Broker Opinion of Value Prepared For: AA Self Storage of Kansas LLC ┃ Polly Johnson
AA Self Storage of Kansas
2201 S Elm Ottawa, KS 66067
Drew Gannon, CCIM 316.680.1108 dgannon@naimartens.com
DISCLAIMER
The information contained in this Broker Opinion of Value is confidential and is furnished solely for the purpose of review by a prospective purchaser.
The material contained herein is based in part upon information supplied by the Owner and in part upon information obtained by NAI Martens from sources deemed reliable. This offering contains selected information pertaining to the Property and does not purport to be all inclusive. No warranty of representation, expressed or implied, is made by Owner, NAI Martens, or any of their respective affiliates, as to the accuracy of completeness of the information contained herein and same may be subject to errors, omissions, change of price, rental or other conditions prior to sale or withdrawal without notice. No liability of any kind is to be imposed on the broker herein. By receipt of this memorandum, you agree that this Offering and its contents are of a confidential nature and you will not disclose this Offering or any of its contents to any other entity without the prior written authorization of Owner or NAI Martens. Additionally, recipients should refrain from contacting any building tenants without owner approval.
Each prospective purchaser is to rely upon its own investigation, evaluation and judgment as to the feasibility of purchasing the property described herein.
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Naimartens.com | 316 262 2000 | 1330 E. Douglas Ave., Wichita, KS 67214
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Table of Contents
PROPERTY DESCRIPTION
4
5 DEMOGRAPHICS
6
UNIT MIX
7
FINANCIALS
9
MARKET RENT SURVEY
10
OUR APPROACH
13 NAI MARTENS SELF-STORAGE TRANSACTIONS
16 CREDENTIALS
Naimartens.com | 316 262 2000 | 1330 E. Douglas Ave., Wichita, KS 67214
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Property Description
Property Description
Total Building Size
26,370 SF
Net Rentable SQ/FT
25,865 SF
Total Number Of Units
193
Physical Occupancy
100 %
Economic Occupancy
98.7%
Lot Size
4.92 Acres
Year Built 1988, 1992, 1996, 2001, 2019
Market Supply -3 Mile SF Per Capita: 3.28 -5 Mile SF Per Capita: 8.19
Zoning I-1: Light Industrial District
Naimartens.com | 316 262 2000 | 1330 E. Douglas Ave., Wichita, KS 67214
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Demographics
Demographics
3 Mile
5 Mile
10 Mile
Total Population (2024)
11,101
14,108
19,144
Median Age
36.5
37.5
37.4
Average Household Income
$78,259
$79,309
$83,613
Naimartens.com | 316 262 2000 | 1330 E. Douglas Ave., Wichita, KS 67214
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Unit Mix
Unit Mix
Rentable SQ.FT.
Unit Type
Total Units
SQ.FT.
Currently Occupied
Asking Rent Potential Monthly Rent
5x5
4
25
4
100
$51
$204
5x7
1
35
1
35
$53
$53
7x12
1
84
1
84
$87
$87
8x12
1
96
1
96
$98
$98
5x10
23
50
23
1,150
$71
$1,633
10x5
2
50
2
100
$69
$138
10x10
55
100
55
5,500
$92
$5,060
10x15
47
150
47
7,050
$121
$5,687
10x19
1
190
1
190
$135
$135
10x20
57
200
57
11,400
$135
$7,695
10x30
1
160
1
160
$238
$238
Total / Average
193
193
25,865
$20,586
Naimartens.com | 316 262 2000 | 1330 E. Douglas Ave., Wichita, KS 67214
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Financials
Property Financials
Current Income & Expenses
Annual Income
Current
Broker Adjusted
Notes
Potential Rent Income
$247,032
$247,032
Vacancy/Discounts
($5,772)
($5,772)
Economic Vac: 2.34%
Total Effective Rental Income
$241,260
$241,260
T-6 Annualized
Other Income (Late Fees, Admin Fee)
$7,114
$7,114
T-6 Annualized
Total Effective Gross Income
$241,260
$241,260
Annual Expenses
Current
Broker Adjusted
Per SF
% Of EGI
Notes
Real Estate Taxes
$38,828
$38,828
$1.50
15.6%
2025 County Appraised Value $1,005,900
Insurance
$3,685
$3,685
$0.14
1.5%
Operating Expenses
$17,000 $59,513
$43,000 $85,513
$1.66
17.3%
Total Expenses
Cap Rate Price/SF Sale Price GIM 7.85% $80.22 $2,075,000 8.35 8.14% $77.32 $2,000,000 8.05 8.35% $75.39 $1,950,000 7.85 8.57% $73.46 $1,900,000 7.65 Purchase Price Analysis
Expense Ratio
23.96%
34.43%
Net Operating Income
$188,861
$162,861
Conclusion Based on current market conditions and recent transactions, my opinion of value for the entire subject property and all of its improvements total $1,900,000 - $2,000,000. I would recommend a listing price of around $2,075,000, which equates to a 7.85% cap rate and 8.35 Gross Income Multiplier based on the Broker Adjusted Current Financials. Although, this valuation has a higher price per square foot than the listed sale comps and what we typically see in Kansas (outside of KC metro area), I believe buyers will value the potential land available for expansion in a good market like Ottawa. In the Brokers Adjusted column I have adjusted expenses to reach a 35% expense ratio. The average expense ratio in Kansas is 35% of Effective Gross Income and this is where we typically see buyers underwrite deals. Taxes are likely to see a sizeable increase due to the county appraised value currently at $1,005,900. As of Q1 2025, we are seeing most self-storage buyers quoted at around a 6.75-7.25% interest rate, with 20-25 year amortizations and at least 75% LTV. This valuation is based on a buyer obtaining traditional financing.
Naimartens.com | 316 262 2000 | 1330 E. Douglas Ave., Wichita, KS 67214
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Financials
Self Storage Sale Comps
Current Income & Expenses
Property Name
Property Address
Date of Sale
Purchase Price
Price / SF
Cap Rate
Gross Income Multiplier
Ertl Self Storage
412 N Iowa St
9/11/2023
$7,000,000
$98.77
JC Self Storage
2239 Elmdale Rd
9/9/2024
$2,050,000
$69.86
7.91%
7.71
On Track Storage Portfolio Newton, Eudora Pleasanton
7/16/2024
$3,550,000
$61.75
7.43%
8.74
2511 E 17 & 712 N Walnut th
Budget Storage
IN CONTRACT
$4,650,000
$58.08
8.47%
7.67
T Town Storage
300 Shoemaker Way
1/1/2025
$500,000
$55.56
7.77%
8.20
6440 N Broadway, 305 W Rosewood, 325 E Berry
Kwiklock Storage Portfolio
2/12/2025
$2,750,000
$53.22
8.49%
7.74
1100 Ohio St & 804 E 12 th
Space Station Storage
6/6/2025
$2,700,000
$64.02
7.49%
8.10
Averages
$65.89
8.00%
8.03
Self Storage Cap Rates - Kansas
NAI Martens closely monitors cap rate trends for self-storage facilities across Kansas. After several years of compression, with the market peaking in 2021, cap rates began to rise in late 2022 in response to increasing interest rates. Since 2023, rates have stabilized, particularly in Class B and Class C markets. Currently, Class B facilities are averaging cap rates in the 8.0% to 8.5% range, while Class C assets are trading around 9.0%.
Naimartens.com | 316 262 2000 | 1330 E. Douglas Ave., Wichita, KS 67214
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Market Rent Survey
Ottawa, KS Market Rent Survey
Distance from Subject
Property Name
Address
NRSF Occupancy 5x5
4x6
5x10 10x10 8x12 10x15 10x18 10x20
10x30
10x25
10x26
Highway 59 Storage 2194 US-59 Ottawa, KS
3.3
40,596 100%
$60.00 $85.00
$100
$125.00
Ottawa Storage KS 609 N Bennett Rd Ottawa, KS 6.3
9,096
100%
$100 $85.00
$150.00 $185.00
$185.00
Stor-It-Safe Storage 1102 N Main St Ottawa, KS
3.9
27,000
$70.00 $100.00
$139.00
$159.00
Ike & Mike Mini Storage Hidden Meadow Storage
2115 E Logan & 503 N Cedar Ottawa, KS
6.0
9,828
97%
$25.00
$50.00
$65.00
$80.00
$110.00
1534 S Hickory Ottawa, KS
1.4
6,600
95%
$50.00 $65.00
$75.00
$80.00
Mid Town Storage 113 N Oak St Ottawa, KS
3.2 3.0
10,200
$89.00
$180.00 $145.00
I-35 Mini Storage
2216 E 15th St Ottawa, KS 3733 Eisenhower Rd Ottawa, KS
3,068
99%
$50.00 $75.00
$95.00
Ottawa Store-All
6.5
4,800
AA Self Storage of KS
2201 S Elm Ottawa, KS
26,370
$51.00
$71.00 $92.00
$121.00
$135.00
$238.00
Hidden Meadows
I-35 Mini Storage
Highway 59 Storage
Ike & Mike Mini Storage
Ottawa Storage KS
Stor-It-Safe
Midtown Storage
Ottawa Stor-All
Naimartens.com | 316 262 2000 | 1330 E. Douglas Ave., Wichita, KS 67214
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Our Approach
Direct Marketing This option would expand beyond the current “Active Buyers” utilizing our internal database consisting of over 500 prospects that currently own self-storage in Kansas/Midwest Region or have been actively pursuing self-storage properties in the market. Once our marketing material is completed and approved by the seller, we will begin direct marketing to our Active Buyers list. NAI Martens will directly contact the most likely buyers that have been actively searching for or have recent- ly purchased self-storage property. This typically includes 20 - 50 prospects, depending on the property. These are all prospects that we communicate with on a regular basis. Contact with these prospects will begin while we are creating marketing material for the property and prior to the full public marketing. All Buyers will be required to sign Non-Disclosure Agreements before we present them with any property rent rolls or financials. A Multi-Option Approach Based on the Seller’s preference we can market this property to Buyer’s off-market or list the property on the open market and listing sites. NAI Martens has created a database of self- storage Buyers that we have vetted and are constantly searching for self-storage opportunities in the market. Our database tracks Buyers acquisition criteria and we are able to quickly match Sellers with potential Buyers. These relationships and contacts provide different options for the methods in which we can market your property. Active Buyers
Self-storage owners throughout Kansas. Prospects in our database that have expressed interest in self-storage properties. Brokers throughout the Midwest that regularly work in the self-storage market. Owners of self-storage in surrounding states that are currently not in Kansas.
Naimartens.com | 316 262 2000 | 1330 E. Douglas Ave., Wichita, KS 67214
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Our Approach
Public Marketing Public Marketing entails complete marketing of the prop- erty with the largest amount of reach through the following methods:
Prominent listing platforms: Crexi, LoopNet, List Self Storage
Individual property website: Includes the property’s brochure, photos, details and a vault for discretionary but easy access to documents such as the
Offering Memorandum.
E-mail sent out through a national commercial real estate e-blast service. This will be sent out to thousands of commercial investors,
brokers, developers, lenders, etc. across the country.
E-mail out to all Kansas commercial real estate brokers in our database
Sent out through the NAI Global Opportunity Broadcast System to all NAI brokers
E-mail out to all NAI Global Investment Brokers
Social Media
These options can be modified based on your preference. The Active Buyers and Direct Marketing ap- proaches typically produce offers acceptable to a seller from qualified buyers. If necessary we implement the Public Marketing approach. If a seller desires, we can implement the Public Marketing approach earlier in the process. A comprehensive Offering Memorandum containing all of the information a buyer will need to make an offer will be prepared by NAI Martens. NAI Martens will pay for drone photography of the property and all marketing costs associated with the listing.
Naimartens.com | 316 262 2000 | 1330 E. Douglas Ave., Wichita, KS 67214
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Client Testimonials
” “ This company is great to work with! They’ve sold a couple of our self storage properties and we will continue to work with them in the future. Cynthia Thompson, Storage Depot
“
Drew was very professional and respectful in all of his dealings with my mother and me. He was quick to respond when we had questions and patient if we didn’t quite understand what was being asked for regarding documents for the properties. Drew was very willing to do the work needed to get our properties sold and was kind in his interactions with us. We would definitely use NAI Martens and Drew as our agent again. ” Joy Richert, Fairview Storage
Naimartens.com | 316 262 2000 | 1330 E. Douglas Ave., Wichita, KS 67214
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NAI Martens Self Storage Transactions
Recent Self-Storage Transactions
Blackwell Mini Storage - Blackwell, OK
South City Storage - Arkansas City, KS
Allen County Storage - Iola & Gas, KS
ABC Storage, Liberal KS
The Storage Company - Ogden, KS
Donner-Springs Storage - Cuba, MO
Premier Storage - Maize, KS
Storage Depot - Coffeyville, KS
Tower Storage Portfolio - Leavenworth, KS
Kingdom Storage - Wichita, KS
P. Allen Storage - Bellefontaine, OH
El Dorado Self Storage - El Dorado, KS
Naimartens.com | 316 262 2000 | 1330 E. Douglas Ave., Wichita, KS 67214
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NAI Martens Self Storage Transactions
Recent Self-Storage Transactions
All Storage Andover - Andover, KS
Storage Depot - Alva, OK
Creekside Mini Storage - Johnson City, TN
Keep It Here Storage - Malvern, AR
Boss Mini Storage Portfolio - SE Kansas
Stuff N Store - Kingman, KS
Your Storage - El Dorado, KS
A&B Storage - Haysville, KS
F&S U Stor It - Wichita, KS
BD Storage & Car Wash - Goddard, KS
A&A Storage - Rose Hill, KS
RV/Boat Storage - Andover, KS
Naimartens.com | 316 262 2000 | 1330 E. Douglas Ave., Wichita, KS 67214
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NAI Martens Self Storage Transactions
Recent Self-Storage Transactions
C&E Storage - Waukomis, OK
Kwiklock Storage Portfolio – Rose Hill & Park City, KS
All Storage Derby - Derby, KS
Storage Depot – Bellefontaine, OH
Mustang Storage - McPherson, KS
C&R Storage - Haysville, KS
Space Station Storage – Augusta, KS
Downtown Mini Storage – Blackwell, OK
Butler County Storage Portfolio – El Dorado, KS
A&A Storage - Park City, KS
Storage Depot - Augusta, KS
R&S Storage – Neodesha, KS
Naimartens.com | 316 262 2000 | 1330 E. Douglas Ave., Wichita, KS 67214
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DREW GANNON, CCIM Commercial Advisor BACKGROUND & EXPERIENCE
SIGNIFICANT TRANSACTIONS All Storage of Andover & Derby – Andover & Derby, KS – 131,830 SF & 386 Units Kwiklock Storage Portfolio – Park City & Rose Hill, KS – 51,675 SF & 324 Units Premier Storage Maize – Maize, KS – 82,546 SF F&S U Stor It – Wichita, KS – 52,000 SF & 320 Units BD Storage & Car Wash – Goddard, KS – 186 Units & 4 Car Wash Bays RV/Boat Storage – Andover, KS – 97,476 SF
Drew is a graduate of Wichita State University with a Bachelor’s Degree in Finance and an Emphasis in Real Estate. Drew is a Commercial Advisor with a specialization in self-storage and investment sales. Drew has been awarded three of the Wichita Business Journal’s “Deal of the Year” honors. In 2023, Drew became a partner in the NAI Martens firm. Drew has worked on a wide array of transaction throughout the United States, creating a robust network of owners, operators, vendors, and banking relationships. Taking a client-centric approach to assignments, Drew prides himself on walking the client through each step of the disposition process, ensuring a smooth and successful closing. Drew has cultivated a focused list of more than 500 active buyers for self-storage and utilized that information to handle self-storage transactions throughout the U.S.
Kingdom Storage – Wichita, KS – 53,586 SF & 324 Units Mustang Storage – McPherson, KS – 136,696 SF & 413 Units Blackwell Mini Storage – Blackwell, OK – 35,800 SF & 197 Units
EDUCATION RESUME Wichita State University • BBA, Finance - Real Estate Emphasis
2015-2019: Research Specialist, NAI Martens
PROFESSIONAL ACHIEVEMENTS 2021 Wichita Business Journal Deal of the Year: Goebel Duplexes ┃ 2021 Wichita Business Journal Deal of the Year: All Storage of Andover & Derby ┃ 2021 Costar Power Broker ┃ 2022 Wichita Real Producers 30 Under 30 ┃ 2023 Wichita Business Journal Emerging Leader ┃ 2023 Wichita Business Journal Deal of the Year: Brittany Shopping Center
2019-Present: Commercial Advisor, NAI Martens
2015: Appraisal Assistant, Martens Appraisal
Naimartens.com | 316 262 2000 | 1330 E. Douglas Ave., Wichita, KS 67214
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CCIM Institute Commercial Real Estate’s Global Standard for Professional Achievement www.ccim.com
Individuals earn the CCIM Designation by: • Completing a rigorous program including an elite curriculum • Demonstrating a depth of proven experience and high deal volume • Exemplifying a commitment to ethics and deal-making • Maximize the return on your investment • Optimize the value of your real estate • Make better informed decisions • Develop a comprehensive commercial real estate strategy Above all, the CCIM Designation represents proven expertise in financial, market, user, and investment analysis, as well as negotiations. With this real-world education, CCIMs help you: • Minimize your risk
For 56 years, the CCIM Designation has remained the unparalleled standard for commercial real estate professionals, including appraisers, asset managers, brokers, developers, investors, lenders, and other allied professionals. CCIMs complete a rigorous program of advanced coursework and training in fi- nancial and market analysis and demonstrate extensive experience with high closed deal volume in the commercial real estate industry. The CCIM Designation Is the Pinnacle in Commercial Real Estate. Whether you’re looking to buy, sell, or develop real estate, a CCIM Designee is your strongest asset. When you hire a CCIM, you’re hiring the most advanced investment specialist anywhere — someone who will minimize your risk, maximize your ROI, and optimize the value of your real estate.
Naimartens.com | 316 262 2000 | 1330 E. Douglas Ave., Wichita, KS 67214
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Drew Gannon, CCIM Commercial Advisor +1 316 680 1108 dgannon@naimartens.com
NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, IS MADE AS TO THE ACCURACY OF THE INFORMATION CONTAINED HEREIN, AND THE SAME IS SUBMITTED SUBJECT TO ERRORS, OMISSIONS, CHANGE OF PRICE, RENTAL OR OTHER CONDITIONS, PRIOR SALE, LEASE OR FINANCING, OR WITHDRAWAL WITHOUT NOTICE, AND OF ANY SPECIAL LISTING CONDITIONS IMPOSED BY OUR PRINCIPALS NO WARRANTIES OR REPRESENTATIONS ARE MADE AS TO THE CONDITION OF THE PROPERTY OR ANY HAZARDS CONTAINED THEREIN ARE ANY TO BE IMPLIED.
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