How to value park with additional non-pad income.

[Dmitri K.]

If a park has other sources of income - one in particular that comes to mind is self storage. How would you value that? Economics and dynamics of self-storage are different and i am not sure if it would be fair to apply the same cap rate to the income that self-storage is currently generating while evaluating the park a s whole. Thoughts? 

I am also thinking that self storage will require more attention from the manager, hence higher manager expenses.

[Neil Henderson]

Wouldn't you just view it as an additional source of income that increases the NOI? I know value add multi family investors who add value by charging for garages, enclosed patios, parking spaces, etc. There certainly might be a buyer who tries to carve it off and say they don't want it factored into the calculation but that's part of the negotiation.