The William Warren Group, Inc. (WWG) is a privately held, entrepreneurial self storage development, acquisition, and management company based in Santa Monica, CA. Since our beginning in 1994, we have established an industry wide reputation for building first class projects and operating with an emphasis on professionalism, integrity, and originality.
Our strategy is to develop, acquire and manage distinctive properties within the major metropolitan markets across the United States that will either be built from the ground up in markets that warrant new development, or add value to an existing operation. In either case, we devote our energy and focus to properties we believe offer significant cash flow, revenue growth and long term capital appreciation opportunities.
Our Mission Statement: We aspire to become recognized as the most innovative, entrepreneurial and profitable real estate company within the self storage industry. The company seeks to accomplish this mission through unsurpassed customer service, introducing unique and advanced concepts for our properties to the marketplace, consistently producing attractive annual investment returns to our investors, and creating a challenging, rewarding and stimulating team environment for our employees.
Sponsor: | The William Warren Group, Inc. |
Targeted IRR: | 12.1% |
Targeted Hold Period: | 10 Years |
Investment Type: | Equity |
Property Type: | Self Storage |
Location: | Phoenix Metro Area |
Average Cash-on-Cash Return: | 9.5% |
Min Investment: | $25,000 |
DBA: | StorQuest Self Storage |
Purchase Price: | $6,700,000 |
Price per Unit: | $16,300 |
Price per Sq. Ft: | $128 |
CrowdStreet Equity: | $2,746,000 |
Sponsor Co-Investment: | $150,000 |
First Lien: | $4,154,000 |
Law Firm: | Trowbridge Taylor Sidoti LLP |
Depository Institution: | Wells Fargo Bank |
WWG is offering to CrowdStreet investors the opportunity to co-invest in its next portfolio acquisition, StorQuest – Tempe Warner. StorQuest – Tempe Warner is a 411-unit self storage facility located in Tempe, AZ. Constructed in 1997, the property is located in an established infill location and situated on 4.36 acres with 52,290 net rentable square feet.
StorQuest-Tempe Warner offers a unique opportunity to co-invest with an industry leading operator in a proven property that offers:
Suitable investors in StorQuest – Tempe Warner will be attracted to the targeted long-term stable yet growing cash yields.
Purchase Price | $6,700,000 |
Closing Costs | |
Title & Escrow | $25,000 |
Buyer Legal | $25,000 |
Lender Legal, Other | $25,000 |
Loan Fee (1%) | $42,000 |
Third Party Reports | $49,000 |
Acquisition Fee | $134,000 |
Capital Expenditure Reserve | $50,000 |
Total Closing Costs | $7,050,000 |
Sources | |
CrowdStreet Equity | $2,746,000 |
William Warren Group Equity | $150,000 |
10 Year Fixed-Rate Debt | $4,154,000 |
Total Sources at Closing | $7,050,000 |
10 Year Fixed Rate Debt Amount | $4,154,000 |
Interest Rate | 4.7%* |
Amortization | 30 Years |
Interest Only Period | 5 Years |
Maturity Date | 2025 |
Loan to Value | 62.0% |
* Estimate at Date of Publication
Equity Investment Amount | $2,891,540 |
EQUITY CONTRIBUTION | |
CrowdStreet Investors | 95% |
William Warren Group | 5% |
PREFERRED RETURN | |
CrowdStreet Investors | 8% |
SPLIT AFTER PREFERRED RETURN | |
CrowdStreet Investors | 75% |
William Warren Group | 25% |
CrowdStreet Investor Targeted IRR (10yr) | 12.1% |
CrowdStreet Targeted Investor Equity Multiple | 2.46x |
Acquisition | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 * | Year 7 | Year 8 | Year 9 | Year 10 | |
---|---|---|---|---|---|---|---|---|---|---|---|
CrowdStreet & WWG Equity | $2,891,540 | ||||||||||
Cash on Cash Return | $202,209 | $247,157 | $264,019 | $276,608 | $291,752 | $257,551 | $275,009 | $292,548 | $310,201 | $328,756 | |
Return of Capital | $2,891,540 | ||||||||||
Targeted Profits at Sale | $1,483,234 | ||||||||||
Total Investor Cash Flow | $2,891,540 | $202,209 | $247,157 | $264,019 | $276,608 | $291,752 | $257,551 | $275,009 | $292,548 | $310,201 | $4,703,530 |
Targeted Investor IRR: | 12.1% |
Acquisition | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 * | Year 7 | Year 8 | Year 9 | Year 10 | |
---|---|---|---|---|---|---|---|---|---|---|---|
Initial Investment | $50,000 | ||||||||||
Investor Cash on Cash Return | $3,497 | $4,274 | $4,565 | $4,783 | $5,045 | $4,454 | $4,755 | $5,059 | $5,364 | $5,685 | |
(9.5% avg.) | 7.0% | 8.5% | 9.1% | 9.6% | 10.1% | 8.9% | 9.5% | 10.1% | 10.7% | 11.4% | |
Return of Capital | $50,000 | ||||||||||
Targeted Profits at Sale | $25,648 | ||||||||||
Targeted Investor Cash Flow | $50,000 | $3,497 | $4,274 | $4,565 | $4,783 | $5,045 | $4,454 | $4,755 | $5,059 | $5,364 | $81,332 |
Targeted Investor IRR | 12.1% |
* Net cash flow dips in Year 6 as amortization of loan principal commences
As detailed in the Private Placement Memorandum, WWG will acquire StorQuest – Tempe Warner for $6,700,000 or a 5.93% Year 1 cap rate (defined as targeted year 1 NOI of $397,447 / $6,700,000) and anticipates growing NOI incrementally by year 10 to a 9.3% operating cap rate (defined as year 10 targeted NOI of $622,287 / $6,700,000). The business plan for StorQuest – Tempe Warner contemplates leveraging the following factors to grow net operating income over the holding period:
Through this combination of factors, WWG anticipates growing Net Operating Income (“NOI”) by 7.9% in year 1 and stabilizing at 4% by year 5. NOI growth is targeted to be achieved through slightly higher occupancy rates and higher effective rents. In conjunction with these assumptions, operating costs are expected to grow. All of the above assumptions are in line with WWG’s previous experience in bringing the StorQuest brand and operating procedures to locally branded portfolio acquisitions.
WWG’s business plan contemplates selling StorQuest Tempe – Warner at the conclusion of Year 10 for $8,889,812, which is derived as a 7.0% cap rate on its 12 month trailing NOI of $622,287 ($622,287 / .07 = $8,889,812). If the business plan is achieved, as contemplated, CrowdStreet investors would receive a total profit of $4,229,044, which equates to a 12.1% IRR and 2.46x equity multiple (please see the Investor Cash Flow Summary and Hypothetical $50,000 investment for more details).
StorQuest Self Storage is the operating trade name of self storage properties owned and operated by WWG. Since its inception in 1994, The StorQuest brand has grown to reflect the youthful and innovative culture that is, The William Warren Group. Our company’s success in attracting new customers has resulted from our team’s ability to deliver original concepts for our properties to the marketplace. With 112 locations across 10 states and growing, StorQuest is currently the nation’s eleventh largest provider of self storage solutions.
StorQuest is different than other storage providers in its commitment to stellar service and the care of your belongings. We understand that your stuff is an important part of who you are, so we make it a priority to treat you and your stuff with genuine care.
Address | 1835 East Warner Road, Tempe, Maricopa County, Arizona 85284 |
Units | 411 |
Number of Buildings | 27 |
Floors | One |
Net Rentable (SF) | 52,290 |
Construction vintage | 1997 |
Building Construction | Masonry Bearing Walls and Wood Framed Roofs |
Exterior Finishes | Exposed concrete masonry units (CMU). Painted stucco. |
Parking | Six spaces for visitor parking, 16 spaces for vehicle storage (standard size) |
HVAC | Office and manager’s apartment: Electric heat pump and fan coil unit |
Roof System | Gabled roofs with concrete tiles |
Elevators | None |
Fire and Life / Safety | Smoke detectors and fire extinguishers |
Unit Type | Number |
---|---|
5×10 | 114 |
10×10 | 119 |
10×15 | 68 |
10×16 | 4 |
10×20 | 56 |
10×25 | 23 |
10×30 | 20 |
20×15 | 3 |
RV Parking | 4 |
Total | 411 |
According to the Self-Storage Association, self storage is a $24 billion industry, with more than 50,000 self storage facilities existing in the U.S. The industry is driven by customers who wish to rent out facility space to store their possessions. Self-storage as an asset class is considered to provide relatively high returns compared to other types of real estate while providing downside protection from recessions due to relatively low default rates.
StorQuest – Tempe Warner is located at 1835 E Warner Road, Tempe, AZ. Tempe is situated within the central Phoenix metropolitan area with comparatively high real estate values that are generally attributable to a lack of nearby land available for development. The property sits in a well established infill location with outstanding 1, 3, and 5 mile submarket demographics.
Tempe is home to Arizona State University with total enrollment in excess of 67,000* and 12,000* employees. Tempe is also a major Phoenix Metro employment center. According to Nielson, 91,066 jobs are located within a three mile radius of StorQuest – Tempe Warner and 227,480 jobs within a five mile radius. The ASU research park (one mile east of StorQuest – Tempe Warner) is one of the most highly improved office parks in the Phoenix area. Employers in the park include: Air Products, ASU Macro Technology, Avnet Technology, Edward Jones, Go Daddy, Infocrossing, Transamerica Research Center, US Foods, ViaSat, and Walgreens.
StorQuest – Tempe Warner benefits from excellent visibility along E Warner Road, a major commercial thoroughfare. According to Costar, traffic counts along E Warner Road are estimated at 25,922 vehicles per day with traffic counts at nearest intersection of E Warner and S McClintock estimated at a total of 46,624 vehicles per day. Nearby retailers include Walgreens, Dunkin Donuts, Wells Fargo, Bank of America and Starbucks. StorQuest – Tempe Warner is less than one mile west of Arizona State Route 101 and three miles east of Interstate 10.
* all five Phoenix Metro campuses
“WWG had a clear vision of how to take my property from 60% occupancy to above 85% in less than 9 months and has kept it there or above. In a phrase – WWG Performs, WWG Delivers.”
Kelly Gallacher, Owner, Beltline Self Storage
“In the last year, our property’s income has gone up over 30% due to the WWG’s management.”
Steve Engelhardt, Owner, StorQuest
William Warren Hobin, President/Chief Executive Officer
Bill Hobin is the President and CEO of the William Warren Group. Since founding the company in 1994, Mr. Hobin has worked closely with the company’s senior executive management team, in regards to acquiring and developing new properties, oversight of the company’s operational platform, and the management of existing and new business relationships.
In addition to leading the WWG team, Mr. Hobin has had an active hand in the various state and national self storage trade associations throughout the years, acting as past Board Director of the National Self Storage Association (SSA), past President and Board Director of the California Self Storage Association (CSSA), and is a current member of numerous State Associations. Additionally, Mr. Hobin is an active member of the Self Storage Association Large Operators Council (LOC Group) and sits on an advisory board for CubeSmart, one of the industry’s leading public companies. Mr. Hobin holds a Bachelor of Arts degree from the University of California, Los Angeles.
Clark W. Porter, Vice President/Chief Financial Officer
Clark Porter is the CFO of both WWP and WWG. Clark’s responsibilities include oversight of all financial aspects related to property and corporate level profitability.Property level responsibilities include P&L, investor reporting and management of the various lending and banking relationships. On the corporate level, Clark oversees the accounting department and preparation of WWP, WWG and various other non-property level financial statements. Additionally, Clark leads WWP’s efforts in the acquisition of existing storage facilities from the sourcing of an opportunity, through due diligence and origination of financing to the closing of the transaction.
Prior to joining WWG and WWP, Clark worked at WSGP Partners, LP, a merchant bank focused on the acquisition of financial institutions that was founded by former Secretary of the Treasury William E. Simon. He received his undergraduate degree from University of California, Berkeley and his MBA from University of California, Los Angeles.
Kent Christensen, Chief Operating Officer
Kent Christensen is the COO of WWG. He comes to WWG with a wealth of experience in the self storage industry, having spent the last 13 years as the CFO of Extra Space Storage, and was an instrumental figure in the company’s development into a publicly traded REIT. Prior to joining The William Warren Group, Kent served as Senior Vice President and CFO of Extra Space Storage from its inception in 1998 to 2006 and as Executive Vice President and Chief Financial Officer (CFO) of the public company from 2006 to 2011.
Prior to joining Extra Space, Kent worked as the Chief Financial Officer at Source One Management for ten years designing and installing financial and accounting systems for the geographically dispersed organization. Additionally, Kent worked at KPMG Peat Marwick and holds both a Bachelor of Science and Master’s degree in Accounting from Utah State University.
Timothy Hobin, Executive Vice President – Real Estate
Tim joined his older brother Bill in May 2000 to help with new development opportunities and construction management. Today, he manages a team of individuals across the country that is focused on development, acquisitions and sourcing new management opportunities. In addition, Tim oversees the company’s Investor Relations. Prior to joining WWG, Tim spent seven years as a Financial Consultant with Smith Barney in San Francisco. Tim graduated from UC Berkeley in 1993 with a Bachelor of Arts degree in Social Science. He currently resides with his wife and four children in Newport Beach, California.
William Warren Group Expands to East Coast
The William Warren Group (WWG), a privately held, Santa Monica-based self storage development and operating company and owner of the StorQuest Self Storage portfolio, is announcing the expansion of its self storage operations to the Southeastern US. Branching out from existing markets throughout California, Arizona, Colorado and Hawaii, WWG is adding 23 storage properties in Florida and South Carolina to its operating platform.
Former Extra Space CFO Now COO of Regional Storage Firm
Kent Christensen, the former CFO of Extra Space Storage earlier this month became the chief operating officer of William Warren Group, a regional operator of self-storage facilities based in Southern California. Christensen, in an interview with CFO Journal, said his new role is to help William Warren and its StorQuest Self Storage brand take advantage of the leaner cost structure that is available to it as a private company…