Bear Valley RV Park & Self Storage

STABILIZED PROPERTY WITH EXCELLENT CASH FLOW

Bear Valley RV and Self Storage is approximately 87% physically occupied and is economically stabilized, so the property has growth potential through rental rate churn in addition to its already strong in-place cash flow. The area surrounding the property lacks significant new supply, so a potential buyer has the ability to continue adding value to the property through the optimization of operational synergies. The subject property is located in an area that will continue to see a demand for self storage space, further increasing market rental rates.

HIGHLY VISIBLE LOCATION IN THE INLAND EMPIRE

Bear Valley RV and Self Storage is located in Hesperia, CA, off of Interstate 15 (over 115,000 VPD) and Bear Valley Rd (over 52,000 VPD), which runs through Las Vegas, Salt Lake City, and up to the Canadian border. The Inland Empire serves as a major distribution hub, which brings a lot of jobs to cities such as Hesperia. As companies ship items from abroad, they are sorted in the Inland Empire and then distributed across the country.

AFFLUENT AREA WITH DENSE POPULATION

With a population of over 50,000 people, the average household income of over $101,000 in a three-mile radius is well above the national average and illustrates that the core demographic will provide an excellent tenant base for the subject property. In addition, the development is located within a market that will continue to see younger families moving to more affordable suburban areas.

OPPORTUNITY FOR FUTURE EXPANSION

With the property situated on over 49 acres, there is a large area of vacant land that a potential buyer can use for expansion. This provides an opportunity for additional ancillary income opportunity through different uses of the land.

RESILIENT ASSET CLASS

The self storage asset class is not as sensitive to macroeconomic downturns as other real estate sectors and has a lower loan delinquency rate. Storage benefits from a wide range of demand drivers including everyday life occurrences such as death, divorce, downsizing, moving, etc. In addition, operators’ ability to adjust rents monthly provides flexibility and protection in shifting economic and interest rate environments. This can also provide an inflation hedge for operators. Public REITs have only seen two years of negative same-store revenue growth since 2003, per GreenStreet. Self storage's resiliency is evidenced by the fact that it has consistently performed well relative to other real estate property types (industrial, multifamily, retail, and office) over the past five, 10 and 15 year periods. Self storage was the only REIT sector to post a positive total return during the Great Financial Crisis and the asset class performed well during the COVID outbreak. Self storage has shown much more favorable trends when it comes to delinquency, outperforming other commercial property types during the recession and into recovery.