Self Storage Investment Opportunity

SELF STORAGE INVESTMENT OPPORTUNITY

Acorn Storage Center 19199 State Highway 413 Branson West, MO 65737

JARED JONES, CCIM

Jones Investment Properties

6350 S. Lewis, Suite B | Tulsa, OK 74136

| 918-948-3941

| [email protected] Confidentiality & Disclaimer

The Argus Self Storage Sales Network (Argus) is not the listing agent for this property. Offers to buy or sell this property can only be made through the listing agent identified herein. Argus is a marketing consultant that provides certain marketing assistance to the listing broker and is not a party to the listing agreement or any other agreement relating to the property. The Seller is the owner or the authorized agent of the owner, of the property offered for sale and the subject of the listing agreement between Broker and Seller.

Disclaimer: Neither the Seller, Owner, Broker, or Argus represents, warrants, either by implication nor express statement, the accuracy or completeness of the information contained in this property presentation.

The information contained herein has been prepared from sources believed to be reliable but has not been independently verified by the Broker or Argus as to accuracy or completeness. No warranties or representations, express or implied, are made as to the information presented herein. Warranties or representations can only be made by the Seller or Owner in a written and fully executed purchase and sales agreement between Seller and purchaser. Projections in the presentation are based on assumptions and interpretations based on future events, market conditions, managerial operations beyond the control of Argus, Broker, Seller or Owner, and, therefore, subject to error and change without notice. The prospective purchaser is encouraged to perform such independent due diligence as he or she finds appropriate . Typically, due diligence activities provide a more comprehensive review and analysis of all aspects of the property (including, but not limited to, financial matters, market conditions, physical condition, regulatory issues and title status) than the material contained herein. This presentation is for information purposes only and is not a solicitation of any nature whatsoever. Seller and Owner reserve the right, at their sole and absolute discretion, to reject any offer.

Confidentiality: The information contained in this presentation is confidential and proprietary and is for the exclusive use of the party receiving the information (whether in printed, electronic, or facsimile format) for the sole purpose of determining if the recipient desires to acquire more information regarding the Property. By acceptance of this information in any format or from any source, the recipient agrees to not distribute nor to disclose this information in any form to any other person or entity without the prior written consent of the Broker.

FOR FURTHER INFORMATION, PLEASE CONTACT: Argus Self Storage Sales Network www.argus-selfstorage.com 2993 S. Peoria St., Suite 105 E-mail: [email protected] Aurora, CO 80014 800-55-STORE

This information is subject to the Identification of the Parties, Disclaimer and Confidentiality statements on the second page of this document. If you do not have such a page, call 1-800-55-STORE and a replacement page will be provided. 02 Table of Contents

Offering Summary 4-8 Property Details 9 Unit Mix 10 Financial Information 11-12 Map 13 Photos 14-16 Market Overview 17-18 Demographics 19 Competition Analysis 20-21 Broker Information 22

02 This information is subject to the Identification of the Parties, Disclaimer and Confidentiality statements on the second page of this document. If you do not have such a page, call 1-800-55-STORE and a replacement page will be provided. 03 Offering Summary

List Price: Call for Offers

INVESTMENT HIGHLIGHTS

Located at the intersection of Hwy 413 and Hwy 13, this site offers excellent visibility and high traffic count Comprised of 450 total units totaling 75,600 RSF on 7.67 acres Consistent, stabilized occupancy with average tenant tenure at 47.5 months Electronic vertical lift gate and new security cameras

Executive Summary:

Critical Timeline

Confidential Offering Memorandum for Qualified Investors Available Starting:

May 20, 2019

Last Date To Submit Offer:

June 7, 2019

Seller To Respond To Selected Offer(s):

June 12, 2019

Final Offer(s) Due:

June 17, 2019

NOTE: PURCHASE AND SELLER WILL BE UNDER CONTRACT BY June 24, 2019. PURCHASER SHALL HAVE A FORTY-FIVE (45) DAYS DUE DILIGENCE.

CLOSING DATE: Within thirty (30) days following the expiration of the Due Diligence period.

* All dates are subject to change without notice depending on the availability and/or approval of Seller Realty Committee. At any time, a pre-emptive offer may be made and accepted by Seller without notification, and the timeline herein, may change.

IN ANALYZING THE SUBJECT OFFERS, OTHER NON-ECONOMIC FACTORS OF THE OFFERS WILL BE CONSIDERED. THESE CON- SIDERATIONS ARE:

1. Property is being offered on a cash basis with no financing contingencies. 2. Submit any additional relevant information for the Seller’s consideration of the offer along with the Letter of Intent.

NOTE: ALL OFFERS ARE DUE NO LATER THAN 5:00 PM CST ON FRIDAY, June 7, 2019. IT IS THE SELLER’S INTENTION TO RE- SPOND TO ALL OFFERS NO LATER THAN June 12, 2019.

04 This information is subject to the Identification of the Parties, Disclaimer and Confidentiality statements on the second page of this document. If you do not have such a page, call 1-800-55-STORE and a replacement page will be provided. 05 Offering Summary

GENERAL DESCRIPTION Acorn Storage Center – Branson West

Acorn Storage Center is the best facility in the market and provides a unique opportunity to acquire a strong performing asset with compelling room for revenue growth. Located at 19199 State Highway 413, Branson-West, Missouri, Acorn Storage Center services both the local population and the many tourists and outdoor enthusiasts who frequent The Kimberling City/ Table Rock Lake area and Branson, Missouri, a national tourist destination, hosting over 7.2 million tourists per year, many having second homes in the area. The facility is perfectly located for this active and quickly expanding community. Forty acres of contiguous land has just sold for commercial development with construction underway on phase I, a 15,000 square foot Tanko Lumberyard. Obviously, this new construction and development enhances traffic flow into the future, and supports Acorn’s superior position in the marketplace.

Acorn Storage Center opened for business in 1996 with completion of Phase I construction, which included the 200 and 300 series buildings, totaling 30,800 SF.

Phase II consisted of the 500 and 600 series buildings, which brought online 21,000 SF. This two-level structure was built with each floor acces- sible by carefully engineered concrete drives. The lower level is climate controlled and built into the side of a hill, maximizing energy and building density efficiencies and site square footage in relation to land use. Graded and graveled RV parking was added to the rear of the property during Phase II.

The completion of Phase III in 2000 brought into service the 700 and 750 series buildings (7,200 SF total) with further expansion of perimeter fencing and site surface improvements for storage and RV parking. Phase III completed the basic components of the storage facility.

Phase IV consisted of further RV parking expansion, grading and fencing of the property. During this period, contiguous property was acquired, which included the Acorn Business Center. Security features include: • Wrought iron and chainlink perimeter fencing • Automated vertical lift gate with entrance and exit keypads • Area and building lighting • Camera system (implemented in 2018)

GENERAL DESCRIPTION CONTINUED

In 2018, mechanical systems were replaced in the office, manager’s apartment and south end of the climate controlled units. The upgraded mechanical systems for the climate controlled units include dehumidification.

Expansion/Upside

This property has significant upside potential in land and building use for any buyer to consider. Some of these options include but aren’t limited to: • Realizing $33,000 of additional revenue per annum by eliminating the rental rate variance and $9,000 of lost revenue due to Owner occupied units • Converting the Acorn Business Center to more profitable, high demand, climate controlled storage • Building additional climate or non-climate units on the open parking site • Selling the highway frontage for development • Exercising signage rights to install a commercial billboard

06 This information is subject to the Identification of the Parties, Disclaimer and Confidentiality statements on the second page of this document. If you do not have such a page, call 1-800-55-STORE and a replacement page will be provided. 07 Offering Summary

GENERAL DESCRIPTION CONTINUED Acorn Business Center

Acorn Business Center is a multi-tenant, 7,595 square foot building with 395 square feet of common area and 34 parking spaces. The structure is high-quality ICF construction on a concrete slab. The property has recently undergone several improvements including:

• Roof is 4 years old (standing seam) • New bathroom facilities in all units • High efficiency HVAC system upgrades within the last 2 years • New paint • New floor coverings consisting of tile, painted floors and carpet squares

Rent Roll

Suite Tenant Square Lease Lease Rent Deposit Options/Notes Feet Commencement Expiration 500 Merritt Family Auction 3,000 11/01/2015 M-to-M $600.00 No options 400 Kustom Invisions 1,500 9/01/2018 8/31/2019 $600.00 No options 300 A’Bellas Salon & Spa 940 1/01/2015 M-to-M $550.00 $550.00 No options 100-200 Vacant 1,800 $750.00 Ready to Rent

The business center provides further benefits to the storage facility through additional traffic due to customers patronizing businesses in the property. In the event a future owner has a preference for storage over service-related retail, the building could easily be con- verted to climate controlled storage and rented at a higher price per square foot.

PROPERTY PHYSICAL

Name Acorn Branson West Storage Foundation Concrete Slab Address 19199 State Highway 413 Exterior Construction Metal City, State, Zip Branson West, MO 65737 Interior Construction Steel County Stone Roof Construction Metal Partitions Metal 11-1.0-12-000-000-007.006 (Tract 1) - Storage 11-1.0-12-000-000-004.050 (Tract 2) - Storage Paving Concrete 11-1.0-12-000-000-004.051 (Tract 3) – Bus. Tax ID Site Access Controls Yes – Proprietary Systems Center 11-1.0-12-000-000-007.005 (Tract 4) - Storage Office Yes 11-1.0-12-000-000-004.056 (Tract 5) - Storage Security Video surveillance and computerized gate

Zoning C-2 Fire Protection None Property Type Self Storage Apartment Yes – 1,600 SF Apartment/Office 0.42 Acres (Tract 1), 0.99 Acres (Tract 2), Number of Buildings 6 (Storage), 1 (Business Center) Parcel Size (Acres) 1.37 Acres (Tract 3), 3.53 Acres (Tract 4), Doors/Access Drive up 1.36 Acres (Tract 5) Parking Open Year Built 1996 Storage Visibility from highway and signage on Traffic Exposure Renovation/ Expansion Yes (see narrative) arterial street RSF 75,600 = 51,850 (storage) + 23,750 (parking) 9am -5:15 pm Monday – Friday. Office Hours 9am-1pm Saturday Gate Hours 24/7/365 access Other Business Operations Lock Sales OCCUPANCY Storage / Parking

Total Units 450 Unit Occupancy 87.3% Economic Occupancy 79.2% Physical Occupancy 88.6%

08 This information is subject to the Identification of the Parties, Disclaimer and Confidentiality statements on the second page of this document. If you do not have such a page, call 1-800-55-STORE and a replacement page will be provided. 09 Unit Mix And Scheduled Income

Actual Actual Rent Rent Potential Potential # SF Total Rental # % SF Monthly Annual Class Unit Size PSF PSF Monthly Annual of Units Per Unit SF Rates Rented Rented Rented Income @ Income @ Monthly Annually Income Income Street Rates Street Rates

NCC-Hal 5x5 4 25 100 $25 2 50.00% 50 $1.00 $12.00 $100 $50 $1,200 $600

NCC 5x10 12 50 600 $38 10 83.33% 500 $0.76 $9.12 $456 $380 $5,472 $4,560

NCC- Hal 5x10 56 50 2,800 $35 52 92.86% 2,600 $0.70 $8.40 $1,960 $1,820 $23,520 $21,840

NCC 5x15 18 75 1,350 $48 18 100.00% 1,350 $0.64 $7.68 $864 $864 $10,368 $10,368

NCC - Hal 5x15 4 75 300 $45 2 50.00% 150 $0.60 $7.20 $180 $90 $2,160 $1,080

NCC 10x10 16 100 1,600 $58 14 87.50% 1,400 $0.58 $6.96 $928 $812 $11,136 $9,744

NCC - Hal 10x10 54 100 5,400 $55 38 70.37% 3,800 $0.55 $6.60 $2,970 $2,090 $35,640 $25,080

NCC 10x15 14 150 2,100 $73 14 100.00% 2,100 $0.49 $5.84 $1,022 $1,022 $12,264 $12,264

NCC- Hal 10x15 14 150 2,100 $70 14 100.00% 2,100 $0.47 $5.60 $980 $980 $11,760 $11,760

NCC 10x20 55 200 11,000 $90 51 92.73% 10,200 $0.45 $5.40 $4,950 $4,590 $59,400 $55,080

NCC - Hal 10x20 1 200 200 $92 1 100.00% 200 $0.46 $5.52 $92 $92 $1,104 $1,104

NCC 10x25 48 250 12,000 $105 40 83.33% 10,000 $0.42 $5.04 $5,040 $4,200 $60,480 $50,400

NCC 10x30 11 300 3,300 $120 11 100.00% 3,300 $0.40 $4.80 $1,320 $1,320 $15,840 $15,840

NCC 12x30 10 360 3,600 $130 10 100.00% 3,600 $0.36 $4.33 $1,300 $1,300 $15,600 $15,600

CC 5x10 4 50 200 $60 2 50.00% 100 $1.20 $14.40 $240 $120 $2,880 $1,440

CC 5x20 1 100 100 $65 0 0.00% - $0.65 $7.80 $65 $0 $780 $0

CC 10x10 12 100 1,200 $75 11 91.67% 1,100 $0.75 $9.00 $900 $825 $10,800 $9,900

CC 10x15 6 150 900 $100 6 100.00% 900 $0.67 $8.00 $600 $600 $7,200 $7,200

CC 10x20 15 200 3,000 $125 15 100.00% 3,000 $0.63 $7.50 $1,875 $1,875 $22,500 $22,500

Parking - Frt 10x25 95 250 23,750 $30 82 86.32% 20,500 $0.12 $1.44 $2,850 $2,460 $34,200 $29,520

Totals 450 75,600 393 87.3% 66,950 $28,692 $25,490 $344,304 $322,641

Description 2019 2018 2017 2016 2015 Proforma Trailing 4 mth/ Forward 8 month

Potential gross rental income $344,304 $268,098 $268,098 $269,179 $269,179 Vacancy, discounts and credit loss $80,551 $20,846 $32,778 $33,579 $58,212 Rent $263,753 $247,252 $235,320 $235,600 $210,967 Late Charges $8,488 $7,844 $6,017 $5,776 $5,763 MDSE Sales $372 $391 $496 $395 $283 Set-up Fees $2,220 $2,070 $1,890 $2,100 $1,940 Lien Sales $3,315 $1,280 $5,605 $2,015 $200 Misc. Receipts $195 $0 $50 $105 $70 Effective Gross Revenue $278,344 $258,837 $249,378 $245,991 $219,223 Property Taxes $11,304 $11,304 $11,232 $10,791 $10,808 Software* $1,725 Insurance $5,433 $5,433 $5,992 $6,358 $5,514 Tax Prep/Legal $2,800 $2,800 $2,500 $2,300 $2,150 Telephone $2,685 $2,685 $2,076 $2,020 $2,146 Internet* $550 $0 $550 $550 $550 Electricity, Water & Trash $12,853 $12,853 $13,143 $12,506 $11,753 Credit Card & Bank Fees $3,870 $3,870 $3,825 $3,328 $2,911 Postage $1,697 $1,697 $1,310 $1,276 $1,327 Office Supplies $1,145 $1,145 $920 $962 $1,236 Maintenance, Supplies, Fuel, & Repairs $9,677 $9,677 $8,031 $8,573 $8,099 Locks $180 $180 $199 $152 $112 Advertising $4,789 $4,789 $3,964 $4,792 $4,571 Payroll/Benefits, Workers Comp, FICO, Medicare $29,980 $29,980 $30,450 $28,242 $26,980 Miscellaneous $50 $50 $59 $79 $82 Total Operating Expenses $88,738 $86,463 $84,251 $81,929 $78,239

Net Operating Cash Flow $189,606 $172,374 $165,127 $164,062 $140,984

Notes: Seller uses proprietary software. Sitelink cost for 2019 will total $1,725. Seller assumes internet cost will remain in line with historical of $550 annually.

2018 2017 2016 2015

Rent $21,600 $15,600 $11,400 $8,350

Effective Gross Income $21,600 $15,600 $11,400 $8,350

Property Taxes $1,119 $1,120 $1,093 $1,051

Insurance $2,813 $2,620 $2,498 $2,527

Electricity, Water & Trash $1,783 $2,421 $1,032 $1,056

Office Supplies $211

Maintenance, Supplies, Fuel & Repairs $3,188 $3,646 $1,951 $2,358

Total Expenses $9,114 $9,807 $6,574 $6,992

Net Operating Income $12,486 $5,793 $4,826 $1,358

12 This information is subject to the Identification of the Parties, Disclaimer and Confidentiality statements on the second page of this document. If you do not have such a page, call 1-800-55-STORE and a replacement page will be provided. 13 Aerial Images

14 This information is subject to the Identification of the Parties, Disclaimer and Confidentiality statements on the second page of this document. If you do not have such a page, call 1-800-55-STORE and a replacement page will be provided. 15 Photos Acorn Business Center

The Branson economy has been steadily growing over the last 10 years as evidenced by city sales tax increases and the low unemployment rate, which was sub 4% during the 2018 peak summer tourist season.

Tourism Tourism is the Branson / Lakes Area’s chief industry. Situated within a day’s drive of 25% of the U.S population, Branson and the Tri-Lakes Area serve millions of visitors each year who spend $1.7 billion dollars in the local economy. Branson is ranked 20th among all overnight leisure vacation destinations in the country.

On a one to five rating scale, visitor satisfaction measures a 4.63. A geographical profile of Branson visitors shows that 15% come from 100 miles or less, 30% come from 101 to 300 miles away, and 55% come from outside a 300-mile radius.

Shows Branson is home to over 40 music theaters with over 50,000 seats. The variety of music includes country, pop, gospel, bluegrass, western, rock ‘n roll, classical jazz, and Broadway. There’s also comedy, magic, and variety to provide visitors a wide array of entertainment choices.

Lake Activities The Branson / Lakes Area is home to three scenic lakes offering fishing, boating, parasailing, jet skiing, and swimming. While the lakes offer great fishing for novice and professional anglers, each has its specialty. Table Rock Lake offers world-class bass fishing. Lake Taneycomo, with its cold waters, offers superb trout fishing. Bull Shoals Lake is also an angler’s paradise, especially for tournament bass fishing.

Outdoor Activities Located in the rolling Ozark Hills, the Branson / Lakes Area is ideal for canoeing, camping, hiking, biking, bird watching, and simply wandering through the hills. World-class golf courses provide golfing opportunities for the scratch player and novice alike. The Branson / Lakes Area is dedicated to enhancing its natural environment and preserv- ing its lakes and waterways.

Golf Thirteen golf courses, eight of which are championship golf courses, are currently open in the Branson / Lakes Area. Golfing is one of the fastest-growing interests of vaca- tioners, who can enjoy their favorite sport on a choice of courses within just a few miles of each other.

Country clubs, pro shops, lessons, restaurants, and all amenities are available. And who knows, you may see a familiar face or two teeing off on the next fairway. Many of Branson’s entertainers enjoy golf and occasionally can be seen on local courses.

Shopping Visitors consistently rank shopping among the most popular activities of the area. Branson Landing is a $420 million, 95-acre development along Lake Taneycomo blending more than 100 retail shops with dining, luxury lodging, river walk, town square, marinas, and nightlife into a dynamic waterfront setting.

Branson is home to two outlet shopping malls as well as the Grand Village and other unique shopping areas. Visitors can find contemporary clothing, Ozarks crafts, gift items, housewares, designer shoes, luggage, and myriad other treasures throughout the year.

Historic Downtown Branson is also a shopper and diner’s delight. Dick’s Old Fashioned 5 and 10, several boutiques, and dozens of specialty stores combined with quaint, local eateries make the downtown area a delight.

16 This information is subject to the Identification of the Parties, Disclaimer and Confidentiality statements on the second page of this document. If you do not have such a page, call 1-800-55-STORE and a replacement page will be provided. 17 Branson Building Permit Statistics

0 - 1 mi 0 - 3 mi 0 - 5 mi % % % Population 2028 Forecast 559 3,242 8,524 2023 Projection 533 3,080 8,094 2018 Estimate 508 2,919 7,675 Households 2028 Forecast 211 1,332 3,582 2023 Projection 201 1,265 3,401 2018 Estimate 192 1,199 3,225 Median Household Income $47,108 $40,890 $42,319 Average Household Income $58,704 $52,948 $54,729 2018 Estimated Per Capita Income $22,170 $21,750 $23,074 2018 Estimated Housing Units by Tenure 290 1,689 4,649 Vacant Housing Units 98 34% 491 29% 1,424 31% Occupied Housing Units 192 66% 1,199 71% 3,225 69% Owner-Occupied 124 43% 842 50% 2,338 50% Renter-Occupied 68 23% 357 21% 887 19% *Self Storage Market Data (Source: Union Realtime) Total Rentable SF 65,244 307,268 370,415 SF per Capita 207.13 121.50 46.85

18 This information is subject to the Identification of the Parties, Disclaimer and Confidentiality statements on the second page of this document. If you do not have such a page, call 1-800-55-STORE and a replacement page will be provided. 19 Competition Analysis: Competitor Map

Around the Clock Storage 1105 MO-76 Branson, MO Park Place Mini Storage 55 Evelyn Lane Reeds Spring, MO

Crossland Storage 278 Jefferson Road Branson, MO

Branson West Mini Storage 18942 MO-13BUS Branson West, MO

Around the Clock Storage The Shoppes at Branson West Mini Storage 1105 MO-76 18942 MO-13BUS Branson, MO Branson West, MO

Distance: 14.6 Miles Distance: 0.2 Miles

Unit Size Rate PSF Unit Size Rate PSF 10x10 Drive Up $86 $0.86 5x10 Climate Control $55 $1.10 10x10 Climate Control $130 $1.30 10x13 Climate Control $80 $0.62 10x15 Drive Up $86 $0.57 11x15 Climate Control $80 $0.48 10x15 Climate Control $178 $1.19 28x11 Climate Control $130 $0.42 10x20 Drive Up $116 $0.58 10x20 Climate Control $220 $1.10

Crossland Storage Park Place Mini Storage 278 Jefferson Road 55 Evelyn Lane Branson, MO Reeds Spring, MO

Distance: 13.8 Miles Distance: 1.28 Miles

Unit Size Rate PSF Unit Size Rate PSF 5x10 Drive Up $35 $0.70 10x10 Climate Control $80 $0.80 10x10 Climate Control $85 $0.85 10x15 Drive Up $70 $0.47 12x15 Drive Up $69 $0.38 10x20 Drive Up $85 $0.43 10x20 Drive Up $79 $0.40 12x30 Drive Up $145 $0.40 12x30 Drive Up $120 $0.33

20 This information is subject to the Identification of the Parties, Disclaimer and Confidentiality statements on the second page of this document. If you do not have such a page, call 1-800-55-STORE and a replacement page will be provided. 21 The ARGUS Advantage

Since 1994, the Argus Self Storage Sales Network has been the only national network of commercial real estate brokers who specialize in self storage properties. The network assists buyers and sellers of self storage real estate by combining the knowl- edge and expertise of a local broker with the exposure of our national sales and marketing program. Through our National Net- work of Broker Affiliates, the Argus Self Storage Sales Network aims to assist buyers and sellers by helping complete real estate transactions in a timely manner and provide a best in class service to our clients. Since its beginning, ASSSN has completed self storage transactions totaling over $3 Billion.

Jared Jones, CCIM specializes in self storage brokerage, and investment property brokerage. Jared earned a Marketing degree and MBA from Pittsburg State University and achieved his Certified Commercial Investment Member (CCIM) designation in 2010, a highly respected designation earned by 10% of commercial real estate professionals.

Dating back to 2007, Mr. Jones’ clients include publicly traded companies, developers, financial institutions, high net worth individuals, and private REITs. Mr. Jones specializes in self storage investment brokerage with a primary focus on advising institutional and private equi- ty groups in the sourcing of national on and off-market self storage acquisition opportunities and land for self storage development.

He is the 2017 President of the Oklahoma CCIM Chapter. He has served on the Office Advi- sory Board for the Greater Tulsa Association of Realtors and is a past participant in the RCA JARED JONES, CCIM Commercial Alliance and RCA Education committees. Jared also served as a Board Member of the Oklahoma Self Storage Association, and was the founding President of the organiza- Jones Investment Properties tion.

6350 S. Lewis, Suite B Jared has extensive experience in self storage operations, financing, feasibility analysis, development and syndication at the general and limited partnership level. Tulsa, OK 74136

| 918-948-3941 Since 2012, Jared has completed self storage transactions with a total value of more than $50,000,000. | [email protected]