NATIONAL MHC POrTfOLIO - …...National MHC Portfolio provides investors with an opportunity to buy...
Transcript of NATIONAL MHC POrTfOLIO - …...National MHC Portfolio provides investors with an opportunity to buy...
NATIONAL MHCPOrTfOLIO
A 3-PROPERTY MANUFACTURED HOME COMMUNITY PORTFOLIO INVESTMENT OPPORTUNITYMAJOR PRICE REDUCTION ON THE REMAINING AVAILABLE PROPERT IES IN THE PORTFOLIO
N A T I O N A L M H C P O R T F O L I O
A z t e c - Y u c c a V a l l e y , C AH o l i d a y - L o u i s v i l l e , K Y S t e r l i n g S h o r e E s t a t e s - L a k e C o u n t r y , C A
S t e r l i n g S h o r e E s t a t e s
A z t e c
H o l i d a y
ARA’s National Manufactured Housing Group is pleased to present this revised opportunity to purchase a three-property
portfolio in California and Kentucky. We previously marketed these with other communities in Michigan and Florida;
however, those have either sold or been taken off the market. The three remaining properties are now being offered
PRICED and at reduced prices from our original whisper numbers. The package includes two seniors (55+) properties
located in California and one all-age community located in Kentucky. The communities are three to four-star in quality
and can be purchased individually or as a portfolio. Any inventory homes or notes are being offered at COST.
The total portfolio consists of 546 sites including undeveloped expansion land in the Aztec community and undeveloped
mini-storage land in the Holiday community. The two CA communities should qualify for attractive non-recourse Fannie
Mae debt (please contact us for quotes). From an operational perspective, the CA properties are in the high 90% physical
occupancy range and Holiday is in the 80% range (providing upside opportunity compared to its comparables). The
National MHC Portfolio provides investors with an opportunity to buy two attractive 55+ communities plus additional land
in the desirable CA market as well as one well performing all age asset in the rebounding Midwest.
3 Property PortfolioPortfolio Price $23,300,000
PORTFOLIO INTRODUCTION
Aztec
Sterling Shore Estates
NATIONAL MHCPOrTfOLIO
Aztrec
Sterling Shore Estates Holiday
Holiday Sterling Shore Estates
SITE INFORMATION
Address 7425 Church St., Yucca Valley, CA 92284
MH Sites 164
Reduced Price $9,900,000
Year Completed 1975
Community Type Seniors (55+)
Land Size and Density 23 Acres; 7.13 sites/acre
Physical Occupancy 97.6% (as of December 2011)
Market Rent/Site/Mo $451 (includes sewer & 2012 rent increase)
Last Rent Increase $25 (as of January 1, 2010)
Projected Increase $15 (as of January 1, 2012)
Additional Expansion Land 4 acres zoned RM-10
Roads Asphalt
Utility System Electric Public (Individually metered - Southern CA Edison) Water Public (Individually metered - Hi Desert Water Company) Sewer Private septic Trash Paid by Tenant (Waste Management) Gas Public (Individually metered - The Gas Company)
1) Proforma GSR grown 3% from the Site Mix2) Utility and Other Income grown 3% from 20113) Adjusted Utilities grown 3% from 20114) Proforma Taxes = 100% of Price x 2011 Tax Rate; Opportunity to pass through tax increase to tenants with 90 day notice
INCOME 2010 2011 Proforma
GROSS SCHEDULED RENT1 $859,102 $860,005 $908,967Less: Vacancy 33,215 28,550 34,086Less: Bad Debt 0 0 2,272Less: Concessions 0 460 2,272TOTAL RENTAL INCOME $825,887 $830,995 $870,336 Plus: Utility Income 211.522 221,404 228,046Plus: Other Income2 7,464 12,680 13,060Plus: Tax Pass Through4 0 0 46,369Total Other Income 218,986 234,084 287,476EFFECTIVE GROSS INCOME $1,044,873 $1,065,079 $1,157,812EXPENSES 2010 2011 ProformaRepairs & Maintenance $7,670 $8,402 $8,200Payroll 54,652 50,701 53,300Administrative 11,307 12,929 12,300Marketing 0 0 1,640Utilities3
Electricity 82,580 78,809 81,173 Water 48,650 62,379 64,250 Gas 62,838 59,285 61,063 Trash 23,815 26,462 27,256TOTAL VARIABLE EXPENSES $291,512 $298,968 $309,183Taxes4 48,888 75,602 107,092Other Tax 1,780 1,709 1,775Insurance 9,416 9,979 9,512Management Fee 41,778 42,538 46,312TOTAL OPERATING EXPENSES $393,373 $428,795 $473,875Plus: Capital Reserves 0 0 5,740TOTAL EXPENSES $393,373 $428,795 $479,615NET OPERATING INCOME $651,500 $636,284 $678,197
INVESTMENT HIGHLIGHTS
AREA HIGHLIGHTS
Rare opportun i ty to acqui re h igh qual i ty 55+ communi ty •in Cal i fo rn ia
Communi ty shou ld qual i fy fo r the very at t ract ive non-•recourse f inancing at h i s tor ica l ly low rates th rough Fannie Mae (see debt in format ion sect ion)
Th i rd par ty home lenders s t i l l act ive in the area; •however , most res idents purchase home for a l l cash
Ameni t ies inc lude swimming pool , indoor spa, sauna, •gated dog run, RV s torage, c lubhouse wi th k i tchen, b i l l ia rds , poker room and laundry fac i l i t ies
Al l revenue producing s i tes are owned al l cash or are •th i rd party f inanced - there are no notes requi red to be purchased with the real estate
No rent cont ro l•
There i s a 4 acre undeveloped s i te (zoned RM-•10) avai lab le for expans ion that i s be ing of fered in con junct ion wi th the communi ty
Yucca Valley is situated along the Northern edge of the •beautiful Joshua Tree National Park, roughly 120 miles to the East of Downtown Los Angeles
The city has become a haven for retirees looking for a •clean, safe, and affordable community. It was named among the top 10 most affordable places to retire by the U.S. News & World report
The area boasts a high desert climate with moderate •temperatures, lots of sunshine, and little precipitation
Aztec MHP is situated right off Twentynine Palms Hwy, a •major thoroughfare that runs through Yucca Valley and leads to Interstate 10 to the Southwest
The community is located in close proximity to numerous •entertainment venues and restaurants including Blue Skies Country Club, Community Center Park, and the Cinema 6 theater across the street
The Community Center Park includes the Hi-Desert Nature •Museum, the senior center, Town Hall, the public library, and sports facilities among other things
The U.S. Marine Air Ground Combat Center is located •approximately 30 miles to the Northeast. It is the largest Marine base in the nation
FINANCIAL ANALYSIS
AZTEC Virtual Property Tour: http://youtu.be/Py_EmGX7tLI
DEBT INFORMATION
Proposed Debt (Quote from Newmark Capital)
Loan Amount - $7,365,000•
Term - 10 years•
Amortization - 30 years•
Rate - 241 bps over the 10-year swap rate (4.53% as of 3/1/12)•
Max LTV - 75%•
Recourse - No•
Assumable - Yes•
SITE INFORMATION
Address 8219 Minor Ln., Okolona, KY 40219
MH Sites 315
Reduced Price $7,700,000
Year Completed 1965 - 1970
Community Type All Age
Land Size and Density 37.37 acres; 8.43 sites/acre
Physical Occupancy 82.54% (as of December 2011)
Market Rent/Site/Mo $275
Inventory Homes Vacant - 9
Last Rent Increase $25 (as of March 1, 2009)
Additional Self Storage Land 0.946 acres
Roads Asphalt
Utilities
Electric Public (Individually metered) Water Public (Individually metered - Louisville Water Company) Sewer Public (Individually metered - Metropolitan Sewer District) Trash Paid by Tenant (Tenants billed directly)
1) Proforma GSR grown 0% from the Site Mix2) Utility & Other Income grown 3% from 20113) Adjusted Utilities grown 3% from 20114) Proforma Taxes = 100% of Price x 2011 Tax Rate
FINANCIAL ANALYSIS
INVESTMENT HIGHLIGHTS
AREA HIGHLIGHTS
Opportunity to acquire an all age manufactured housing •community with vacancy upside
Attractive non-recourse debt options available. Buyer may assume •the existing debt or seek new financing. Detailed information on each option is included in the debt information section
A zero tolerance delinquency rent policy was instituted decreasing •occupancy, but dramatically increasing the quality of tenant
Current owner has made substantial capital improvements to the •community over the past two years - fill upside is now available to be realized
Additional fully approved parcel abuts the property and can be •developed into a mini-storage property
All revenue producing sites are owned all cash or are third •party financed - there are no notes required to be purchased with the real estate
Community is serviced by public utilities (directly metered •municipal water and sewer) and all utilities are the responsibility of the residents
Amenities include an on-site office•
No rent control•
Holiday MHP is located on the southern side of Louisville, the •largest city in Kentucky with a population of over 1.3 million in the MSA
The community provides convenient access to major •thoroughfares such as Interstate 65, which leads through the heart of Louisville, all the way to Indianapolis, IN 124 miles to the North
Louisville International Airport lies minutes to the North, and •is the 5th busiest cargo airport in the nation. UPS operates its hub out of this airport
Holiday is located in the heart of what is called the •Renaissance Zone, a 3,000 acre zone South of the Airport that was established as a tax-increment financing district to encourage industrial development
UPS has taken advantage of the Renaissance Zone, allocating •$2 billion in expansion in the area since 2002, creating thousands of jobs
The community is situated in the heart of the industrial area •across the street from the UPS customer center expansion
HOLIDAY Virtual Property Tour: http://youtu.be/nTzi6WjTik8
INCOME 2010 2011 Proforma
GROSS SCHEDULED RENT1 $1,039,500 $1,039,500 $1,039,500Less: Vacancy 182,600 204,050 218,295
Less: Bad Debt 890 0 10,395
Less: Concessions 0 9,405 0
TOTAL RENTAL INCOME $856,010 $826,045 $810,810Plus: Utility Income 130,495 131,365 135,306
Plus: Other Income2 100,269 89,608 92,296
Total Other Income 230,764 220,973 227,602
EFFECTIVE GROSS INCOME $1,086,774 $1,047,018 $1,038,412EXPENSES 2010 2011 ProformaRepairs & Maintenance $62,462 $93,612 $63,000
Payroll 52,315 66,949 63,000
Administrative 10,508 11,507 15,750
Marketing 0 0 1,575
Professional Fees 0 0 3,150
Utilities3
Electricity 12,263 12,477 12,851
Water 138,963 133,940 137,958
Sewer 31,679 19,868 20,464
TOTAL VARIABLE EXPENSES $308,009 $338,353 $317,748Taxes4 79,347 80,346 74,716
Insurance 14,575 14,066 14,490
Management Fee 40,425 41,017 31,152
TOTAL OPERATING EXPENSES $442,356 $473,781 $438,106Plus: Capital Reserves 0 0 15,750
TOTAL EXPENSES $442,356 $473,781 $453,856NET OPERATING INCOME $644,418 $573,237 $584.557
DEBT INFORMATION
Current Assumable Debt
Current Balance - $3,743,000 (1/1/12)•
Maturity Date - September 2, 2014•
Rate - 5.45%•
Payment - $329,300 (Annual)•
Proposed Debt (Quote from Newmark Capital)
Loan Amount - $5,530,000•
Term - 10 years•
Amortization - 30 years•
Rate - 390 bps over the 10-year swap rate (6.02% as of 3/1/12)•
Max LTV - 70%•
Recourse - No•
Assumable - Yes•
SELF STORAGELAND
HOLIDAY
SITE INFORMATION
Address 5830 Robin Hill Dr., Lakeport, CA 95453
MH Sites 67
Reduced Price $5,700,000
Year Completed NA
Community Type Seniors (55+)
Land Size and Density 28.15 acres; 2.49 sites/acre
Physical Occupancy 100% (as of December 2011)
Market Rent/Site/Mo $539 (includes water & sewer)
Last Rent Increase $50 (as of September 1, 2010)
Roads Asphalt
Utility System Electric Public (Individually metered - PG&E)
Water Public (Individually metered - Lake Country Special District)
Sewer Public (Individually metered - Lake Country Special District)
Trash Paid by Tenant (Tenants billed directly)
1) Proforma GSR grown 0% from the Site Mix2) Utility & Other Income grown 3% from 20113) Adjusted Utilities grown 3% from 20114) Proforma Taxes = 100% of Price x 2011 Tax Rate; Opportunity to pass through tax increase to tenants with 90 day notice
FINANCIAL ANALYSIS
INVESTMENT HIGHLIGHTS
AREA HIGHLIGHTS
Rare opportunity to acquire high quality 55+ community with •mostly multi-section homes and lake views on California’s largest fresh water reservoir
Community should qualify for the very attractive non-recourse •financing at historically low rates through Fannie Mae (see debt information section.)
Park has approved plans for 7 Double Wide expansion lots and •room for considerable addition expansion in existing storage lot
All revenue producing sites are owned all cash or are third •party financed - there are no notes required to be purchased with the real estate
Third party home lenders still active in the area •
Amenities include swimming pool, boat launch, pier, clubhouse •with billiards, RV storage, laundry facility
Public utilities and no rent control•
100% leased park with 100% occupancy for over 5 years•
Located in scenic Lake County along the banks of the beautiful •Clear Lake, Sterling Shores Estates is situated within North Lakeside, a small quiet community only 120 miles Northwest of Sacramento, and just 72 miles North of the city of Santa Rosa
Clear Lake is the largest natural freshwater Lake in CA, and •is believed to be the oldest lake in the country. It is a very popular tourist destination and offers a variety of activities including world class fishing. It has been dubbed the “Bass Capital of the West”
Lake county has a meditteranean style climate with four •moderate, yet distinct seasons. It also boasts the cleanest air in California, as certified by the State’s Air Resources Board
The county also has a rapidly expanding wine culture, as the •number of vineyards are growing at a steady pace
North Lakeside is also home to the Sutter Lakeside Hospital, a •high quality 25 bed medical center that services most of the county
The 913,306 acre Mendicino National Forest, located within the •Coastal Mountain Range is located just 130 miles to the North
STERLING SHORE ESTATES Virtual Property Tour: http://youtu.be/m723KfvyV1c
INCOME 2010 2011 Proforma
GROSS SCHEDULED RENT1 $407,027 $432,960 $452,364Less: Vacancy 0 0 9,047TOTAL RENTAL INCOME $407,027 $432,960 $443,317Plus: Utility Income 50,572 48,465 49,919Plus: Other Income2 3,844 3,255 3,352Plus: Tax Pass Through 0 0 40,155Total Other Income 54,416 51,720 93,426EFFECTIVE GROSS INCOME $461,443 $484,680 $536,743EXPENSES 2010 2011 ProformaRepairs & Maintenance $3,298 $6,406 $3,150Payroll 18,221 18,966 18,550Administrative 3,596 2,692 3,850Marketing 0 0 700Professional Fees 398 1,222 420Utilities3
Electricity 2,203 2,497 2,572 Water & Sewer 33,941 34,746 35,788 Sewer Loan 6,120 6,124 6,308 Gas 694 782 805 Trash 114 150 155TOTAL VARIABLE EXPENSES $68,585 $73,584 $72,298Taxes4 32,601 29,933 56,950Special Assessments (Tax) 0 0 13,876Insurance 5,059 5,557 5,180Management Fee 18,458 19,387 21,470TOTAL OPERATING EXPENSES $124,703 $128,461 $169,774Plus: Capital Reserves 0 0 2,450TOTAL EXPENSES $124,703 $128,461 $172,224NET OPERATING INCOME $336,740 $356,218 $364,519
DEBT INFORMATION
Proposed Debt (Quote from Newmark Capital)
Loan Amount - $3,875,000•
Term - 10 years•
Amortization - 30 years•
Rate - 241 bps over the 10-year swap rate (4.53% as of 3/1/12)•
Max LTV - 75%•
Recourse - No•
Assumable - Yes•
1 Lakeport Lagoons 1800 South Main St., Lakeport, CA 95453 96 100% $600
2 Perks Estates 4265 Lakeshore Blvd., Lakeport, CA 95453 51 92% $400
3 Westwind Mobile Home Park 11270 Konocti Vista Dr., Lower Lake CA 42 95% $555
Lake County Communities Average 63 97% $518
RENT COMPARABLES
$539
Subject Property# Av. RentAddress
Sterling Shores Estates
Lake County Communities
5830 Robin Hill Dr., Lakeport, CA
Physical Occupancy
67 100%
Sites
The information contained in the attached marketing material is proprietary and confidential. It is intended to be reviewed only by the person or entity receiving it from Apartment Realty Advisors (the “Broker”).
This information has been prepared to provide a basic summary of the subject property or properties and should only be used to establish a preliminary level of interest in the potential purchase of the subject property. The information contained herein is not a substitute for a thorough investigation of the financial, physical, and market conditions relating to the property, which information will need to be independently verified by a prospective buyer.
While the information contained in this package is believed to be reliable, no representation or warranty is made regarding the accuracy or completeness of such information.
Neither the Broker nor the owner of the property makes any representation or warranty regarding the property including, but not limited to: income, expenses or financial performance (past, present, or future); size, square footage, condition, or quality of the land and improvements; presence or absence of contaminating substances (PCBs, asbestos, mold, etc.); compliance with laws and regulations (local, state, federal) or applicable zoning; or financial condition or business prospects of any current or prospective tenant. Any prospective buyer is solely responsible for any and all costs and expenses incurred in reviewing the materials and/or investigating and evaluating the property.
By accepting receipt of the attached information, you are agreeing to the Confidentiality and Disclaimers contained in this document. Contact with persons residing or working at the property is strictly prohibited. All questions and correspondence should be directed to: Todd Fletcher ([email protected]) .
www.ARAusa.com/ManufacturedHousing© copyright 2010 Apartment Realty Advisors, Inc. All Rights Reserved
02/2012
M A N U FA C T U R E D H O U S I N G I N V E S T M E N T S E R V I C E S
EXCLUSIVELY PRESENTED BY
ARA National Manufactured Housing Group
FOR MORE INFORMATIONON THIS PROPERTY
PLEASE CONTACT
NATIONAL MANUFACTURED HOUSING GROUP:
Todd Fletcher 512.637.1236
Andrew Shih 512.637.1219
901 S. MoPac Expressway Barton Oaks Plaza II, Suite 275
Austin, Texas 78746 Tel: 512.637.1237
Fax: 512.637.1740
ARA IRVINE:Jeff Patterson
DRE#01855862 949-385-5301
ARA NORTHERN CALIFORNIA:Mark Leary
DRE#01857662 916-764-4191
Holiday
Sterling Shore Estates
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