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Rodd Field RoadSelf-Storage, LLC

A Self Storage Investment Business Plan Presented by: 1st Defense Self-Storage, LLC

An affiliate of MC Companies

September 2016

2016 MC Companies Confidential 2 | P a g e

The Disc la imer

This Investment Summary is provided solely to obtain an indication of interest in an investment in Rodd Field Road, LLC (the "LLC"). Neither the Securities and Exchange Commission nor any state securities authority has confirmed the adequacy or accuracy of any of the information presented herein.

This Investment Summary provides limited financial and other information related to the LLC and does not constitute an offer to sell or solicitation of an offer to buy a security. No money or other consideration is being solicited with this Investment Summary. Any indication of interest made by a prospective investor involves no obligation or commitment to invest in the LLC. No offer to sell an interest in the LLC will be made and no commitment to purchase will be accepted until delivery of a Confidential Private Placement Memorandum (the "Memorandum").

Offers will only be made to accredited investors.

An investment in the LLC is a speculative investment subject to significant risks. This Investment Summary does not disclose risks and other significant issues related to an actual or projected investment in the LLC. The risks and other considerations related to an investment in the LLC will be as set forth in the Memorandum. PLEASE REVIEW THE RISK FACTOR SECTION OF THE MEMORANDUM FOR A MORE DETAILED DESCRIPTION OF THE RISKS THAT MAY BE INVOLVED WITH RESPECT TO AN INVESTMENT IN THE LLC.

Forward-Looking Statements. The materials herein contain certain “forward-looking” statements. These statements are based on the current estimates and assumptions of management of the LLC and are subject to uncertainty and changes in circumstances. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Actual results may vary materially from the expectations contained herein.

Except to the extent required by applicable securities laws, the LLC is not under any obligation to (and expressly disclaims any such obligation to) update its forward-looking statements, whether as a result of new information, future events, or otherwise. All statements contained in this Investment Summary are made only as of September, 2016, the date this presentation was prepared.

http://www.mccompanies.com/

Section I – The Summary 4

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SummaryFinancial Overview Debt FinancingFinancial StructureSection II – The Property Property Summary Amenities Property Unit Layout Property LocationSection III – The Business PlanManagement Plan & Exit Section IV – The Partnership LegalGeneral Partner Profit DistributionsFeesSection V – The Sales & Rent Comps Rent Comps Section VI – The Submarket & Market Overview Employment/Economic HighlightsRegional and Demographic AnalysisArea Self-Storage MarketSection VII – The The Leadership Team Overview & PartnersSection VIII – The Financial Proforma 5 Year Projection


• Strong Under served Market - The national average of self-storage per person is 8 sq. ft., the Rodd Field Road location is at 6.6 sq. ft.

• Experienced Development & Management Team - The Company's management has already tested and evolved the planned market positioning, development techniques, and operating strategies in 3 other self storage locations - Phoenix, AZ; Hawaii Kai, Honolulu, Hawaii; and Kapolei, Honolulu, Hawaii

• Minimized Development Risk – The team has been working on the development of this project over the last two years. During that time, construction drawings have been completed. We have identified American Bank for our construction loan. We have received loan approval with 2 years interest only. We anticipate to close on or before October 16, 2016

• Exceptional location - Located in the newly developed Southwest side of Corpus Christi. Rodd Field Road is highly visible and a major arterial in Southwest Corpus Christi with 20,000+ cars traveling it each day

• Low Leverage – The total financing is only 63.6% of cost, and is 46% of the stabilized value. This conservative financing provides the Investors with a safety net to weather market downturns

• Cap Rates - The cap rates for the self-storage industry have not compressed as much as the multi-family

• Short Term Investment Period - In order to take advantage of the strong market fundamentals our initial strategy is to build, lease up, and sell the project within 5 years

• Minimized Construction Risk – Our General Contractor, Beecroft, will execute a fixed price contract, minimizing risk of cost overruns

• State of the Art De-humidification System - The daily average humidity in Corpus Christi is 76%. 1st DSS holds the exclusive contract with Logis-Tech's Stabilization System (ESS), a de-humidification system that no other Corpus Christi facility can provide. The ESS will decrease humidity to below 50%. The competition's systems will only decrease the humidity to 65% which will continue to damage stored items

• Transfer of knowledge - The self-storage industry operates similar to the multifamily industry. With MC Companies experience in multi-family and the success of our partners in the self-storage industry, we believe our combines skills are a good fit


Section I – The Summary

MC Companies, through its affiliate 1st Defense Self-Storage, LLC (1st DSS), is pleased to offer the opportunity to invest in the development of a new Class A, 754 unit self-storage project, Rodd Field Road Self-Storage, LLC. The new development will be located in Corpus Christi, TX.

Investment in Rodd Field Road provides Investors the following favorable characteristics:

$2,000,000 Rodd Field Road Self Storage, LLC

20 Units at $100,000 per unit



$ 5,613,000 $ 2,132,000$ 8,525,000

$ 5,425,000$ 1,100,000$ 2,000,000

$ 11,243,000 1.793

Financial Overview

Construction Costs Design and Soft Costs Total Development Cost

Construction Loan Amount Equity Contribution from Ross McCallister and Ken McElroy Equity Contribution from Limited Partners Stabilization Value if sold in 5 years after completion - See Sale Analysis in Financial Proforma Estimated Investor (a Member) Multiple if sold in 5 years after completion

Sum of the total money (distributions and appreciation upon sale of $11,243,000) returned to an investor over a hold period divided by the investor's initial investment, (i.e. $100,000 investment would receive approximately $179,300)

Debt Financing

Rodd Field Road Self-Storage, LLC has obtained approval for a construction/permanent loan from American Bank in Corpus Christi bank with the following terms:

Term: 5 Years Interest Only during 24 month construction and stabilizationPrincipal and interest payments based on 25 year amortization for 36 monthsFloating rate during construction period, then fixed rate.

Loan to Cost: 63.6%Interest Rate: 5.00%Personal Guarantees: All members of the Manager


Rodd Field Road, LLC

Senior Construction

Loan $5,425,000 General Partners

Personal Guarantee

LP $3,100,000

+ 7% PreferredReturn

LP - 50% GP - 50%

Financial Structure (Water fa l l )

After repayment of the senior loan, $100,000 investment is projected to net the investor approximately $179,300 if sold in 5th year. ** There are many variables that will influence the results of a sale or refinance including but not limited to market cap rates, interest rates, and market conditions.

If sold year 5 $179,300

10 Months development &

Year 1 $0

(Property is being built and lease up begins, 7%

preferred return accruing)

Initial investment $100,000



Rodd Field Road Self-Storage will be a 6 building, 754 unit self-storage facility. The 3.9 acre site will have under roof a total of 85,280/sf with 73,416/sf of leasable space, including dehumidified, air-conditioned and heated units, and non-climate controlled units ranging in size from 5 ft. x 5 ft. to 10 ft. x 25 ft. to 8 cube units (4 ft. x 4 ft.), and 19 RV parking spaces. The 1,905/sf management office will include a business center with two conference rooms, office desks, computers, copiers, printers, Wi-Fi, packing materials, postal supplies, and Post Boxes available for tenant and business center users.

Amenities

• Single story, stone block and metal construction with metal roofing

• 691 dehumidification units, 44 non-climate controlled, 19 RV/Boat spaces

• Unit size ranges from 16 square feet to 250 square feet

• Dehumidification system, A/C and heat

• 24/7 leasing and payment kiosk with Open Tech Alliance

• Business Center offering multiple user friendly services

• Flex-Space Technology to adjust unit size

• Covered RV/boat storage with electric outlets

• Post boxes and UPS, FedEx and USPS services

• Fully enclosed fenced and surveillance cameras with electronic gate access

• Units accessible via wide driveways for easy loading and unloading

• Building design includes facades, architectural elements, and attractive colors

• Service-oriented management on-site


Section II – The Property

Summary


JSwenson

Highlight


The Property - Unit Layout


http://mclifetucson.com/wp-content/uploads/2014/08/amenitiesIMG_0499.jpg


The Property - Location

Located in the up and coming, desired Southwest side of Corpus Christi In 2015, 20,000 car traffic count on current 2 lane road. Within 24 months, Rodd Field Road will expand to 4 lanes Only two miles from Highway 358/South Padre Island Drive Less than six miles from the Naval Air Station and Army Depot The City of Corpus Christi is requiring construction development on the south side as this is the natural direction for growth. It has

shown to be an area that continues to expand with areas past Rodd Field Road along Wooldridge Road and south of Yorktownbeing on the leading edge of new residential development

In April 2015, the City of Corpus Christi’s Planning Commission approved several new construction developments in theSouthside including two retail centers, a subdivision, and an apartment complex

The Commission is also recommending that a total of 18.8 acres on the Southside be rezoned from single-family and farm useto commercial use


Management

The day-to-day operations of Rodd Field Road Self-Storage, LLC will be managed by an outside consultant, Lundgren & Associates, LLC. The asset management will be managed by 1st Defense Self-Storage (1st DSS). The property management and asset management functions include:

• Manage the project to the business plan and annualoperating budget

• Develop and implement marketing strategies• Prepare monthly reports and comparison against budget• Remit appropriate returns to investors and all investor

communication• Train and supervise on-site personnel• Property maintenance

Plan & The Exit

Year 1 -

Year 2 -

Year 3-4

Year 5-

Commence construction

Begin lease-up, finish construction and reach stabilization

Further stabilize facility, begin to achieve market rents and position for potential refinance or sale

Sell property or refinance

** There are many variables, which will influence the results of a sale or refinance including but not limited to market cap rates, interest rates and market conditions


Section III – The Business Plan



Section IV – The Partnership

Legal

Rodd Field Road Self-Storage, LLC, (the "Company") will hold title to the Property. The Members will be equity investors and hold 50% interest.

Manager

The Manager of the Company will be 1st Defense Self-Storage, LLC. The Manager will be owned by HUCO Pacific Development, Inc., Amos Storage, LLC, RAPA Investment Services, LLLP and KLM Investment Services, LLLP. Each company holds a 25% interest in the Manager and contributes significant value to the Company. See following diagram outlining the overall ownership structure.

Rodd Field Road Self-Storage, LLC

Rodd Field Road

Self-Storage LLC

1st Defense Self-Storage, LLC

Manager 50%

Members

32.3%

HUCO Pacific Development, Inc.

25%

Amos Storage,LLC25%

Ross McCallister

17.7%

Ken McElroy Members

RAPA Investment Services, LLLP

25%

KLM Investment Services, LLLP

25%


Profit Distribution

The Members are responsible for the total equity investment of $3,100,000. 1st DSS Partners, Ken McElroy and Ross McCallister, will invest $1,100,000 as Members. The minimum investment in the Company is $100,000 (a “Unit”). Each Unit will represent 3.226% of the $3,100,000 equity required or 1.613% of the total ownership in the Company, and will receive portion of the profits, losses, and distributions of the Company.

Cash flow from operations will be distributed as follows:

• The Members will receive 100% of the cash flow from property operations until the Members have received a preferred return equal to seven percent (7.00%) on their outstanding capital investment. In the event cash flow from operations is insufficient, the preferred return will accrue.

• Earnings from operations will be distributed first to the Members to pay any accrued, unpaid preferred return, then 50% to the Members and 50% to the Manager.

• Net proceeds from sale or refinance of the property will be distributed as follows:• Pay back Lender• 100% to the Members until they have received a return of their unpaid capital investment, plus any accrued but unpaid

preferred return• Thereafter proceeds will be distributed 50% to the Member and 50% to the Manager


Income will generally be allocated to the Members and Manager to the extent of losses previously allocated to the Members and Manager, then to the Members in the cumulative amount of the 7% preferred return, and thereafter 50% to the Members and 50% to the Manager. Losses will generally be allocated to the Members and Manager to the extent of income previously allocated to the Members and Manager less any distributions associated with such income, next to the Members to the extent their capital contributions exceed distributions associate with the capital contributions, next to the Members and Manager to the extent of the positive balance of their capital accounts, and thereafter, to the Members.


JSwenson

Highlight


Fees to the Manager

Asset Management Fee- 2% of the gross revenues generated from the Property each month payable to the Manager

The Company’s management has already tested and evolved the planned market positioning, development techniques, and operating strategy at three other self-storage store locations. The asset management functions include but are not limited to:

• Manage the project to the business plan• Develop and implement marketing strategies• Prepare monthly reports• Remit returns to investors and all investor communication

Development Fee - $450,000 payable to the Manager monthly during the term of construction on a percentage of completion basis • Provide initial funding in excess of $1,100,000 for architectural and engineering costs, and land purchase• Personally guaranteeing the construction loan• Successfully negotiate the purchase and sale agreement• Use the company’s and its principals’ financial strength to qualify for financing, including providing personal guarantees• Coordinate all due diligence required and manage the development process• Coordinate any and all legal work• Organize and oversee the close of escrow• Attend zoning hearings and oversee the design review process

Refinance Fee– 1 % fee payable to the Manager

When market conditions permit or as it becomes advantageous to refinance the construction loan, the Manager expects to obtain a permanent loan for the ultimate goal of returning investor capital. The refinancing process requires going to the capital market for the best rate and terms and working with the underwriters; increased dealings with the managing agent and on-site property manager to maximize the net operating income of the property to achieve maximum loan to value and debt coverage ratios; negotiating fees with these brokerages, multiple meeting with lender’s third party consultants for appraisals, surveys, third party inspections and environmental reports; providing documentation necessary to obtain credit approval; and negotiating the tax, insurance and replacement reserves. Refinance Fee will be paid upon the closing of any new loan.

Disposition / Sale – 1 % fee payable to the Manager

When market conditions permit, the Manager will value the Property, negotiate a listing agreement with a local brokerage firm, and coordinate all tours and questions for prospective buyers. Upon receipt of an acceptable offer, the Manager will negotiate the purchase and sale agreement between the Company and the buyer, manage the due diligence period, and work with the title company and property management company during the escrow period. Ongoing correspondence will be generated including the final return of all capital to all members. Disposition Fee will be paid upon the ultimate sale of the Property.

Fees to Outside Consultants

Property Management Fee– Flat fee, Payable to Lundgren & Associates, LLC

The asset management functions include but are not limited to:

• Due diligence• Manage the project to Business Plan• Property accounting• Prepare monthly reports• Prepare annual budget

Construction Management Fee – $98,000 payable to Weitz Construction, LLC

Government Consultant Fee – $60,000 payable to Major General Ronald Beckwith (USMC Ret.)


RENT COMPARABLESCommunity Name Class Year Built Units Occupancy Avg SF Net Rent

Net RentPSF Density 9' Ceilings Countertops

rank S San Norterra A 2013 388 94% 1031 $1,056 $1.02 18.7 Yes GraniteGranite

2 1 Las Colinas Black Canyon A 2008 304 97% 951 $936 $0.99 11.07 Yes Granite

7 2 Trillium North A 2012 360 97% 1,058 $1,169 $1.11 31.72 Yes Faux granite laminate

3 3 Aspire at Pinnacle Peak A 2008 724 95% 992 $972 $0.98 24.56 Yes Faux granite laminate

1 4 Sage A 2009 304 95% 1,162 $927 $0.80 23.97 Yes Formica

5 5 San Prado A 2004 180 93% 1,143 $1,129 $0.99 17.36 Yes Formica

6 6 San Lagos A 2000 336 96% 1,098 $1,131 $1.03 16.24 Yes Formica

###

### Comp Totals / Averages 2007 368 95% 1,049 $1,030 $0.98 20.82

###

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Valbridge Property Advisors, Appraisal Sept. 2016

Section V – The Rent Comparables

2016 MC Companies Confidential 16| P a g e

Section VI – The Submarket & Market Overview

As of 2014 the population for this metropolitan area was nearly 450,000. (World Population Review, January 2016)

In 2015, Corpus Christi ranked 3rd among US cities in Gross Domestic Product (GDP) growth. When including GDP,employment, population and wage incomes, Corpus Christi is the fifth fastest growing city in nation. (AdvancedManufacturing Drives Local Economy, Economic Pulse, Texas A&M University Corpus Christi, 2016, Issue 5)

In January 2016, Corpus Christi ranked among the top 10 cities by Wallethub.com for overall growth, job opportunities, andbusiness climate.

As of December 2015, the unemployment rate in Corpus Christi stood at 5.4%, a massive improvement from the 8.4%unemployment in November 2010. (Bureau of Labor Statitics, www.bls.gov, January 2016)

The leading industries in Corpus Christi area include manufacturing at 18%, construction at 14%, FIRE at 14%, retail at 9%and mining, including oil & gas refining, at 9%. (Economic Plus, Texas A&M University, Corpus Christi, 2016, Issue 5) Thekey of the economic success of Corpus Christi during the decline of oil drilling and lower oil prices is its diversification intomanufacturing, construction, and the Port of Corpus Christi. (Weathering the Drilling Decline: Corpus Christi IndustriesDiversity, Harold Hunt, April 2015)

The Port of Corpus Christi (POCC), the fifth largest port in the United States in total tonnage, features 45-foot channelproviding quick access to Gulf of Mexico, three class 1 railroad connections, and excellent state highway and interstateconnections. POCC has aggressively diversified its economic base by attracting new industry and cargos such as windpower, military, bulk and project cargos. Forty-six industries are directly connected to the ship channel with forty-eightpublic and private docks with 12 more under construction (2015 Port Capital Budget, ACIT Meeting, presented by DavidMichaelson, Port of Corpus Christi, December 3, 2014)

POCC has $40 billion in new projects are under construction or in final permitting. (International Trade Center, presented byEddie Martinez at Port of Corpus Christi)

Corpus Christi

EMPLOYMENT/ECONOMIC HIGHLIGHTS


REGIONAL AND DEMOGRAPHIC ANALYSIS

The greater Corpus Christi area’s sunny climate, vibrant lifestyle and prospering business community attract thousands of visitors, new residents, and entrepreneurs annually. The city offers a variety of living, manageable mortgages, bay front and marina views, culinary hotspots, and cultural delights. Located on the Gulf of Mexico, Corpus Christi is major trade gateway to Mexico and Latin America making The Port of Corpus Christi the fifth-largest port in the US. The Corpus Christi area continues to grow and remains a desirable destination for travelers and dreamers alike.

Corpus Christi’s economy is the center for petrochemical engineering, large-scale fabrication, aviation, marine research, maritime shipping, and tourism. According to the WSJ in June 2015, Corpus Christi is a regional oil hub transporting imported crude from Gulf Coast refineries and is the endpoint of pipeline carrying production throughout Texas. On December 31, 2015, Port of Corpus Christi sent the first US crude oil export in 40 years to Trieste, Italy. However, as the production of oil and the cost of oil have significantly dropped in the last year, Corpus Christi diversified its economy and the port with great investment in manufacturing, technology, and construction industries. In fact, even at the peak of oil prices and production, manufacturing, technology, and construction contributed more to the growth of Corpus Christi than oil and gas industry.

In 2015, the areas of Nueces County (including Corpus Christi) and San Patricio County (including the City of Portland) granted $34 billion in construction permits. These permits include municipal, commercial, residential, highway, and utility construction, but do not include the construction at the Port of Corpus Christi. The POCC has $40 billion in new projects. By comparison in 2015, the entire state of Arizona grand $5.4 billion in permits.

Corpus Christi Harbor Bridge


AREA SELF-STORAGE MARKET


Rodd Field Road Self-Storage, LLC

1st Defense Self-Storage (1st DSS) is a full-service self-storage company that will acquire, develop, build, and manage self-storage properties throughout the country. 1st DSS has a strong and competent ownership team that has proven their ability to operate self-storage and multi-family businesses with a high degree of success and service standards to our customers, maximizing operating income and increasing property assets value for our investors, and providing quality work environment for our team members.

Areas of Expertise

Acquisition of Real Estate Ownership Structure Self-Storage Development

Entrepreneurism Financing Investor Relations Property and Asset Management

Real Estate Investing Raising Equity Self-Storage Management Executive Suite/Business Center Operations

Industry experts, Greg Kreizenbeck, Hank Amos, Ross McCallister and Ken McElroy, merged to form 1st Defense Self-Storage, LLC in 2014, a partnership blending over 50 years of successful self-storage and real estate experience with their mastered skills. Their Owner/Manager/Investor perspective creates an advantage for our clients and our investments continually outperform the market.

Section VII - The Leadership Team

Rodd Field Road Self Storage, LLC

Hank Amos1st Defense Self-storage 333 N. Wilmot Road, Suite 340 Tucson, AZ 85711 P: 520-577-5000 F: 520-918-3031

PrincipalHank is responsible for market research and real estate acquistions, finance, human resources, and management for 1st Defense Self-storage. He brings extensive real estate, brokerage and property management, and operating experience to the company. Since 1988, he has served as Chairman of the Board and CEO of Tucson Realty & Trust Co. (“TRT”), a 105 year-old real estate company specializing in commercial brokerage and property management. His property management business has managed 1,200 single family homes, 2,000 apartment units, and over 1.5 million square feet of commercial office space.

Principal

Greg is responsible for construction management, store operation and management, and human resources for 1st Defense Self-storage. He previously developed the Cave Creek Road @ Greenway Parkway Self-Storage in Phoenix, Arizona; the StorSecure Self-Storage @ Kapolei, Hawaii; and the StorSecure Self-Storage @ Hawaii Kai, Hawaii. He also has extensive experience in large scale commercial, industrial, and residential real estate projects. When he served as President and COO of Interstate General LP, he oversaw development of a 9,100 acre community, which included retail, office space, schools, churches, a golf course, and over 9,000 residential multi-family homes near Washington, D.C.

Principal

Ken oversees MC Companies’ asset portfolio and leads the day-to-day operations including financial and operating analysis, investor relations, and business development. His ownership in 1st DSS capitalizes on his operations and investor expertise. An industry veteran, Ken served in leadership roles in multi-family asset and property management for more than 20 years. He is also an expert in development, project/construction management, investment analysis, and acquisitions/dispositions, as well as business development and client relations.

Greg Kreizenbeck 1st Defense Self-storage [email protected] 15170 N. Hayden Road, Suite 1 Scottsdale, AZ 85260 P: 480-291-0230 F: 480-998-8099

Ken McElroy 1st Defense Self-storage [email protected] 15170 North Hayden Road, Suite 1 Scottsdale, AZ 85260 P: 480-291-0222 F: 480-998-8099



Rodd Field Road Self Storage, LLC

Principal

Ross spearheads construction and business development operations including acquisition, investment analysis, financing, project management, and client relations for MC Companies and brings this expertise to his ownership in 1st DSS. A 30-year expert in real estate development and finance, Ross developed and constructed multi-family communities and managed condominium conversion projects in excess of $300 million throughout Arizona, Oregon, and Nevada. Prior to founding MC Companies with Ken McElroy, Ross was President of The McCallister Co., a real estate syndication and property management firm. He is both a licensed real estate broker and licensed general contractor. www.mccompanies.com

Asset Property Manager/Controller

Alan is responsible for all accounting, due diligence, and management reporting for the company. He has more than twenty years of self-storage accounting, management, and administrative experience. Since 1998, he has been President of Lundgren & Associates, LLC, a full-service asset management company specializing in the self-storage industry providing a leadership role in the development and operations of the three aforementioned self-storage projects.

Ross McCallister 1st Defense Self-storage [email protected] 2910 North Swan Road, Suite 204 Tucson, AZ 85712 P: 520-209-1630 F: 520-790-0408

Alan Lundgren



mailto:[email protected]

mailto:[email protected]

DEVELOPMENT SUMMARYRODD FIELD ROAD

Site Information Development Period Capital StructureSq. Feet

Land Gross Building area 85,280 Loan Amount 5,425,000$ RV Area no. of units 19 8,941 Equity Required 3,100,000$

Building: LTV 63.6%Leasable no. of units 735 64,475 Interest Rate 5.00%Common area 18,900 Interest only months 24Office 1,905 Term Amortization years 25Total 85,280 Equity Preferred Return 7%

PROJECT DEVELOPMENT ASSUMPTIONSDevelopment Assumptions PSF:Land Purchase Price $780,000 $9.15

Constuction Base Bid (Beecroft) $5,613,000 $65.82Dehumidification system $0 * part of base bidConstruction Administration-LSP3 $36,600 $0.43Government Consultants-Beckwith $60,000 $0.70Construction Management-Weitz $98,000 $1.15Architect and Engineering-LSP3/Urban $302,532 $3.55Municipal Impact Fees and permits / Utility Fees $87,774 $1.03Predevelopment G&A $53,900 $0.63Development/Acquistion Fee $450,000 $5.28Legal Fees $50,000 $0.59Insurance $15,288 $0.18Real estate Tax $12,480 $0.15Furniture, Fixtures & Equipment $108,500 $1.27Preopening Expenses $40,000 $0.47Appraisal $8,000 $0.09Environmental $6,300 $0.07Engineering/Survey $7,000 $0.08Loan fees $40,000 $0.47Contingency $350,051 $4.10Interest Reserve $405,575 $4.76Total Development Costs $7,745,000 $90.82

Total Project Costs $8,525,000 $99.96

Source of FundsConstruction Loan LTV 63.6% $5,425,000Investor Equity $3,100,000Total Source of Funds $8,525,000

Section VIII - The Financial Proforma

Unit Mix & Monthly Rent

MON RENT TOTAL

# UNITS TYPE % TOT SIZE SF TOT SF RENT PSF PER UNIT MON RENT

Storage:Non-Climate 0 5 x 5 0% 25 - 35.00 $

0 5 x 10 0% 50 - 65.00 $ 6 10 x 5 1% 50

- $ - $

1.30 $ 390.00 65.00 $ 9 10 x 10 1% 100 1.10 $ 990.00 110.00 $ 1 10 x 15 0% 150

- $ - $

300 $ 900 $ 150 $ 0.97 $ 145.00 145.00 $

16 10 x 20 2% 200 3,200 $ 0.83 $ 2,640.00 165.00 $ 12 10 x 25 2% 250 3,000 $ 0.80 $ 2,400.00 200.00 $

0 15 x 20 0% 300 - $ 0.92 $ - 275.00 $

Climate Controlled 8 4x4x4 1% 12.5 100 $ 3.20 $ 320.00 40.00 $ 34 5 x 5 5% 25 850 $ 2.60 $ 2,210.00 65.00 $

173 5 x 10 24% 50 8,650 $ 1.60 $ 13,840.00 80.00 $ 82 10 x 5 11% 50 4,100 $ 1.60 $ 6,560.00 80.00 $

1 5 X 15 0% 75 75 $ 1.27 $ 95.00 95.00 $ 316 10 x 10 43% 100 31,600 $ 1.50 $ 47,400.00 150.00 $

77 10 x 15 10% 150 11,550 $ 1.23 $ 14,245.00 185.00 $

Sub-total 735 100% 64,475 $ 1.42 $ 91,235.00 124.13 $

RV: 19 100% 471 8,941 $ 0.35 $ 3,135.00 165.00 $

Sub-total 19 100% 471 8,941 $ 3,135.00 165.00 $

Total 754 73,416 $ 1.29 $ 94,370.00 125.16 $


LEASE UP PROFIT AND LOSSRODD FIELD ROAD

Development10 months Year 1 Year 2 Year 3 Year 4 Year 5

Revenue:Rental Income 1,094,820$ 1,122,191$ 1,150,245$ 1,179,001$ 1,208,476$ Gain/Loss to Lease (2,737)$ (11,222)$ (13,228)$ (13,559)$ (12,085)$ Storage Rental Vacancy (749,952)$ (241,271)$ (92,020)$ (94,320)$ (96,678)$ Concessions (2,737)$ (5,611)$ (2,876)$ (2,948)$ (3,021)$ Other Rental Losses (Bad Debt) (2,737)$ (5,611)$ (11,502)$ (11,790)$ (12,085)$ Effective Storage Income 336,657$ 858,476$ 1,030,620$ 1,056,385$ 1,084,608$

RV income 37,620$ 38,561$ 39,525$ 40,513$ 41,525$ Gain/Loss to Lease (94)$ (386)$ (455)$ (466)$ (415)$ Storage Rental Vacancy (25,770)$ (8,291)$ (3,162)$ (3,241)$ (3,322)$ Concessions (94)$ (193)$ (99)$ (101)$ (104)$ Other Rental Losses (Bad Debt) (94)$ (240)$ (395)$ (405)$ (415)$ Effective RV Income 11,568$ 29,452$ 35,414$ 36,299$ 37,269$

Other Income 19,294$ 49,284$ 59,204$ 60,684$ 62,201$

Gross Income 367,519$ 937,212$ 1,125,238$ 1,153,369$ 1,184,078$

Operating Expenses:Management Fees 24,000$ 24,600$ 25,215$ 25,845$ 26,492$ Payroll 106,535$ 119,126$ 122,104$ 125,156$ 128,285$ Administration 58,850$ 65,805$ 67,450$ 69,136$ 70,865$ Marketing/Advertising 30,000$ 30,750$ 31,519$ 32,307$ 33,114$ Property Taxes 108,236$ 110,941$ 113,715$ 116,557$ 119,471$ Insurance 17,400$ 17,835$ 18,281$ 18,738$ 19,206$ Utilities 28,027$ 50,880$ 52,152$ 53,456$ 54,792$ Repairs and Maintenance 2,200$ 6,150$ 6,304$ 6,461$ 6,623$ Contracts/Landscaping 6,600$ 18,450$ 18,911$ 19,384$ 19,869$ Other 2,400$ 2,460$ 2,522$ 2,585$ 2,649$ Total Operating Expenses 384,248$ 446,997$ 458,171$ 469,626$ 481,366$

Replacement Reserves 7,350$ 18,744$ 10,104$ 10,104$ 10,104$

Net Operating Income (16,729)$ 490,215$ 667,066$ 683,743$ 702,711$

Asset Management Fee 7,350$ 18,744$ 22,505$ 23,067$ 23,682$

Operating Cash Flow (24,079)$ 471,471$ 644,561$ 660,676$ 679,030$

Debt Service -$ 275,017$ 380,568$ 380,568$ 380,568$

Operating Cash Flow (24,079)$ 196,453$ 263,993$ 280,107$ 298,462$ Development

10 months Year 1 Year 2 Year 3 Year 4 Year 57% -$ 196,453$ 217,000$ 217,000$ 217,000$

-$ 46,993$ 63,107$ 81,462$ -$ -$ -$ -$

50% -$ -$ -$ -$ -$ 50% -$ -$ -$ -$ -$

180,833$ 217,000$ 20,547$ -$ -$ -$ 397,833$ 418,380$ 371,386$ 308,279$ 226,817$

3,100,000$ 3,100,000$ 3,100,000$ 3,100,000$ 3,100,000$ 3,100,000$

0.0% 6.3% 8.5% 9.0% 9.6%

-$ 6,337$ 8,516$ 9,036$ 9,628$

Member Preferred Return Payment of Accrued Pref Remaining Cash Member ManagerPref OwedCumulative Pref OwedMember Equity Balance

Project Cash on Cash Return

Member Return per unit (1 unit = $100,000) Member Cash on Cash Return 0.0% 6.3% 8.5% 9.0% 9.6%


Sales Projections End of Year 5

Projected Net Operating Income 702,711$

Projected Cap Rate 6.00% 6.25% 6.50%

Projected Sales Price 11,711,858$ 11,243,383$ 10,810,946$ Sales Price Per Sq/Ft 137.33$ 131.84$ 126.77$

Less Cost of Sale 2.5% (292,796) (281,085) (270,274) Net Sales Proceeds 11,419,061$ 10,962,299$ 10,540,672$

Payoff of Loan Balance (5,083,640)$ (5,083,640)$ (5,083,640)$ Payoff of Loan Balance - 2nd Mtge. -$ -$ -$ Unpaid Accrued Return Due Investors (226,817)$ (226,817)$ (226,817)$ Return of Outstanding Equity (3,100,000)$ (3,100,000)$ (3,100,000)$ Net Proceeds for Distribution 3,008,604$ 2,551,842$ 2,130,215$

Profit to Investors 50% 1,504,302$ 1,275,921$ 1,065,108$ Profit to Manager Member 50% 1,504,302$ 1,275,921$ 1,065,108$

Internal Rate of ReturnOriginal Investment (3,100,000)$ (3,100,000)$ (3,100,000)$ Cash Flow Year 1 -$ -$ Cash Flow Year 2 196,453$ 196,453$ 196,453$ Cash Flow Year 3 263,993$ 263,993$ 263,993$ Cash Flow Year 4 280,107$ 280,107$ 280,107$ Cash Flow Year 5 6,633,883$ 6,177,121$ 5,755,494$

Deal Cash Distributions Inclusive of Sale Proceeds 7,374,437$ 6,917,675$ 6,496,048$ Member Cash Distributions Inclusive of Sale Proceeds 5,870,135$ 5,560,292$ 5,349,479$ Deal Cash on Cash 237.89% 223.15% 209.55%Member Cash on Cash Return 189.36% 179.36% 172.56%Deal Internal Rate of Return 25.94% 18.37% 16.86%

14.46% 13.19% 12.29%

Property Proforma & Investment SummarySensitivity SALE Analysis

RODD FIELD ROAD

Member Levered Internal Rate of Return

Rodd Field Road Self Storage, LLC - Constant Contactfiles.constantcontact.com/87274974401/71671faa-3a1e-4c30-ad1f-02df... · Rodd Field Road Self-Storage, LLC has obtained approval

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