Clarkstoragellc 2021 wrap up

We have had three primary CRE project types this year. Our normal Self Storage, House Subdivision and Teak Plantation projects.

1. CBRR location- we have this new location completed. Waiting on City Occupancy inspection and finish installing security cameras. This project ended up costing significantly more than planned.

A. Water addition- $130,000. We had a fire hydrant on site, but found out it was a private hydrant and we couldn't use. Plus it is a requirement to put a main waterline along the front of your city street.,

B. Did a retaining wall $40,000 to get extra rentable building ground to maximize the overall site. This was a breakeven to a positive impact.,

C. Concrete went up significantly during this covid period. Also there was a shortage of drivers causing intermittent construction delays. About $200,000 more in cost.

D. Ended up with 365 units. Have about 60 already rented from our Phase 1 opening this past spring.

E. Just need to go through some Spring/Fall seasons and get it filled up. This will probably take about a year longer since we built the whole project versus doing in two or three phases over 2 to 3 years. Will cost about $60,000 more in carrying interest, but buildings are about $400,000 cheaper per our manufacturer, versus having waited to order now.

F. This will be a monster cash flow location. Plus we have rates set at mid to lower level for Rent up Phase. Room to increase later. This is also in a "protected" location.

G. Will finalize SBA loan late this spring. Waiting till it fills up more so we can cash flow P/I. Just on interest only with our local bank now. It's nice working with Banks who understand the business angles. They also like Self Storage.

2. CB 35 location-

A. At 55% full. Into positive cash flow including principal and interest. This is now financed under an SBA 20 year amort. Just need to sit back and pay down debt and build up equity. Go through another Spring and Fall cycle.

B. Should be ready to plan our next 30 by 550 building, Fall 2022.

C. Evaluating building the 40 x 550 building site in 2022. Instead of doing 20's, thinking about making this into 25 x 45 units. Would extend the 40 into a 45 wide, buy shortening the driveway to 20 versus 25, between the 30 wide building. Want to try a little different product mix.

3. Southwest IA and Neb City- all at 99% occupancy. Need to add/buy more.

4. Additional Storage- not looking to expand into further new locations. Stabilizing what we have. Starting to focus on other business models and life interests.

5. Journey End Subdivision- Sold 7 of 9 lots. Going to hold one, since it is near the entrance to our house. Just have 1 more to sell. Virtually sold all the lots in one year. Converted this low basis/non income property to cash and paid down Storage debt. Did not do 1031. Have 1st year depreciation on our new Storage projects to offset. This land was purchased 20 to 30 years ago. Nothing really creative about this move. Just Subdividing and working our way through the process. Key decision was to sale at this moment and pay down storage debt.

6. Texas Storage- Helped my brother develop a new Storage location in Texas. Roads will be surfaced next week. Then waiting on the Electric company to source a meter box, they can't find one for sale in Texas or anywhere. His first project will be better Financially than any of the projects we have done to date. Texas is a really hot market for Storage. Hardest part of this project was working through another person (my brother) versus managing myself. Good learning process for him, low risk since I was on the phone through the whole project and went down for site selection.

Projects in Play:

7. CB 35 Flex/Contractor buildings. Looking to construct 2 of 6 buildings in 2022. These will be small 50 x 100 buildings, 16 foot tall with 12 x 14 doors. Will be split on 25 foot increments with 50 foot depths. Was all set to place an order but the Building company decided to stop doing commercial buildings and concentrate just on their Grain Storage equipment/buildings. Getting estimates and will start to build in 2022. Don't need any downpayment. The existing 4 acres is paid for and about a $500,000 appraised value. Just need to do the project.

8. "Trust Acres"- have some acres tied up in a trust. Asked the trust bank to see if I could buy it. They are supposed to have a meeting in January. This is a Cut trees and clean up project. Will be a great project to Value add. If I get it, will send pictures of me freezing my butt off clearing trees in the middle of winter with my chainsaw and skidsteer.

9. Our other Storage locations we already own extra ground or are positioned to buy more. Building costs are really high right now, pushing our financial metrics out. In 2022, we will probably get the land prepped and ready, then decide if we do concrete slabs in the Fall and order buildings for spring; or just sit and wait for prices to go down in 2023; if they do, otherwise we wasted a year.

10. Belize Teak Plantation, we have about 2 acres left to plant next year. About 1/2 way through on the house we are building. Should be able to move into it this coming Spring. This is more of an added life style addition. Although it is framed to be a profitable project on both the Teak Plantation and the House.

11. Belize Teak Forestry management, ClarkForestryLLC- This is really going to be a fun project for me down in Belize. My Belizean team will be the primary beneficiaries of the profits on this project. I'll provide the know how and connections and they will manage the purchasing/Forestry management/Logging/Milling/Marketing portions of the business. I will supply capital and technical knowledge.

Developing always has bumps and headaches. I guess I could invest in a Syndications or the Stock market, but would miss out on all the fun. This year, even though we had a lot going on, working with the same Financial and Contractor teams; made everything go smooth and allowed me to open up my Band width of projects.

Did a 7 hour round trip to Pella, Iowa to get Dutch Pastries at Jaarsma Bakery and some Beef Sticks/Jerky at In't Velds as Xmas gifts for all the Bankers and Contractors. Something you can't get around here. Also, personally "handed" payments over for all of the year end projects. Try to keep all of our business contacts happy and wanting to do more business with us.

Hope you had a successful 2021 and have big plans for 2022.