insure self storage -...

INTRODUCTION

Insure Self StorageDALLAS, TX

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 X0060238 Marcus &Millichap. All rights reserved.

SELLING POINTS:

98% Physical Occupancy

Strong Historical Occupancy

Same On-Site Manager for 23 years!

Turnkey Investment Opportunity

Located Only Six Miles from the CBD of Dallas, Texas

Requires Little-to-No Owner Involvement

8.23% Cap Rate Offering

Great 1031-Exchange Investment Facility

DALLAS, TX

Insure Self Storage

OFFERING MEMORANDUM

CONFIDENTIALITY AND DISCLAIMER

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

DALLAS, TX

Insure Self Storage

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOURMARCUS & MILLICHAP AGENT FOR MORE DETAILS.

NON-ENDORSEMENT NOTICE

INTRODUCTION



IABS

Section 1 PROPERTY DESCRIPTION

Section 2 PRICING AND FINANCIAL ANALYSIS

Section 3 MARKET OVERVIEW

Section 4 DEMOGRAPHIC ANALYSIS

TABLE OF CONTENTS

Insure Self Storage


PROPERTY DESCRIPTION

Insure Self Storage is a 167-unit, non-climate controlled, self-storage facility offering 18,587 net rentable square feet. The facility is currently 98 percent occupied and has a long track record of strong occupancy, with an overall average of 86.4 percent economic occupancy for 2015. Insure Self Storage offers an investor an excellent 1031-exchange opportunity, with a cap rate return of 8.23 percent on the next 12-month revenue based on a rent increase as of June 1, 2016. The cash-on-cash return for the next 12 months projects to 14.49 percent and an overall total rate of return of 23.36 percent. Based on the modeled and projected unit mix rent increase, the Year 2 return includes: 10.22 percent cap rate, 24.40 percent cash-on-cash, and 33.26 percent total return on investment.

Insure Self Storage currently has a full-time manager and an on-site, resident maintenance person. The manager has been with Insure for 23 years and would definitely prefer to continue managing the facility, which would allow this asset to be a true turnkey investment. The property features concrete/asphalt drives, tilt-up and metal wall construction, roll-up and swing-style doors, overhead lighting, closed-circuit cameras, an electronic gate, and a high-traffic location just due south of the intersection of Walton Walker (Loop 12) and Duncanville Road in Dallas, Texas, with approximately 15,000 vehicles per day.

Overall, Insure Self Storage presents a solid, long-term investment opportunity to acquire a well-maintained, self-storage facility with strong historical occupancy and an opportunity to increase rents due to high demand.

1



■ 8.23% Cap Rate Return with Effective Rent Increase

■ Turnkey Investment with Long-Term On-Site Management

■ Excellent 1031-Exchange Opportunity

■ Upside in Revenue Management

■ 14.49% Cash-on-Cash Return and 23.36% Overall TotalReturn

■ Tiltwall and Metal Construction

■ 98% Physical Occupancy and Strong Historical Occupancy

■ Excellent Strategic Location (Only Six Miles from DallasCBD)


INVESTMENT OVERVIEW

Investment Highlights

The Offering

Property Insure Self Storage

Property Address 3020 Duncanville Road

Dallas, TX 75211Assessor's Parcel Number 0000785176000000

Zoning Industrial / Manufacturing District

Site Description

Total Units 170

Units Sizes Various Sizes - See Unit Mix Page

Rentable Square Feet 18,587

Year Built 1978

Lot Size 1.33 Acres

Type of Ownership Fee Simple

Number of Buildings 3

Number of Stories 1

Parking Yes

Street Frontage 197' Along Duncanville Road per DCAD

Nearest Cross Street Due South of South Walton Walker Boulevard

Traffic Counts (Vehicles per Day) Approximately 15,000 Vehicles per Day

Highway Access ~ 1/20 mile for Loop 12 and 3 Miles from IH-20

Land for Additional Development None Available

Construction

Foundation Concrete

Framing Steel

Exterior Walls Tilt Wall and Metal

Parking Surface Concrete and Asphalt

Roof Metal Screw Down

Fencing Chain-Link Perimeter Fencing

Entry Personalized Key Pad

Mechanical

Climate Control No

Fire Protection Fire Extinguishers

Elevators No

Security 16 Closed Circuit Security Cameras

2




PROPERTY SUMMARY

■ Roll-Up and Swing-Style Doors

■ Perimeter Fencing and Lighting

■ Closed Circuit Cameras and Surveillance

■ Manager's Office

■ On-Site Living Quarters (Currently used byMaintenance)

3




■ Electronic Gate and Key Pad Security Entrance

■ Large Array of Unit Sizes

■ Traffic Count of 15,000 Vehicles per Day

■ Approximately 197' of Frontage on Duncanville Road

■ Concrete Foundation with Concrete and Asphalt Drives

PROPERTY AMENITIES

Common Area Amenities

Unit Amenities

4




PROPERTY PHOTOS

5




PROPERTY PHOTOS

6




PROPERTY PHOTOS

Local Map Regional Map

7




AREA MAPS


PRICING AND FINANCIAL ANALYSIS

9

Price $1,295,000

Down Payment 20% / $259,000

Total Units 170

Price per Unit $7,618


Price per Rentable Square Foot $69.67

Average Rent per Square Foot (Existing) $7.40

Year Built 1978

Lot Size 1.33 Acres

Vital Data

CAP Rate - Current 8.23%

Net Operating Income - Current $106,641

Net Cash Flow After Debt Service - Current 14.49% / $37,540

Total Return - Current 23.36% / $60,491

CAP Rate - Pro Forma 10.22%

Net Operating Income - Pro Forma $132,307

Net Cash Flow After Debt Service - Pro Forma 24.40% / $63,205

Total Return - Pro Forma 33.26% / $86,156


Unit Mix


No. of

Units**

Unit

Type

Approx.

Square

Feet

Total

Major Employers

CompanyLocal

Employees

Aafes Logistics 4,500

US Post Office 2,816

Aafes 2,604

County of Dallas 1,388

Air National Guard 1,000

Masco Cabinetry LLC 913

Wycliffe Bible Translators Inc 900

Mss 750

Pioneer Frozen Foods 750

Taylor Farms Texas Inc 652

Mission Foods 500

City of Dallas 436


Demographics

1-Mile 3-Miles 5-Miles

2014 Total

Population9,514 84,775 247,229

2019 Total

Population10,691 89,515 255,936

2014 Total

Households2,868 24,109 78,064

2019 Total

Households3,239 25,702 81,230

Median HH Income $34,064 $35,496 $37,778

Per Capita Income

(based on Total$13,635 $13,710 $16,179

Average (Mean) HH

Income$44,778 $47,464 $50,800

OFFERING SUMMARY

FIRST TRUST DEED

Loan Amount $1,036,000

Loan Type Proposed New

Interest Rate 4.5%

Amortization 25 Years

Program Conventional

Loan to Value 75%

3020 Duncanville Road

Dallas, TX 75211

Price $1,295,000

Down Payment 20% / $259,000

Number of Units 170


CAP Rate - Current 8.23%

CAP Rate- Pro Forma 10.22%

Average Rent per Square Foot

(Existing)

$7.40

Year Built 1978

Lot Size 1.33 Acres

Type of Ownership Fee Simple

10

Annualized Operating Data

Current Pro Forma

Gross Potential Rent $198,684 $239,220

Gross Potential Income $198,684 $239,220

Less: Vacancy/Deductions 15.0% / $29,803 (17.5%) 41,864

Effective Gross Income $168,881 $197,357

Less: Expenses $62,240 $65,050

Net Operating Income $106,641 $132,307

Net Cash Flow Before Debt Service $106,641 $132,307

Debt Service $69,101 $69,101

Debt Coverage Ratio 1.54 1.91

Net Cash Flow After Debt Service 14.49% / $37,540 24.40% / $63,205

Principal Reduction $22,951 $22,951

Total Return 23.36% / $60,491 33.26% / $86,156


Location


FinancingExpenses

Real Estate Taxes $15,080 $18,500

Insurance $6,777 $6,777

Electricity - TXU Energy $4,650 $3,900

Repairs & Maint. $0.10/NRSF $1,882 $1,882

On-Site Manager's Payroll $22,164 $22,164

On-Site Maintenance Personnel*1 $6,500 $6,500

E-Move Software Expense $540 $540

AT&T (Phone, Fax, Internet) $842 $867

IESI - Dumpster $752 $752

Water $405 $417

Supplies $265 $265

Dues/Subscriptions $300 $300

Accounting/Legal Expense $600 $600

Bank Charges/Credit Card Fees $1,483 $1,586

Total Expenses $62,240 $65,050

% of EGI 36.9% 33.0%


Loan information is time sensitive and subject to

change. Contact your local Marcus & Millichap Capital

Corporation representative.

FINANCIAL OVERVIEW

1. On-Site Manager Payroll2. On-Site Maintenance Personnel (Lives on Property)

11



Existing Financing

Loan Type Free and Clear


Proposed Financing

First Trust Deed

Loan Amount $1,036,000

Loan Type Proposed New

Interest Rate 4.5%

Amortization 25 Years

Program Conventional Lender Financing

Loan to Value 75%

Index 4.50 Fixed

Due Date Five-Year Term

Debt Coverage Ratio 1.54

FINANCING

12




Comments

Total Units is 167 with 3 Open Parking Spaces

Rent increase effective on Current Rents as of 06-01-2016

No. of

Units

Unit

Type SF/Unit

Current

Rent/Unit

Current

Monthly

Income

Current

Annual Income

Pro Forma

Rents/Unit

Pro Forma

Monthly

Income

Pro Forma

Annual

Income

4 5x5 25.0 $49.00-$49.00 $196.00 $2,352.00 $55.00-$55.00 $220.00 $2,640.00

1 5x7 35.0 $54.00-$54.00 $54.00 $648.00 $59.00-$59.00 $59.00 $708.00

21 5x8 40.0 $57.00-$57.00 $1,197.00 $14,364.00 $65.00-$65.00 $1,365.00 $16,380.00

23 5x10 50.0 $63.00-$63.00 $1,449.00 $17,388.00 $75.00-$75.00 $1,725.00 $20,700.00

1 5x11 55.0 $66.00-$66.00 $66.00 $792.00 $80.00-$80.00 $80.00 $960.00

3 5x12 60.0 $69.00-$69.00 $207.00 $2,484.00 $84.00-$84.00 $252.00 $3,024.00

3 5x13 65.0 $74.00-$74.00 $222.00 $2,664.00 $87.00-$87.00 $261.00 $3,132.00

3 5x14 70.0 $77.00-$77.00 $231.00 $2,772.00 $92.00-$92.00 $276.00 $3,312.00

10 7x10 70.0 $77.00-$77.00 $770.00 $9,240.00 $92.00-$92.00 $920.00 $11,040.00

6 5x15 75.0 $79.00-$79.00 $474.00 $5,688.00 $96.00-$96.00 $576.00 $6,912.00

10 7.5x10 75.0 $77.00-$77.00 $770.00 $9,240.00 $96.00-$96.00 $960.00 $11,520.00

10 8x10 80.0 $82.00-$82.00 $820.00 $9,840.00 $105.00-$105.00 $1,050.00 $12,600.00

8 10x10 100.0 $110.00-$110.00 $880.00 $10,560.00 $120.00-$120.00 $960.00 $11,520.00

5 7x15 105.0 $105.00-$105.00 $525.00 $6,300.00 $125.00-$125.00 $625.00 $7,500.00

2 7x16 112.0 $108.00-$108.00 $216.00 $2,592.00 $129.00-$129.00 $258.00 $3,096.00

21 7.5x15 112.5 $105.00-$105.00 $2,205.00 $26,460.00 $140.00-$140.00 $2,940.00 $35,280.00

1 6x20 120.0 $112.00-$112.00 $112.00 $1,344.00 $145.00-$145.00 $145.00 $1,740.00

4 8x15 120.0 $110.00-$110.00 $440.00 $5,280.00 $145.00-$145.00 $580.00 $6,960.00

1 8x20 160.0 $139.00-$139.00 $139.00 $1,668.00 $168.00-$168.00 $168.00 $2,016.00

1 10x20 200.0 $159.00-$159.00 $159.00 $1,908.00 $185.00-$185.00 $185.00 $2,220.00

12 15x15 225.0 $159.00-$159.00 $1,908.00 $22,896.00 $190.00-$190.00 $2,280.00 $27,360.00

14 15x20 300.0 $179.00-$179.00 $2,506.00 $30,072.00 $210.00-$210.00 $2,940.00 $35,280.00

3 15x30 450.0 $269.00-$269.00 $807.00 $9,684.00 $295.00-$295.00 $885.00 $10,620.00

3 Open Parking $68.00-$68.00 $204.00 $2,448.00 $75.00-$75.00 $225.00 $2,700.00

170 TOTAL 18,587 $16,557.00 $198,684.00 $19,935.00 $239,220.00

UNIT MIX

13



Comments

Revenue is based upon effective Rent Increase as of 06-01-2016 projected forward

Effective annualized collected income was at 86.4% Economic Occupancy for 2015

The current physical occupancy as of 06-15-2016 is reported at 98%.


Income Current Per SF Pro Forma Per SF

GROSS POTENTIAL RENT $198,684 $10.69 $239,220 $12.87

GROSS POTENTIAL INCOME $198,684 $10.69 $239,220 $12.87

Vacancy/Collection Allowance 15.0% / $29,803 $1.60 (17.5%) 41,864 $2.25

EFFECTIVE GROSS INCOME $168,881 $9.09 $197,357 $10.62

Total Expenses $62,240 $3.35 $65,050 $3.50

% of EGI 36.9% 33.0%

NET OPERATING INCOME $106,641 $5.74 $132,307 $7.12

Total Number of Units 170

Total Rentable Square Feet 18,587

INCOME AND EXPENSES

14




Comments

1. On-Site Maintenance Personnel (Lives on Property)

2. On-Site Maintenance Personnel (Lives on Property)

~*~Property Manager has been managing and overseeing this facility and it's operations for 23 years!

Current Per SF Pro Forma Per SF

Real Estate Taxes $15,080 $0.81 $18,500 $1.00

Insurance $6,777 $0.36 $6,777 $0.36

Electricity - TXU Energy $4,650 $0.25 $3,900 $0.21

Repairs & Maint. $0.10/NRSF $1,882 $0.10 $1,882 $0.10

On-Site Manager's Payroll $22,164 $1.19 $22,164 $1.19

On-Site Maintenance Personnel*1 $6,500 $0.35 $6,500 $0.35

E-Move Software Expense $540 $0.03 $540 $0.03

AT&T (Phone, Fax, Internet) $842 $0.05 $867 $0.05

IESI - Dumpster $752 $0.04 $752 $0.04

Water $405 $0.02 $417 $0.02

Supplies $265 $0.01 $265 $0.01

Dues/Subscriptions $300 $0.02 $300 $0.02

Accounting/Legal Expense $600 $0.03 $600 $0.03

Bank Charges/Credit Card Fees $1,483 $0.08 $1,586 $0.09

TOTAL EXPENSES $62,240 $3.35 $65,050 $3.50

% of EGI 36.9% 33.0%

EXPENSES


MARKET OVERVIEW

16

MARKET OVERVIEW


Dallas-Fort Worth-Arlington Metro


Geography

Centrally located in the southern portion of the United

States, Dallas/Fort Worth is one of the largest metros in

the nation, stretching across 9,300 square miles in

northern Texas. The eastern portion of the Metroplex is

situated in the Blackland Prairie region, so named for its

fertile black soil. This area contains streams, creeks,

rivers and manufactured lakes. The western portion of

the Metroplex falls within the Fort Worth Prairie.

Much of this former ranchland sits atop a natural oil

field and the Barnett Shale geological formation.

DALLAS/FORT WORTH

Market Highlights

High population growth

■ Dallas/Fort Worth’s population growth in recent

years ranks among the highest in the U.S. for a

major metro.

Heavy concentration of headquarters

■ The Metroplex is home to 21 Fortune 500

companies and many regional headquarters.

High median household income

■ The annual median household income in

Dallas/Fort Worth, at $61,600, is well above the

U.S. median of $56,100.

17

Largest Cities in Metro by Population

MARKET OVERVIEW

* ForecastSources: Marcus & Millichap Research Services, U.S. CensusBureau, Experian


Metro

The Dallas/Fort Worth Metroplex is the fourth-largest

metro in the nation and is composed of 12 counties,

with an aggregate of more than 6.9 million residents.

Population growth in the region was tremendous during

the past decade, outpacing most U.S. metros. The

population of the Metroplex is forecast to expand 1.6

percent per year through 2020.

Infrastructure

The region’s transportation network is continually

evolving. To improve traffic flow, freeways are being

expanded and miles are being added to tollways and

turnpikes. Six projects totalling $1 billion will be

underway by mid 2017.

Dallas Area Rapid Transit operates buses and an 85-

mile light-rail system that serve Dallas and surrounding

cities. Trinity Railway Express is a commuter rail that

connects Dallas, Fort Worth and the Dallas/Fort Worth

International Airport.

The business community has easy access to major

commercial centers around the globe via the Dallas/Fort

Worth International Airport, home to American

Airlines, and Southwest Airlines operates from Dallas

Love Field. The Metroplex’s strategic location on

Interstate 35 and the NAFTA Superhighway, its home

to BNSF Headquarters, intermodal facilities and the

International Inland Port of Dallas ensure its status as a

national distribution hub for years to come.


Dallas 1,280,500

Fort Worth 810,400

Arlington 387,400

Plano 277,500

Garland 240,400

Irving 234,600

Airports

■ Dallas/Fort Worth International Airport

■ Dallas Love Field Airport

■ Fort Worth Alliance Airport

■ 13 smaller airports

Major Roadways

■ Interstates 20, 30, 35, 45, 635 and 820

■ Toll roads, turnpikes

Rail

■ Freight - Union Pacific, BNSF, Kansas CitySouthern

■ Passenger - Trinity Railway Express, Amtrak

■ Light rail - DART

Port

■ International Inland Port of Dallas

DALLAS/FORT WORTH

The Dallas/Fort Worth Metroplex is:

■ 200 miles from Austin

■ 230 miles from Houston

■ 880 miles from Denver

■ 925 miles from Chicago

18

MARKET OVERVIEW


* ForecastSources: Marcus & Millichap Research Services, Bureau ofEconomic Analysis, Moody’s Analytics, U.S. Census Bureau,Fortune

Economy

The Dallas/Fort Worth economy continues to evolve.

Companies migrating to the area are attracted by warm

weather, no state income tax and a right-to-work labor

policy. These qualities, combined with an educated

workforce, diverse population and low housing costs,

have led to extraordinary growth in the Metroplex and

will continue to draw new businesses. Economic

expansion will be further fueled by a rise in financial

services and high-tech companies.

Dallas/Fort Worth is home to 21 Fortune 500

companies in diverse economic sectors, including

energy, food, healthcare services, telecommunications

and retail. Some top names are ExxonMobil, American

Airlines Group, Southwest Airlines, Fluor, AT&T,

Tenet Healthcare, Kimberly-Clark and JCPenney.

There is also a high concentration of privately held

companies headquartered locally. Toyota plans to move

its North American headquarters to Plano by next year.

Dallas/Fort Worth’s central location and vast

intermodal facilities have elevated the Metroplex to the

preeminent distribution hub for the burgeoning

Southwest. Trade and transportation companies provide

roughly one-fifth of total employment and infuse

billions of dollars each year into the local economy.


DALLAS/FORT WORTH

19

MARKET OVERVIEW


Labor

Dallas/Fort Worth is one of the nation’s largest employment markets, with more than 3.4 million jobs. The

Metroplex fared better than most of the nation during the past five years, with 3.0 percent job growth annually; it

is forecast to add jobs at an annual rate of 2.5 percent through 2020. Employment growth can be attributed to the

continuation of north-to-south migration, the Metroplex’s quality of life, the lack of state income taxes and a pro-

business climate, which has drawn both businesses and workers.

Through 2020, all business sectors are expected to add employees. During this period, the rapidly growing

professional and business services sector, which comprises 17 percent of total payrolls, will expand at a fast clip of 4

percent annually. Only the construction sector will register a faster gain, at 6.1 percent, as development accelerates

to accommodate the area’s expanding population and economy.

The trade, transportation and utilities sector is the largest employment segment and is a major economic driver in

the region. The sector provides 21 percent of all jobs, employing nearly 714,600 workers, and is forecast to grow

1.8 percent annually through 2020, adding 66,000 positions during this time.


* ForecastSources: Marcus & Millichap Research Services, BLS, Moody’s Analytics

DALLAS/FORT WORTH

20

MARKET OVERVIEW


Major Employers

Employers

Dallas/Fort Worth has evolved from a commodities-

based economy to a haven for corporate headquarters

and a high-tech and telecommunications hub.

Two major airlines are headquartered locally. American

Airlines operates out of Dallas/Fort Worth International

Airport, and Southwest Airlines operates from Dallas

Love Field.

Texas Instruments is one of the primary employers of

high-tech workers. The majority of technology-based

companies in the region are smaller firms.

Telecommunications and financial services are growing

industries. Most of the major telecom companies

maintain offices in the region, and State Farm signed

the area’s largest lease in history and will be housing

nearly 8,000 employees at their regional office campus

in Richardson.

Lockheed Martin Corp., based in Fort Worth, anchors

the defense-related manufacturing sector. Other major

defense firms include Bell Helicopter Textron Inc. and

Raytheon Co. The latter is underway on its sizable new

headquarters in Richardson.

Gas exploration and extraction from the Barnett Shale

formation has produced an energy sector including

companies such as ExxonMobil, Fluor and Atmos

Energy. Short-term gains in this segment will likely be

affected by the reduced price of oil.* ForecastSources: Marcus & Millichap Research Services, Moody’sAnalytics, BLS


DALLAS/FORT WORTH

Wal-Mart

American Airlines

Texas Health Resources

Baylor Health Care System

JPMorgan Chase

Lockheed Martin

Texas Instruments

Bank of America

HCA North Texas Division

21

MARKET OVERVIEW


Demographics

Dallas/Fort Worth’s population has grown significantly

since 2010 with the addition of 577,800 people, placing

the metro among the largest in the nation. Over the

next five years, the population is expected to grow by

another 529,900 residents.

The Metroplex’s phenomenal population growth is

fueled by strong natural increases and the nation’s

north-to-south migration. The region will continue to

benefit from companies and people moving to the

South for more favorable weather and economic

prospects. The Metroplex remains relatively young; the

median age, at 34.2 years, is well below that of 37.5

years for the nation. Citizens age 65 and older account

for just 10.0 percent of the region’s population.

Unlike many other fast-growing Sun Belt metros,

Dallas/Fort Worth boasts high educational attainment.

31.5 percent of residents age 25 years and older have

attained at least a bachelor’s degree, while 10.2 percent

hold a graduate or professional degree.

The median household income sits at $61,600 per year,

above the U.S. median of $56,100 annually. Housing

prices are relatively low compared with many other

cities nationwide, which has afforded 62 percent of

households homeownership.

* ForecastSources: Marcus & Millichap Research Services, AGS, Experian,Moody’s Analytics, U.S. Census Bureau


DALLAS/FORT WORTH

22

MARKET OVERVIEW

The information contained in the market overview comes from sources deemed to be reliable, however, no representation, warranty or guarantee, express or implied, may be made as to the accuracy or reliability of the information contained herein. The most timely data available at time of production, including estimates and forecasts, were used and may be subject to revision.


Quality of Life

The Metroplex provides residents with an unparalleled

lifestyle at a reasonable cost. The region continually

ranks high for its affordability when compared with

other large metros. A temperate climate provides ample

opportunities for sports enthusiasts to enjoy the

outdoors. The region has 150 public and private golf

courses, along with several reservoirs. Dallas/Fort Worth

hosts professional teams in baseball, football, hockey

and basketball.

Dallas/Fort Worth is not only recognized for its sports

teams’ accomplishments, but also for its cultural

institutions. There are more than 150 museums and art

galleries, including the internationally renowned

Kimbell Art Museum, Perot Science Museum and

Modern Art Museum of Fort Worth.

Metroplex residents are proximate to nationally

recognized health centers: Parkland Memorial Hospital,

Baylor University Medical Center and Texas Health

Harris Methodist Hospital Fort Worth. Four medical

schools also contribute to Dallas/Fort Worth’s excellent

healthcare providers.

The University of Texas at Dallas, University of North

Texas, Texas Women’s University-Denton, Southern

Methodist University, Texas Christian University and

the University of Texas at Arlington are among the 19

higher education institutions in the Metroplex.* ForecastSources: Marcus & Millichap Research Services, NationalAssociation of Realtors, Moody’s Analytics, U.S. Census Bureau


DALLAS/FORT WORTH

Employment Trends Population Trends

23

Vacancy Trends Rent Trends

MARKET OVERVIEW


■ Employers in Dallas will add 78,000 workers to theirpayrolls by the end of the year, representing a 3.4 percentyear-over-year gain. In 2014, job growth increased 4.0percent with 89,000 positions added. Retail spending willrise 3.8 percent in 2015 following a 4.4 percent gain lastyear.

■ In 2015, single-family home completions in Dallas willrise by 28.5 percent year over year, while multifamilycompletions have increased by 26.4 percent. During thesix-year period from the pre-recession peak in 2009,multifamily completions will expand by 5 percent. Asrentals are filled, demand for self-storage facilities willlikely strengthen.

■ Strengthening demand for self-storage properties willtighten vacancy 80 basis points in 2015 to 10.6 percent,placing the rate 50 basis points below the national rate.Last year, strong employment gains and steadypopulation growth slashed vacancy 80 basis points.


■ This year, average asking rents at climate controlled andnon-climate controlled facilities will rise 5.1 percent to$1.40 per square foot and 5.8 percent to $1.05 persquare foot, respectively. Asking rents in 2014 forclimate controlled spaces rose 3.7 percent, and rents fornon-climate controlled units climbed 3.9 percent.

* ForecastNote: Rent based on 10x10 unitsSources: Marcus & Millichap Research Services; BLS; REIS Services, LLC; U.S. Census Bureau

DALLAS


DEMOGRAPHIC ANALYSIS

1 Mile 3 Miles 5 Miles

2000 Population 5,933 70,006 216,104

2010 Population 9,169 80,944 233,722

2014 Population 9,514 84,775 247,229

2019 Population 10,691 89,515 255,936

2000 Households 1,902 19,964 67,965

2010 Households 2,752 22,923 73,378

2014 Households 2,868 24,109 78,064

2019 Households 3,239 25,702 81,230

2014 Average Household Size 3.39 3.43 3.13

2014 Daytime Population 1,904 25,700 68,769

2000 Owner Occupied Housing Units 41.36% 51.46% 51.25%

2000 Renter Occupied Housing Units 52.54% 43.97% 43.91%

2000 Vacant 6.11% 4.57% 4.84%



2014 Vacant 2.21% 4.17% 4.37%



2019 Vacant 1.99% 4.16% 4.37%

$ 0 - $14,999 15.0% 15.2% 15.6%

$ 15,000 - $24,999 15.6% 16.1% 15.4%

$ 25,000 - $34,999 21.0% 18.0% 15.4%

$ 35,000 - $49,999 22.1% 17.8% 17.5%

$ 50,000 - $74,999 14.6% 17.2% 17.3%

$ 75,000 - $99,999 5.3% 8.0% 8.9%

$100,000 - $124,999 3.1% 3.9% 4.8%

$125,000 - $149,999 1.3% 1.7% 2.2%

$150,000 - $199,999 1.1% 1.2% 1.6%

$200,000 - $249,999 0.3% 0.3% 0.4%

$250,000 + 0.7% 0.6% 0.8%

2014 Median Household Income $34,064 $35,496 $37,778

2014 Per Capita Income $13,635 $13,710 $16,179

2014 Average Household Income $44,778 $47,464 $50,800

25




DEMOGRAPHIC REPORT

Demographic data © 2012 by Experian.

Geography: 5 miles

Population

In 2014, the population in your selected geography is 247,229. The population has changed by 14.40% since 2000. It is estimated

that the population in your area will be 255,936 five years from now, which represents a change of 3.52% from the current year. The

current population is 48.95% male and 51.04% female. The median age of the population in your area is 29.7, compare this to the

Entire US average which is 37.3. The population density in your area is 3,148.26 people per square mile.

Households

There are currently 78,063 households in your selected geography. The number of households has changed by 14.85% since 2000.

It is estimated that the number of households in your area will be 81,230 five years from now, which represents a change of 4.05%

from the current year. The average household size in your area is 3.13 persons.

Income

In 2014, the median household income for your selected geography is $37,777, compare this to the Entire US average which is

currently $51,972. The median household income for your area has changed by 5.65% since 2000. It is estimated that the median

household income in your area will be $41,851 five years from now, which represents a change of 10.78% from the current year.

The current year per capita income in your area is $16,179, compare this to the Entire US average, which is $28,599. The current

year average household income in your area is $50,800, compare this to the Entire US average which is $74,533.

Race & Ethnicity

The current year racial makeup of your selected area is as follows: 46.40% White, 25.47% Black, 0.03% Native American and 1.44%

Asian/Pacific Islander. Compare these to Entire US averages which are: 71.60% White, 12.70% Black, 0.18% Native American and

5.02% Asian/Pacific Islander.

People of Hispanic origin are counted independently of race. People of Hispanic origin make up 60.24% of the current year

population in your selected area. Compare this to the Entire US average of 17.13%.

Housing

In 2000, there were 36,605 owner occupied housing units in your area and there were 31,359 renter occupied housing units in your

area. The median rent at the time was $510.

Employment

In 2014, there are 68,769 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed

that 51.48% of employees are employed in white-collar occupations in this geography, and 48.77% are employed in blue-collar

occupations. In 2014, unemployment in this area is 5.64%. In 2000, the average time traveled to work was 29.0 minutes.


26




SUMMARY REPORT

Number of people living in a given area per square mile.


27




POPULATION DENSITY

The number of people employed in a given area per square mile.


28




EMPLOYMENT DENSITY

Average income of all the people 15 years and older occupying a

single housing unit.


29




AVERAGE HOUSEHOLD INCOME

DALLAS, TX

OFFERING MEMORANDUM

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Offices Throughout the U.S and Canada

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