Commercial Real Estate Investment in BC's Next Largest City
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LOCATION, LOCATION, LOCATION. Commercial Real Estate Investment in BC's Next Largest City Artistic rendering of 2337 King George Blvd, Surrey, BC. Actual results may be different.
Almost $10.7 billion of [Fraser Valley’s, including Surrey] updated assessments is from new construction, subdivisions and rezoning of properties. BC Assessment 2019 Property Assessments Report, January 2, 2019 Artistic rendering. Actual results may be different.
2337 King George Blvd
Surrey, British Columbia
NationWide IV Self Storage & Auto Wash Trust (“NationWide”) will acquire a high-profile
development property located at 2337 King George Blvd, Surrey, BC (the “Development
Property”), strategically positioned off one of the largest retail corridors in British Columbia.1
With easy access off a major intersection at King George Blvd and 24 Ave, and minutes away
from Hwy 99 and the affluent City of White Rock, this highly visible 1.18 acre (51,345 sq.ft.)
Development Property is appropriately zoned for both storage and car wash facilities.
NationWide intends to develop a modern, well-lit, approximately 80,000 sq. ft. self storage
facility on the Development Property, designed to provide approximately 65,000 sq. ft. of net
rentable self storage space (including sky lockers but exclusive of parking, hallways, elevators,
etc.) and an approximately 4,000 sq. ft. fully integrated 140 ft. Exterior Detail Tunnel (140'
EDT) Express Auto Wash facility.
BC'S FASTEST THRIVING EXCEPTIONAL
GROWING CITY ECONOMY ACCESSIBILITY
Surrey has BC's second highest Home to over 18,000 businesses Easy access off a major intersection
city population. With a 10.6% with 2,000-3,000 new businesses that hosts an average of 20,000
growth rate, it is poised to started each year; over $13.7B vehicles per day,3 and connection
become the province’s most worth of new construction in the to major cities, highways and two
populated city by 2041.2 past 10 years.2 United States border crossings.
1 Choice Properties, Grandview Central Leasing Brochure
2 Building the Next Metropolitan Centre. Realizing Surrey’s Economic Opportunities, City of Surrey
3 Evans & Evans Feasibility Study, May 20, 2019.
The Fraser Valley region's [including Surrey] total assessments increased from $489.8 billion to $540.4 billion this year. BC Assessment 2019 Property Assessments Report, January 2, 2019 Artistic rendering. Actual results may be different.
Clear Opportunity in Project Summary
an Underserved Market PROFILE Located in South Surrey and bordering White Rock,
From both customer and operator perspectives, self storage on King George Blvd and 24 Ave intersection. A highly
facilities and car washes are simple to understand. visible, high traffic development site.
Self storage across Canada is shifting away from garage-style PROPERTY SIZE 1.186 acres (51,662.16 sq. ft.)
units in industrial areas, and towards modern developments
in fast-growing residential and commercial areas.1 In a PURCHASE PRICE3 $6,500,000 (approx. $77 per buildable sq. ft.)
climate with more disposable income and business growth,
and a growing number of baby boomers entering retirement, BUILDING COSTS4 $15,800,000 ($188 per sq. ft.)
self storage locker use is expected to increase.2 (all-in estimate including car wash facility)
The trade area currently faces an undersupply of storage
LAND & BUILDING COST4 $22,300,000 (all-in estimate)
of approximately 2.54 sq. ft. per capita—below the national
average. The lack of self storage is leading to new developments,
PROPERTY ZONING CH1 Highway Commercial Industrial
conversion projects and expansion of current facilities.2
Occupancy in the trade area is very high as the population FSR ZONING 1 FSR (basement not included in FSR)
growth outpaces self storage development and is estimated
BUILDING EFFICIENCY RATIO Approx. 70%+ providing 65,000 sq. ft. net rentable self
to be above 95%.2 Based on these factors, Management
storage space, including sky lockers.
believes the Development Property is in an excellent position
to capitalize on an underserved market.
ENVIRONMENTAL STUDY Pinchin Ltd. Environmental Assessment, March 29, 2019
In addition, Management recognizes that the demand for
car washing services directly correlates with population FEASIBILITY STUDIES ++ Canadian Self Storage Valuation Services Inc.
increases. Surrey has the second highest city population (CSSVS), May 1, 2019
in BC and, with a 10.6% growth rate (compared to 4.6% in ++ Evans & Evans Car Wash Feasibility, May 20, 2019
Vancouver), is poised to become BC’s largest city by 2041.2
1 Storage Facilities Reach New Heights, Globe and Mail, February 12, 2019
2 CSSVS Feasibility Study, May 1, 2019
More people = more cars and more storage. 3 After taxes, real estate fees and third-party due diligence expenses
4 Management estimate, as at May 2019
Modern Self Storage with
65,000 Rentable Sq. Ft.
smart locks clean and brightly lit online payment
The self storage facility is expected to be a modern, well-lit,
80,000 sq. ft. building designed to provide approximately
65,000 sq. ft. net rentable storage space.
The facility will offer approximately 845 temperature-
controlled storage lockers, each with an individually secured
Bluetooth-enabled smart lock. Drive up units will be
specifically designed to attract commercial tenants.
Commercial elevators will feature security-restricted floor
access and video surveillance. At the building storefront,
customers can purchase necessary moving and storage
Storage lockers are a simple investment. There’s items such as boxes, mattress covers and storage packing
kits. They will also find car detailing products such as
often no heat, little maintenance, and if you want cleaners, Armor All Professional® products, microfibre
to make it a luxury unit you put in a light bulb. towels and air fresheners.
Online reservation and payment systems are also available.
Ozzy Jurock Complimentary coffee and Wi-Fi will be available in a
Vancouver Real Estate Consultant comfortable lounge, so customers can rest as they organize
a stressful move.
THIRD FLOOR
Self Storage Facility
SECOND FLOOR Customer Lounge & Storefront
FACILITY PROFILE1 65,000 sq. ft. net rentable storage
GROUND FLOOR
space including sky lockers,
Ground Floor Features: exclusive of parking, hallways,
140’ EDT Auto Wash Tunnel elevator(s), etc.
Attendant Station
Vacuum Stations PROJECTED FACILITY COST2 $17,675,000 (storage facility and
Storage Supply Store land only; not including car wash)
Customer Lounge
Elevators TARGETED RENT1 $3.31+ per mo. per sq. ft. (average)
Loading Bays + income from storefront (i.e.
Parking locks, packing supplies).
NO. OF STORAGE LOCKERS1 845 (including sky lockers)
BASEMENT 1
AVERAGE LOCKER SIZE 70–80 sq. ft.
LOCKER INCOME1 Locker Size Retail Rate
BASEMENT 2 5x5 $135 per mo.
5x10 $220 per mo.
10x10 $325 per mo.
10x15 $380 per mo.
10x20 $435 per mo.
Schematic only. Actual floor layout and number of floors are 1 CSSVS Feasibility Study, May 1, 2019
subject to changes based on the City of Surrey approval. 2 Evans & Evans Car Wash Feasibility, May 20, 2019
time-saver water-saver eco-friendly This is a new era in commercial car washing. Conveyor car wash tunnel systems, like that proposed for the Development Property, dominated the car wash service industry in 2017.1 Rising Canadian per capita disposable income has fueled demand for discretionary consumer services such as car washes. An increase in demand from other vital downstream markets has also boosted revenue for industry operators.2 The Development Property will provide the infrastructure to accommodate a 140 ft. Exterior Detail Tunnel system (140-EDT) to be called “Express Auto Wash”. This dynamic state-of-the- art facility will include twin pay stations and provide a 3-minute complete car wash solution. The facility will also include drive-up self-serve vacuum stations. 1 Evans & Evans Feasibility Study, May 20, 2019 2 Car Wash & Auto Detailing - Canada Market Research Report, IBIS World, March 2019.
Rainwater Harvesting Saves Water and Money Express Auto Wash Terminal &
Express Auto Wash will utilize rainwater harvesting technology to collect
approximately 40,000 gallons of water per month: an environmental choice Self-Serve Vacuum System
with a kickback of savings to the property expenses.3
CAR WASH PROFILE6 140 ft. Exterior Detail Tunnel System
(140' EDT) with rear wheel push
An Environmentally Friendly Car Wash Solution
conveyor, front wheel hydraulic pull-
++ Home car washes can cause engine and brake residue, antifreeze, grease, up and Fusion™ Guard combination of
oil, and other harmful pollutants to run directly into storm sewers that flow integrated chemistry and equipment
into local streams, rivers and oceans.4
++ Express Auto Wash is a professional 3-minute car wash that uses on CAR WASH TERMINAL COST6 $4,625,000 (land, car wash terminal
average 1/3 less water vs. washing a car at home.3 and equipment installed)
++ Metering is computer controlled to deliver the precise volume of water to
ensure optimal waste-free cleaning.5 CAR WASH TERMINAL SIZE 4,000 sq. ft. with a 140 ft. tunnel
(approx.)
CAR WASH CAPACITY6 Up to 150 cars per hour
Express Auto Wash uses
100% recycled water and ⅓ less
100% Recycled Water
water than a hand car wash. CAR WASH INCOME6 Basic Wash: $9.95
Supreme Express: $12.95
Ultimate Express: $15.95
Infinite Express: $18.95
Filter
Plus $3 add-ons such as Rain X®
Water Repellent and Armor All
Reclaimed Water Tank
Professional® Extreme Shine Wax™
Overflow
Express Auto Wash will utilize
rainwater harvesting technol-
ogy to collect approx. 40,000 100% of water used in the car wash is
gallons of water per month. recycled and through filtering systems, VACUUM STATION CAPACITY 10–15 dual-nozzle vacuum stations
any remaining pollutants are removed
Water Treatment Facility
from the facility and disposed of at
government-regulated sites.
VACUUM INCOME3 $3 for 4 min. of vacuum time
3 Management estimate, as at May 2019
4 www.canadiancarwash.ca /carwash_myths
5 www.shineautowash.ca/enviroment 6 Evans & Evans Car Wash Feasibility, May 20, 2019
Over five years to 2019, revenue in Canada's car wash and auto detailing industry has increased at an annualized rate of 4.6% to $1 billion. Car Wash & Auto Detailing Canada Market Research Report IBIS World, March 2019
Professional-Grade Self-
Serve Vacuum Stations1
A simple design with stainless-
steel professional-grade durability
allows for easy installation and
maintenance. Customers will have STAIRS
easy access to self-serve vacuum
boom stations.
PARKING
Vacuum tokens will cost $3 each and will
provide 4 minutes of vacuum time.
CAR WASH TUNNEL
VACUUM STATIONS
LOADING BAYS
SELF
STORAGE
FACILITY
HT SHOW
UIPMENT DYNAMIC LED LIG
CHEMISTRY & EQ
PARKING
140-EDT is the Fusion™ Powered
Auto Wash Tunnel of the Future1
The dynamic 140-EDT Express Auto Wash
STAIRS
tunnel utilizes the Fusion™ Guard integrated
EXIT
combination of chemistry and equipment to CUSTOMER
LOUNGE &
clean, shine and protect up to 150 cars per hour.1 SUPPLY STORE
Customers can save time and water with an
approximate 3 minute eco-friendly car wash.2
1 www.sonnysdirect.com
2 www.carwash.com/whats-this-car-per-hour-thing Schematic only. Actual floor layout may be different.LOCATION TODAY
Population Growth and % of Change
2016 % of change from 2011
City of Surrey 517,8871 10.6% increase
South Surrey 77,1702 12% increase
City of White Rock 19,9523 3.2% increase
City of Vancouver 631,4864 4.6% increase
1 Statistics Canada, 2016 Census of Population—City of Surrey. Population in 2011 was 468,251.
2 South Surrey Neighbourhood Profile, City of Surrey. Population in 2011 was 68,902.
3 Statistics Canada, 2016 Census of Population—City of White Rock. Population in 2011 was 19,339.
4 Statistics Canada, 2016 Census of Population—City of Vancouver. Population in 2011 was 603,502.LOCATION TOMORROW
Population Growth and % of Change
2041 % of change from 2016
City of Surrey 775,7005 49.8% increase
South Surrey 152,8905 98.1% increase
City of White Rock 23,5006 17.8% increase
City of Vancouver 765,0006 21.1% increase
5 Population Estimates & Projections, City of Surrey
6 Regional Growth Strategy, Metro Vancouver 2040: Shaping Our Future Drone capture from the 24 Ave King George Blvd Intersection in Surrey, BCAbout the City of Surrey, South Surrey and White Rock Trade Area
With 1,000 new residents moving in every month, the City of Surrey is projected to surpass the City of Vancouver as BC’s most populous city by 20411 and South Surrey
accounts for 15% of the city's population.2
Approximately 85,000 people live within 5km of the South Surrey Development Property, strategically positioned off the King George Blvd and 24 Ave intersection,
minutes away from Hwy 99 and two Canada-United States border crossings.
Home to The Shops at Morgan Crossing and Grandview Corners, 24 Ave hosts one of the largest retail corridors in the Lower Mainland with major department stores
including Walmart, Indigo, H&M, London Drugs, Thrifty Foods, Winners and Home Depot.
A short 5km away from the Development Property is the affluent City of White Rock with a population of approximately 20,000 on a total land area of 5.12 sq. kms— one of
the densest communities in Metro Vancouver.3 There are currently no self storage facilities in White Rock, and no auto wash facilities like NationWide proposes.
Trade Area Statistics4 Driving Statistics5
Estimated Population Daily Traffic Volume Counts % of Commuters in Personal Vehicles
Within 5km 85,144 King George Blvd N 23,200 City of Surrey 81%
City of Surrey 552,455 King George Blvd S 14,100 South Surrey 86%
24 Ave E 24,400 White Rock 82.2%
Number of Estimated Households
24 Ave W 20,300
Within 5km 35,633
City of Surrey 181,566
52% Commuters Driving Less Than 8km to Nearest Car Wash
Estimated Average Household Income
% of Surrey Commuters that Drive to Work Drive to Vancouver
Within 5km $120,938
44% Drive Within Surrey 23.5% 12.7%
City of Surrey $108,207
Drive to Richmond, Burnaby or Delta
1 Building the Next Metropolitan Centre. Realizing Surrey’s Economic Opportunities, City of Surrey 4 Choice Properties, Grandview Central Leasing Brochure
2 South Surrey Neighbourhood Profile, City of Surrey 5 Evans & Evans Feasibility Study, May 20, 2019
3 2018 Community Profile, City of White RockSURREY CITY
1
CENTRE FR
AS
72 AVE. ERH 72 AVE.
WY 64 AVE.
CLOVERDALE
COQUITLAM 1
.
H VA N C O U V E R
EWTON
BURNABY
A City of Achievements1
KING GEORGE BLVD.
88 AVE.
64 AVE. FLEETWOOD
CLOVERD
56 A L E15
AVE.
RICHMOND
10 One of the largest industrial centres in BC, with
burgeoning high technology, clean energy, health,
10
152 ST.
80 AVE.
SURREY education, agriculture and arts sectors.
120 ST.
56 AVE. D E LT A
10 FR Twice named Top 7 Intelligent Communities by the New
72 AVE. 99 A AS
ER H South Surrey 72 AVE. York-based Intelligent Community Forum.
WY
White Rock
.
99 A CANADA
USA Placed in top 10 mid-sized cities for Business Friendliness
and Top 10 mid-sized cities for Connectivity by Financial
64 AVE. Times’ fDI American Cities of the Future.
192 ST.
CLOVERDALE 10
192 ST.
NEWTON Voted Best Place for Small Business in Metro Vancouver
10 by Vancity Credit Union.
56 AVE.
10
SOUTH SURREY
SOUTH SURREY
99 A
99
K
32 AVE.
IN BL
99
G VD
192 ST.
G .
Upcoming Developments
EO
K
32 AVE.
RG
IN BL
E
Alden Altus Soleil
G VD
G .
Semiah Fantom Oceana PARC
SOUTH SURREY
EO
24 AVE.
Miramar Village Foster Martin
RG
99
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Auto Dealerships
K
32 AVE.
IN BL
G VD
G .
24 AVE. 24 AVE.
EO
16 AVE. Ocean Park Ford MidWay Mazda
RG
OpenRoad Toyota King George Nissan
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White Rock VW Barnes Wheaton GM
24 AVE. 24 AVE.
Shopping Centres
HITE 8 AVE.
Semiahmoo Shopping Centre The Shops at Morgan Crossing
OCK H
16 AVE. 16 AVE. Grandview Corners Walmart Supercentre
1 Building the Next Metropolitan Centre. Realizing Surrey’s
WHITE 8 AVE.
Economic Opportunities, City of Surrey
ROCKPROFESSIONAL ADVISORY
Move over housing;
commercial is the new
real estate boom.
AUDITORS LEGAL COUNSEL PROJECT MANAGEMENT
Frank O’Brian
Business in Vancouver
INDEPENDENT VALUATION SERVICES
ARCHITECTURAL & SELF STORAGE VALUATION INDEPENDENT ENVIRONMENTAL
INTERIOR DESIGN & APPRAISAL SERVICES VALUATION SERVICES CONSULTANTS
Suite 808-609 Granville Street [604] 684.5742 info@nationwideselfstorage.ca
Vancouver, BC V7Y 1G5 [866] 688.5750 www.nationwideselfstorage.ca
There can be no assurance NationWide IV Self Storage Trust will acquire the Development Property on the terms set out therein, or at all. This is
not a formal offering document. Prospective purchasers of this investment opportunity will be provided with a formal offering memorandum dated
June 3, 2019 (the "Offering Memorandum") and will need to be qualified for investment prior to making any investment. No person has been
authorized to give any information or to make any representation not contained in the formal Offering Memorandum. No securities regulatory
authority or regulator has assessed the merits of the proposed offering or reviewed the formal Offering Memorandum. This investment opportunity
is speculative and involves a high degree of risk. There is a risk that any investment made will be lost entirely or in part. Only prospective investors
Artistic rendering. Actual results may be different. who do not require immediate liquidity of their investment and who can afford the loss of their entire investment should consider this investment.You can also read
