Buy and Build Strategies- Presentation Slides by Igor Zax at Private Equity O...
Trachte
1. Convert Your
vACAnt SpACe
to CASh
Complete Turnkey
Self Storage Solutions
• Feasibility Studies
• Due Diligence
• Design / Planning
• Construction
• Operations Management
• Disposition of Assets
2. SURPLUS ASSETS?
Convert them
to a reliable
income stream.
In this economy finding the right tenant for
a vacant retail, office, or warehouse space
can be challenging. Self-storage can provide
Formerly a factory in Ontario
stable returns and occupancies even during
tough times.
Trachte Building Systems/Tech-Fast
self storage specializes in self-storage
construction and project management,
including both new construction and the
conversion of existing properties into
Formerly a theatre in New Jersey profitable self storage businesses.
We’ll guide you through the process from
initial planning to project completion.
Once complete, we offer varying levels of
management assistance, or can help market
the property to our extensive database of
self-storage investors.
We welcome the opportunity to work with
Formerly a factory in New Jersey you in a pro-active capacity turning your
idle asset into a revenue producing site.
Visit www.trachte.com to learn more.
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F -site c ren esultatio
REE onus today to oqus t a visit from
Formerly an office in Ontario l
Call or e-mai pment.
lf-storage develo
the experts in se
ISO 9001:2008 CERTIFIED • EmplOyEE OwnED
3. Tap our network of buyers
•Cash and looking to expand
•Well-established developer base
•Network of experienced, successful self-storage
developers
•Pre-qualified buyers... because they are our customers
Your choice: Multiple exit strategies
1. Position existing site as potential conversion to sell to
Why Trachte? developer
• Turnkey solutions: Trachte’s experienced team can
• More saleable building
handle all aspects of feasibility, construction, and
• Utilize our network of developers with cash looking to
management.
expand now
• Well established: In business since 1901, with
2. Convert to sell
decades, not years of experience. We are the leaders in
• Generate a higher price when selling the property
self-storage.
• Pre-sell program available - Have it sold before you convert it!
• Connected: We have developed a comprehensive list of
3. Convert to hold
developers and investors. If needed, we’ll funnel qualified
• Excellent longer term investment
properties to our contacts who are looking for their next
• Enjoy cash flow and capital appreciation
self storage opportunity.
• We can provide property management
4. Lease to operator
Convert empty space to cash • Long term potential but can’t sit on an empty property?
•Conversion of non-performing assets to performing assets Lease!
•Potential generation of greater per square foot income • Temporary refurbishing provides clean use of a property.
from storage use Easily removable for sale.
•Potential lump-sum gain from approved development sale • We have a network of potential lessees
or operational facility sale
•Increase retail traffic for existing tenants in a center It’s as easy as one, two three:
•Improved appearance with premium storage facade • Call us and we will evaluate your property for self storage
•Reduced parking requirement allowing subsequent • Convert, rent and make money
subdivision and sales of outparcel • Sell or enjoy the income
4. Frequently Asked Questions
What is a ballpark range helping to make them a more accepted use for
for sq foot for rental income? prime exposure retail spaces. Additionally, self-
Climate controlled self storage facilities tend to storage facilities generate very little vehicle traffic.
generate $18 (+/- 5) per rented sq ft annually
($130-230 per month for a 10x10). Most self- How many of these conversions
storage conversion projects are climate controlled. have you done before?
During the conversion process, about 20% of a Founded 1901 and with a focus on the self storage
building’s space is converted to common space industry since the 1970’s, Trachte is the leader in
such as hallways. Example: A 100,000 sq ft self-storage construction in North America. Over
building, minus 20,000 ft worth of common space, the past few years, we estimate that we have been
would generate $1.44 million annually at 100% manufacturing between 10%-14% of all new self-
occupancy. Additional space may be gained by storage projects in the United States.
added a second floor in buildings with ceilings of
16’ or greater. Do you have an actual conversion we can visit?
Absolutely. Contact us to arrange a tour of a
Will Trachte do all the engineering previous customer’s facility.
and proforma cost estimating?
Trachte’s involvement in a storage conversion Which of our stores are likely
project varies depending on the customer’s candidates for conversion?
needs. With a staff of full time engineers, techs, The ideal site for a self-storage conversion has 40-
and project managers, Trachte is dedicated to 100,000 sq ft of space available. It should be on a
providing everything needed to make your project road with a traffic count of 12,000 or greater per
a success. day, unencumbered, and with high visibility.
What zoning issues are we likely to run into? Compare the numbers!
For new construction, obtaining proper zoning Self Storage Industry Performance
and overcoming neighbor objections can be a High gross profit margin = 65-70%
major hurdle. In the case of most conversion Low operating costs of 30-35%
projects, neighbors and community leaders are Low conversion costs of $15 (+/- 5) per square foot
Ease of management with two to three employees
supportive of any project utilizing an existing Typical rental rates: $18 (+/- 5) per sq ft annually
building which would otherwise sit unused. Typical valuation for completed facility sale: $85 per sq ft
Self-storage properties are commonly built with
a premium appearance and hotel-like lobbies,
877.356.5824
tbs@trachte.com
www.trachte.com
8393.tbs.0510
ISO 9001:2008
CERTIFIED