Press Release | Automall Parkway

Automall Parkway Self Storage

Automall Parkway Self Storage
43941 Osgood Road, Fremont CA

February 19, 2016

The Company reported record breaking operating results for the year ending 12/31/15. Net Operating Income rose 14.6% year over year and overall economic occupancy averaged 95.2% for the year. The Company also completed a successful cash-out refinancing in July 2015. The new first mortgage has a 10 year term, a fixed interest rate equal to 4.4 % interest only for two years converting to a partially amortizing loan for the balance of the term.

2016 will likely see an increase in new self storage construction in the Bay Area due to the low vacancy rates and rising rents we have experienced since 2012. The Company has recently become aware of several potentially competitive developments within our trade area, perhaps the most significant being the expansion of the former All Season self storage located ½ mile north of our facility on Osgood Road. This property was recently purchased by Storage Solutions and is in Planning for a significant (+/-80,000 sf) expansion. There are also several large facilities in planning in Milpitas which represent the very southern edge of our competitive market area. Management will keep close tabs on these developments in order to respond quickly and decisively when the time arises.

All and all we expect the current trend in strong occupancy and rising rents to continue through 2016 with the possibility of added competition creating pressure on rents and occupancy in 2017.