COUNTRY PINES 54 SITE MHC / 2 SF HOMES COMMUNITY PRICE: $750,000 HOME INVENTORY: $129,150 TERMS: ALL CASH

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1 COUNTRY PINES manufactured Home community 1119 S MAIN STREET LUMBERTON, TX For a video tour of Country Pines, please visit: COMMUNITY PRICE: $75, HOME INVENTORY: $129,15

2 COUNTRY PINES Community Price : $75, Home Inventory: $129,15 Terms: All Cash Address county SCHOOL DISTRICT Site information 1119 South Main Street Lumberton, TX Hardin County Lumberton ISD TAX ACCOUNT ID SITES Community type Combined land size DENSITY MH PHYSICAL OCCUPANCY MH Economic occupancy Market land lease rents MH; 2 SF Homes All Age 1.57 acres (includes 1 acre of expansion land) 5.3 sites/acre last rent increase $7 (Jul 13) INVENTORY HOMES 82.14% (46 sites as of Jan 14) 8.35% (45 sites as of Jan 14 with one scheduled for Feb move in) $27 ($13 rent increase announced for Jul 14, raising rent to $22) 4 occupied rent to own homes (each pays $45/month home rent with a combined balance of $129,15 as of Feb 14) INVESTMENT HIGHLIGHTS Opportunity to acquire an all age community with public utilities in a tremendous market with high job growth. Country Pines is perfectly positioned to capture the growing demand for affordable housing in the area. Outstanding opportunity to acquire a stabilized community and still achieve high total returns by filling the remaining vacant sites. Offering includes 4 inventory homes currently occupied under a rent to own program and paying $45/site home rent (offered at the outstanding balance of $129,15). Two recently upgraded SF Homes are also included in the sale (upgrades included paint, roofing, and interior drywall). Both are occupied and included in the community price. One acre of expansion land is included in the community price and has the potential to hold 5-1 additional homes. The community is serviced by municipal utilities and tenants are direct billed for water and sewer. A rent increase of $13 is scheduled for June 14 which will raise the average rent to $22/site. roads Floodplain water Sewer electricity Gas trash Asphalt/Concrete/Gravel No utilities LMUD (Direct Billed to Tenant) LMUD (Direct Billed to Tenant) Entergy (Direct Billed to Tenant) Centerpoint (Direct Billed to Tenant) IESI (Paid by Community) AREA HIGHLIGHTS Numerous industrial projects and expansions are in progress that will bring thousands of jobs to the area, including the construction of the nation s largest methanol plant ($1 billion), Cheniere Partners 6 natural gas unit expansion ($12 billion), an ExxonMobil expansion ($35 million), and the recently completed Motiva Port Arthur Refinery expansion ($7 billion). Lumberton is conveniently situated off of Hwy and is roughly 15 minutes from Interstate 1. The city is located 12 miles from Beaumont, miles from Houston, and just 38 minutes from the Louisiana border. The Beaumont/Port Arthur MSA is the center for trade and commerce in southeast Texas and is heavily influenced by the oil and gas industry, the Port of Beaumont, and a growing medical industry. The community is in close proximity to several retail and entertainment destinations including the thriving Parkdale Mall area, 8 miles to the south, which holds ~15 stores and restaurants. Country Pines is located in Lumberton, TX, which has a population of ~12, and is part of the Beaumont/Port Arthur MSA with a population of ~389,. COMMUNITY PRICE: $75, HOME INVENTORY: $129,15

3 COUNTRY PINES FINANCIAL ANALYSIS Financial Analysis Buyers UW INCOME 2 Gross Scheduled Rent Less: (Gain)/Loss-to-Lease Gross Potential Income.% $133,449 $133,449.% Assumptions.%.% $158,16 $158,16 Less: Vacancy Less: Vacant Inventory Less: Bad Debt Total Rental Income 3 Plus: Utility Income 3 Plus: Other Income Total Other Income Effective Gross Income.%.%.% 1.% $133, $134,52.%.%.% 1.% 17.86%.% 1.% 81.14% 28,247 1,582 $128,331 $128,331 EXPENSES 7 Repairs & Maintenance 8 Payroll Administrative Marketing Professional Fees 4 Utilities Electricity Water & Sewer Trash Other Utilities Total Variable Expenses 5 Taxes Insurance Management Fee Total Operating Expenses 6 Plus: Capital Reserves Total Expenses per unit $ Actuals per unit Actual Exp 22,235 $85 $4,76 19, , , ,1 56 3, , ,28 1 5,594 $983 $55,45 $552 $3, , , , ,17.%.% $1,193 $66,826 $733 $41,54 $1,193 $66,826 $733 $41,54 per unit $ $ % $911 5 $1 Buyers Exp $7, 14, 1,4 84 2,8 4,48 $3,448 11,356 2,8 6,417 $51,21 2,8 $53,821 NET OPERATING INCOME $67,226 $83,32 $74,51 UNDERWRITING ASSUMPTIONS 1. Actual 212 & 213 numbers based on financials provided by the client. 2. Proforma GSR includes a $13 rent increase scheduled for July 214. Income includes a home that was recently sold with a scheduled February move in. 3. There is no utility or other income. 4. Adjusted Utilities grown 3% from 213. Beginning in 213 Trash is the only expense paid by the park. 5. Proforma Taxes = 8% of asking price x 213 Tax Rate. 6. Capital Reserves expense does not reflect an actual expense. 7. Note that 212 R&M expense included a number of capital expense items for the SF and inventory homes. 8. Payroll for 214 is for one manager and includes free lot and home rent (included in payroll expense) + $4 a month. COMMUNITY PRICE: $75, HOME INVENTORY: $129,15

4 SM COUNTRY PINES AREA AERIAL & DEMOGRAPHICS LUMBERTON Americas Drive In Lumberton Middle School Lumberton Primary School Lumberton High School Village Creek State Park 421 DEMOGRAPHIC INFORMATION 1 mile 3 mile 5 mile 214 Population Estimate 3,25 12,227 22, Population Projection 3,794 12,943 24,258 Population Growth % 3.71% 3.99% Population Growth Estimate % 5.85% 6.1% Population Growtn % 19.93% 26.42% Renter Occupied Percentage 3.% 23.78% 21.67% Owner Occupied Percentage 7.% 76.22% 78.33% 214 Est. Average Family Household Income $74,631 $77,159 $75, Est. Median Owner-Occupied Housing Value $123,57 $126,72 $127,482 Source: 214 Claritas, Inc. COMMUNITY PRICE: $75, HOME INVENTORY: $129,15

5 COUNTRY PINES LOCATION MAP LUMBERTON VILLAGE CREEK STATE PARK Parkdale Mall Christus Hospital St. Elizabeth BEAUMONT Baptist Hospitals of Southeast TX 1 Lamar University ORANGE 1 TEXAS A L O UISIA N NEDERLAND 73 SABINE LAKE SABINE NATIONAL WILDLIFE REFUGE PORT ARTHUR PORT OF BEAUMONT The fourth busiest port in the United States (and busiest military port). It recently completed a 65 feet long dock that will accommodate ships up to 1, feet long among $65 million in capital improvements. FEDERAL BUREAU OF PRISONS Operates the Beaumont Federal Correctional Complex, a three facility complex opened in One of the largest employers in the area with approximately 5, employees. LAMAR UNIVERSITY The university offers 63 undergraduate, 47 master s and 9 doctoral degree programs across five academic colleges. It has a current enrollment of over 14, students, 1,4 faculty and staff and generates economic activity of more than $31 million a year according to a recent Perryman Group study. PARKDALE MALL Home to ~15 stores and restaurants. Anchor tenants include Barnes & Noble, Best Buy, Macy s, Office Depot, Petco, Dillard s, Sears, and JCPenney. CHRISTUS ST. ELIZABETH AND MEMORIAL HERMANN BAPTIST HOSPITALS Two of the top ten employers in the city of Beaumont. COMMUNITY PRICE: $75, HOME INVENTORY: $129,15

6 BENNY AVE S VILLAGE CREEK PKWY THOMAS RD S S MAIN MAIN ST ST HOLM w Information for Country Pines is available on our website at: For a video tour of Country Pines, please visit: This information has been derived from sources deemed reliable. However, it is subject to errors, omissions, price change and/or withdrawal, and no warranty is made as to the accuracy. Further, no warranties or representation shall be made by Apartment Realty Advisors (ARA) and/or its agents, representatives or affiliates regarding oral statements which have been made in the discussion of the above property. This presentation, prepared by ARA, was sent to the recipient under the assumption that s/ he is a buying principal. Any potential purchaser is advised that s/ he should either have the abstract covering the real estate which is the subject of the contract examined by an attorney of his/her selection, or be furnished a policy of title insurance. Do not contact the Property. ARA NATIONAL MANUFACTURED HOUSING GROUP 91 S MoPac Expressway Barton Oaks Plaza II, Suite 275 Austin, TX PRIMARY CONTACTS: Brian Vita bvita@arausa.com T Andrew Shih ashih@arausa.com T Todd Fletcher tfletcher@arausa.com T Jon Shay jshay@arausa.com T relationships that deliver results. ARA. All Rights Reserved