FOUR SEASONS RANCH RV PARK - Amazon S3 Memorand… · Landscaping 24,043 401 23,569 393 25,000 417...
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Capital Markets | Manufactured Housing FOUR SEASONS RANCH RV PARK 4496 Highway 80 Terrell, Kaufman County, TX 75160 OFFERING MEMORANDUM
Transcript of FOUR SEASONS RANCH RV PARK - Amazon S3 Memorand… · Landscaping 24,043 401 23,569 393 25,000 417...
Capi ta l Markets | Manufac tured Hous ing
FOUR SEASONS RANCH RV PARK4496 Highway 80Terrell, Kaufman County, TX 75160
OFFERING MEMORANDUM
AFFILIATED BUSINESS DISCLOSURE AND CONFIDENTIALITY AGREEMENT
CBRE, Inc. operates within a global family of companies with many subsidiaries and/or related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates may represent various clients with competing interests in the same transaction. For example, this Memorandum may be received by our Affiliates, including CBRE Investors, Inc. or Trammell Crow Company. Those, or other, Affiliates may express an interest in the property described in this Memorandum (the “Property”) may submit an offer to purchase the Property and may be the successful bidder for the Property. You hereby acknowledge that possibility and agree that neither CBRE, Inc. nor any involved Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the sale or purchase of the Property. In all instances, however, CBRE, Inc. will act in the best interest of the client(s) it represents in the transaction described in this Memorandum and will not act in concert with or otherwise conduct its business in a way that benefits any Affiliate to the detriment of any other offeror or prospective offeror, but rather will conduct its business in a manner consistent with the law and any fiduciary duties owed to the client(s) it represents in the transaction described in this Memorandum.
This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property.
This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Property or the owner of the Property (the “Owner”), to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the Owner and CBRE, Inc. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner.
Neither the Owner or CBRE, Inc, nor any of their respective directors, officers, Affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its
contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property.
The Owner expressly reserved the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived.
By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or CBRE, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or CBRE, Inc.
If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to CBRE, Inc.
© 2016 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.
CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners.
Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited.
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CONTACT US
TABLE OF CONTENTS
04
05-07
08-09
10-11
12
13-14
15-16
17-18
EXECUTIVE SUMMARY
PROPERTY PHOTOS
MAPS & AERIAL
PROPERTY DETAILS
FINANCIAL ANALYSIS
RENT AND SALES COMPARABLES
MARKET OVERVIEW
DEMOGRAPHICS
F O U R S E A S O N S R V P A R K
T a b l e o f C o n t e n t s
MIKE NISSLEYManufactured Housing & RVSenior Vice President +1 [email protected]
THAO NGUYENManufactured Housing & RVAssociate+1 [email protected]
4E x e c u t i v e S u m m a r y
THE OFFERING
The CBRE National MHRV Team, as the exclusive marketing broker, is pleasedto offer Four Seasons Ranch RV Park for sale. The property is located in Terrell,Texas, approximately 30 miles east of Dallas and features 60 RV sites. Theprimary site lies on 2.00 acres with 19.55 acres of excess land available fordevelopment of additional sites. The asking price is $1,300,00, inclusive of theexcess land.
Property Highlights+ All of the RV sites have full hook-ups with 30- and 50-amp electrical service;
electricity is sub metered and billed-back to the residents.+ The offering includes a mobile home unit (3BD/2BA) and an 8,000 square
foot metal barn.+ The occupancy average in 2015 was 66% compared to 57% in 2014;
current rents are below market, posing for 10% upside in income.+ Expansion opportunity within the adjacent land allows the buyer to add more
sites, increasing cash flow and overall value.
Area Highlights+ Terrell is the retail gateway to Kaufman County and East Texas. Its close
proximity to Dallas (30 miles east) and nearby Tanger Outlets is adestination retail center serving a primary trade area of 334,000 persons.Approximately 45% of the foot traffic are from consumers residing outside ofKaufman County.
+ Terrell Tanger Outlet is located 6 miles southeast of the subject property.The outlet center is a 177,000 square feet destination retail developmentwith over 40 tenants.
+ Population growth at the 10-mile radius was 77.8% (2000 to 2010); 10.6%(2010 to 2015) and 8.8% (2015 to 2020).
+ The 2015 average household income was $83,617 (10-miles), $68,896 (5-miles), and $47,144 (3-miles), respectively.
PRICE $1,300,000
TERMS All Cash
YEAR BUILT 2001
SITES 60
PROPERTY TYPE RV
RESIDENT PROFILE All-Ages
ROADSGravel with concretepads
CAP RATE 11.25%
2015 AVERAGE OCCUPANCY 66%
IN-PLACE OCCUPANCY 90%
MARKET OCCUPANCY 80%
IN-PLACE RENT $350
MARKET RENT $385
LAND (ACRES):
APN #13909 (Primary Site) 2.00
APN #71691 (Excess Land) 11.88
APN #71691 (Excess Land) 7.67
TOTAL LAND 21.55
UTILITIES:
WATER Lawrence Water
SEWER Underground Septic
TRASH Public WorksELECTRIC Reliant or Hudson Energy
AMENITIES:Laundry room, pond, walking trails
EXECUTIVE SUMMARYF O U R S E A S O N S R A N C H R V P A R K
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F O U R S E A S O N S R A N C H R V P A R K
PROPERTY PHOTOS
P r o p e r t y P h o t o s
RV Sites
Sub-metered Electric Concrete Pads
Entrance/Signage
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F O U R S E A S O N S R A N C H R V P A R K
PROPERTY PHOTOS
P r o p e r t y P h o t o s
RV Sites
Concrete Pads Laundry Room
RV Sites
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F O U R S E A S O N S R A N C H R V P A R K
PROPERTY PHOTOS
P r o p e r t y P h o t o s
Adjacent Land with Metal Barn
Manager’s Unit Frontage along Highway 80
Adjacent Land with Pond
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F O U R S E A S O N S R A N C H R V P A R K
M a p s & A e r i a l
MAPSAREA MAP
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F O U R S E A S O N S R A N C H R V P A R K
M a p s & A e r i a l
AERIAL
Excess Land(7.67 Acres)
Primary Site(2.00 Acres)
Excess Land(11.88 Acres)
10P r o p e r t y D e t a i l s
PROPERTY DETAILSHISTORICAL OCCUPANCY
80% 82%
52%55% 57%
63%
53% 54% 53%
64%
47%
27%
54%51%
58%
45%
68%
55%
74%67%
92%
77%84%
61%
OCCUPANCY TREND ‐ TRAILING 24 MONTHS2014 Average = 57%2015 Average = 66%
F O U R S E A S O N S R A N C H R V P A R K
11P r o p e r t y D e t a i l s
PROPERTY DETAILSSURVEY
F O U R S E A S O N S R A N C H R V P A R K
12F i n a n c i a l A n a l y s i s
FINANCIAL ANALYSISF O U R S E A S O N S R A N C H R V P A R K
HISTORICAL INCOME AND EXPENSES
2014 2015 PRO FORMA
Total Per Site Total Per Site Total Per SiteINCOMEGross Potential Rent 187,955 $3,133 181,115 $3,019 $277,200 $4,620 Based on $385 market rent x 60 sites x 12 mos.Less Vacancy - - - - (55,440) (924) Based on 20% market vacancyLess Credit Loss - - - - (2,772) (46) 1% per market averagesNet Rental Income $187,955 $3,133 $181,115 $3,019 $218,988 $3,650
Utility Reimbursement - - - - 28,000 467 Based on market occupancy rate x electricity/gas expenseOther Income - - - - 2,772 46 1% per mkt averages for ancillary incomeEffective Gross Income $187,955 $3,133 $181,115 $3,019 $249,760 $4,163
EXPENSESReal Estate Taxes 3,991 67 4,354 73 5,000 83 Based on 2015 totalProperty Insurance 1,384 23 1,419 24 3,000 50 Based on market averagesElectricity/Gas 41,564 693 25,549 426 35,000 583 Based on historical averageWater/Sewer 492 8 1,963 33 2,000 33 Based on 2015 totalTrash 2,757 46 2,774 46 2,800 47 Based on historical average
Repairs & Maintenance 14,217 237 6,973 116 7,000 117 2014 includes CAPEX; based on 2015 total and market averages
Landscaping 24,043 401 23,569 393 25,000 417 Based on historical averagePayroll & Benefits 17,729 295 18,174 303 30,000 500 Based on market averagesManagement Fee - - - - 7,493 125 Based on market averages
0.0% 0.0% 3.0%General & Administrative 311 5 316 5 1,500 25 Based on market averagesAdvertising & Marketing 1,892 32 1,430 24 3,000 50 Based on market averagesReserves - - - - 2,400 40 Based on market averagesTotal Expenses $108,379 $1,806 $86,522 $1,442 $124,193 $2,070
Expense Ratio 57.7% 47.8% 49.7%NET OPERATING INCOME $79,576 $1,326 $94,594 $1,577 $125,567 $2,093
13R e n t A n d S a l e s C o m p a r a b l e s
RENT COMPARABLES
Comp. # Community Property Address City, State Type Occupancy Sites Monthly Weekly Daily
PROPERTY Four Seasons RV Park 4496 Hwy. 80 Terrell, TX 75160 RV 70% 60 $350 $125 $35
1 Terrell RV Park 1450 Champion Drive Terrell, TX 75160 RV 89% 63 $450 $200 $30
2 Bluebonnet RV & Cottages 16543 FM 429 Terrell, TX 75161 RV 93% 90 $400‐$440 $245 $42
3 Sunset RV Resort (New Development) 9091 FM 2728 Terrell, TX 75161 RV Lease ‐Up 36 $385 $145 $35Source: CBRE
F O U R S E A S O N S R A N C H R V P A R K
14R e n t A n d S a l e s C o m p a r a b l e s
SALES COMPARABLES
Comp. # Community Property Address City, State Year Built Type Sites Cap Rate Sales Price SP/Site Sales Date
PROPERTY Four Seasons RV Park 4496 Hwy. 80 Terrell, TX 75160 2003 RV 60 ‐ ‐ ‐ ‐
1 The No.1 RV Park of Tyler 12421 State Highway 31W Tyler, TX NA RV 65 11.50% $1,300,000 $20,000 1/2016
2 River Haven RV Resort 351 Crestview Drive Cuero, TX NA RV 31 10.00% $900,000 $29,032 4/2015
3 1270 RV Ranch RV Park 4513 S. County Road 1270 Midland, TX 2012 RV 118 10.21% $2,395,000 $20,297 12/2014
4 Port O'Connor RV Park 110 Steve Street Port O'Connor, TX 2008 RV 71 9.05% $874,000 $12,310 5/2014
5 Gateway to the Gulf RV Park 9809 US Hwy. 59 N Victoria, TX 2001 RV 88 12.08% $1,680,000 $19,091 4/2014
Source: CBRE
F O U R S E A S O N S R A N C H R V P A R K
15M a r k e t O v e r v i e w
TANGER OUTLET• 177,000 square feet outlet
center featuring 40 stores with a market trade area of almost 300,000 persons.
• Anchors include Nike’s, Gap, Old Navy, Toys R Us and Dress barn
MARKET OVERVIEW
TERRELL MARKET CENTER & CROSSROADS AT TERRELL
For more information, visit:http://terrelltexasedc.com/retail-profile
AREA HIGHLIGHTS• Terrell is located 30 miles east of Dallas
along I-20 and US-80, providing ease ofaccess into a major metropolitan area.
• Terrell is a destination retail area, featuringthe Tanger Outlet, a 177,000 square footcenter with over 40 tenants. The outlet drawsin a primary trade area of 334,000 personswith approximately 45% of its foot trafficcoming from outside of Kaufman County.
• The area is 30 miles west of Canton, a fleamarket that operates on the first Monday ofevery month. The event draws in over 7,000vendors and covers 300 acres.
• Terrell Market Center and The Crossroads atTerrell will further elevate the area withadditional commercial, office, retail, medicaland hospitality uses.
Major Employers in TerrellEmployer Industry EmployeesTerrell State Hospital Healthcare 900 Madix, Inc. Counters/Shelves 800 Terrell ISD Government 615 Old Castle Building Envelope
Framing, curtain walls
600
Autozone Distribution Ctr. Automotive 500
Walmart Distribution Retail 500 Lakes Regional MHMR Center
Healthcare 269
American National Bank Banking 250
Nucor Co. Mfg. Steel Buildings
225
City of Terrell Government 174 Source: Terrell Chamber of Commerce
F O U R S E A S O N S R A N C H R V P A R K
Source: Terrell Chamber of Commerce
16M a r k e t O v e r v i e w
MARKET OVERVIEW
Terrell Market CenterThe 89–acre tract is located along the east side of FM 148. The site currently features a 60,000 square-foot Buc-ee’sMega Travel Center that opened in June 2015 with 84 fuel pumps and 34 restrooms. Buc-ee’s lies on 20 acres and will anchor the 37-acre mixed-use development, which will include more restaurants, retail, office, hotels, among other commercial uses.
Baylor Scott White Health currently owns 52 acres and is scheduled to build a 100-bed hospital that can be expanded to a 400-bed facility. Baylor has already invested $16 Million for infrastructure at the I-20 / Spur 557 & FM 148 site.
Crossroads at TerrellFour Seasons Ranch RV Park is located approximately 2 milesnorth of The Crossroads at Terrell and the Terrell MarketCenter.
The Crossroads at Terrell is a proposed 1.275 million squarefoot power retail center on 255 acres to be located along thewest side of FM 148 and Spur 557. The development will includea mixed-use of office, hotel, multifamily and retail. It will open inphases, with a targeted opening of Spring 2016. Thedevelopment will elevate Terrell as the East Texas retail hub, outpositioning all retail sites to the West.
F O U R S E A S O N S R A N C H R V P A R K
Source: Terrell Chamber of Commerce
Residential/Retail Developments
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F O U R S E A S O N S R A N C H R V P A R K
DEMOGRAPHICS
18D e m o g r a p h i c s
F O U R S E A S O N S R A N C H R V P A R K
DEMOGRAPHICS
CONTACT US
Capi ta l Markets | Manufac tured Hous ing
INVESTMENT SUMMARY
PRESERVE AT OYSTER CREEKFOUR SEASONS RANCH RV PARK
INTEREST OFFERED100% Fee Simple Interest
INVESTMENT OPPORTUNITYCBRE has been engaged by the Seller as its exclusive advisor to offer Four Seasons Ranch RV Park.
PROPERTY TOURSBuyers are welcome to do a quiet “windshield” tour without disturbing residents or on-site personnel upon approval of the CBRE contactsbelow. All official tours will require a minimum 48-hour notice and are subject to schedule availability.
DUE DILIGENCEPlease contact the individuals below to register on the CBRE Deal Flow or RCM Marketplace website to access and obtain detailedproperty supplementary information 24/7. Go to: www.fourseasonsranchrv.com.
THAO NGUYENManufactured Housing & [email protected]
MIKE NISSLEYManufactured Housing & RV [email protected]
