1214 Route 28, North Branch, New Jersey 08876 Ph: 908-722-5661 Fax: 908-429-1059 Email: Linda@lcrealtyusa.com May 20, 2013 Fred Rosengarten Budget Self Storage 414 Raymond Blvd. Newark, NJ 07105 Dear Fred; It was a pleasure speaking with you today. As per our conversation, I have enclosed information on our company and the services we provide to our clients. Our package includes the rental rate comps for your surrounding area. We have also provided you with a Seller’s Due Diligence list. These items are necessary to compile a financial analysis. We review the financial reports, such as, the 2012 P&L, trailing 12 months of management summaries and rental rate occupancy reports. This will enable us to provide you with a fair opinion of value. My assistant will be in contact with you to make arrangements to tour your property at your convenience. Thank you in advance for your cooperation, any questions please feel free to contact me. Sincerely, Please review the material
Linda Cinelli, CCIM, CEA Linda Cinelli, CCIM, CEA
AMERICA’S PREMIER
SELF STORAGE BROKERAGE FIRM
Li d Cinelli, Linda Ci lli CCIM LC Realty
Presented To:
Fred Rosengarten Budget Self Storage 414 Raymond Avenue Newark, NJ 07102
Presented by:
Linda Cinelli, CCIM LC Realty 908-722-5661 linda@lcrealtyusa.com
America's Premier Self Storage Brokerage Firm 1-800-55-STORE www.Argus-SelfStorage.com
Table of Contents The Argus Advantage
Page: 4
Value Realization Process
Page: 5
Property Market Analysis
Page: 6-7
Argus Marketing Program
Page: 8-14
Broker Biography
Page: 15
Broker Experience/Client & Sales List
Page: 16 16-17 17
Client Testimonials
Page: 18
What is a CCIM Member?
Page: 19
Disclaimer
Page: 20
Listing Agreement
Page: 21-24
The Argus Advantage
Since 1994, the Argus Self Storage Sales Network has been the leader in selfstorage brokerage throughout the United States. Argus Broker Affiliates work with both buyers and sellers to find the right property, and the right price, to meet the needs of each individual client. • • • •
Over $1 Billion in self-storage transactions Over 650 deals completed Hundreds of satisfied clients Detailed analysis to maximize your facility’s value
The Argus Self Storage Sales Network boasts the industry’s most extensive marketing program. Your property receives exposure to the maximum number of investors through our advertising program and network of professional contacts. • Over 40 Broker Affiliates representing major markets throughout the U.S. provide knowledgeable local representation • Internet exposure p via the industry’s y p premier website www.selfstorage.com g • Presence at national and state self-storage conventions • Advertising in industry trade magazines • National database of self-storage buyers and sellers • Market Monitor newsletter and Alert e-newsletter reach buyers and sellers nationwide
1-800-55-STORE www.Argus-SelfStorage.com
Value Realization Process Information Gathering
Client Objectives •
Valuation & Strategy Development
Purpose of Transaction
•
Demographics
•
Market Analysis
•
Confidentiality
•
Market Data
•
V l ti Valuation
•
Tax considerations
•
Financial Info
•
Property Examination
•
Employees
•
Environmental
•
Market Strategy
•
Timing
•
Competitive Review
•
Pricing Strategy
•
Reporting Requirements
•
Zoning & Tax Requirements
•
Financing Strategy
• •
Financing
•
Plans
Preliminary Negotiation Strategy
•
Carry Back
•
Site Development
Negotiation
Marketing Program
Closing
• Listing Agreement
•
Contact Prospects
• SelfStorage.com S lfSt
•
Respond R d to t Inquiries I ii
• Online Marketing
•
Qualify Prospects
• Offering Memorandum
•
Answer Objections
• Market Monitor
•
Review Offers
• Trade Pub. Ads
•
•
Assist In Due Diligence
•
Assist in Documentation
•
Recommend Solutions for Last Minute Problems
Recommend Counter Offers
•
Verify Closing Financing
•
Review References
•
•
Recommend Offers
Assist In Asset Transfer
• Property Flyers • Tradeshow Exposure • Co-op Brokers
1-800-55-STORE www.Argus-SelfStorage.com
Market Analysis y Competition Map & Demographics
414 Raymond Ave. Newark NJ 07102 Newark,
414 Raymond Blvd, Newark, NJ 07105 0 ‐ 1 mi Population 2018 Projection 2013 Estimate 2013 Estimate Households 2018 Projection 2013 Estimate 2013 Estimated Households by Household Income Less than $15,000 $15,000 to $24,999 $25 000 to $34 999 $25,000 to $34,999 $35,000 to $49,999 $50,000 to $74,999 $75,000 to $99,999 $100,000 to $124,999 $125,000 to $149,999 $150,000 to $199,999 $200,000 to $249,999 $250,000 to $499,999 $250,000 to $499,999 $500,000 or more 2013 Estimated Average Household Income 2013 Estimated Median Household Income 2013 Estimated Tenure of Occupied Housing Units Owner‐Occupied p Renter‐Occupied
414 Raymond Blvd, Newark, NJ 07105 0 ‐ 3 mi
414 Raymond Blvd, Newark, NJ 07105 0 ‐ 5 mi
17,710 17 384 17,384
204,693 200,778 200 778
738,871 729,641 729 641
6,123 6,015
69,289 67,820
269,547 265,258
6,015 1,104 871 797 766 1,230 639 304 98 145 25 31 6 $ 51,298
18.35% 14.48% 13 25% 13.25% 12.74% 20.44% 10.63% 5.05% 1.62% 2.41% 0.42% 0.51% 0.10%
$ 39,628 6,015 1,421 4,594
67,820 13,767 8,167 7 575 7,575 10,179 11,725 6,957 4,362 2,406 1,662 458 484 77 $ 54,673
20.30% 12.04% 11 17% 11.17% 15.01% 17.29% 10.26% 6.43% 3.55% 2.45% 0.68% 0.71% 0.11%
$ 41,485
23.63% 76.37%
265,258 51,663 30,896 28 636 28,636 37,084 47,284 28,538 17,074 9,988 8,128 2,409 2,882 676 $ 58,923
19.48% 11.65% 10 80% 10.80% 13.98% 17.83% 10.76% 6.44% 3.77% 3.06% 0.91% 1.09% 0.25%
$ 43,670
67,820 17,998 49,822
26.54% 73.46%
265,258 81,279 183,979
30.64% 69.36%
1-800-55-STORE www.Argus-SelfStorage.com
Market Analysis y Competition Map & Demographics Unit Size
Type
Extra Space: 412 Harrison Ave 10 x 10 Basic Storage, Indoor, Elevator Access 10 x 10 Basic Storage, Indoor, 1st Floor Access 10 x 15 Basic Storage, Indoor, Elevator Access
Website Rates $177.00 $196.00 $215.00
PSF
$1.77 $1.96 $1.43
Kearny Self Storage 10 x 10 Drive Up 10 x 20 Drive Up
On‐Site Rates
PSF
$208.00 $231.00 $253.00
$2.08 $2.31 $1.69
$160.00 $250.00
$1.60 $1.25
Tuck‐It‐Away Self‐Storage 6 x 10 8 x 10 10 x 10
Basic Storage, indoor Basic Storage, indoor Basic Storage, indoor
$75.00 $90.00 $100.00
$1.25 $1.13 $1.00
Storage King USA 10 x 10 10 x 10 10 x 10 10 x 15
Inside / Floor 4 Inside / Floor 3 Inside / Floor 2 Inside / Floor 3
$153.50 $160.00 $164.00 $228.00
$1.54 $1.60 $1.64 $1.52
$139.98 $182.48 $199.98 $412.48
$2.33 $2.28 $2.50 $1.37
$159.00 $336.00
$1.59 $1.68
21st Century Storage 6 x 10 Basic Storage, indoor 8 x 10 Basic Storage, indoor 8 x 10 Drive Up 10 x 30 Basic Storage, indoor SUBJECT LOCATION 10 x 10 Basic Storage, indoor 10 x 20 Basic Storage, indoor
$115.98 $145.98 $159.98 $329.98
$1.93 $1.82 $2.00 $1.10
1-800-55-STORE www.Argus-SelfStorage.com
Argus National Contact Program Argus offers Real Distribution to the self-storage industry. Your property is exposed to more qualified buyers and is more likely to sell at a reasonable price.
Total T t l Contacts National Magazine Advertising
ISS Circ. 18,000x12/yr SSA Globe Circ. 17,000x12/yr
216,000 204,000
Market Monitor Newsletter
7 000 x 12/yr via email 7,000
84 000 84,000
Website
70,000 visitors / month (avg.)
840,000
Conventions/Tradeshows
4/yr @ 1,500 attendees (avg.)
6,000
Convention Presentations
2/yr y @ 400 attendees
Magazine Articles
12/yr in ISS
360,000
Alert e-newsletter
3,000 monthly recipients (avg.)
36,000
Social Networking
1,000 followers 2x monthly
24,000
Total Annual Contacts
800
1,770,800
Argus also lists all properties on LoopNet, PropertyLine, CoStar and Storage Business Owners Alliance for additional exposure to hundreds of thousands of commercial real estate professionals each year.
Numbers as of October 2012 1-800-55-STORE www.Argus-SelfStorage.com
The Argus Marketing Program The Argus Marketing Program is the most comprehensive of any in the entire real estate business. The underlying premise is that getting the most exposure for a property as quickly as possible will increase the number of qualified offers received. received To ensure that we reach buyers, we have developed a multifaceted marketing program to give your facility the utmost exposure, both nationally and locally. Each element of the program is briefly described below. Note: Argus Self Storage Sales Network, Inc. is a marketing consultant and provides marketing services for the Argus Broker Affiliates authorized to receive such services. Argus is not a party to any listing, buyer representation, or other real estate related contract unless specifically agreed to in writing by Argus Self Storage Sales Network, Network Inc. Inc
BROKER NETWORK The most important part of the Argus Marketing Program is our network of Broker Affiliates specializing in self-storage. Since all of the Argus Broker Affiliates specialize in self-storage, they have developed an industry-wide network of contacts. They have relationships with literally hundreds, if not thousands, of owners and buyers. Each broker is aware of every property listed within the network, and is prepared and motivated to assist other Argus Brokers in a potential transaction.
ARGUS DATABASE On behalf of its Broker Affiliates, Argus maintains a database of owners, buyers, sellers, and industry specialists. The database consists of approximately 25,000 self-storage owners, prospective buyers and potential prospects.
INDUSTRY CONTACTS As in any other business, it’s not what you know as much as who you know, and in self-storage this is an even more important factor because of the unique nature of the property type. Over the years, Argus has built strong relationships not only with buyers and sellers, but also with lenders, appraisers, other real estate professionals and the large industry operators.
1-800-55-STORE www.Argus-SelfStorage.com
Marketing Program Continuing… SELFSTORAGE.COM www.selfstorage.com www selfstorage com is the self-storage self storage industry’s premier website, receiving an average of approximately 71,000 unique visitors per month. As part of www.selfstorage.com, Argus promotes its listings, provides valuable industry information, and develops qualified leads. Interested parties searching for storage properties are able to view all of our current listings and details on each property by clicking on th Argus the A h homepage. When people search the web for self-storage they most often go to www.selfstorage.com. This site is a low cost, high quality advertising option for self-storage owners and operators. Please visit the site and see for yourself. The site also offers a searchable list of industry vendors, the ability to request bids from these vendors, and a forum to discuss industry issues.
OFFERING MEMORANDUMS The Argus Offering Memorandum is a packet designed to give as much historical and current information about the property as a potential investor would need. Its unique design is easily recognizable and has been approved by several self-storage lenders as their means of making a cursory inspection of the property without leaving their office! The Offering Memorandum is available in both printed and electronic format. Your broker will work closely with you – and if any of the pertinent data changes, he or she will notify us and we will update the Offering Memorandum in a timely manner.
1-800-55-STORE www.Argus-SelfStorage.com
Marketing Program Continuing…
MARKET MONITOR Argus and the network of Argus Broker Affiliates email the Market Monitor once a month to owners and prospective buyers. The Market Monitor is a well-recognized newsletter in the industry. It is a significant source of leads for our Broker Affiliates. The Market Monitor includes a short article as well as details on our current properties for sale. We have found that owners and buyers are attracted to the format – everyone seems to like to see what is available on the market. We believe the credibility of the Market Monitor lends credibility to the listings.
ALERT ON SELF-STORAGE Argus also publishes an e-newsletter, Alert on Self-Storage, for owners and prospective buyers who request a subscription. This e-newsletter draws potential buyers to our website and thus to your listing. Our list of e-mail subscribers is growing quite rapidly and enhances our overall Internet presence. Past issues of the newsletter are archived on our website.
NEW LISTINGS ANNOUNCEMENT Each month, month subscribers to the Argus email list will receive an announcement of all of the Network’s newest self-storage listings. This email contains basic property information and photos as well as a link to the detailed information on the Argus website.
1-800-55-STORE www.Argus-SelfStorage.com
Marketing Program Continuing… ONLINE MARKETING LoopNet Argus posts all of the Network’s self-storage listings to LoopNet, the premier web-based real estate listing service in America with over 100,000 commercial listings in its system. It is a valuable source of both “out of industry” leads as well as those within the industry. LoopNet directly connects any prospect viewing i i your listing li ti t the to th Argus A h home page where h more information i f ti can be b found. Your listing will be available to all public searches beginning 30 days after its initial entry. You may search for it by visiting www.loopnet.com and clicking on “Search Properties.”
Property Line Property Line supports the commercial brokerage community with its focus on the marketing of properties. Listed on Property Line, your property will gain the attention of thousands of potential investors. With a membership of over 51,000 commercial brokers and investors, Property Line will get your listing the attention it deserves. This additional resource allows your Argus Broker to distribute information on your property to the widest range of potential buyers. As a buyer’s y representative, p , an Argus g Broker will use Property p y Line to assist you in your search for suitable properties. Visit their website www.propertyline.com.
CoStar Group CoStar Group, Inc. is commercial real estate's leading source of verified commercial properties for lease and for sale. sale With an audience of 65,000+ 65 000+ professionals, Argus works with CoStar to post your detailed listing information so that it gets maximum exposure to top commercial real estate brokers, investment sales professionals and private investors. Visit their website www.costar.com.
1-800-55-STORE www.Argus-SelfStorage.com
Marketing Program Continuing… CONVENTIONS AND TRADESHOWS Argus g attends all major j industryy conventions as well as state and regional conventions in an effort to market our customers’ properties. Materials on each property are available in the Argus tradeshow booth as well as a video display of all properties. A team of Argus Brokers is present to discuss properties and assist visitors with their needs. Argus has a presence at all the major self-storage conventions. Materials on yyour listing g are available at the booth. Each of these conventions attracts from 1,000 to 4,000 attendees and results in qualified prospects for our brokers. In addition, our Broker Affiliates also attend regional association meetings. These meetings are often smaller but more intimate. The Brokers have information on all listings available and often use the Argus booth, booth if appropriate. appropriate In the past year, year Argus Broker Affiliates have represented the Network at meetings in Texas, Wisconsin, New England, New York, Missouri, Kansas, California, Colorado, Washington, North Carolina, Alabama and Florida. Your Argus Broker’s association with the Argus Self Storage Sales Network provides this unique exposure-- one that other brokers simply cannot duplicate.
MAGAZINE ADVERTISING As a leading source for self-storage information, both Inside Self Storage and The SSA Globe are read by most major owners and operators and Argus advertises in both publications. Inside Self Storage has a subscription base of 23,000 and The SSA Globe has a subscription base of over 16,000. The SSA Globe is the “official” voice of the National Self Storage Association (SSA), and a free subscription is given to each SSA member. Magazine advertising is a very productive lead generator for Argus Broker Affiliates. We also find that “newcomers” to the business ((i.e. non-current owners)) often come to us from this source. 1-800-55-STORE www.Argus-SelfStorage.com
Marketing Program Continuing… Continuing SELLER DUE DILIGENCE CHECKLIST
9
Document
Comments
A/R Aging Report, current Business Insurance Policy Financial Statements (P&L) – past 2 years Financials (P&L), Year-to-Date Lease Sample (include optional tenant insurance, if applicable) Maintenance Contractors and current contracts Management Contract (copy) Marketing & Adversiting (include agreements, contractors, etc.) Municipal Documentation (use, taxation, etc.) Personal Property to be included in sale (list) Property Tax Bills – past 2 years Site Plan/Survey & Building Plans Supplemental Business Documentation (if applicable) Tax Returns – past 3 years Tenant List with rates, delinquencies, etc. Unit Mix and Rent Roll Utility Bills (copy)
1-800-55-STORE www.Argus-SelfStorage.com
Experience Linda Cinelli, CCIM LC Realty 1214 Old Highway 28 North Branch Branch, NJ 08876 908-722-5661 linda@lcrealtyusa.com
da C e has as 23 3 yea so pe e ce in co e c a real ea estate a d land a d sa es Linda Cinelli years of e experience commercial and sales. Over the past ten years she has specialized in investments and the self storage industry. Her areas of expertise include real estate acquisition, asset disposition, development and institutional representation. She is a CCIM whose other professional affiliations include CIREI, CBA, IREOBA. She has achieved the designation of CEA, a Certified Exchange Advisor, for those clients performing 1031 exchanges Linda is the founder and President of the Northern New Jersey CCIM exchanges. District which has been merged into the Metro New York CCIM Chapter where she serves on the Board of Directors. Linda is a member of the New Jersey, New York and the National Self Storage Associations. Her client list is comprised of many recognized names in both private and public sectors, sectors including several self storage projects. projects In 2003 she founded LC Realty and is the Argus Self Storage Sales Network Broker Affiliate for the Northern New Jersey, New York City and Long Island territory. Linda is licensed in New York, New Jersey and Florida.
1-800-55-STORE www.Argus-SelfStorage.com
Self-Storage Experience
Lynbrook, NY– South Shore Self Storage Sold Date: 4/16/2013 Sold Price: $2,100,000
Bloomfield, NJ – Parkway Self Storage Sold Date: 12/18/2012 Sold Price: $10,050,000
Staten Island, NY – Moore Self Storage Sold Date: 7/27/2011 Sold Price: $4,600,000
Stanhope, NJ – Paramount Self Storage Sold Date: 6/23/2011 Sold Price: $4,500,000
1-800-55-STORE www.Argus-SelfStorage.com
Argus 2012 National Sales
State KS MS MO CO AZ NC TX OK TX OK CA OK MO TX CO TX KS NM NC CA TX MT WI AZ NH TX CO WI AL AL TX NY PA TX NJ TX WI IL OK
City Kansas City Walls/Robinsonville Moscow Mills Monument Mesa Chapel Hill Canutillo Tulsa Mansfield Ardmore/Norman Fairfield Ardmore/OKC Saint Joseph C Canutillo till Colorado Springs Allen Bonner Springs Santa Fe Fayetteville Chester Houston Sidney Greenville Black Canyon City Sunapee Forest Hill Denver Egg Harbor Jasper Eight Mile Smithville Newark Valley Mt. Pocono Flint Bloomfield Lewisville Milwaukee Rockford Oklahoma City Total Sales:
Sale Price
Square Feet
$1,355,400 $720,000 $1,090,000 $4,325,000 $4,250,000 $3,110,000 $486,000 $282,500 $5,000,000 $5,720,000 $7,700,000 $7,254,800 $555,000 $515 000 $515,000 $7,100,000 $5,250,000 $3,600,000 $2,900,000 $790,000 $275,000 $901,000 $850,000 $1 465 000 $1,465,000 $1,400,000 $805,000 $1,900,000 $1,750,000 $260,000 $1,100,000 $725,000 $860,000 $360 000 $360,000 $1,569,000 $450,000 $10,050,000 $4,900,000 $425,000 $90,000 $15,100,000 $107,238,700
59,000 44,298 82,386 169,040 42,370 7,516 24,000 58,750 141,882 75,965 244,549 24,900 13 870 13,870 89,325 61,870 70,430 31,490 30,260 8,800 22,370 18,700 45 000 45,000 67,760 22,100 49,625 9,417 12,000 50,095 24,025 25,325 11 584 11,584 28,300 30,780 98,338 116,982 11,100 323,539 1,434,531
Sale Date January-12 January-12 February-12 April-12 April-12 May-12 May-12 May-12 June-12 June-12 June-12 June-12 July-12 J l 12 July-12 July-12 July-12 August-12 August-12 August-12 August-12 August-12 September-12 September 12 September-12 September-12 October-12 October-12 October-12 October-12 October-12 October-12 October-12 November 12 November-12 November-12 December-12 December-12 December-12 December-12 December-12 December-12
1-800-55-STORE www.Argus-SelfStorage.com
Client Testimonials
“With the professional support of Argus, we successfully closed on the sale of our family storage business. We were very pleased with the detailed upfront analysis on the marketing, pricing and promotion of our property! Argus demonstrated their in-depth knowledge of the storage business and provided insightful support throughout the entire process. process ” - Reynaldo Ortiz “After meeting with our Argus Broker, we were immediately put at ease that we would have the very best representation for selling our storage facility. Argus produced a selling package that resulted in numerous inquiries and subsequently the p prompt p sale of our business.” – Robert & Donna Mahle “Our Argus Broker went out of his way to make the process of selling our facility a satisfying experience for us. He was extremely professional, proficient and very pleasant to deal with. I could not be any happier and would recommend Argus to anyone who is considering buying or selling a self-storage facility.” - Warren Mitchell
1-800-55-STORE www.Argus-SelfStorage.com
What is a CCIM?
A CCIM (Certified Commercial Investment Member) is a recognized expert in the commercial and investment real estate industry. The CCIM lapel pin is earned after successfully completing a designation process that ensures CCIMs are proficient not only in theory, but also in practice. This elite corps of CCIMs includes brokers, leasing professionals, investment counselors, asset managers appraisers, managers, appraisers corporate real estate executives, executives property managers, managers developers, developers institutional investors, commercial lenders, attorneys, bankers, and other allied professionals. A CCIM is part of a global commercial real estate network with members across North America and more than 30 countries. This professional network has enabled CCIM members to close thousands of transactions annually, representing more than $200 billion in value. As a result, the experts who possess the CCIM designation are an invaluable resource for commercial real estate owners, owners investors, investors and users. users CCIMs have completed a designation curriculum that covers essential CCIM skill sets including ethics, interest-based negotiation, financial analysis, market analysis, user decision analysis, and investment analysis for commercial investment real estate. CCIMs have completed a portfolio demonstrating the depth of their commercial real estate experience. Finally, they have demonstrated their proficiency in the CCIM skill sets by successfully completing a comprehensive h i examination. i ti O l then Only th is i a designation d i ti candidate did t awarded d d the th coveted t d CCIM pin, joining the ranks of highly skilled commercial and investment real estate experts. Over 15,000 commercial real estate professionals have earned the designation. Currently, 5,500 professionals are pursuing their CCIM designation. www.ccim.com
1-800-55-STORE www.Argus-SelfStorage.com
Confidentiality and Disclaimer
PARTIES: Argus Self Storage Sales Network, Inc. (“Argus”) is not the listing agent (“Broker”) for any property. Offers to buy or sell a property can only be made through the listing agent identified herein. Argus is a marketing consultant that provides certain marketing assistance to the listing broker and is not a party to a listing agreement or any other agreement relating to a property. A Seller (“Seller”) is the owner or the authorized agent of the Owner (“Owner”), of the property offered j of the listing g agreement g between Broker and Seller. for sale and the subject DISCLAIMER: Neither a Seller, Owner, Broker, or Argus represents, warrants, either by implication nor express statement, the accuracy or completeness of the information contained herein. The information contained herein has been prepared from sources believed to be reliable but has not been independently verified by the Broker or Argus as to accuracy or completeness. No warranties or representations, express or implied, are made as to the information presented herein. Warranties or representations can only be made by the Seller or Owner in a written and fully executed purchase and sales agreement between Seller and purchaser. Projections in any presentation are based on assumptions and interpretations based on future events, market conditions, managerial operations beyond the control of Argus, Broker, Seller or Owner, and, therefore, subject to error and change without notice. The prospective purchaser is encouraged to perform such independent due diligence as he or she finds appropriate. Typically, due diligence activities provide a more comprehensive review and analysis of all aspects of the property (including, but not limited to, financial matters, market conditions, conditions physical condition, condition regulatory issues and title status) than the material contained herein. This presentation is for information purposes only and is not a solicitation of any nature whatsoever. Sellers and Owners reserve the right, at their sole and absolute discretion, to reject any offer. CONFIDENTIALITY: The information contained herein is confidential and proprietary and is for the exclusive use of the party receiving the information (whether in printed, electronic, or facsimile format) for the sole purpose of determining if the recipient desires to acquire more information. information By acceptance of this information in any format or from any source, the recipient agrees to not distribute nor disclose this information in any form to any other person or entity without the prior written consent of Broker or Argus.
1-800-55-STORE www.Argus-SelfStorage.com
Listing Agreement 1214 Route 28 North Branch, New Jersey 08876 EXCLUSIVE LISTING AGREEMENT
Price: ______________________ AGREEMENT made the ____ day of April, 2013, by and between 327 Realty LLC, its parent, subsidiaries, affiliates, nominees, designees or assignees (hereinafter referred to as "Owner"), with its principal office located at 327 Walnut Ave., Bronx, NY 10454 and LC Realty, LLC (hereinafter referred f d to t as "Broker "B k ") with ith an office ffi llocated t d att 1214 Old Hwy H 28, 28 North N th Branch, B h New N Jersey J 08876. WITNESSETH WHEREAS, Owner is the owner or net lessee of the property known as NYC Mini Storage, located at 863 East 141st St., Bronx, NY 10454, Borough 2, Block 02599, Lot 0128 (“Building”) and/or the Business if applicable (the Building, the underlying land, any other improvements on the land and any appurtenant rights of Owner in any abutting or adjacent land, shall be referred to collectively as “Property”) p y ) WHEREAS, Broker is a real estate broker duly licensed by the States of New York & New Jersey; WHEREAS, Owner desires to grant Broker the sole and exclusive right to negotiate for and to procure the sale of all or portions of the Property and Broker desires to accept such exclusive right subject to and conditioned upon the terms and provisions contained herein; NOW, THEREFORE, in consideration of the mutual covenants herein contained and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound bound, hereby agree as follows: 1. APPOINTMENT OF BROKER: Owner hereby grants Broker the exclusive right to negotiate for and to procure the sale of all or portions of the Property or Owner’s interest therein (any of the foregoing, individually or collectively, “Sale”) on the terms and conditions as may be agreed upon by the Owner and an prospective purchaser, tenant or occupant (hereinafter collectively referred to as the “Prospect”). 2. TERM: This Agreement shall commence on the date hereof (“Commencement Date”) and shall expire Six-Months after the Commencement Date. Thereafter, this Agreement shall continue on a month-to-month th t th b basis, i unless l and d until til either ith party t terminates t i t this thi Agreement A t by b sending di thi t thirty days prior written notice to the other party, sent by certified mail, return receipt requested (said date that this Agreement shall terminate shall hereinafter be referred to as the "Termination Date"). 3. BROKER'S DUTIES: Broker agrees to use reasonable efforts to dispose of the Property, which efforts shall include the following: (a) (b) (c)
listing the Property with licensed real estate brokers (hereinafter referred to as "Outside Broker") within New York and the contiguous states; develop offers or inquiries; and canvas, solicit, advertise and otherwise employ its services to bring about a Sale of the Property.
1-800-55-STORE www.Argus-SelfStorage.com
Listing Agreement (d)
clients li t h have tto b be given i an official ffi i l tour t and/or d/ sign i a confidentiality fid ti lit agreementt registration and Broker will provide Owner with the clients list.
Broker shall communicate with Owner on a regular basis about such offers or inquiries and the status of any negotiations for a Sale. All negotiations shall be conducted by Broker, subject to the review and final approval of Owner. For the purposes of this Agreement, the term “Broker” shall be deemed to include an Outside Broker, except where separate compensation for the Outside Broker is set forth or where the context clearly indicates otherwise. 4.
OWNER’S DUTIES: Owner agrees during the term of this Agreement to: • refer to Broker without delay all offers and inquiries from Prospects or Outside Brokers with respect to a Sale; • furnish Broker with an adequate supply of brochures (or authorize Broker, subject to the terms of Section 5 hereof, to produce such brochures), surveys, site plans or any other plans; • cooperate with Broker to bring about a Sale, including meeting with Prospects and/or their respective Outside Brokers. Brokers
5. ADVERTISING: Broker agrees that it shall pay the cost of any and all advertising, promotional material, brochures, messenger and mailing expenses incurred by Broker in connection with Broker's appointment. Should Owner cancel listing prior to expiration date the owner will be responsible to pay the Broker a minimum marketing fee of $3,500.00. Marketing material will be presented to buyer(s) upon signing of a confidentiality agreement. 6.
COMPENSATION: (a)
Broker shall be entitled to a commission upon the occurrence of any one of the following events: • A Sale during the term of this Agreement by Broker, Owner or Outside Broker or by any other person on their behalf; •
Broker or Outside Broker procures a Prospect who is ready, willing and able to complete the transaction at the Purchase Price set forth in the sale agreement; or
•
A Sale with an entity listed on the Pending List as defined in Paragraph 7 below. •
•
•
Furthermore, it is understood and agreed that if, under the terms of an executed contract or lease, any monies are paid to Seller in the form of option fees or non-refundable advances, the ‘Owner” will pay the Broker 3% (threepercent) of the monies received. These amounts will be due and payable upon receipt of these monies by ‘Owner”. That amount received by the Broker will be credited towards the total commission due. This is predicated on the deposit monies being non-refundable and released to Owner. Furthermore, if deposits paid on account of a purchase or lease were forfeited, 3% (three-percent) of that amount shall be paid to Broker; providing, however, that the Broker's share of any forfeited deposit shall not exceed the commission due. Release of monies is subject to written release from Owner and/or Buyers or Lessee or attorneys thereof. Furthermore, if (Purchasers Under Contract) does not close title, but enters into any other agreement to include but not limited to transfer, management, lease of business or real-estate, Broker shall be entitled to a commission to 3% (three-percent) of the total amount to be paid under the lease, management agreement or any other entity including, but not limited to a subsidiaries, affiliates and parent companies related to the business or the real-estate. The Broker entitlement to a commission hereunder shall be for a term of such agreement by the parties. Broker shall be entitled to receive a copy of all executed agreements immediately upon execution by all parties.
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Listing Agreement (b)
In the event of a Sale Sale, Owner shall pay Broker a commission on the date of the transfer of the title, at the following rates: • •
((iii))
________% of the Purchase Price (as hereinafter defined), where Broker or Owner is the sole procuring cause; or ________% of the Purchase Price, where an Outside Broker is the procuring cause. Owner agrees to pay Outside Broker a commission pursuant to a separate agreement entered into between the parties.
For the p purposes p of this Agreement, g “Sale”, in addition to the conventional transfer of a fee simple interest, shall be deemed to include any sale/lease/lease-back, any "swap” socalled “1031” tax-free exchange, or any other sale, transfer or disposition, purchase by a municipality or governmental acquisition of all or any part of the Property, by which Owner’s interest in the Property is transferred to another person or entity for consideration. “Purchase Price” shall mean the sale price set forth in the contract of sale executed by the parties thereto, without any deduction or setoff for the customary and usual adjustments between Owner and Buyer at closing of title.
7. PENDING NEGOTIATIONS: Within thirty (30) days after the Termination Date, Broker shall deliver to Owner a complete list of all Prospects who during the term of this Agreement Agreement, were shown the Property, submitted a written proposal or offer, or who entered into negotiations for a Sale (hereinafter referred to as the "Pending List"). The Pending List shall contain sufficient information to identify the Prospect and the proposed transaction. In the event any Prospect on the Pending List consummates a Sale after the Termination Date, Owner shall recognize Broker as the exclusive broker and shall pay to Broker a commission in accordance with the terms set forth in Section 6 above, whether or not the Broker renders any service following such Termination Date and whether or not the Broker is the procuring cause of the Sale. The Owner obligation under the preceding sentence shall be broker for a period of twelve months from termination date. 8. DEFAULT BY OWNER: In the event that any payment provided for herein is not paid within ten (10) days after notice of non-payment, the entire commission, or any remaining unpaid portion(s) thereof shall become immediately due and payable. Owner further agrees to pay all costs of collection, including reasonable attorney's fees and interest on all unpaid sums at a rate equal to one and one-half (1-1/2%) percent per month, commencing from the due date until paid in full. In no event shall this paragraph be construed as a waiver by Broker of prompt payment by Owner of any commissions due herein. 9. UPON SALE OR TRANSFER OF THE PROPERTY: It is expressly understood and agreed that i the in h event that h the h Property is i sold ld to any third hi d party, other h than h to a Prospect as contemplated l db by this hi Agreement, such sale shall be expressly subject to the terms and conditions of this Agreement. Owner shall deliver to Broker at the closing of such sale a written agreement by the persons, firm or entity taking title to the Property assuming all of Owner’s obligations hereunder in form and substance reasonably satisfactory to Broker. It is expressly understood and agreed that in the event of such sale, and subject to the assumption of the Owner’s obligations hereunder by the purchaser, Owner shall have no further obligation or liability to Broker in connection with this Agreement, provided that Owner immediately pays to Broker all commission payments due and to be due at the time of the sale, notwithstanding any right of Owner to delay such payment in accordance with any payment schedule set forth herein, if any. 10. PAYMENTS OF COMMISSIONS: All payments of commission to Broker shall be remitted as follows: LC REALTY, LLC 1214 Route 28 North Branch, New Jersey 08876 The above address may be changed by written notice to Owner sent by certified mail, return receipt requested. 11.
MISCELLANEOUS
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Listing Agreement a. Owner represents and warrants to Broker that it has the full authority to enter into this Agreement and that the individual(s) executing the Agreement is authorized to act on behalf of Owner and to bind Owner to the terms and conditions hereof. b. In the event any provision of the Agreement is found to be void or unenforceable by a court of competent jurisdiction, the remaining provisions of the agreement shall nevertheless be binding upon the parties with the same effect as though the void or unenforceable part had been severed and deleted. deleted c. Owner acknowledges that Broker may represent both Prospects and Owner simultaneously with respect to the same transaction and Owner consents to such dual representation. d. Owner represents that it has informed Broker, in writing, of any environmental problems associated with the Property of which Owner is aware. Owner shall provide Broker with all environmental studies and reports in its possession, including, but not limited to, relevant structural, mechanical and soils conditions, the presence and location of asbestos, PCB transformers, other toxic, hazardous or contaminated substances, and underground storage tanks, in, on or about the Property (“E i (“Environmental t l Information”) I f ti ”) with ith respectt to t the th Property P t upon the th execution ti off this thi Agreement A t and will continue to do so during the term of this Agreement. Broker shall furnish to third parties only that Environmental Information as shall be provided by Owner and which it is so authorized by Owner to disseminate. Broker shall have no responsibility or liability for Environmental Information provided to it by Owner. e. This Agreement (i) contains the entire understanding of the parties with respect to the subject matter hereof; (ii) may not be changed or modified orally but only by written instrument signed by the parties thereto; (iii) shall be binding upon and inure to the benefit of the successors and assigns g of the respective p p parties; ((iv)) shall be g governed by y and construed in accordance with the laws of the State of New York, applicable to agreements made and to be performed entirely within New York, without regard to conflicts of laws, and shall be resolved in a proceeding within the State of New York; and (v) shall not be strictly construed either against Owner or Broker, both parties agreeing that they have participated fully and equally in the preparation of this Agreement. f. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and all of which together shall constitute a fully executed agreement, with the same effect and validity as a single, original agreement signed by all of the parties. Facsimile signatures shall have the same validity and effect as original signatures. IN WITNESS WHEREOF, the parties hereto have caused their duly authorized representatives to execute this Agreement as of the date first above given. LC REALTY, LLC Dated: _________
BY: ___________________________________________ Name: _________________________________________ N Title: __________________________________________ Seller: _________________________________________
Dated: _______
BY: ___________________________________________ Name: _________________________________________ Title: ___________________________________________
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