SELF STORAGE DEMAND STUDY REPORT

Transcription

1 Commercial/Investment Real Estate Atrium Court Office Condominiums (Mailing Address) 705 S. 9th Street, Suite 303 P.O. Box 1492 Tacoma, WA Tacoma, WA (253) Office (253) Fax SELF STORAGE DEMAND STUDY REPORT Site Located at State Highway 204 and th Street SE, Lake Stevens, Washington Donald G Arsenault, CCIM of Arsenault Realty Advisors, LLC has prepared this self storage demand study analysis using information from sources deemed reliable and those of ESRI and the CCIM Institute. Mr. Arsenault has also consulted with other self storage management professionals who have lived and worked in that area for more than 20 years. The facts, analysis and conclusions are those of Mr. Arsenault according to his best knowledge and belief.

2 Table of Contents Executive Summary Page 3. 1-Mile, 3-Mile, and 5-Mile Radii of Self Storage Competition Page 5. Imperfections of The Radii Study Are Not Quite Evident. Page 5. Frontier Village Self Storage Page 6. Lake Stevens Storage Depot Page 7. Clock Tower Self Storage Page 9. All Season Self Storage Page 12. Lake Stevens Best Mini Storage Page 13. Adventure Boat, RV, Car Self Storage Page 14. Demand Study Spreadsheets and Computations Page 16. Population Growth and Increased Demand for Self Storage over Next 5 Years Page 18. Snohomish County Plat Map of 2 Parcels 3.7 Acres About 3.5 Useable Page 19. Topography, Ingress & Egress and Location of Utilities to Site Page Daily Traffic Counts from State Dept of Transportation (29,000) Page 21. Barriers to Entry of More Self Storage in Lake Stevens Page 22. Map of Entry to Site Going Southeast on Hwy 204 Page 23. Résumé of Dave Huber, Developer of Site Approval Page 24. Résumé of Donald G. Arsenault, CCIM, Author of this Demand Study Page 26. Demographic Profile Retail 1 Mile Radius Page 29. Demographic Profile Retail 3 Mile Radius Page 31 Demographic Profile 5 Mile Radius Page 33. Market Profile 1, 3, 5 Mile Radii Page 36. Housing Profile Page 43. Demographic Executive Summary Page 49. Demographic and Income Profile Page 51. Community Profile Page 57. Business Summary Page 65. Page 2.

3 EXECUTIVE SUMMARY The site which is the subject of this study is located at 1113 State Hwy. 204 and is located immediately south of 10 th St. SE., Lake Stevens, WA The site consists of two, Snohomish County, parcel numbers and with approximately 3.7 Acres of undeveloped land of which approximately 3 + Acres of utilizable land to build a self storage facility. However, the zoning for these two parcels is the same as the remainder parcels to the northeast so that the zoning laws apply to the all of the parcels and therefore adds to the density of self storage for these two parcels benefitting from the adjoining parcels with the same zoning. The parcel to the east may possibly also be included in any sale or development of the site since they are owned by members of the same family. These properties have recently been approved by the City of Lake Stevens for a self storage facility with a building footprint with a total of approximately 63,000 ft.² of self storage. Additionally, these sites may be used for self storage along with a multiple of other buildings and development on these sites. The approximately 63,000 ft.² of self storage may be built in several buildings as long as there is a 15-foot passageway between the buildings. Additionally, the site may benefit from building multi-story buildings since the land has a height restriction of 60 feet. The site also lends itself to a multi-story development due to the fact that the site is a partially sloped site towards State Highway 204 and offers tremendous views to the northwest. The site benefits from high traffic exposure because it is located on State Highway 204 which is a major arterial highway from Interstate I-5 to Lake Stevens, State Hwy. 9 and Granite Falls and other areas south of Lake Stevens. It is visible by all the traffic going from the Lake Stevens area over to I-5 and to the city of Everett. Like much of the Puget Sound region, this site benefits from a north to south geographical limitation area due to the large area west of the site which is in a floodplain and referred to as Ebby Island with the Snohomish River and swampland which is a large geographical separation of this area from a preponderance of self storage facilities in the Everett area. It should be noted that there is a substantial number of self storage facilities to the west of I-5. However, due to the natural barriers described above, those facilities don t fall within the scope of this study but do fall within the 5-mile radius of the subject site. To the east of the geographical study area is the other natural boundary which is created by Lake Stevens which separates the subject site from the self storage facilities that are east of the Lake Stevens marketplace giving the study area a more north-south orientation other than what the circular radii would normally indicate. It is my professional opinion and that of a noted owner of a Self Storage management company and Past President of the Washington Self Storage Association that the true market area for this subject property is within a 3-mile radius of the subject site and runs primarily north to south. There are only two existing facilities that fall within this 3-mile radii. Those two facilities are Frontier Village Self Storage and the Lake Stevens Self Storage Depot each of which reports a greater than a 95% occupancy. Page 3.

4 In this Demographic Study, there are NO storage facilities within a one-mile radius of the subject site. The population density within a one-mile radius is currently at 5,677 in population and they enjoy a Median Disposable Income $67,785 per year. These factors indicate a determination of demand for self storage at 5 Square Feet of per person. These factors show a demand of 28,350 square feet of self storage within this one-mile radius of this Approved Self Storage Site with NO existing self storage within that area. The 3-mile to 5-mile radius includes the new Clock Tower Self Storage facility with 90,040 ft.² of new self storage of which there is a new 40,040 ft.² heated, three-story, self storage building that will be on completed and available to rent within the next three weeks. Additionally, there is 50,000 square feet of un-heated self storage. These 8 buildings are of various sizes and heights. They offer split-faced concrete block between the doors offering an attractive exterior finish and strong, stable buildings. There also appears to be extra land available for outside parking for added income. In comparing the demand for self storage in the 3-mile radius from the subject site, this Self Storage Demand Study clearly shows an un-met demand of 28,385 ft.² self storage within one-mile radius of the subject site and an un-met demand of 165,676 ft.² of self storage within a 3-mile radius after subtracting the square footage of the Frontier Village Mini Storage facility and the Lake Stevens Self Storage Depot. Subtracting the total square footage of the new Clock Tower Self Storage Facility, that is within the 3-mile to 5-mile radius from the subject site; there exists an unmet demand of 475,809 ft.² of self storage for self storage in the study area! With the high growth rates in the area increasing every year and with the City of Lake Stevens being so strong against Self Storage, it appears that this Site is like finding a rare gem in a bag of rocks. Page 4.

5 1-Mile, 3-Mile and 5-Mile Radii of Self Storage Competition Imperfections Of The Radii Study For This Demand Study Are Not Quite Evident. Imperfections of a Radii Study for this particular Demand Study area not quite evident; but, due to the Natural Boundaries established by the wide area of the Sough to the West and Lake Stevens to the East the storage facilities on the perimeter of the 5-Mile radii are not considered any significant impact on our subject property. The actual drive times to these perimeter Self Storage facilities to the east side of the Lake are all beyond a reasonable drive time and all the facilities to the West are also out of reach since Everett is considered to be a different market area and therefore are not considered to be any significant competition to the subject property. Additionally, South Sound Management Inc shows up on the Map as a self storage facility within the 3-Mile Radii; however, this is the main office of one of the best Self- Storage Property Management Companies in the Pacific NW and is not a self storage facility offering self storage to the population within this radii. Page 5.

6 Frontier Village Mini Storage There are only two self storage facilities within a 1-mile to 3-mile radius of the subject site. The Frontier Village Self Storage facility is closest to the subject site and is located within this 1-mile to 3-mile radius of the approved self storage site. The Frontier Village Self Storage facility is the closest self storage facility to the subject storage site. Page 6.

7 This self storage facility Is located at 8911 Vernon Rd., Lake Stevens Washington. This site is approximately 1 ½ miles away from the subject self storage site and was built in This site has approximately 38,340 ft.² of self storage with one of the buildings being a two-story, heated Building. The rents for Heated self storage are as follows: The 5 x 5 Heated units rent for $60 per month or $2.40 per square foot per month. The 5 x 7 Heated units rent for $75 per month or $2.14 per square foot per month. The 5 x 10 Heated units rent for $95 per month or $1.90 per square foot per month. The average rent per square foot for Heated units at the Frontier Village Mini Storage facility is $2.15 Per Sq. Ft. per month. The rents for Un-Heated self storage are as follows: The 5 x 10 unheated units located inside rent for $75 per month or $1.50/SF/Month The 10 x 10 unheated units located inside rent for $135 per month or $1.35/SF/Month The 10 x 10 unheated Drive up units rent for $150 per month or $1.50/SF/Month The average rent per square foot for Un-Heated units at the Frontier Village Mini Storage facility is $1.45 Per Sq. Ft. per month. Lake Stevens Self Storage Depot The other self storage facility which is within the one-mile to three-mile radii of our subject site is the Lake Stevens Self Storage Depot which is the second closest self storage facility to the subject site. This facility is approximately 2 miles away from the subject site. The Lake Stevens Self Storage Depot is located at th St. NE., Lake Stevens, Washington. The Lake Stevens Self Storage Depot was built in 1998 and is only one block off of Highway-9 and it has superior visibility and traffic than Frontier Village Self Storage but the Lake Stevens Self Storage Depot has lesser visibility and traffic count then that of the subject self storage site. The Lake Stevens Self Storage Depot has approximately 40,784 ft.² of self storage with all of the buildings being single-story buildings, one of which is heated and all of the other buildings are unheated self storage. They also have a few outside, uncovered boat and RV self storage spaces. Page 7.

8 The rents for Heated self storage are as follows: The 4 x 5 Heated units rent for $75 per month or $3.75 per square foot per month. The 5 x 5 heated units rent for $90 per month or $3.60 per square foot per month. The 5 x 7 heated units rent for $95 per month or $2.71 per square foot per month The average rent per square foot for Heated units at the Lake Stevens Self Storage Depot is $3.35 per square foot per month. The majority of units are unheated. The 5 x 9 Un-Heated units rent for $95 per month or $2.11 per square foot per month. The 5 x 10 Un-Heated units rent for $100 per month or $2.00 per square foot per month. The 7 x 10 Un-Heated units rent for $125 per month or $1.79 per square foot per month. The 10 x 10 Un-Heated units rent for $160 per month or $1.60 per square foot per month. The 10 x 12 Un-Heated units rent for $180 per month or $1.50 per square foot per month. The 10 x 15 Un-Heated units rent for $205 per month or $1.37 per square foot per month. The 10 x 25 Un-Heated units rent for $275 per month or $1.10 per square foot per month. The average rent per square foot for Un-Heated units at Frontier Village Mini Storage facility is $1.68 Per Sq. Ft. per month. This self storage facility also enjoys a greater than a 95% occupancy factor. Page 8.

9 Clock Tower Self Storage Page 9.

10 The Clock Tower Self Storage The Clock Tower Self Storage facility is located 3.4 miles to the Northeast of our Approved Self Storage Site and is at the North End of the Study area. The Clock Tower Self Storage will be completed within approximately three weeks and will offer a total of 94,040 Square feet. This facility opened in November 2017 and is already over 30% occupied. It has all of the Bells and Whistles that current technology has to offer. The facility offers eight, single story, roll-up door, storage buildings and an approximately 40,000 SF, 3 story heated building. This state of the art self storage facility is located on State Highway 92 at the intersection of State Highway 9. The site offers great visibility to Highway 9 and is on the major arterial on the way to Granite Falls. The office of this facility is approximately 1,100 ft.² in size and is not used for self storage but for the office to run the business. Because this facility is located at the very North end of the study area and over 3 miles north of our subject site, it is felt that this new facility not be much competition from our subject site due to the distance being substantially further north from out subject site. Additionally, this property is filling up so fast that it will likely not be any competition to our subject site just as Frontier Village Mini Storage and Lake Stevens Self Storage Depot. It should be clearly noted that the rents of the Clock Tower Self Storage are currently below market rents due to the initial fill up of the new facility. Once the property achieves a strong occupancy, then rents are going to rise sharply. Page 10.

11 The rents for heated self storage at the Clock Tower Self Storage are as follows: The 5 x 10 Heated units rent for $104 per month or $2.08 per square foot per month. The 10 x 10 Heated units rent for $174 per month per $1.74 per square foot per month. The average rent per square foot for heated units at the Clock Tower Self Storage Facility is $1.97 per square foot per month. However, the new, three-story, heated, self storage building will be ready to rent within approximately three weeks so there will be much more competition because that building will be in a total startup situation. There remains then a approximately 50,000 ft.² of unheated units at the Clock Tower Self Storage. The rents for unheated units are currently at: The 10 x 10 unheated units rent for $165 per month or $1.65 per square foot per month. The 10 x 15 unheated units rent for $229 per month or $1.53 per square foot per month. The 10 x 20 unheated units rent for $289 per month or $1.45 per square foot per month. The 10 x 30 unheated units rent for $339 per month or $1.13 per square foot per month. The average rent per square foot for unheated units at the Clock Tower Self Storage Facility is $1.44 per square foot per month. Self Storage Facilities Located outside of the Five-Mile Radii As noted earlier with the map that goes along with this report, there are two natural barriers within the outlying 3 mile to five-mile radii of this self storage demand study. As previously mentioned, the outlying area to the west across the trestle is approximately 4 miles away from our subject site and due to the natural barrier, it is felt that the Everett area self storage facilities will have little impact on the subject site; however, there will be some shrinkage of demand due to the large amount of storage to the west of I-5. Those facilities are therefore not considered to have a significant impact to our subject site. The east side of the study area has the natural barrier of Lake Stevens. In order for customers to get to that side of the lake requires additional driving time due to the distance being of those other facilities being over 5 miles from our subject site. There are three primary facilities which are felt to be of little competition since those units are beyond the study area and are also reported to be over 95% occupancy. Page 11.

12 All Seasons Self Storage The All Seasons Self Storage facility is located at 3318 Old Hartford Rd. in Lake Stevens Washington. This is self storage facility was built in 2005 with 31,360 ft.² of self storage along with some small amount of outside parking. This facility is 5.1 miles away from our subject site by driving but does fall within a 5-mile radii of the subject site. This facility is difficult to find because it is located behind a newer retail building on Old Hartford Road so, drive by traffic finds it difficult to see All Seasons Self Storage from the road. The visibility of this facility is so poor that the Snohomish County Assessor even has a photo of the new retail building as being part of the self storage facility when in fact, the self storage facility sits behind the retail building. Page 12.

13 Lake Stevens Best Mini Storage The Lake Stevens Best Mini Storage facility is located at st Ave. NE. at Lake Stevens. This facility is a combination of older buildings on the West side of the street and newer buildings on the east side of the street. Frankly, the older buildings are painted with vibrant Yellow and Brown colors that stand out but appear to lack the appeal as that of a newer, quality self storage facility. These building are reported to have been built in 2013 and show a square footage of only 16,897 ft.² This facility is located approximately 5.6 miles away from our subject site by driving but is within the 5-mile radii of the subject site and also falls outside the scope of the study. Page 13.

14 Adventure Storage and RV Page 14.

15 Adventure Storage Boat, trailer, car and RV is primarily an outside parking area for RV s, Boats, Trailers and Vehicles. There is approximately 9,720 ft.² of covered boat, RV, trailer and vehicle self storage. However, there is a preponderance of uncovered storage area. It should be noted that this facility reports that they are completely filled and have a waiting list for such space. It also should be noted that every facility reports that they are filled to capacity for outside storage of the boats, RVs, trailers and vehicles. Adventure Self Storage pricing for their storage facility is as follows: The average price per lineal foot for outdoor boat RV self storage is $2.87. The average price per lineal foot for covered boat RV self storage is $5.27. The average price per lineal foot for indoor boat RV self storage is $8.55. PLEASE NOTE: Boat, RV, Car and Trailer Storage are in great demand in our study area being one of the least available self storage facility types in the area with just about every facility reporting being fully rented. Page 15.

16 Self Storage Demand Study Spread Sheets and Computations The following two spread sheets show the computations for the demand of self storage based on the population and the amount of disposable income of that population within the certain radii of 1-mile, 1 mile to 3-mile radii and from 3-mile to 5- mile radii. Please note that there is no self storage facility within the first 1-mile radius of the subject property. The next ring, from 1 mile to three miles shows just three self storage facilities. The Frontier Self Storage is closet to the site located on Vernon Rd. However, that road is used as a cut-off road for traffic going northerly. At the same time Frontier Self Storage reports a Full Capacity occupancy. The next closest self storage facility is the Lake Storage Depot. This site has greater visibility and access than Frontier Self Storage and they are also reporting a Full Capacity occupancy. The next facility is the new, Clock Tower Self Storage facility located on the outer ring of the 3-Mile radii at 3.4 Miles from the subject property. This facility is experiencing a very rapid fill-up due the it s desirable, high visibility location and superior design and construction. They reported an occupancy of over 30% in the first four month after securing their occupancy permit from the City of Lake Stevens. It should also be noted that the developers of this site worked for over 12 years to meet all of the requirements to get their occupancy permit. These three facilities are considered to be the only competitors within a five-mile radius for the reasons given above. This particular site has the benefits of being an approved self storage site with the City of Lake Stevens and working with Dave Huber, the Developer of this site will be a much easier task to get this project developed and built. e first chart on page 17 states the amount of demand for self storage in the study area and the chart on page 18 shows the increased demand over the next five years. Remember too, the City of Lake Stevens and their substantial barriers to entry as described on page 18 make this particular site and excellent self storage site. Page 16.

17 Self Storage Demand Study Spread Sheets and Computations 3.7 Acres Approved Self Storage Site on Highway 204 and 10th Street Lake Stevens, WA Lake Stevens 1 Mile Self Storage Study Area NO SELF STORAGE EXISTS Distance from Subject Lake Stevens 1 to 3 Mile Study Area Business Name Address City ZIP Code Existing SS Year Built Lake Frontier Self Storage 8911 Vernon Rd Stevens , Lake Stevens Self Storage Lake Depot th St Ne Stevens , Lake Stevens Self Storage Depot th St Ne Land Area 1.65 Acres 4.97 Acres (Useable) 2.4 Acres 1.5 Miles 2.0 Miles Total SF of Existing Self Storage in 1 to 3 Mile Study Area 79,124 Lake Stevens 3 to 5 Mile Study Area Lake Clock Tower Self Storage 9100 Highway 92 Stevens , Miles Total SF of Existing Self Storage in 3 to 5 Mile Study Area 173,164 North West Side of Lake Stevens Area Greater than 5 Miles From Site All Seasons Storage 3318 Old Hartford Rd Lake Stevens , Lake Stevens (Mini) Best Lake Storage st Ave Ne Stevens , Lake Adventure Storage RV 2801 Hartford Dr Stevens , Miles 5.3 Miles 5.6 Miles Total SF of Existing Self Storage Outside 5 Mile Study Area 57,977 Page 17.

18 Page 18.

19 Snohomish County Plat Map Of Subject Site Page 19.

20 Topography of Site Ingress & Egress Easement to Property and Proposed Sewer Line Page 20.

21 2016 TRAFFIC COUNTS ON STATE HIGHWAY 204 CLOSE TO 10 TH STREET, Lake Stevens, Washington The Washington State Department of Transportation has been concerned about the traffic counts on State Highway 204 from I-5 into the City of Lake Stevens. The State is making Highway 204 more of a through fair rather than just an arterial and they have chosen to block left turns from and onto 10 th St. SE., requiring right turns in and right turns out only. However, once a customer comes to the site, they realize that the right turns in and right turns out only is not that difficult of an issue which sure beats going to a site further out. This high traffic count shows that there are a substantial number of people who drive past the site on a daily basis and that it s high visibility will greatly lead to a very strong customer base for self storage at this site. Once customers come to the site and realize the accessibility of the site being the right turn in and right turn out will not be a problem to gain and retain customers. Customers will come around to this site rather than take the 3.4-mile trip through the city of Lake Stevens to the leading competitor of Clock Tower Self Storage. Additionally, the high rate of new occupancy at the Clock Tower Self Storage will long be filled prior to any storage being built on the site. Page 21.

22 Barriers to Entry of More Self Storage in Lake Stevens This demand study was commissioned by Mr. Dave Huber has worked on the site as a consultant for several years before buying the property. Mr. Huber has built a reputation as a real estate and land use problem solver. He has worked for more than two years with the City of Lake Stevens to secure approval for a self storage use for this site. He first had to get the property rezoned and then had to get a Code Change Amendment to secure this self storage use of the property. This required the full cooperation of the Planning Department, the Mayor of Lake Stevens and members of the City Council to secure all of the approvals needed for this site to be used for self storage. It s very apparent that there are very few, if any, remaining parcels within the City limits of Lake Stevens that can be used for self storage development. Hence, the substantial barriers to entry within this marketplace are very difficult to overcome making this particular site even more desirable! Mr. Dave Huber is desirous of working with a self storage developer as either a joint venture partner, or as a consultant with a self storage developer to see this site developed as soon as possible with the best layout of buildings and uses of the property for the benefit of everyone. His prior work and familiarity with the officials of the City of Lake Stevens will be a huge benefit to any such developer. Additionally, should a self storage developer only want to acquire a portion of this property, then Mr. Huber will consider selling a portion of this property and keeping the remaining portion for himself to develop for another use. (Please see the Résumé of Dave Huber attached to this study Page 24). The attached site plan below is merely a drawing of what possibly might be allowed on the site. HOWEVER, it is by no means to be used as a model for development, nor is it any indication of what a final site plan may look like. That final site plan has to be developed in accordance with the City zoning requirements. This new zoning code that was just approved, allows for a footprint of 63,000 ft.² of buildings for self storage coverage on this site and each building can be up to 60 feet high! The 63,000 ft.² of footprint may be just in one building if desired, or more than one building If desired, with separation between buildings being a minimum of 15 feet between buildings. It should also be noted that due to the high Traffic Count of 29,000 vehicles per day, the State of Washington recently installed a barrier in the middle of State Highway 204 separating the traffic and requiring traffic to enter the site with a right turn only onto 10 th St. SE and a right turn only out from 10 th St. SE. onto State Highway 204. While this does Page 22.

23 present a negative aspect to this site, it is relatively easy for traffic going south west on Highway 204 to enter the site by going past the subject property and coming to the site from 10 th Street SE. (Please refer to the map below on page 23.) Entry to Subject Site from Lake Stevens Going South West on State Hwy 204. Page 23.

24 Résumé of Dave Huber Real Estate Developer of This Site Experience More than a quarter century in real estate sales, property management, construction, and land development. As a principal of several successful real estate related businesses all operated out of the same location, I built a reputation as a real estate and land use problem solver. My office bought, sold, developed, brokered, and consulted on an incredible volume of properties in north Puget Sound area. My general focus was on developing a high volume of small projects with high margins. However, I also was a principal on larger projects ranging from 83 to 265 lots in size. In addition to developing my own projects, I often brokered raw or developed lots to area developers and builders. These projects would often be brokered to the general public through my office which is one reason I was able to personally broker over 850 properties just within the Lake Stevens UGA. My experience is unique in the fact that I was involved in such a wide variety and volume of real estate activities simultaneously. Land Use, Planning, Legal Completed largest boundary line adjustment in Snohomish County history of 265 lots (Westview Estates) Developed East Everett (re-named Westview Estates) a 1891 plat with no mitigation fees, no public hearings, with over 10 dwellings per acre in a 4 dwelling per acre zone (265 lots, Westview Estates) Nominated to Snohomish County Planning Commission at the age of 26 by Robert Drewel, Snohomish County Executive Provided consulting services for lenders, investors, and law firms Extensive experience resolving boundary line issues, boundary line adjustments, landlocked properties, right of necessity litigation, obtaining lot status, vacating right of ways, purchasing right of ways, permitting access off state highways, etc. Principal in making case law involving prescriptive easement litigation Responsible for county (Snohomish) changing county code relating to cumulative traffic related to phased plats when doing Amber s Skyline (83 lot plat, principal). Through boundary line adjustment created 4,300 sq. ft. lots that contained primary septic, reserve septic, all parking, and homes all contained within the lot area. Smallest lots known to date to contain all the above. Experience in innovative design, wetland banking, developer extension agreements, sewer lift stations, rezones, code amendments, map amendments, building permits, grading permits, right of way permits, etc. Re-established a 80s 47-unit apartment building binding site plan (and associated mitigation fees) and converted project to 44 townhome project (Westlake Pointe). Page 24.

25 Obtained lot status of a 1,000 sq ft lot and subsequent boundary line adjustment allowing the development of two substandard lakefront lots effectively doubling project yield. Developed commercially in the Lake Stevens Urban Growth Area using a septic system when code specifically disallowed such development. Real Estate Sales and Management Asset manager for TIC (Tenants in Common) Extensive experience in collection of deed of trusts, real estate contracts, foreclosing of owner held notes, etc. Personally brokered over 850 properties just within the Lake Stevens Urban Growth Area Cumulatively sold over 13 acres of commercial land in the Frontier Village area of Lake Stevens. Locations of Wendy s, Walgreens, Team Fitness, retail, and office buildings. Started and managed Rental Management Company, at one time the area s largest single-family management company. Example, Himalya Homes; 175 homes managed for over 8 years with less than a 2% vacancy factor during that period. That rental portfolio out performed any other rental portfolio at Cascade Bank while under my brokerage. Drafted a month to month rental agreement for a set term that was the rental agreement used by Rental Management Company on thousands of units. This agreement retained rights for the property owner not generally found in leases or month to month agreements. This agreement was used thousands of times and to date has always held up in court. Construction, Business, Misc. Remodeled hundreds of homes as an owner and general contractor Built spec and rental homes. Custom construction including 6,000sqft, 9,300sqft, and 15,000sqft homes Extensive knowledge in septic systems and resolving septic problems to make useable properties. Started, owned and operated the highest volume drive through espresso stand serving Seattle s Best Coffee on the globe Permitted and sold a lube and filter business to Q-Lube at the age of 26 Principal: Huber Development & Real Estate, Rental Management Company, Faith Homes, Double Creek Construction, Hooked on Espresso, Chicken Corner Bagel, and K&L Property Maintenance Page 25.

26 Résumé of DONALD G. ARSENAULT, CCIM, Atrium Court Office Condominiums, Suite S. 9 th Street, Tacoma, WA (253) Ofc. EDUCATION: January, Present CCIM Designee # 5940 Granted November, 1995 Certified Commercial Investment Member (CCIM) Commercial Investment Real Estate Institute Of the National Association of Realtors Series of 8 strenuous courses in commercial real estate. Only 9,000 people in 33 Countries hold the CCIM Prestigious Designation with over 17,000 studying to earn their Designation Completing at least 30 clock hours every two years to keep up with licensing requirements Commercial Real Estate Fundamentals I & II Real Estate Investment Analysis I. II & III Marketing Commercial Investment Properties Real Estate Development Analysis I & II Income Tax Rulings Affecting Real Estate Certified Commercial Investment Member Courses Realtors National Marketing Institute National Association of Realtors, Chicago, Illinois 1981 & 1982 Understanding the Real Estate Sales Process Fundamentals of Investment Real Estate Master Real Estate Sales Graduate Realtors Institute Washington Association of Realtors Olympia, Washington Effective Property Management of Multi-Family Properties Financial Analysis using the Hewlett Packard 12C Acquisition & Disposition Techniques Buying & Selling Real Estate Contracts I, II & III Fall & Winter, 1976 August, 1971 WORK EXPERIENCE: Real Estate Appraisal I, II & III Tacoma Community College Tacoma, Washington Master s Degree, Educational Guidance & Counseling Wayne State University Detroit, Michigan September, Arsenault Realty Advisors, LLC. Present 705 S. 9 th Street, Tacoma, WA Designated Broker/Managing Member Page 26.

27 Formed 7 LLC s and Raised over $10 Mil in Equity Specializing in multifamily and Self Storage type properties. n, Own, operate and managed 6 apartment properties Exclusive Real Estate Agent/Broker to Several other Real Estate Brokers and Real Estate Developers January, Miller Professional Group, Inc. Present 1019 Pacific Ave. Suite 1600, Tacoma, WA President, Property Management arm for partnerships Sept., June, 1987 August, 2005 McFerran University 3906 S. 74th Street, Tacoma, WA Real Estate Instructor Real Estate Investment Strategy Tacoma Community College 5900 South 12TH. Street, Tacoma, WA Real Estate Instructor Real Estate Investment Strategy Advanced Real Estate Sales Practices September, Pacific Commercial Investments, Inc. August, N. Pearl, Tacoma, WA Real Estate Broker / Senior Vice President Management of over 60 apartment communities Real Estate Broker specializing in multifamily sales. October, Alder Street Realty, Inc. January, N. Alder Street, Tacoma, WA Real Estate Broker / President Established brokerage with 20 licensed agents September, Real Estate Training and Learning Institute June, Tacoma Ave. S. Suite #9, Tacoma, WA Sole Proprietor, Owner / Instructor Specialized in fundamentals of Real Estate Law June, Tacoma Brokers Inc. October N. Adams, Tacoma, WA Licensed Real Estate Agent September, Detroit Public Schools August, Woodward, Detroit, MI Administrator, Neighborhood Youth Corp Certified Teacher, Certified Counselor PROFESSIONAL AND CIVIC MEMBERSHIPS: WASHINGTON SELF STORAGE ASSOCIATION: Vice President, Legislative Chair. Responsible for passage of Five Laws affecting the Self Storage Industry, including SB 5554 clearing language for lien sales. SHB 2013, Limited Licensing for Insurance of Tenant s Contents in Storage Units. Page 27.

28 CCIM INSTITUTE: Past Washington State Chapter President. Past CCIM Institute Board of Directors, Designations and Promotions, Publications Committees, Chapter Activities Sub Committee, Legislative Steering Committee, EB-5 Chair. REAL ESTATE CYBERSPACE SOCIETY: Past President Washington State Chapter. REAL ESTATE SECURITIES AND SYNDICATION INSTITUTE (RESSI): Washington State Chapter. Third highest membership in Country Past President, APARTMENT ASSOCIATION OF PIERCE COUNTY: Past President for 3 years. Affiliate of The National Apartment Association. Saved the Association from bankruptcy. National Multi-Family Housing Association. National Award: Passed No-Rent-Control State of Washington TACOMA RESCUE MISSION: Board Member for 10 years. Responsible for the assemblage of 18 parcels of land for new campus. Directly involved in selection & redevelopment of two neglected former hotels into low income housing properties housing over 50 low income families. SAINT PATRICK CHURCH: Finance Committee Member directly responsible for Purchase and Conversion of former Business School to Parish Center Washington State COMMERCIAL ASSOC OF REALTORS: Founding Board Member FINANCIAL FREEDOM REPORT Magazine: Western States Board of Advisors COMMERCIAL INVESTMENT REAL ESTATE MAGAZINE: Editorial Review Board PUGET SOUND EXCHANGORS: Board Member KIWANIS, TACOMA DOWNTOWN CLUB: Board Member and Member for 25 years BASH: Building A Scholastic Heritage, Board Member MARCH OF DIMES: Santa, 25 years PARTIAL LIST OF CONSULTATION AND VALUATION CLIENTS: Greenwig Companies: Bonnie Lindquist, Valuation of Multiple Commercial Properties Security National, LLC: James Taylor, Valuation of Multiple Commercial Properties Andrew M. Brackbill: Attorney, Seattle US Bankruptcy Court Property Valuation Gregory Gladnick: Attorney, Seattle, Valuation of Multiple Commercial Properties James Duffy: Investor, Kent, Self Storage Acquisition Analysis James Bush: Attorney: Tacoma, Justman Family Estate Valuation of Several Properties Mercurio's Heating & Air Conditioning: Chris Mercurio, Site Valuation & Analysis North End Pet Hospital: Dr. David Dudley, Site Valuation & Analysis Horizon Bank: Mr. Donald J. Anderson, Vice President, Chief Appraiser Ridge Property LL: Michelle Wong, Owner Hendrickson Family Trust: Loran B. Hendrickson, Owner Dr. Robert and Karen Ries: Purdy Veterinary Hospital Roger Harmon, Appraiser: Expert Witness Testimony in Commission Dispute Case Warren Guykema: Business Owner: Represented In Leasing & Sale of Property s Dave Huber, Real Estate Broker, Land Developer Page 28.

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