North American Self Storage

WHY NASSG

North American Self-Storage Group (NASSG) acquires, renovates and repurposes commercial/industrial existing self-storage properties located in the top U.S. self-storage markets. The Company has a targeted and highly disciplined location identification and selection process, and is dedicated to developing industry leading projects.

The principals of NASSG have more than 100 years of real estate and construction experience across multiple property sectors, and are experienced, proven and successful owners and operators of multiple real estate platform companies – a demonstrated track record of making money for our partners.

NASSG manages all redevelopment, and its project management capabilities insure timely delivery, and oversight of the construction progress so that projects are completed in a high quality manner. The Company’s on-time delivery construction scheduling is implemented via electronic project management scheduling software with daily job reporting and regular onsite inspections.

The senior management team and shareholders of NASSG have collectively acquired, refinanced, and sold major real estate assets across the United States in transactions totaling over $2 billion, inclusive of the acquisition and rehabilitation of self-storage assets.

NASSG’s projects are designed by the leading architects in the self-storage industry. These industry leading architectural firms have designed hundreds of self-storage facilities for a wide array of clients, including all four of the publicly traded self-storage REIT’s.

NASSG has close working relationships with key executives in the self-storage industry. These relationships are critical in terms of designing industry leading projects, as well as the overall process of project feasibility and providing timely and essential market intelligence.

THE SELF STORAGE INDUSTRY

The self-storage industry in the United States generated more than $24 billion in annual U.S. revenues (2014 - estimate). The industry has been the fastest growing segment of the commercial real estate industry over the last 40 years and has been considered by Wall Street analysts to be “recession resistant” based on its performance during up and down cycles.

Self-storage has evolved into one of the primary commercial real estate products. It is the top performing property sector in the NAREIT index. For the 10-year period 2005-2014, self-storage reported the highest returns of any of the seven primary REIT sectors at 18.15%. For the 21-year period 1994-2014, self-storage reported the highest returns of any of the seven primary REIT sectors at 18.20%. During Q-1 2015, self-storage was again the top performer at 9.16%.

There are two main reasons why the self-storage industry keeps growing. The American public is mobile. Gone are the days when people live their entire life in the neighborhood where they grew up. It is estimated that today’s young work force will change careers five to seven times during their lifetime – and many of those job changes require moving to a different location. Another reason why the self- storage industry keeps growing is that people keep acquiring possessions. Their basements, garages, and attics are filled to overflowing and people find that they still need more space. Life events also drive the need for self-storage. That need translates into renting a storage unit.

Since 2001, the number of storage facilities has doubled to over 58,000. Total rentable space in the United States is now over 2.3 billion square feet. During that same time, the average number of units per facility grew from 243 units to 566 units per facility. The industry has seen a shift in its tenant profile. Individuals and families remain the primary renters of self-storage. However, entrepreneurs and businesses are increasingly turning to using self-storage facilities as a low cost option for things such as storing inventory or doing business out of the rental unit. It took the industry over 25 years to build one billion square feet. However, it took only 8 years (1998 to 2005) to build its second billion square feet of rentable space. The future for the self-storage industry is bright.