Cubedup Development Underwriting · Investment committee
Self storage land: ground-up and expansion

Synthetic example: Route 9 development site

Methodology: Cubedup Development Underwriting (CDU). Contents: Summary, Model.

What land is worth to a storage developer. Ceiling is the lowest of four residual land values: the price that keeps yield on cost at the hurdle, the price that keeps a spread over the exit cap, the price that clears a 20% levered IRR, and comparable land. Inputs shown are illustrative, not a live transaction: this demo is a synthetic example.

1. Site and entitlement

Property Project Existing facility (expansion) Asking price, land Usable acres Storage permitted by zoning Phase I environmental Flood zone Comparable land, USD per usable acre (0 = not set) Excess land value, USD Closing costs, % of land Opening bid, USD (your decision)

2. Building

Building type Gross building SF Net rentable SF, climate-controlled Net rentable SF, drive-up

3. Market and rents

Move-in rent, climate-controlled, USD/SF/month Move-in rent, drive-up, USD/SF/month Rent lift at stabilization, % Lift source Mature in-place rent, USD/SF/month (context, not priced) Mature rent source Comp occupancy now, % Comp occupancy 24 months ago, % Population growth, 5 years, % REIT share within 3 miles, % REIT share within 5 miles, % Stabilized physical occupancy, % Economic occupancy, % Ancillary income, % of rent

4. Development cost

Hard cost, USD Site work, USD Soft costs, USD FF&E and technology, USD Impact and utility fees, USD Developer fee, USD Cost basis Cost sources Climate-controlled cost, USD/SF Drive-up cost, USD/SF

5. Schedule

Construction months Lease-up months to stabilization (blank = 30)

6. Construction loan and capital stack

Loan to cost, % Index Spread, % Origination fee, % Minimum DSCR at stabilization, x Interest reserve, months (blank = none) Layer behind the bank Layer share of cost, % Layer rate, % SOFR, % Prime, % Rates as of 5-yr Treasury, % 10-yr Treasury, %

7. Operations and tax

Operating expenses excl. tax and insurance, USD/yr Insurance, USD/yr Property tax, effective rate on value, % Assessed at % of value

8. Exit and tests

Exit cap tier Sale costs, % Yield on cost hurdle, % Minimum spread over exit cap, bps Levered IRR gate, %

9. Scorecard Bar 80

Factor	Weight	Points

Financials are scored from the ceiling against the ask. Factors you leave blank are not scored; the total reads "X of Y scored".

Recommendation

Price USD

At the ceiling

Ceiling breakdown Lowest binds

Package, Cubedup, your value

Line	Package	Cubedup	Your value

Market

Price ladder

Land price	Yield on cost	Spread	Levered IRR

What moves the ceiling

Conditions and open items

Open the model

Total development cost, at the ask

Sensitivity: yield on cost by hard cost (rows) and rent (columns), at the ask

Lease-up

Take-out loan, permanent

Climate-controlled versus drive-up

Layer behind the bank

Cost research sources

Generic line names throughout. Lender terms are market conventions until a term sheet is in. The ceiling is the walk-away.