NationWide Self Storage & Auto Wash IV

Structured to provide holders of participating preferred trust units (Trust Units) with a robust source of tax-advantaged income paid monthly and the potential for annual special cash distributions, while preserving and growing the original capital investment.

Investment Objectives

1) an investment return derived from:

  • a preferred base return based on current Trust Unit issue price;*       
  • up to 70% participation in returns exceeding the preferred base target return; and 
  • capital appreciation on disposition of the Developed Property;

2) tax advantaged target monthly income distributions, as a portion of the distributions will be taxed as a return of capital;

3) a source of cash flow in various economic environments;

4) an investment backed by urban industrial real estate.

7.07% Annualized Preferred Base Target Return*

Estimated completion and stabilized rental income Q2 2022

Monthly distributions in arrears will be paid.

Plus Investor Profit Participation

Up to 70% on Exit

Investment Terms

Issue Size:

$26,000,000 (maximum)

 

Securities Offered:

CDO NW041 – Participating Preferred Class A trust units

CDO NW042 – Participating Preferred Class F trust units

 

Price per Security:

$  90 per Trust Unit for the first  88,888 Units ($8,000,000);

$100 per Trust Unit for the next 80,000 Units ($8,000,000);

$105 per Trust Unit for the next 47,619 Units ($5,000,000);

$110 per Trust Unit for the next 22,720 Units ($2,500,000);

$115 per Trust Unit for the next 21,739 Units ($2,500,000);

 

Minimum Subscription:

$10,000. Additional subscriptions may be made in multiples of $1000.

 

Business of the Trust:

The trust will invest all the Available Funds in securities of the Partnership (as defined in the Offering Memorandum), which will in turn use the proceeds to acquire a 0.66 acre (28,900 sq. ft) property located at 2337 King George Blvd. in Surrey BC (the “Development Property”). The partnership intends to develop and operate a 3-storey (plus 2 basement floors) combination self storage/car wash facility on the Development Property.

 

Distributions:

Investors are expected to receive monthly cash distributions (targeting annualized preferred base return of 8.25%, 7.425%, 7.071%, 6.75%, or 6.456% based on $90, $100, $105, $110, and $115 Trust Unit issuance price, respectively; and upside participation and thereafter in all income and profits, approximately 5-30 months from the date of the final Closing of the Offering.

 

Redemption:

Quarterly redemption provisions (subject to certain restrictions – see Offering Memorandum).

 

Eligibility:

The Units are qualified investments for Registered Plans, which include RSPs, RIFs, DPSPs, RESPs, RDSPs, and TFSAs

 

Liquidity:

Liquidity is expected to occur within approximately 5 to 7 years. Terms and timing of a liquidity even(if any) will depend on opportunities available at the time.

*targeting an annualized preferred target return of 8.25%, 7.425%, 7071%, 6.75% or 6.456% based on $90, $100, $105, $110, and $115  Trust Unit issue price, respectively. See current Offering memorandum for details.

Marvin Nickel Comments

I currently own NationWide’s NWSS I and II located in Burnaby and Vancouver respectively. I purchased NWSS I in March of 2017 and here is the most recent update/valuation.

 

Nationwide Self Storage provides an opportunity to invest in a real estate-based hard asset combined with an environmentally friendly car wash nestled in a high profile, high traffic location in Surrey, BC.

 

Unlike apartments, which involve tenants, appliances and other costly maintenance expenses, this asset class is far easier to manage and has a high income vs expense ratio.

 

According to Green Street Advisors, June 2018 study of real estate income producing properties, storage cash flows are one of the most stable sources to varying economic conditions.

 

The car wash with its state-of-the-art technology will be capable of washing, waxing, sealing, tire shining and drying up to 90 cars per hour!

 

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                                                                                                                      Marvin Nickel CFP CIM

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