While Las Vegas has been getting negative press lately Downingsays self storage deals still make a lot of sense because theproduct type has historically performed well in down economies.Silverado is the company's seventh self-storage asset in theregion. "Being a contrarian investment…we expect Silverado to havean above average return in cash flow immediately and we believethere is a high potential for above average appreciation when theLas Vegas real estate markets recover," he says.

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In addition, Downing says the property benefits from multiplerevenue streams; they include 625 climate-controlled storage units,26 RV parking spaces, a cellular tower and a three-sided billboardfacing the highway. "Silverado is one of the better positionedassets that we have added to our portfolio this year in terms ofcash flow, stability and upside potential," he says.

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Equity for EBS acquisitions comes from EBS' closed PrivateEquity Income and Growth Funds, 1031 Exchange Investors and EBS'existing private client cash investors. The acquisition financingincluded a floating interest rate loan with "a significantinterest-only period," according to EBS. "We experienced a hugedemand to participate in this project from our cash investors andfrom our 1031 Investors," Downing says.

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The selling entity, Silverado Self Storage III LLC, includesthree Vegas-based investors, including Fred Lessman of FieldstoneInvestments and Perma-Bilt Homes, Philip H. Davis of PHDProperties, and Philip J. and Ted Weisman of PDT Associates.

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EBS expects to close four more deals totaling $80 million beforethe end of 2008. Downing says the company is currently undercontract to purchase facilities in Las Vegas, Texas and SouthCarolina.

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Currently in Las Vegas, in addition to its latest asset, thecompany owns six additional self-storage facilities, five of thembranded as American Mini Storage and a sixth called Storage Inn.All told, the company owns 60 properties in 10 states. Allproperties are managed by All American Property Management Inc., anEBS company.

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