Extracted text (via pymupdf)
70851 characters
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
1
Presented to:
MR. TERRY ANDERSON
EL MIRAGE EXECUTIVE RV AND BOAT STORAGE
LLC
EL MIRAGE EXECUTIVE RV AND BOAT STORAGE
Cactus Road, near El Mirage Road
APN 501-45-934
El Mirage, AZ
FEASIBILITY STUDY – PHASE II
Presented by
Jo Beth White
P.O. Box 427, Del Norte, CO 81132
Mobile 949-433-3395 Office 949-218-3655
JoBeth@StorageFeasibility.com
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
2
EL MIRAGE EXECUTIVE RV AND BOAT
STORAGE
El Mirage, AZ
Feasibility Study – Phase II
Table of Contents
1.
Scope of Work
2.
Executive Summary
3.
Site Data
4. RV-Storage Supply and Demand Analysis
5.
RV Storage Competitors and Map
6.
Proforma and Financial Analysis (Preliminary)
7. Conclusions
8.
Planning & Construction Analysis
9.
Demographics
10. Assumptions & Limiting Conditions
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
3
Scope of Work
EL MIRAGE EXECUTIVE RV AND BOAT
STORAGE
SCOPE OF WORK – OBJECTIVES AND METHODOLOGIES
Development Services was contracted by Mr. Terry Anderson with El
Mirage Executive RV and Boat Storage, LLC (name pending) to research and
analyze the feasibility of building a storage facility to include Canopy RV and
Boat Storage Stalls. The facility (for the purposes of this report) will be known
as El Mirage Executive RV and Boat Storage – El Mirage, AZ.
Data provided by the client includes parcel data.
Flood Plain Data
Daily Traffic Data
Assessors Maps and Zoning Data (general)
No formal plans available
The analyst has a true picture of the type of project contemplated,
although plans may change due to market fluctuations. Informal plans have not
been submitted to the consultant, the preliminary unit mix by DSI is appropriate
to satisfy the current and future marketplace’s needs and is based on the number
of stalls that should be able to be placed on 10 acres of the 13.4-acre site.
Projections are based on the growth statistics; secondary market and
recreational area patrons (if applicable) and the future equilibrium and absorption
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
4
analysis is predicated on an assumption of an approved project on the subject
parcel(s).
The objective of this report is to gather, analyze and present as many
market components as reasonably possible. The conclusions contained in this
report are based on best judgments of the analysts; Development Services Inc.
makes no guarantees or assurances that the projections and conclusions will be
realized as stated herein. It is the function of Development Services Inc. to
provide our best effort in data compilation, analysis and to express opinions
based on said evaluations and based on past experiences.
MARKET CHANGES
As with any analytical report that is real estate based, the markets are
continually affected by changes in demographics, economics and other changes
that may materially affect the viability of the project and are unknown to the
consultant.
This analysis has been conducted with respect to a particular client’s
development objectives and consequently the findings have been determined
based on the current development objectives as received in writing. For these
reasons, the conclusions and recommendations in this study are applicable only
to the proposed site identified herein and only for the potential uses for that site
as described in writing by our client. Material changes to the scope of the
project, cost changes, reducing or enhancing amenities and/or change of other
items including market changes may invalidate the conclusions of this report.
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
5
Use of the conclusions and recommendations in this study for any other purpose
compromises our analysis and is strictly prohibited, unless otherwise specified by
Development Services Inc. We defer any final valuation to the appraiser who
will be completing the final valuation of the project for the lender.
BASIS OF THIS REPORT
For the basis of this study, the project description is based on preliminary
unit mixes for a new project called El Mirage Executive RV and Boat Storage,
featuring canopy stalls at the current time.
Regarding the market area, based on the location circle radius provides
the best market depth; the radius for the subject parcel is a 3.25-mile radius
although the facility will attract clientele from outside the radius as well.
Data regarding competition is received through various sources and
although we judge these sources to be reliable, it is impossible to authenticate all
data. The analyst does not guarantee the data and Development Services Inc.,
assumes no liability for any errors in fact, analysis, or judgment.
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
6
Executive Summary
EL MIRAGE EXECUTIVE RV AND BOAT
STORAGE
El Mirage, AZ
The following executive summary outlines the viability and financial
analysis of the El Mirage Executive RV and Boat Storage Facility in El Mirage,
AZ.
SITE DATA
The site is approximately 13.4 acres, it appears from viewing the flood
map that there may be an easement area from the Laurel Road
intersection to the rear PL on Laurel. Based on this data, fairly rectangular,
a parcel of 10-acres should carry up to 500 stalls.
The entry should be expansive and welcoming and the facility should have
a full-time office and provides additional amenities such as dump station,
wash bay and an air filling station if possible.
All stall bays should be angled. The wide tandem stall bays will
accommodate a mixture of sizes and the angle of the stalls may allow
drive through capabilities on some stalls as well.
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
7
INCOME SUMMARY
CANOPY
The average rent based on the unit mix as provided in the unit mix (and
confirmed to the market) for 500 canopy stalls is .69 per foot (Income
$171,430 monthly; $2,057,160 annually). The preliminary mix is based
on the land available and market share available and per anticipated plan.
Type of Unit / Bldg
UNIT SIZE
Sq. Ft.
Per Unit
Total
# of Units
Total
Footage
Rate Per
Unit /
Month
Rate Per
Unit S.F.
Monthly
Income
Annual
Income
CANOPY STALLS
12.00
X
25.00
300.00
30
9,000
$295
0.98
$8,850.00
$106,200.00
CANOPY STALLS
12.00
X
30.00
360.00
80
28,800
$315
0.88
$25,200.00
$302,400.00
CANOPY STALLS
12.00
X
35.00
420.00
120
50,400
$330
0.79
$39,600.00
$475,200.00
CANOPY STALLS
14.00
x
40.00
560.00
170
95,200
$354
0.63
$60,180.00
$722,160.00
CANOPY STALLS
14.00
x
45.00
630.00
80
50,400
$370
0.59
$29,600.00
$355,200.00
CANOPY STALLS
14.00
X
50.00
700.00
20
14,000
$400
0.57
$8,000.00
$96,000.00
STORAGE TOTALS
500
247,800
0.69 $171,430.00 $2,057,160.00
This unit mix and incomes are the average to the incomes available for
the specific sized units. Typically, the canopy stalls are twice the open
rate, but since canopy stalls are in the market, we are utilizing market
rates.
After debt service and expenses shown in the Income and Expense
section of this report, the project may have an income of $39,680 per
month. The project cash flows positive at month 25.
PROJECT COSTS
The canopy stalls should run approximately $50.00 per foot (based on
300,000 SF of gross canopy). This should be adequate to complete the
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
8
asphalt, fencing, security, dump and wash station and canopy structures.
We would assume the cost of construction may be $15,000,000.
Since some items are unknown, we are assuming debt service of
$14,000,000 to cover our assumptions and to provide adequate return on
investment.
Construction costs above loan value, land, developmental fees, soft costs
are in addition to these assumed budgets.
The lease up assumptions shown in the Proforma Section assumes a 36-
month lease up with a 10% vacancy factor. The area occupancies are
not as cyclical in nature as facilities in other areas and such as there
should be minimal annual cyclical loss of tenants.
SUPPLY AND DEMAND
There are over 2,956 spaces of RV and Boat Storage in the 3.25-mile
marketplace. Typically, the users of the stalls are a mix of RV enthusiasts
and business users.
There are a limited number of stalls available to be rented at the current
time.
The depth of the market as shown in the Equilibrium Analysis assumes
that the project may have up to 500 stalls. Once a formal plan is
available, we will amend this study. There are approximately 266 spaces
of RV & Boat Storage needed in the market area before reaching
equilibrium; this is after the subject facility is completed, with two new
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
9
competing facilities approved in planning and/or under construction at this
time1.
We have provided a buffer of additional stalls in the
construction/planning line item within the supply and demand to account
for new competition that may enter the market prior to the subject facility
being built.
The 3.25-mile market would be considered the primary market, with the
majority of clientele being those that live in the area or choose the regional
area, we have up-charged the supply and demand household base for the
underserved secondary market.
PRELIMINARY CONCLUSIONS
As shown in the Conclusion Section, the project is feasible from a market
standpoint, is developmentally feasible pending jurisdictional approvals if
required.
Additional issues such as development impact fees and extensive
environmental fees if any that may be incurred due to the developmental
of the project that impact the economic feasibility is unknown is not part of
this work.
The Economic Analysis should be reviewed pending confirmation of
construction costs and after confirmation of developmental fees.
1 Per information received by the County of Maricopa and the City of El Mirage and Surprise
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
10
Specific Site Information
EL MIRAGE EXECUTIVE RV AND BOAT
STORAGE
EL MIRAGE, AZ
RV AND BOAT STORAGE
This future site for the RV-Storage businesses is located near the corner
of El Mirage Road and Cactus Road in El Mirage, AZ. The project has not
received its approvals. Parcel Number 501-45-934.
Aerial data
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
11
Flyer Data
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
12
Flood Map
There may be an easement from Laurel Lane to the back of lot line. We
have adjusted our mix to accommodate 10 acres if this easement area us not
buildable. It may be able to be used as the retention ponding area.
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
13
Preliminary Plans to be inserted when complete, we are assuming 500
RV/Boat stalls with full amenities.
Type of Unit / Bldg
UNIT SIZE
Sq. Ft.
Per Unit
Total
# of Units
Total
Footage
Rate Per
Unit /
Month
Rate Per
Unit S.F.
Monthly
Income
Annual
Income
CANOPY STALLS
12.00
X
25.00
300.00
30
9,000
$295
0.98
$8,850.00
$106,200.00
CANOPY STALLS
12.00
X
30.00
360.00
80
28,800
$315
0.88
$25,200.00
$302,400.00
CANOPY STALLS
12.00
X
35.00
420.00
120
50,400
$330
0.79
$39,600.00
$475,200.00
CANOPY STALLS
14.00
x
40.00
560.00
170
95,200
$354
0.63
$60,180.00
$722,160.00
CANOPY STALLS
14.00
x
45.00
630.00
80
50,400
$370
0.59
$29,600.00
$355,200.00
CANOPY STALLS
14.00
X
50.00
700.00
20
14,000
$400
0.57
$8,000.00
$96,000.00
STORAGE TOTALS
500
247,800
0.69 $171,430.00 $2,057,160.00
The project will be one of a few new dedicated all RV and Boat Storage
Facilities in the immediate market, with a large quantity of stalls and amenities
which include wash bays, dump stations, a full-time office and an all-asphalt lot.
The facility should have secure property line walls surrounding the facility.
Keycode gate in and out which ties to the accounting software, provides
additional security.
AREA GROWTH RESIDENTIAL
The 3.25-mile market and its surrounding residential areas have an
adequate current and future population when interpolating the secondary market
which is underserved. The combined household base is adequate to support RV
and Boat Storage facilities. The current and secondary household and
population base is adequate to support the facility. The secondary residential
population households and the recreation area patrons are the secondary target
market.
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
14
New subdivisions that may be being built in the general areas may have
CC&R’s that prohibit storing of RV’s and Boat on properties. As such, a large
portion of the new users will come from the growth in the area and its’
communities as well as absorbing the pent-up demand as a whole. The current
occupancies of the main competitors are averaging 99.05% and occupancy is
holding and is not cyclical in nature.
STORAGE DATA
Based on the size of the facility, the preliminary site amenities which
include canopy stalls, a key code entry system, site lighting and full striping, a
manager’s office and dump and wash station and potentially an air filling station.
All the stalls are angled and drive isles should be of adequate width to provide
ease of entry and egress from each stall.
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
15
Supply and Demand Analysis RV Storage
Equilibrium Analysis
EL MIRAGE EXECUTIVE RV AND BOAT STORAGE
El Mirage, AZ
The sources used in this analysis include public records, Web-based
search engines, Yahoo Yellow Pages, Verizon Yellow Pages, Demographics
Now online subscription with the primary survey and research completed by
Development Services Inc.
The data sources may vary in scope and method of obtaining the data but
are considered reliable indicators of the current trends and conditions of the
subject area. There may be facilities which are in existence which may not be
included in this analysis as they are not common public knowledge or are too
small to be of consequence, they are not included on the formal competition
analysis but are included as a “buffer” to adequately accommodate the market
depth.
Projects in planning or under construction are included to the extent
Development Services Inc. has received accurate information from the
governmental agencies.
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
16
Demand
In defining the RV storage market, a University of Michigan Research
Study for the Recreational Vehicle Industry Association (RVIA) found that one out
of every 12-13 vehicle-owning households in the United States owns an RV or
conversion vehicle. That number rises to one in ten among households headed
by 35-48-year-old heads of household.2
By utilizing this statistic coupled with the income analysis, the following
supply and demand analysis assumes the RV and Boat storage needs in the
subject’s future market:
Using a 3.25-mile household count with an enhancement for the
secondary market which may use the facility, the market should be able to
absorb the facility easily within 36-months.
2 RVIA – Recreational Vehicle Travel and Business Facts
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
17
El Mirage Executive RV and Boat Storage
FUTURE
Estimated Number of Households (housing units)
41,548
Upcharge for secondary market users
20,000
Demographic Analysis Reduction in HH with less than $62,000 Income
-20,026
Adjusted Number of Households
41,522
Adjusted Number of Vehicle Owning HH (VOHH) per RVIA Rept.
36,498
Resident 1.7 boats per 100 persons, per Boating Needs Assessment
1,881
Number of RV Owning HH (RVOH) at equilibrium
2,759
(Number of RVOH represents assumption of equilibrium projection; per 2001 RVIA Report)
RV CLASSIFICATIONS
Motor home, Class A (Average Size)
656
Travel Trailers, Fifth Wheels and Sport Utility RV's
1,308
Motor home, Class B & C
657
Campers, cab over and folding
138
Total Percent Ownership
Number of VOHH/RVOH - One in every 13.23 HH owns an RV
13.23
Number of VOHH/RVOH Classification Motor Home and Trailer
18.58
BOAT CLASSIFICATIONS (not including rowboats, sailboats, paddlecraft)
Number of Boats
Mechanically Propelled under 16'
711
Mechanically Propelled 16' to 26'
1,072
Mechanically Propelled 26' to 40'
84
40' and over
14
Number of total boats owned or used in nearby lakes
1,881
SUPPLY AND DEMAND ANALYSIS
Estimated Number of Spaces currently in the market (RV & Boat)
2,956
Occupancy Ratio Average
99.05%
Number of Spaces currently occupied within the market
2,928
Subject Property 500 spaces; Cactus Storage 268; Surprise RV 150; buffer 500
1,418
Number of Unoccupied Spaces in market including subject
1,446
Number of spaces needed to meet future equilibrium projection, RV
266
The above analysis indicates there are 266 spaces that can still be built
after the subject facility prior to reaching equilibrium, this is after the subject
facility and two additional facilities are built. To further accommodate the
completion of additional facilities during the planning of the subject facility, we
have shown 500 additional stalls in the construction pipeline as a buffer.
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
18
The subject site and the additional sites in planning/construction (if any)
should be able to be absorbed easily by the subject market.
The statistics above would indicate that the area is demand driven and
RV/Boat Storage is a needed commodity.
Supply and Definition of Market
The subject market is a 3.25-mile radius demographic market.
The facilities shown within the sphere of influence include those that have
open, covered and enclosed storage if any.
Based on the market as a whole, the demand for open, canopy and
enclosed RV and Boat Storage remains high and demand driven. Open and
Canopy stalls have been fully introduced into the market and they are highly
sought after.
The demand for new spaces will be supported easily over time by this
market over time, as mentioned in the University of Michigan report and as
interpolated into the subject market. This market is easily supported and
quantified by the high occupancy levels of 99.05% of all facilities queried with no
cyclical drops in occupancy found.
Since the RV and Boat storage market is in a relatively new growth phase,
it is sometimes difficult to project the demand for the market. Our assumptions
regarding the adjusted market equilibrium are calculated per the study by the
University of Michigan with appropriate market changes if any.
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
19
Per our calculations the demand could exceed a requirement for up to 266
additional spaces before reaching saturation.
Demand
A quantifiable measure of demand is the resulting occupancy levels of a
given market. When average occupancy is lower than 80% and are continually
dropping, the market the area may have reached saturation. When average
occupancy is in the range of 85% to 90% and not showing a decrease or
increase in occupancy levels over time the market may be reaching equilibrium.
When the average occupancy is high and increasing, the market is considered a
demand driven market. The average occupancy for the subject market is
adequate at an occupancy level of 99.05%. In conversations with the managers,
the RV and Boat units are highly sought after and with adequate advertising the
facility should be able to be absorbed in 36-months.
An additional demand criterion for RV and Boat Storage is the lack of RV
and Boat storage space at the newer subdivisions where the CC&R’s and
Association are against storing recreational vehicles at a residence. This further
increases the demand in the market as the area is in a growth phase regarding
new homes. Older rural neighborhoods allow storage or RV, Boats and
Recreational Vehicles within their lots.
EQUILIBRIUM
Market equilibrium is defined as the point where occupancy ratios remain
unchanged in a market, neither going higher nor dropping. Equilibrium is
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
20
affected by new facilities being built in the subject market. Until the newer
facilities are at stabilization, the occupancy ratios for the entire area may drop as
a whole until the new facilities spaces are absorbed and the market re-stabilizes.
Equilibrium in a market will change to saturation when the occupancy
levels of the older and new facilities are dropping.
OVERBUILDING
A question most new owners ask is “is my market overbuilt?” First, we
need to address what “overbuilding” means. Simply stated, it means there are
too many storage projects in a given market. People build Self-Storage, RV
Storage, and other real estate when they think they can make money. This
occurs when rents are high and rising, interest rates are low and falling, lenders
are interested in new loans and investors are taking profits and looking for more
investment opportunities. However, overbuilding is not a disease that is
sweeping the nation that will kill off the self-storage industry. Overbuilding
occurs one market at a time.
Overbuilding is indicated when occupancies continue to drop and per
capita usage ratios are double and triple the normal ratios. The subject
properties surrounding market area will show a drop in stabilized occupancy
ratios for both older and newer facilities alike.
Lower occupancy rates are normally caused when the facilities in the area
are older and the management is not aggressive or has lost its incentive to
market competitively. Many owners of facilities become complacent that they
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
21
are making “enough” money, so they elect not to spend money advertising and
marketing their property.
Older facilities may be losing tenants to the newer, more secure
facilities. Yet in the area of an overbuilt market, the occupancy rates tend to
drop for older and newer facilities as well.
The subject area is not experiencing saturation in the market for RV/Boat
Storage and even with the possibility of upcoming facilities that may be
introduced to planning/construction; the demand for RV/Boat Storage should
continue to be strong.
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
22
RV & Boat Storage Competitors
EL MIRAGE, AZ
We are showing nine main competitors in the general area that have
RV/Boat stalls.
The larger all RV competitors provide amenities equal to the subject
facility.
The balance of the market are older self-storage facilities with open
RV/Boat Storage with limited amenities or small facilities with all open storage.
Many area amenities range from “none at all” to “fully secure managed
storage sites". The competitors are a mix of traditional self-storage facilities
which offer outside RV storage with some open or canopy stalls, some facilities
are all RV and Boat Storage.
The on-site manager seems to be quite important to the customers of
most RV and Boat facilities since their stored items are of such high value.
The aerial in this section of the report depicts the location of the main RV
and Boat Storage competitors shown on the rate survey for this feasibility study.
The aqua teardrop is the subject site. Numbered teardrops within the
radius ring are competitors in the 3.25-mile market. Yellow teardrops are
projects in planning; green teardrops are projects that are approved and under
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
23
construction. White teardrops are self-storage facilities with no RV and Boat
Storage. The total of units available and cumulative total is shown below.
Within the market there may be obscure facilities that have RV/Boat
Storage (under 25 units or so) and we have added a buffer number of units into
the supply and demand analysis for the subject site to accommodate these
"unknown obscure facilities".
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
24
El Mirage Executive RV Storage
Approximate
Number of
Number of
#
Facility Location -
Occupancy
Units Surplus
Units/Spaces
20'
25'
30'
35'
40'
45'
50'
1
Stor America -
G
11634 W Peoria Avenue
100.00%
0
35
P
$106.00
$205.00
Youngtown, AZ
C
E
2
El Mirage RV Storage (was Discount)
G
10075 N El Mirage
99.58%
2
480
P
$95.00
El Mirage, AZ
100.00%
0
120
C
$155.00
E
3
Coyote Pass RV Storage
G
9355 N El Mirage
100.00%
0
240
P
El Mirage, AZ
100.00%
0
180
C
$165.00
$175.00
$185.00
100.00%
0
22
E
$270.00
4
Dysart RV Storage
G
8750 N Dysart
100.00%
0
560
P
$85.00
El Mirage, AZ
100.00%
0
183
C
$130.00
E
5
Premier RV Storage
G
8030 N El Mirage
100.00%
0
72
P
El Mirage, AZ
100.00%
0
480
C
$120.00
$170.00
$190.00
$200.00
$214.00
E
6
StorAmerica Surprise Mini Storage
G
14136 N Litchfield
P
Surprise, AZ
96.83%
4
126
C
$255.00
$334.00
E
opened 2020
7
Public Storage
G
13246 N 113th Ave Ste 20
P
Youngtown, AZ 85363
100.00%
0
35
C
enclosed or canopy, won't
E
quote or confirm
8
Gabriella Mini Storage
G
10812 N Bullard
98.37%
2
123
P
$100.00
$105.00
$110.00
Surprise, AZ
C
E
1/2 of this facility attributed to subject market
9
A Hole in One Storage
G
8601 N 143rd
100.00%
0
200
P
Waddell, AZ
C
E
1/2 of this facility attributed to the subject market
Open Storage in Market
Handicap
80.00%
20
100
Average
Surplus in
Estimated
Occupancy
Market
Number of
3-Mile
Units 3-Mile
Market
28
Market
99.05%
2,956
1) The total estimated NRSF is based on an assumption of 10' wide spaces
2) When left blank, this indicates this facility either does not have this particular unit size
3) Storage container rates have been excluded from the averages, the prices shown for containers, if any are for information only
4) Rates subject to change without notice, information on occupancy and rates provided by facility managers, information not guaranteed
Legend:
G
Gravel Lot (Open)
P
Paved Lot (Open)
C
Covered
E
Enclosed
D
Dry stack boat
We have utilized competitor #6 rates for the initial rate structure. This facility is
the newest in the area and was completed in 2020.
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
25
Equal competitor data (from standpoint of types of units or highest rental rates)
Competitor #6 StorAmerica - Surprise Self-Storage
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
26
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
27
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
28
Income Analysis
EL MIRAGE EXECUTIVE RV AND BOAT
STORAGE
El Mirage, AZ
The land is to be owned fee simple; the construction is anticipated
competed at one time. An income analysis is provided and the owners should
seek a review by their CPA for the full analysis of their specific tax situations.
SPECIFIC PROJECT FINANCIAL ANAYLSIS AND REPORT
As requested, Development Services Inc., is providing a preliminary
income and expense only at this date pending final cost analysis.
The unit mixes and quantity of spaces are anticipated to change as the
plans are not completed and the project is not yet approved.
The Proforma income for the RV storage is based on the high street rates
for the most equal or new competitor in the market studied; interpolated using the
site amenities as an additional reasoning for rental rates increases (if any).
Please note that on the final expense analysis, the insurance cost quoted
in the future Proforma does not include insurance coverage for care, custody and
control coverage which is required to include services such as valet service.
Pick-up and delivery service is excluded from the insurance coverage as well as
detailing services.
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
29
The project economic analysis should be revisited once construction
costs have been quantified for remaining amenities.
Month by month cash flow analysis and further Proforma to be updated
once hard construction numbers have been completed and provided to
Development Services Inc., the attached income and expense is preliminary in
nature and are not intended to represent the full economic picture of the project
in absence of formal costs analysis or formal agency fees.
PRELIMINARY RENTAL INCOME ASSUMPTIONS
Type of Unit / Bldg
UNIT SIZE
Sq. Ft.
Per Unit
Total
# of Units
Total
Footage
Rate Per
Unit /
Month
Rate Per
Unit S.F.
Monthly
Income
Annual
Income
CANOPY STALLS
12.00
X
25.00
300.00
30
9,000
$295
0.98
$8,850.00
$106,200.00
CANOPY STALLS
12.00
X
30.00
360.00
80
28,800
$315
0.88
$25,200.00
$302,400.00
CANOPY STALLS
12.00
X
35.00
420.00
120
50,400
$330
0.79
$39,600.00
$475,200.00
CANOPY STALLS
14.00
x
40.00
560.00
170
95,200
$354
0.63
$60,180.00
$722,160.00
CANOPY STALLS
14.00
x
45.00
630.00
80
50,400
$370
0.59
$29,600.00
$355,200.00
CANOPY STALLS
14.00
X
50.00
700.00
20
14,000
$400
0.57
$8,000.00
$96,000.00
STORAGE TOTALS
500
247,800
0.69 $171,430.00 $2,057,160.00
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
30
LEASE UP ASSUMPTIONS (BEGINNING AT CERTIFICATE OF OCCUPANCY)
Month
Units Leased
Cumulative
Per Month
Units Leased
Income
1
15
15
0.03
$5,143
2
15
30
0.06
$10,286
3
15
45
0.09
$15,429
4
15
60
0.12
$20,572
5
15
75
0.15
$25,715
6
15
90
0.18
$30,857
7
15
105
0.21
$36,000
8
15
120
0.24
$41,143
9
15
135
0.27
$46,286
10
15
150
0.30
$51,429
11
15
165
0.33
$56,572
12
15
180
0.36
$61,715
$401,146 Year 1
13
15
195
0.39
$66,858
14
15
210
0.42
$72,001
15
15
225
0.45
$77,144
16
15
240
0.48
$82,286
17
15
255
0.51
$87,429
18
15
270
0.54
$92,572
19
15
285
0.57
$97,715
20
15
300
0.60
$102,858
21
15
315
0.63
$108,001
22
15
330
0.66
$113,144
23
15
345
0.69
$118,287
24
15
360
0.72
$123,430
$1,141,724 Year 2
25
15
375
0.75
$128,573
26
15
390
0.78
$133,715
27
15
405
0.81
$138,858
28
15
420
0.84
$144,001
29
15
435
0.87
$149,144
30
15
450
0.90
$154,287
31
15
465
0.93
$159,430
32
15
480
0.96
$164,573
33
15
495
0.99
$169,716
34
5
500
1.00
$171,430
35
0
500
1.00
$171,430
36
0
500
1.00
$171,430
$1,856,587 Year 3
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
31
LEASE UP ASSUMPTIONS
EL MIRAGE EXECUTIVE RV AND BOAT STORAGE 11-21-2021
Number of Units
500
Number of Units Rented Each Month
15
15
15
15
15
15
15
15
15
15
15
15
Number of Units Rented Cumulatively
15
30
45
60
75
90
105
120
135
150
165
180
Net Leaseable Feet
247,800
0.03
0.06
0.09
0.12
0.15
0.18
0.21
0.24
0.27
0.30
0.33
0.36
PROFORMA INCOME AND EXPENSE YEAR 1
TOTAL
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
FOR YR 1
Income:
RV Storage Income *
5,142.90
10,285.80
15,428.70
20,571.60
25,714.50
30,857.40
36,000.30
41,143.20
46,286.10
51,429.00
56,571.90
61,714.80
401,146.20
Late Fee Income Per Income
2%
-
-
-
-
-
-
-
-
925.72
1,028.58
1,131.44
1,234.30
4,320.04
Merchandise Per Income
4%
205.72
411.43
617.15
822.86
1,028.58
1,234.30
1,440.01
1,645.73
1,851.44
2,057.16
2,262.88
2,468.59
16,045.85
Administrative Fee Per Unit
$25
375.00
375.00
375.00
375.00
375.00
375.00
375.00
375.00
375.00
375.00
375.00
375.00
4,500.00
Gross Income
5,723.62
11,072.23
16,420.85
21,769.46
27,118.08
32,466.70
37,815.31
43,163.93
49,438.27
54,889.74
60,341.21
65,792.69
426,012.08
Less Vacancy Factor 10%
(514.29)
(1,028.58)
(1,542.87)
(2,057.16)
(2,571.45)
(3,085.74)
(3,600.03)
(4,114.32)
(4,628.61)
(5,142.90)
(5,657.19)
(6,171.48)
(40,114.62)
Gross Operating Inc.
5,209.33
10,043.65
14,877.98
19,712.30
24,546.63
29,380.96
34,215.28
39,049.61
44,809.66
49,746.84
54,684.02
59,621.21
385,897.46
Expenses:
Bank & Credit Card Charges
2%
114.47
221.44
328.42
435.39
542.36
649.33
756.31
863.28
988.77
1,097.79
1,206.82
1,315.85
8,520.24
Advertising
Per Foot
1,750.00
1,750.00
1,750.00
1,750.00
1,750.00
1,750.00
1,750.00
1,750.00
1,750.00
1,750.00
1,750.00
1,750.00
21,000.00
Insurance (Fire&Liability&WC)
Per Foot
1,193.33
1,193.33
1,193.33
1,193.33
1,193.33
1,193.33
1,193.33
1,193.33
1,193.33
1,193.33
1,193.33
1,193.33
14,320.00
Maintenance and Security
Per Foot
1,020.83
1,020.83
1,020.83
1,020.83
1,020.83
1,020.83
1,020.83
1,020.83
1,020.83
1,020.83
1,020.83
1,020.83
12,250.00
Office Expense, Misc, Postage
Per Foot
2,333.33
2,333.33
2,333.33
2,333.33
2,333.33
2,333.33
2,333.33
2,333.33
2,333.33
2,333.33
2,333.33
2,333.33
28,000.00
Property Tax Estimate
Calculated
14,583.33
14,583.33
14,583.33
14,583.33
14,583.33
14,583.33
14,583.33
14,583.33
14,583.33
14,583.33
14,583.33
14,583.33
175,000.00
Property Management 6%
123,429.60
10,285.80
10,285.80
10,285.80
10,285.80
10,285.80
10,285.80
10,285.80
10,285.80
10,285.80
10,285.80
10,285.80
10,285.80
123,429.60
On Site Management
Per Foot
7,083.33
7,083.33
7,083.33
7,083.33
7,083.33
7,083.33
7,083.33
7,083.33
7,083.33
7,083.33
7,083.33
7,083.33
85,000.00
Supplies (1/2 of Mdse Income)
Per $
102.86
205.72
308.57
411.43
514.29
617.15
720.01
822.86
925.72
1,028.58
1,131.44
1,234.30
8,022.92
Trash Removal
Per Foot
570.83
570.83
570.83
570.83
570.83
570.83
570.83
570.83
570.83
570.83
570.83
570.83
6,850.00
Utilities - Electrical
Per Foot
1,187.50
1,187.50
1,187.50
1,187.50
1,187.50
1,187.50
1,187.50
1,187.50
1,187.50
1,187.50
1,187.50
1,187.50
14,250.00
Utilities - Sewer & Water
Per Foot
308.33
308.33
308.33
308.33
308.33
308.33
308.33
308.33
308.33
308.33
308.33
308.33
3,700.00
Utilities - Telephone
Per Foot
566.67
566.67
566.67
566.67
566.67
566.67
566.67
566.67
566.67
566.67
566.67
566.67
6,800.00
Total Operating Expenses
41,100.63
41,310.46
41,520.29
41,730.12
41,939.95
42,149.78
42,359.61
42,569.44
42,797.79
43,009.67
43,221.56
43,433.45
507,142.77
Net Operating Income
(35,891.30)
(31,266.81)
(26,642.31)
(22,017.82)
(17,393.32)
(12,768.83)
(8,144.33)
(3,519.83)
2,011.87
6,737.17
11,462.46
16,187.76
(121,245.30)
Debt Service $14,000,000 @ 4.25 25 Years
(75,843.00)
(75,843.00)
(75,843.00)
(75,843.00)
(75,843.00)
(75,843.00)
(75,843.00)
(75,843.00)
(75,843.00)
(75,843.00)
(75,843.00)
(75,843.00)
(910,116.00)
Net Ordinary Income
(111,734.30)
(107,109.81)
(102,485.31)
(97,860.82)
(93,236.32)
(88,611.83)
(83,987.33)
(79,362.83)
(73,831.13)
(69,105.83)
(64,380.54)
(59,655.24)
(1,031,361.30)
% of income/expenses
7.89
4.11
2.79
2.12
1.71
1.43
1.24
1.09
0.96
0.86
0.79
0.73
1.31
% of Gross Income/net inc.
(21.45)
(10.66)
(6.89)
(4.96)
(3.80)
(3.02)
(2.45)
(2.03)
(1.65)
(1.39)
(1.18)
(1.00)
(2.67)
EL MIRAGE EXECUTIVE RV AND BOAT STORAGE 11-21-2021
Number of Units
Number of Units Rented Each Month
15
15
15
15
15
15
15
15
15
15
15
15
Number of Units Rented Cumulatively
195
210
225
240
255
270
285
300
315
330
345
360
Net Leaseable Feet
0.39
0.42
0.45
0.48
0.51
0.54
0.57
0.60
0.63
0.66
0.69
0.72
PROFORMA INCOME AND EXPENSE YEAR 2
Total
Month 13
Month 14
Month 15
Month 16
Month 17
Month 18
Month 19
Month 20
Month 21
Month 22
Month 23
Month 24
Yr. 2
Income:
RV Storage Income *
66,857.70
72,000.60
77,143.50
82,286.40
87,429.30
92,572.20
97,715.10
102,858.00
108,000.90
113,143.80
118,286.70
123,429.60
1,141,723.80
Late Fee Income
1,337.15
1,440.01
1,542.87
1,645.73
1,748.59
1,851.44
1,954.30
2,057.16
2,160.02
2,262.88
2,365.73
2,468.59
22,834.48
Merchandise
1,778.41
1,915.22
2,052.02
2,188.82
2,325.62
2,462.42
2,599.22
2,736.02
2,872.82
3,009.63
3,146.43
3,283.23
30,369.85
Administrative Fees
375.00
375.00
375.00
375.00
375.00
375.00
375.00
375.00
375.00
375.00
375.00
375.00
4,500.00
Gross Income
70,348.27
75,730.83
81,113.39
86,495.95
91,878.51
97,261.06
102,643.62
108,026.18
113,408.74
118,791.30
124,173.86
129,556.42
1,199,428.13
Less Vacancy Factor 10%
(6,685.77)
(7,200.06)
(7,714.35)
(8,228.64)
(8,742.93)
(9,257.22)
(9,771.51)
(10,285.80)
(10,800.09)
(11,314.38)
(11,828.67)
(12,342.96)
(119,942.81)
Gross Operating Inc.
63,662.50
68,530.77
73,399.04
78,267.31
83,135.58
88,003.84
92,872.11
97,740.38
102,608.65
107,476.92
112,345.19
117,213.46
1,085,255.75
Expenses:
Bank & Credit Card Charges
1,406.97
1,514.62
1,622.27
1,729.92
1,837.57
1,945.22
2,052.87
2,160.52
2,268.17
2,375.83
2,483.48
2,591.13
23,988.56
Advertising
1,750.00
1,750.00
1,750.00
1,750.00
1,750.00
1,750.00
1,750.00
1,750.00
1,750.00
1,750.00
1,750.00
1,750.00
21,000.00
Insurance (Fire&Liability&WC)
1,193.33
1,193.33
1,193.33
1,193.33
1,193.33
1,193.33
1,193.33
1,193.33
1,193.33
1,193.33
1,193.33
1,193.33
14,320.00
Maintenance and Security
1,020.83
1,020.83
1,020.83
1,020.83
1,020.83
1,020.83
1,020.83
1,020.83
1,020.83
1,020.83
1,020.83
1,020.83
12,250.00
Office Expense, Misc, License
2,333.33
2,333.33
2,333.33
2,333.33
2,333.33
2,333.33
2,333.33
2,333.33
2,333.33
2,333.33
2,333.33
2,333.33
28,000.00
Property Tax Estimate
14,583.33
14,583.33
14,583.33
14,583.33
14,583.33
14,583.33
14,583.33
14,583.33
14,583.33
14,583.33
14,583.33
14,583.33
175,000.00
Property Management
10,285.80
10,285.80
10,285.80
10,285.80
10,285.80
10,285.80
10,285.80
10,285.80
10,285.80
10,285.80
10,285.80
10,285.80
123,429.60
On Site Management
7,083.33
7,083.33
7,083.33
7,083.33
7,083.33
7,083.33
7,083.33
7,083.33
7,083.33
7,083.33
7,083.33
7,083.33
85,000.00
Supplies (1/2 of Mdse Income)
889.21
957.61
1,026.01
1,094.41
1,162.81
1,231.21
1,299.61
1,368.01
1,436.41
1,504.81
1,573.21
1,641.61
15,184.93
Trash Removal
570.83
570.83
570.83
570.83
570.83
570.83
570.83
570.83
570.83
570.83
570.83
570.83
6,850.00
Utilities - Electrical
1,187.50
1,187.50
1,187.50
1,187.50
1,187.50
1,187.50
1,187.50
1,187.50
1,187.50
1,187.50
1,187.50
1,187.50
14,250.00
Utilities - Sewer & Water
308.33
308.33
308.33
308.33
308.33
308.33
308.33
308.33
308.33
308.33
308.33
308.33
3,700.00
Utilities - Telephone
566.67
566.67
566.67
566.67
566.67
566.67
566.67
566.67
566.67
566.67
566.67
566.67
6,800.00
Total Operating Expenses
43,179.47
43,355.52
43,531.58
43,707.63
43,883.68
44,059.73
44,235.78
44,411.84
44,587.89
44,763.94
44,939.99
45,116.04
529,773.09
Net Operating Income
20,483.03
25,175.24
29,867.46
34,559.68
39,251.90
43,944.11
48,636.33
53,328.55
58,020.77
62,712.98
67,405.20
72,097.42
555,482.66
Less Debt Service
(75,843.00)
(75,843.00)
(75,843.00)
(75,843.00)
(75,843.00)
(75,843.00)
(75,843.00)
(75,843.00)
(75,843.00)
(75,843.00)
(75,843.00)
(75,843.00)
(910,116.00)
Net Ordinary Income
(55,359.97)
(50,667.76)
(45,975.54)
(41,283.32)
(36,591.10)
(31,898.89)
(27,206.67)
(22,514.45)
(17,822.23)
(13,130.02)
(8,437.80)
(3,745.58)
(354,633.34)
% income/expenses
0.68
0.63
0.59
0.56
0.53
0.50
0.48
0.45
0.43
0.42
0.40
0.38
0.49
% of Gross Income/net inc.
(0.87)
(0.74)
(0.63)
(0.53)
(0.44)
(0.36)
(0.29)
(0.23)
(0.17)
(0.12)
(0.08)
(0.03)
(0.33)
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
32
EL MIRAGE EXECUTIVE RV AND BOAT STORAGE 11-21-2021
Number of Units
Number of Units Rented Each Month
15
15
15
15
15
15
15
15
15
5
0
0
Number of Units Rented Cumulatively
375
390
405
420
435
450
465
480
495
500
500
500
Net Leaseable Feet
0.75
0.78
0.81
0.84
0.87
0.90
0.93
0.96
0.99
1.00
1.00
1.00
PROFORMA INCOME AND EXPENSE YEAR 3
Total
Month 25
Month 26
Month 27
Month 28
Month 29
Month 30
Month 31
Month 32
Month 33
Month 34
Month 35
Month 36
Yr. 3
Income:
RV Storage Income *
128,572.50
133,715.40
138,858.30
144,001.20
149,144.10
154,287.00
159,429.90
164,572.80
169,715.70
171,430.00
171,430.00
171,430.00
1,856,586.90
Late Fee Income
2,571.45
2,674.31
2,777.17
2,880.02
2,982.88
3,085.74
3,188.60
3,291.46
3,394.31
3,428.60
3,428.60
3,428.60
37,131.74
Merchandise
3,420.03
3,556.83
3,693.63
3,830.43
3,967.23
4,104.03
4,240.84
4,377.64
4,514.44
4,560.04
4,560.04
4,560.04
49,385.21
Administrative Fee
375.00
375.00
375.00
375.00
375.00
375.00
375.00
375.00
375.00
125.00
-
-
3,500.00
Gross Income
134,938.98
140,321.54
145,704.10
151,086.66
156,469.22
161,851.77
167,234.33
172,616.89
177,999.45
179,543.64
179,418.64
179,418.64
1,946,603.85
Less Vacancy Factor
(12,857.25)
(13,371.54)
(13,885.83)
(14,400.12)
(14,914.41)
(15,428.70)
(15,942.99)
(16,457.28)
(16,971.57)
(17,143.00)
(17,143.00)
(17,143.00)
(185,658.69)
Gross Operating Inc.
122,081.73
126,950.00
131,818.27
136,686.54
141,554.81
146,423.07
151,291.34
156,159.61
161,027.88
162,400.64
162,275.64
162,275.64
1,760,945.16
Expenses:
Bank & Credit Card Charges
2,698.78
2,806.43
2,914.08
3,021.73
3,129.38
3,237.04
3,344.69
3,452.34
3,559.99
3,590.87
3,588.37
3,588.37
38,932.08
Advertising
1,750.00
1,750.00
1,750.00
1,750.00
1,750.00
1,750.00
1,750.00
1,750.00
1,750.00
1,750.00
1,750.00
1,750.00
21,000.00
Insurance (Fire&Liability&WC)
1,193.33
1,193.33
1,193.33
1,193.33
1,193.33
1,193.33
1,193.33
1,193.33
1,193.33
1,193.33
1,193.33
1,193.33
14,320.00
Maintenance and Security
1,020.83
1,020.83
1,020.83
1,020.83
1,020.83
1,020.83
1,020.83
1,020.83
1,020.83
1,020.83
1,020.83
1,020.83
12,250.00
Office Expense, Misc, License
2,333.33
2,333.33
2,333.33
2,333.33
2,333.33
2,333.33
2,333.33
2,333.33
2,333.33
2,333.33
2,333.33
2,333.33
28,000.00
Property Tax Estimate
14,583.33
14,583.33
14,583.33
14,583.33
14,583.33
14,583.33
14,583.33
14,583.33
14,583.33
14,583.33
14,583.33
14,583.33
175,000.00
Property Management
10,285.80
10,285.80
10,285.80
10,285.80
10,285.80
10,285.80
10,285.80
10,285.80
10,285.80
10,285.80
10,285.80
10,285.80
123,429.60
On Site Management
7,083.33
7,083.33
7,083.33
7,083.33
7,083.33
7,083.33
7,083.33
7,083.33
7,083.33
7,083.33
7,083.33
7,083.33
85,000.00
Supplies (1/2 of Mdse Income)
1,710.01
1,778.41
1,846.82
1,915.22
1,983.62
2,052.02
2,120.42
2,188.82
2,257.22
2,280.02
2,280.02
2,280.02
24,692.61
Trash Removal
570.83
570.83
570.83
570.83
570.83
570.83
570.83
570.83
570.83
570.83
570.83
570.83
6,850.00
Utilities - Electrical
1,187.50
1,187.50
1,187.50
1,187.50
1,187.50
1,187.50
1,187.50
1,187.50
1,187.50
1,187.50
1,187.50
1,187.50
14,250.00
Utilities - Sewer & Water
308.33
308.33
308.33
308.33
308.33
308.33
308.33
308.33
308.33
308.33
308.33
308.33
3,700.00
Utilities - Telephone
566.67
566.67
566.67
566.67
566.67
566.67
566.67
566.67
566.67
566.67
566.67
566.67
6,800.00
Total Operating Expenses
45,292.09
45,468.15
45,644.20
45,820.25
45,996.30
46,172.35
46,348.40
46,524.46
46,700.51
46,754.19
46,751.69
46,751.69
554,224.28
Net Operating Income
76,789.63
81,481.85
86,174.07
90,866.29
95,558.50
100,250.72
104,942.94
109,635.16
114,327.37
115,646.45
115,523.95
115,523.95
1,206,720.88
Less Debt Service
(75,843.00)
(75,843.00)
(75,843.00)
(75,843.00)
(75,843.00)
(75,843.00)
(75,843.00)
(75,843.00)
(75,843.00)
(75,843.00)
(75,843.00)
(75,843.00)
(910,116.00)
Net Ordinary Income
946.63
5,638.85
10,331.07
15,023.29
19,715.50
24,407.72
29,099.94
33,792.16
38,484.37
39,803.45
39,680.95
39,680.95
296,604.88
% income/expenses
0.37
0.36
0.35
0.34
0.32
0.32
0.31
0.30
0.29
0.29
0.29
0.29
0.31
% of Gross Income/net inc.
0.01
0.04
0.08
0.11
0.14
0.17
0.19
0.22
0.24
0.25
0.24
0.24
0.17
EL MIRAGE EXECUTIVE RV AND BOAT STORAGE 11-21-2021
Number of Units
Number of Units Rented Each Month
0
0
0
0
0
0
0
0
0
0
0
0
Number of Units Rented Cumulatively
500
500
500
500
500
500
500
500
500
500
500
500
Net Leaseable Feet
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
PROFORMA INCOME AND EXPENSE YEAR 4
Total
Month 37
Month 38
Month 39
Month 40
Month 41
Month 42
Month 43
Month 44
Month 45
Month 46
Month 47
Month 48
Yr. 4
RV Storage Income *
171,430.00
171,430.00
171,430.00
171,430.00
171,430.00
171,430.00
171,430.00
171,430.00
171,430.00
171,430.00
171,430.00
171,430.00
2,057,160.00
Late Fee Income 2%
3,428.60
3,428.60
3,428.60
3,428.60
3,428.60
3,428.60
3,428.60
3,428.60
3,428.60
3,428.60
3,428.60
3,428.60
41,143.20
Merchandise 2.66%
4,560.04
4,560.04
4,560.04
4,560.04
4,560.04
4,560.04
4,560.04
4,560.04
4,560.04
4,560.04
4,560.04
4,560.04
54,720.46
Administrative Fee
-
-
-
-
-
-
-
-
-
-
-
-
-
Gross Income
179,418.64
179,418.64
179,418.64
179,418.64
179,418.64
179,418.64
179,418.64
179,418.64
179,418.64
179,418.64
179,418.64
179,418.64
2,153,023.66
Less Vacancy Factor
(17,143.00)
(17,143.00)
(17,143.00)
(17,143.00)
(17,143.00)
(17,143.00)
(17,143.00)
(17,143.00)
(17,143.00)
(17,143.00)
(17,143.00)
(17,143.00)
(205,716.00)
Gross Operating Inc.
162,275.64
162,275.64
162,275.64
162,275.64
162,275.64
162,275.64
162,275.64
162,275.64
162,275.64
162,275.64
162,275.64
162,275.64
1,947,307.66
Expenses:
Bank & Credit Card Charges
3,588.37
3,588.37
3,588.37
3,588.37
3,588.37
3,588.37
3,588.37
3,588.37
3,588.37
3,588.37
3,588.37
3,588.37
43,060.47
Advertising
1,750.00
1,750.00
1,750.00
1,750.00
1,750.00
1,750.00
1,750.00
1,750.00
1,750.00
1,750.00
1,750.00
1,750.00
21,000.00
Insurance (Fire&Liability&WC)
1,193.33
1,193.33
1,193.33
1,193.33
1,193.33
1,193.33
1,193.33
1,193.33
1,193.33
1,193.33
1,193.33
1,193.33
14,320.00
Maintenance and Security
1,020.83
1,020.83
1,020.83
1,020.83
1,020.83
1,020.83
1,020.83
1,020.83
1,020.83
1,020.83
1,020.83
1,020.83
12,250.00
Office Expense, Misc, License
2,333.33
2,333.33
2,333.33
2,333.33
2,333.33
2,333.33
2,333.33
2,333.33
2,333.33
2,333.33
2,333.33
2,333.33
28,000.00
Property Tax Estimate
14,583.33
14,583.33
14,583.33
14,583.33
14,583.33
14,583.33
14,583.33
14,583.33
14,583.33
14,583.33
14,583.33
14,583.33
175,000.00
Property Management
10,285.80
10,285.80
10,285.80
10,285.80
10,285.80
10,285.80
10,285.80
10,285.80
10,285.80
10,285.80
10,285.80
10,285.80
123,429.60
On Site Management
7,083.33
7,083.33
7,083.33
7,083.33
7,083.33
7,083.33
7,083.33
7,083.33
7,083.33
7,083.33
7,083.33
7,083.33
85,000.00
Supplies (1/2 of Mdse Income)
2,280.02
2,280.02
2,280.02
2,280.02
2,280.02
2,280.02
2,280.02
2,280.02
2,280.02
2,280.02
2,280.02
2,280.02
27,360.23
Trash Removal
570.83
570.83
570.83
570.83
570.83
570.83
570.83
570.83
570.83
570.83
570.83
570.83
6,850.00
Utilities - Electrical
1,187.50
1,187.50
1,187.50
1,187.50
1,187.50
1,187.50
1,187.50
1,187.50
1,187.50
1,187.50
1,187.50
1,187.50
14,250.00
Utilities - Sewer & Water
308.33
308.33
308.33
308.33
308.33
308.33
308.33
308.33
308.33
308.33
308.33
308.33
3,700.00
Utilities - Telephone
566.67
566.67
566.67
566.67
566.67
566.67
566.67
566.67
566.67
566.67
566.67
566.67
6,800.00
Total Operating Expenses
46,751.69
46,751.69
46,751.69
46,751.69
46,751.69
46,751.69
46,751.69
46,751.69
46,751.69
46,751.69
46,751.69
46,751.69
561,020.30
Net Operating Income
115,523.95
115,523.95
115,523.95
115,523.95
115,523.95
115,523.95
115,523.95
115,523.95
115,523.95
115,523.95
115,523.95
115,523.95
1,386,287.35
Less Debt Service
(75,843.00)
(75,843.00)
(75,843.00)
(75,843.00)
(75,843.00)
(75,843.00)
(75,843.00)
(75,843.00)
(75,843.00)
(75,843.00)
(75,843.00)
(75,843.00)
(910,116.00)
Net Ordinary Income
39,680.95
39,680.95
39,680.95
39,680.95
39,680.95
39,680.95
39,680.95
39,680.95
39,680.95
39,680.95
39,680.95
39,680.95
476,171.35
% income/expenses
0.29
0.29
0.29
0.29
0.29
0.29
0.29
0.29
0.29
0.29
0.29
0.29
0.29
% of Gross Income/net inc.
0.24
0.24
0.24
0.24
0.24
0.24
0.24
0.24
0.24
0.24
0.24
0.24
0.24
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
33
Under the premise of $50 per square foot construction costs, plus land
and developmental and soft costs, the project will carry debt service of
$14,000,000 and will have approximately $39,680 in income after debt service
and expenses shown. The parcel configuration limits the number of stalls that
can be placed on the site.
The project shows positive monthly cash flow at month 25.
GENERAL INCOME AND EXPENSE NOTES
Canopy and larger RV/Boat facilities income and expenses mirror those
found in self-storage. Typically, in storage, including property taxes for a project
of this size, the expenses to operate a facility should run from 18% to 25%
depending on the size of the facility. The percentage will be higher at a smaller
facility as many of the set expenses such as property management and
managers’ salaries are set regardless of size of the facility. The smaller the
facility, the larger the percentage of expenses; the larger the facility, the lesser
percentage of expenses.
The following graphs portray some of the expense characteristics of
storage across the United States3
3 Per Mini-Co 2020 Expense Guidebook. The 2020 report is attached to this study.
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
34
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
35
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
36
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
37
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
38
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
39
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
40
Preliminary Conclusions
EL MIRAGE EXECUTIVE RV AND BOAT
STORAGE
EL MIRAGE, AZ
Development Services has extensive knowledge of the storage market.
Coupled with knowledge of growth trends, we typically, although conservatively
project that for RV and Boat Storage in most markets, a conservative value of 1
storage space per every 12 to 30 households can be achieved while showing
stabilized occupancy levels in excess of 90%. This value is expanded when
the facility is next to or services a larger populated area, which draws clientele
outside the normal market criteria.
ECONOMIC FEASIBILITY
Depending on the final construction costs the economic analysis will need
to be reviewed, but at this point the project is feasible on an economic basis
based on our assumptions and provides a good return on investment.
MARKET FEASIBILITY
As presented the project is feasible to market conditions that are currently
known. The project will be a premier storage project in the El Mirage – Phoenix
Metro area.
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
41
ECONOMIC FEASIBILTY
Even with high debt service, the project as anticipated to be built shows
good cash flow and would be a positive asset.
DEVELOPMENTAL FEASIBILITY
The project has not received is jurisdictional approvals if required.
CONCLUSION
As a final conclusion it is Development Services opinion that the market
should be able to conservatively absorb additional RV and Boat Storage Spaces
at this time within a 36-month lease up period based on an aggressive marketing
program.
The lease up timeframe of 36-months may extend longer if an
adequate marketing program is not implemented or additional projects are
introduced into the market other than those shown. Strong marketing programs
may enhance the lease up of the facility where weak marketing programs extend
the lease up of the facility.
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
42
RV and Boat Storage
Planning & Construction Activity
EL MIRAGE, AZ
PLANNING AND CONSTRUCTION ACTIVITY
The City of El Mirage and Surprise and County of Maricopa have been
queried for new RV/Boat Storage Projects. Two projects were disclosed within
the 3.25-mile market.
1) Cactus Storage at El Mirage and Cactus was submitted to the City of El
Mirage on 9-1-2021. This project appears to have 268 canopy stalls and
self-storage stalls, this project is slated for City Council hearing on 12-7-
2021.
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
43
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
44
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
45
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
46
2) Surprise Self-Storage is anticipated to open December 2021, with 150
open stalls, no formal plans available. We have spoken with the owner of
this site.
3) We have buffered the project with an additional 500 stalls that may be built
during the planning and construction process of the subject facility.
Should additional sites be discovered that may impact the viability of the
site and Development Services Inc., reserves the right to amend this report.
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
47
Demographic Information
EL MIRAGE EXECUTIVE RV AND BOAT
STORAGE
EL MIRAGE, AZ
Demographics provide in-depth information as to a subject’s immediate
customer base as well as information that will assist in setting rental rates and
configuring unit mixes for both Self-Storage Facilities and RV Storage Facilities.
The foundation of all marketing and demographic data is the decennial
census, which the U.S. Census Bureau conducts one each decade. This
census literally takes a complete demographic profile of nearly all the people
living in the United States at the time the census was conducted. The most
recent Decennial Census was conducted in April 2000. The demographics
shown in this report are a compilation of the April 2000 Census data combined
with up-to-date growth patterns of individual cities.
RV Storage Demographics
For RV Storage, the demographics used are the household statistics.
The common statistic as published by the Recreational Vehicle Industry
Association (RVIA) is that there is a storable vehicle (either passenger or
recreational) in a ratio of 1 vehicle for 13 households; further quantified that the
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
48
majority of the owners of boats and RVs are in the income class of over $62,000
per year - household average income. 48.20% of households with the market
have higher incomes than $62,000, with the average household income being
$72,837 for the future demographic’s income analysis.
For boating, the statistic for Arizona indicated there is 1.70 storable boats
per 100 households. This statistic is increased if there are nearby recreational
areas and decreased as well when boats are stored at residences.
SPECIFIC DEMOGRAPHICS
The average household income for the majority of the population within
the subject market based on the 2026 demographics will be more than $72,837
per year which is positive regarding the outlook for RV/Boat as the majority of the
RV’rs are in the $62,000 per year income category and above.
The impact of this statistic would be evident in the rental rates that can be
achieved in this market for the residential customers as well as being indicative
of a market that has many “toys” such as recreational vehicles and boats.
The housing trends are stable. The attached demographic report was
compiled by Alteryx Now and reviewed and analyzed by Development Services
Inc.
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
49
ASSUMPTIONS & LIMITING CONDITIONS – EL MIRAGE EXECUTIVE RV AND BOAT STORAGE, EL MIRAGE, AZ
No responsibility for legal or economic matters is assumed. Assumptions are based on current
information and data and are subject to change without notice. Author does not guarantee the
proforma or lease up projections. All existing liens, mortgages or other lease encumbrances have
been disregarded and the property has been analyzed as though it has no construction or
permanent loan and is of leasehold estate, under responsible ownership and competent
management.
All maps and exhibits in this report are intended to be visual aids and should not be construed as
surveys or engineering reports. Environmental hazards are not a part of this report. All
information in this report has been obtained from reliable sources. The author, however, cannot
guarantee or be responsible for the accuracy of information furnished by these sources. We
reserve the right without penalty, to amend our assumptions and conclusions should any further
information regarding subject property or competitors be discovered.
Possession of this report or a certified copy hereof does not imply the right of publication or use for
any purpose by any other than the addressee without the written consent of the undersigned.
Neither all nor any part of the contents of this report shall be conveyed to the public through
advertising, public relations, news, sales, or other media without the written consent of the author.
Testimony or attendance in court or at any other hearing is not required by reason of rendering this
analysis unless such arrangements are made a reasonable time in advance to such additional
employment.
The land and particularly the soil of the area under analysis appear firm and solid. Subsidence in
the area is unknown or uncommon, the undersigned does not warrant against this condition or
other occurrences. Subsurface rights (minerals and oils) were not considered in making this
analysis.
The material included in this study is date sensitive. The RV-storage market may change
significantly over time due to the economy, new projects in the market and/or change in the
estimated growth of the area or other changes which may materially affect this study. Therefore, if
there is a significant lapse in time from the date of the feasibility study to the development of the
project reasonable caution should be exercised in relying on these findings and/or the Study should
be updated from time to time.
There are no other statements, written or oral not contained herein. The undersigned warrants to
the best of her knowledge that the statements of fact contained in this report are true and correct.
This report should not be construed as an appraisal.
The reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting
conditions and personal, unbiased professional analysis, opinions, and conclusions.
The analysts have no present or prospective interest in the property that is the subject of this report and no
personal interest or bias with respect to the parties involved. Any compensation is not contingent upon an
action or event resulting from the analysis, opinions, or conclusions or in the use of this report. No one
provided significant professional assistance to the undersigned.
The undersigned, its owners or agents have acted in an independent capacity and the market analysis is not
based on a requested conclusion or direction of analysis that favors the client nor was this assignment
based on a requested outcome. The analyst has extensive experience performing due diligence and
market research on similar type properties.
_________________________________________________
DEVELOPMENT SERVICES INC. JO BETH WHITE, PRESIDENT 11-21-2021
RV AND BOAT STORAGE EL MIRAGE
FEASIBILITY STUDY AND ANALYSIS
11-21-2021
50