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The
following is the strategy behind Noah's Ark Self Storage:
- Develop the most cost effective and marketable
properties within each market. Insuring that each
property's market, location, product line and
operation is completely compatible with the top
industry REIT's.
- Properly locate 6 to 8 properties within a market
to insure control of leasing and market rents
while obtaining economies of scale with cost of
operations. Sub-market control gives the purchasing
REIT instant access and control of the market,
meaning a 1/2 to 3/4 % lower purchasing cap rate.
- Completely optimize each property's operation
within each market over 5 years, thus maximizing
fair market value in preparation for portfolio
sale.
- Package each market's Self-Storage properties
into a market portfolio, for sale to a REIT or
other institutional owner/operator.
The
above described strategy formulated and proven through
the first portfolio sale is very straightforward but
highly effective. The strategy is based not only on
the tremendous historical and projected growth of
the self storage industry, but also on the opportunities
that have been created by the evolution of the industry
and its major players. For example, in 1980, the top
fifty self storage owner/operators owned and operated
almost 32% of all self storage properties.
Currently,
the top fifty self storage owner/operators account
for 47% of all self storage properties. With the increasing
role in the industry of real estate investment trusts
(REITs) and other Wall Street vehicles since the early
1990's, the self storage consolidation trend is continuing
and accelerating. Within the next ten years, the top
fifty owner/operators are projected to control over
60% of the nation's self storage properties.
The
self storage REITs and other institutional players
are currently allocating over 70% of their available
capital to purchase the income streams provided by
existing self storage properties. In short, the self
storage industry's growth and evolution creates a
tremendous opportunity over the next decade - and
Noah's Ark Self Storage is positioned and poised to
capitalize on and profit from this tremendous opportunity.
The
Self-Storage industry's evolution creates a tremendous
opportunity over the next decade and one Noah's Ark
Self-Storage intends to exploit.
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