how store here brings value
TRANSCRIPT
How Store Here BRINGS VALUEC A S E S T U D Y: P R O P E R T Y A
Why use Property A as an example?
Property A is a great example of how we can grow revenue even in a case where occupancy shrinks.
The point is to show that revenue can grow independently of occupancy.
We have many, many cases where occupancy and revenue both grow…but we are using Property A as an example to set ourselves apart.
Property A … 529 units
November 1, 201282% of units occupiedGross potential rates of $52,796 / moActual occupied rates of $36,055 / moGross income ytd: $409,542Net Operating Income ytd: $206,269Asset value at a 7 cap rate: $3,536,040.
“an unremarkable property…
an unremarkable area”
After Three Years
November 1, 201579.8% of units occupiedGross potential rates of $67,686 /moActual occupied rates of $55,441 /moGross income ytd: $633.099Net Operating Income ytd: $352,902Asset value at a 7 cap rate: $6,049,748.
*disclaimer: not every property is the same and not every success looks the same.
Changes at Property A
2.2% less units occupied Gross potential rates up $14,890 /mo Actual occupied rates up $19,386 /mo Gross income ytd up $223,557 Net Operating Income ytd up $154,723 Asset value at a 7 cap rate up $2,513,708
*disclaimer: not every property is the same and not every success looks the same.
Monthly Cost of Increased Profits
*disclaimer: not every property is the same and not every success looks the same.
PROFITS DOLLARS
Gross monthly revenue increase $20,323
New Costs Dollars
6% management fee $3,453
New marketing costs $700
Total New Costs $4,153
Would you spend $4,153to gain $16,170?
*disclaimer: not every property is the same and not every success looks the same.
…when 50% is NOI?
You’d get double your moneyback every month!
The Math
*disclaimer: not every property is the same and not every success looks the same.
Nov-12 Nov-15 CHANGE
Unit Occupancy 82.00% 79.80% -2.20%
Gross Potential Rates $ 53,796 $ 67,686 $ 14,890
Actual Occupied Rates $ 36,055 $ 55,441 $ 19,386
Gross Income $ 409,542 $ 633,099 $ 223,557
Net Operating Income $ 206,369 $ 352,092 $ 145,723
Change in Asset Value
• You purchased this store at $ 3,536,040
• You raised $1,060,812 cash.
• You sell it at $6,049,748
• Even if you hadn't paid a nickel on principal, you’d have $1,452,896 in proceeds above and beyond your initial cash investment.
*disclaimer: not every property is the same and not every success looks the same.
Store Here Delivers Twice
MONTHLY:You spend a little
and gain a lot.
AT SALE OR REFINANCE:We give your asset’s
value a big boost.
Why Store Here and not another firm?
Our managing partners have a unique mix of expertise and experience unmatched in the industry.
Our focus on practical, customer-friendly, scalable revenue growth brings excellent results across a variety of properties.
Our management, operating and marketing systems are efficient and work well across diverse markets.
Why Store Here and not another firm?
Our human resource practices and people management style create engaged and effective employees.
Our fee structure is simple and straightforward without surprises and add-ons.
There are many ways we cando business together…
A simple management agreement where Store Here charges 6% of gross revenue monthly.
A joint venture, where Store Here takes an equity stake in a property purchase. Store Here can manage 100% of the transaction for a fee.
A revenue share where we help you prepare a property for sale. We would charge a small monthly management minimum and take a percentage of proceeds.
*details, particulars, disclaimers, legalese, conditions & exclusions available on request.
There are many ways we cando business together…
A revenue share / performance model for an existing property. We would charge a small monthly minimum management fee and take a percentage of the increase in revenue (above a baseline value).
An advisory role where Store Here assists in and manages a purchase for a fee and handles the day-to-day management.
*details, particulars, disclaimers, legalese, conditions & exclusions available on request.