Lot Size 111,949 Lot Size 117,612 Address 14421 Borego Road Address 13627 Amargosa Road Victorville, CA 92392 Victorville, CA 92392

Storage Zone Uhaul Self Storage 5x10 $49 5x10 $79 10x10 $78 10x10 $100 10x15 $108 10x15 $130 10x20 $120 10x20 $150

# of Units 699 # of Units 752 Occupancy 98% Occupancy 92% Year Built 2003 Year Built 2007 NRSF 93,680 Phone: NRSF 141,511 Phone: Acreage 4.64 (760) 241-5151 Acreage 7.47 (760) 243-5100 Lot Size 202,118 Lot Size 325,393 Address 13465 Palmdale Road Address 14598 Palmdale Road Victorville, CA 92392 Victorville, CA 92392 Extra Space Storage A&L Self Storage 5x10 $79 5x10 $55 10x10 $113 10x10 $95 10x15 $158 10x15 $110 10x20 $198 10x20 $135

# of Units 564 # of Units 270 Occupancy 90% Occupancy 90% Year Built 1980 Year Built 1982 NRSF 58,128 Phone: NRSF 23,997 Phone: Acreage 3.45 (760) 475-3505 Acreage 2.00 (760) 245-8002 Lot Size 150,282 Lot Size 87,120 Address 15555 Yates Road Address 16290 N. D Street Victorville, CA 92395 Victorville, CA 92394

Storage Locker Hi Tech Self Storage 5x10 n/a 5x10 $60 10x10 $90 10x10 $90 10x15 $112 10x15 $120 10x20 $128 10x20 $140

# of Units 511 # of Units 500 Occupancy 80% Occupancy 81% Year Built 2005 Year Built 2006 NRSF 97,710 Phone: NRSF 76,332 Phone: Acreage 4.74 (760) 684-4930 Acreage 4.42 (760) 951-1200 Lot Size 206,474 Lot Size 192,535 Address 13574 6th Avenue Address 16885 Sunset Road Victorville, CA Victorville, CA 92395

Got Storage Apatite Self Storage 5x10 n/a 5x10 $65 10x10 n/a 10x10 $90 10x15 n/a 10x15 $125 10x20 n/a 10x20 $155

# of Units 734 # of Units 775 Occupancy n/a Occupancy 94% Year Built 2005 Year Built 1998 NRSF 94,372 Phone: NRSF 109,920 Phone: Acreage 7.77 (760) 955-2022 Acreage 5.99 (760) 951-8218 Lot Size 338,461 Lot Size 260,924 Address 12276 Cobalt Rd Address 12217 Apatite Ave Victorville, CA 92392 Victorville, CA 92395

Mesa Self Storage Bear Valley West Self Storage 5x10 $65 5x10 n/a 10x10 $90 10x10 n/a 10x15 $125 10x15 n/a 10x20 $160 10x20 n/a

# of Units 435 # of Units 629 Occupancy 99% Occupancy n/a Year Built 2006 Year Built 2005 NRSF 86,560 Phone: NRSF 112,000 Phone: Acreage 4.71 (760) 956-9776 Acreage 5.96 (760) 956-5100 Lot Size 205,168 Lot Size 259,618 Address 12569 Bear Valley Rd Address 12829 Bear Valley Rd Victorville, CA 92392 Victorville, CA 92392

Storage Direct Right Space Storage 5x10 $74 5x10 $55 10x10 $124 10x10 $82 10x15 $158 10x15 $105 10x20 $186 10x20 $130

# of Units 530 # of Units 592 Occupancy 93% Occupancy 92% Year Built 2008 Year Built 1985 NRSF 60,000 Phone: NRSF 99,700 Phone: Acreage 3.53 (760) 552-8605 Acreage 6.70 (760) 991-3224 Lot Size 153,767 Lot Size 291,852 Address 15262 Mojave Dr. Address 11622 Amargosa Rd Victorville, CA 92394 Victorville, CA 92392

Victor Valley Self Storage StorAmerica Locust 5x10 $57 5x10 $55 10x10 $79 10x10 $91 10x15 $108 10x15 $125 10x20 $133 10x20 $174

# of Units 531 # of Units 740 Occupancy 92% Occupancy 87% Year Built 2004 Year Built 1985 NRSF 59,735 Phone: NRSF 129,846 Phone: Acreage 4.2 (760) 245-0030 Acreage 7.52 (760) 354-9339 Lot Size 182,952 Lot Size 327,571 Address 12250 Ridgecrest Rd Address 12176 Locust Avenue Victorville, CA 92395 Victorville, CA

StorAmerica Industrial StorAmerica La Mesa 5x10 $71 5x10 $77 10x10 $102 10x10 $120 10x15 $170 10x15 $153 10x20 $176 10x20 $181

# of Units 382 # of Units 405 Occupancy n/a Occupancy n/a Year Built 1990 Year Built 1990 NRSF 57,157 Phone: NRSF 69,000 Phone: Acreage 3.07 760-383-2655 Acreage 3.84 (760) 412-4340 Lot Size 133,729 Lot Size 167,270 Address 12474 Industrial Blvd Address 14195 La Mesa Victorville, CA Victorville, CA 92392

Reliable Self Storage 5x10 $59 10x10 $89 10x15 $119 10x20 $149

# of Units 1,000 Occupancy 73% Year Built 2018 2018 Expansion NRSF 150,000 Phone: Acreage 10 (760) 951-7733 Lot Size 435,600 Address 13755 Seneca Road Victorville, CA 92392

Square # of Occupancy Property Name Year Built Feet Units Rate 5x10 10x10 10x15 10x20 SUBJECT PROPERTY* 2020 183,095 591 91% $60 $100 $130 $150 StorAmerica Self Storage 1990 57,135 404 95% $69 $119 $142 $170 Cubesmart Self Storage 1984 70,383 568 93% $75 $147 $165 $189 Storage Zone 2003 93,680 699 98% $49 $78 $108 $120 Uhaul Self Storage 2007 141,511 752 92% $79 $100 $130 $150 Extra Space Storage 1980 58,128 564 90% $79 $113 $158 $198 A&L Storage 1982 23,997 270 90% $55 $95 $110 $135 Storage Locker 2005 97,710 511 80% n/a $90 $112 $128 Hi Tech Storage 2006 76,332 500 81% $60 $90 $120 $140 Got Storage 2005 94,372 734 n/a n/a n/a n/a n/a Apatite Self Storage 1998 109,920 775 94% $65 $90 $125 $155 Mesa Self Storage 2006 86,560 435 99% $65 $90 $125 $160 Bear Valley West 2005 112,000 629 n/a n/a n/a n/a n/a Storage Direct 2008 60,000 530 93% $74 $124 $158 $186 Right Space Storage 1985 99,700 592 92% $55 $82 $105 $130 Victor Valley Self Storage 2004 59,735 531 92% $57 $79 $108 $133 StorAmerica Locust 1985 129,846 740 87% $55 $91 $125 $174 StorAmerica Industrial 1990 57,157 382 n/a $71 $102 $170 $176 StorAmerica La Mesa 1990 69,000 405 n/a $77 $120 $153 $181 Reliable Self Storage 2018 150,000 1,000 73% $59 $89 $119 $149

Scott Webb Alex Jauregui Daisy Mahoney City Planner Assistant Planner Assistant Planner

(760) 955-5135 Phone (760) 955-5135Phone (760) 955-5135 Phone [email protected] [email protected] [email protected]

Planning Department

14343 Civic Drive PO Box 5001 Victorville, CA 92393

(760) 955-5135 Phone (760) 269-0070 Fax [email protected]

Monday to Thursday 8am – 5pm Fridays 8am – 4pm

# Of Rentable Monthly Rate / Sq. Monthly Annual Size Sq. Ft. Units Sq. Ft. Rate Ft. Income Income

10x10 100 20 2,000 $100 $1.00 $2,000 $24,000 10x12 120 3 360 $115 $0.96 $345 $4,140 10x15 150 8 1,200 $130 $0.87 $1,040 $12,480 10x17 170 1 170 $130 $0.76 $130 $1,560 10x20 200 28 5,600 $150 $0.75 $4,200 $50,400 10x25 250 19 4,750 $185 $0.74 $3,515 $42,180 10x30 300 18 5,400 $210 $0.70 $3,780 $45,360 10x40 400 3 1,200 $260 $0.65 $780 $9,360 12x20 240 21 5,040 $175 $0.73 $3,675 $44,100 12x25 300 19 5,700 $200 $0.67 $3,800 $45,600 12x30 360 16 5,760 $220 $0.61 $3,520 $42,240 12x40 480 17 8,160 $275 $0.57 $4,675 $56,100 15x10 150 8 1,200 $120 $0.80 $960 $11,520

RV Storage 10x20 200 3 600 $100 $0.50 $300 $3,600 10x25 250 67 16,750 $125 $0.50 $8,375 $100,500 10x30 300 25 10x35 350 1 350 $150 $0.43 $150 $1,800 11x20 220 4 880 $100 $0.45 $400 $4,800 11x25 275 20 5,500 $130 $0.47 $2,600 $31,200 11x30 330 83 27,390 $140 $0.42 $11,620 $139,440 11x35 385 111 42,735 $150 $0.39 $16,650 $199,800 11x40 440 94 41,360 $175 $0.40 $16,450 $197,400 11x45 495 2 990 $175 $0.35 $350 $4,200

591 183,095 $89,315 $1,071,780

Sq. Ft. Units Average rate / sq. ft. $0.49 Self Storage 46,540 181 Average size (sq. ft.) 309.81 RV Storage 136,555 410 Total 183,095 591 Total Units 591 Occupied Units 540 Physical Occupancy 91%

INCOME Gross Potential Income: $ 1,071,780 Vacancy & Discounts: $ 107,178 10.00% Gross Storage Income: $ 964,602 Other Fees: $ - TOTAL $ 964,602

EXPENSES New Real Estate Taxes: $ 68,935.36 1.1295% Property Insurance: $ 15,000.00 On-Site Management Expense: $ 70,000.00 Payroll Expenses: $ 15,000.00 Advertisement: $ 20,000.00 Office & Admin: $ 7,500.00 Lien Fees: $ 5,000.00 Maintenance & Repairs: $ 12,000.00 Landscaping: $ 5,000.00 Storage Software: $ 2,500.00 License & Permits: $ 1,500.00 Utilities: $ 18,000.00 Phone & Internet: $ 3,000.00 Security & Cameras: $ 3,500.00 Bank & Merchant Fees: $ 28,938.06 Other: $ 5,000.00 Total Expenses $ 275,873.42 28.60%

NET INCOME $ 688,728.58

SITE ACQUISITION $595,000 BUILDING CONSTRUCTION $5,508,175

TOTAL COSTS AFTER CONSTRUCTION $6,103,175 ENCLOSED COST PER SQ. FT. $45.00 RV COST PER SQ. FT. $25.00 ENCLOSED SQ. FT. 136,555 RV SQ. FT. 46,540 POTENTIAL GROSS INCOME $964,602 GROSS REVENUE MULTIPLIER 6.33 NET INCOME $688,729 RETURN 11.28%

SUBJECT PROPERTY 3064-411-15

Closing Date On Market Closing Date 2/14/2019 Sales Price $595,000 Sales Price $583,000 Price / Land sq. ft. $1.60 Price / Land sq. ft. $1.84 Price / Acre $69,836 Price / Acre $79,972.57 APN 3128-621-04 APN 3064-411-15 Acreage 8.52 Acreage 7.29 Lot Size 371,131 Lot Size 317,552 Use Storage Use Commercial Distance Subject Distance 8 Miles Address Mojave Road Address Highway 395 Victorville, CA 92394 Hesperia, CA 92344

3064-411-14 3064-411-11 Closing Date 2/14/2019 Closing Date 2/14/2019 Sales Price $417,000 Sales Price $600,000 Price / Land sq. ft. $1.83 Price / Land sq. ft. $1.89 Price / Acre $79,885.06 Price / Acre $82,203.04 APN 3064-411-14 APN 3064-411-11 Acreage 5.22 Acreage 7.299 Lot Size 227,383 Lot Size 317,944 Use Commercial Land Use Storage Distance 8 Miles Distance 8 Miles Address Highway 395 Address Avenal Street Hesperia, CA 92344 Hesperia, CA 92344

Price / Closing Property Name Acreage Lot Size Sales Price Price / Acre Sq. Ft. Date SUBJECT PROPERTY 8.52 371,131 $ 595,000 $ 69,836 $ 1.60 On Market 3064-411-15 7.29 317,552 $ 583,000 $ 79,973 $ 1.84 2/14/2019 3064-411-14 5.22 227,383 $ 417,000 $ 79,885 $ 1.83 2/14/2019 3064-411-11 7.30 317,944 $ 600,000 $ 82,203 $ 1.89 2/14/2019

Averages 6.60 287,627 $ 533,333 $ 80,687 $ 1.85

Below are companies that manufacture and sell portable storage in California. The rough cost of the “shipping container” units are between $10 - $15 per sq. ft. The “traditional self storage” units range between $20 - $40 per sq. ft. Please contact the companies below for exact pricing.

Company Contact Phone Email

Janus Blake Robinson (479) 601-2452 [email protected]

Mako Steel Caesar Wright (760) 448-1760 [email protected]

USC John Cooley (303) 818-8835 john.cooley@universalstorage containers.com Aztec Steve Hyndman (800) 865-9189 [email protected] Container Pac-Van Rob McDaniel (909) 829-5977 [email protected]

Mobile Peter Synn (909) 685-5949 [email protected] Mini Cube Depot Tara (562) 202-5180 [email protected]

Instant Charles (661) 393-7005 [email protected] Storage McCann

Traditional Self Storage Style Shipping Container Style

Two of the biggest names in self storage development are Kiwi Construction and Mako Steel. Both companies have been in business for over 20 years and are the preferred contractor for the largest storage operators in the country.

Feel free to contact them for information regarding construction.

28177 Keller Rd, 5650 El Camino Real, #100 Murrieta, CA 92563 Carlsbad, CA 92008

(951) 301-8975 Phone (760) 448-1760 Phone (951) 301-4096 Fax (760) 448-1761 Fax [email protected] [email protected] www.kiwiconstruction.com www.makosteel.com

Bank of Hope Pacific Premier Bank Gene Pac Francisco Navas Senior Vice President Senior Vice President

3200 Wilshire Blvd., 7th Floor 1249 E. Katella Ave, Los Angeles, CA 90010 Orange, CA 92867

(213) 819-4242 Phone (805) 231-1246 Mobile (213) 639-8049 Fax (714) 538-8330 Fax

[email protected] [email protected]

Redwood Capital AmPac Tri-State CDC Jeffrey Ogan Janine Warren Commercial Loans VP & Business Development

6404 Wilshire Blvd 22365 Barton Road Suite 100 Suite 210 Los Angeles, CA 90048 Grand Terrace, CA 92313

(949) 596-7509 Office (909) 915-1706 Phone (951) 443-6368 Mobile (626) 485-2308 Mobile [email protected] [email protected]

This is an excellent opportunity for an experienced operator to capitalize on the demand for storage in this growing area. With the high price per square foot to purchase an existing facility in California, it is smarter to build a new property at half the cost!

Most storage facilities in California are selling for prices between $100 - $150 per square foot depending on Class and location. This project provides a great opportunity to own a Class A facility for less than $60 per foot!

The storage market in Victorville is stable with all other facilities operating around 90% occupancy! There is a healthy amount of new residential & commercial construction that will increase demand.

This property has strategic placement to attract tenants from both Victorville & Adelanto. This opportunity has potential to gross over $1M annually and provide double digit returns!

National Association of Realtors ID: 157528386

Multiple Listing Service ID: CV37631