Topic: “Opportunities in Specialty Storage: RVs & Marine”
Time: September 8, 2020 at 1 pm Eastern Standard Time
Investing in Recession Resistant Specialty Storage as the RV and Marine Economy Surges:
Zenith Storage is expected to provide both significant capital appreciation and cash flow. We are capitalizing on several trends: Tremendous growth in the demand for recreational vehicles ($16 billion market) and boats with an increasing desire to live a mobile lifestyle; Covid-19 has accelerated telecommuting and emphasized benefits of exploring America; there is currently minimal competition and a shortage of high security, luxury amenity, enclosed RV, and boat, individual unit storage in Las Vegas with the closest facility 17 miles away from our location; Our location is close to both Lake Mead and the Las Vegas Strip with high car traffic counts.
Project value expected to increase 2x of total build and land cost upon completion and consistent quarterly cash flow (capital appreciation + income)
- Mercadyne Automated Properties facilities have historically appreciated 2x-3x in 5 years
- Significant opportunity to further increase in value as neighborhood becomes gentrified
- Storage has consistently been a Recession resistant business, historically
- Management team has successfully redeveloped and is the owner/operator of 4 self storage facilities throughout 3 states (Nevada, Utah, Arizona)
- Project contains approximately 50,000 net rentable sqft, expected to produce significant monthly cash flows upon stabilization. Lot size of 2.33 acres (101,495 SF).
- Affluent clientele for this storage product type leading to high occupancy and minimal price sensitivity
- Competition is limited, with currently one dedicated enclosed RV and Marine storage facility, with individual units, across the entire 135-square miles of Las Vegas, NV
- Land Purchase Price $7.38/Sqft. 8 other property comparables now selling at an average of $15.34 /Sqft
- Traffic counts of over 9,000 CPD
- Located 35-minutes from Lake Mead, located near Downtown Las Vegas and Las Vegas Strip
MERCADYNE AUTOMATED PROPERTIES, LLC (M.A.P.) and our investors acquire land, design and develop enclosed storage facilities for recreational vehicles, and boats. We apply automation and cutting-edge hardware and software technologies, high security, digital marketing, active management and financial controls to mitigate human management, drive economic occupancy rates, increase net operating income, stabilize cash flows for multi-decade recurring revenue and creating equity value. We generate a significant increase in the underlying asset value of each facility from the combination of development and compelling land acquisition price. The capital appreciation from the development of our projects is a material component of the overall investment return which occurs antecedent and is accretive to, the return generated from the multi-year cash flow produced, which begins upon completion of development.
David N. Baker – Managing Member and Owner/Operator
David N. Baker is Managing Member and Owner/Operator of Mercadyne Automated Properties LLC, a portfolio of self storage facilities, which he acquired, redeveloped and turned around to become cash flow positive.
Mr. Baker is also Managing Member of Mercadyne Advisors LLC, providing a going public accelerator for private companies, corporate advisory for micro-cap and small-cap public companies and digital exposure for companies seeking to complete offering campaigns and expand their investment community visibility. Mr. Baker has led as investment principal, originating, structuring, financing and investing in alternative going public transactions for numerous emerging growth companies, as well as advising them at all stages of their corporate lifecycle, from startup through subsequent public financings. Additionally, he serves as a director of companies in which he is a material stakeholder.
As principal of three previous small cap/micro-cap, non-correlated, hedge funds and two advisory firms during his career, Mr. Baker has directly invested in more than 200 small cap/micro cap financings. Co-authored two financial analytics patents, including a design for product/service hierarchy database for market competition and investment analysis, as well as a patent for a granular method for index performance by sector. These issued patents were the basis of a Company he co-founded (Revere Data LLC fka Sectorbase) that was eventually acquired by Factset Data Systems, Inc.
Recently, he Co-founded IDM Social to provide public and going public companies with social media and digital marketing that identifies undiscovered audiences of prospective investors and provides continuous and global exposure to issuers.
Mr. Baker’s career has also included other investment management capacities, proprietary trading, investment banking and securities brokerage. Operational roles in database software, renewable energy (wind turbines), self storage and property infrastructure development. He earned a B.A. in 1989 from the University of Colorado and received a J.D. in 1992 from Golden Gate University (and interned with the SEC, division of enforcement and division of corporation finance). He has previously held Series 7, 63, 65 and 55 securities licenses.