6930 NE 56th Street Altoona, IA For a video tour, please visit:

Transcription

1 COMMUNITY PRICE: $4,935, NOTES PRICE: $12,66 TOTAL PRICE: $5,134,84 For a video tour, please visit: NE 56th Street Altoona, IA 59

2 PROPERTY DETAILS ADDRESS COUNTY SITE INFORMATION 693 NE 56th Street Altoona, IA 59 Polk TAX PARCEL IDS SITES 143 COMMUNITY TYPE All Age YEAR BUILT COMBINED LAND DENSITY INVENTORY HOMES 4.31 acres 3.55 sites/acre 3 (2 vacant and 1 office as of Oct 15 w/ book value of $98k) HOME NOTES 6 ($12,66 balance as of Feb 16) INVESTMENT HIGHLIGHTS Stable, cash-flowing property with an extremely attractive assumable loan that generates a nearly 9% cash return on proforma cash flow. Roads in very good condition and park located in very strong school district. Iowa recently started applying a rollback to properties to lower taxable values across the state. This asset benefits from the creation of a new property classification, multifamily residential, which may decrease the rollback percentage by 3.75% per year through 221. Sewage lagoon requires upgrades that need to be completed by 219. $625, has already been engineered and put in escrow by lender to fund the project. Community is serviced by public water and there may be a possibility to connect to public sewer. Only three park-owned homes in the community as of October 215 and are being offered in addition to the asking price of the community. Six home notes with a balance of approximately $12k are also included in the sale and priced separately. AVERAGE LOT RENT $333 (includes trash and $13 rent incr.) AREA HIGHLIGHTS MH PHYS OCC 97% (139 sites as of Oct 15) MH ECO. OCC 95% (136 sites as of Oct 15) ROADS FLOODPLAIN WATER SEWER ELECTRICITY GAS TRASH Asphalt Zone X UTILITIES Des Moines Public Works (submetered) Private Lagoon ($23 flat fee to tenants) Mid-America (direct billed) Mid-America (direct billed) Aspen Trash (included in rent) EXISTING LIEN INFORMATION PRINCIPAL - ORIG BAL $3,225, YEARLY INTEREST RATE 4.5% FIRST PAYMENT 2/1/216 TERM AMORTIZATION (MONTHS) MONTHLY PAYMENT 1 Years 3 Years LOAN ASSUMPTION FEE 1.% $16,34.6 (excluding tax and insurance escrow) Conveniently located just outside Des Moines, Iowa s capital and the most populous city in the state with an estimated population of 29,22 in 214. The Des Moines unemployment rate was 3.2% in December far below the national average of 4.8% (both numbers not seasonally adjusted). A major hub for the insurance, financial services and healthcare industries, several major employers operate in the area including Wells Fargo, Wellmark Blue Cross Blue Shield, Hy-Vee Food Corp, Mercy Hospital Medical Center, Unity Point Health and Principal Financial Group. Des Moines and the surrounding area is poised for strong growth in the coming years as the labor force grows and private and public investment continue. The Shoppes at Prairie Crossing, located three miles from Country Living, is currently under development. The $2MM, 23-acre mixeduse development will feature a 325, sq ft outlet mall, theatre, several big-box retailers and residential developments. Several entertainment and shopping destinations are a short drive from the community including Des Moines numerous attractions, the Adventureland Amusement Park, Prairie Meadows and Seven Oaks Recreation. Numerous new businesses are expected to crop up in Altoona in the near future including a new movie theater, italian restaurant, outlet mall and sports bar. Altoona is home to one of Facebook s four major data centers, which is sprawled over 22 acres, employs approximately 1 and is completely powered by wind. Altoona Elementary School, Bondurant-Farrar Middle School and Bondurant-Farrar High School are within ten minutes of Country Living. COMMUNITY PRICE: $4,935, NOTES PRICE: $12,66 TOTAL PRICE: $5,134,84

3 FINANCIAL ANALYSIS Actuals Sept '15 T9 Ann Proforma INCOME 2 Gross Scheduled Rent Less: Vacancy Less: Bad Debt Less: Concessions Total Rental Income 3 Plus: Utility Income-Water 3 Plus: Utility Income-Sewer Plus: Other Income Total Other Income Effective Gross Income $482,663.% $.% $ 2.79% $13, % $469, , , , ,812 $54,5.% $.% $ 1.1% $5, % $491,999 $497,1 $499, , , , ,793 $563,792.%.%.57% 99.43% $ $ $2,859 $497,122 $59,419.% $.% $.83% $4, % $55,183 35, ,316 24, ,8 8, ,66 67, ,56 $564,846 $571, %.5%.5% 94.1% $571,428 $27,972 $2,857 $2,857 $537, , , , ,335 $61,77 EXPENSES Repairs & Maintenance Payroll Administrative Marketing 4 Professional Fees 5 Utilities Actuals $167 $23, , , ,82 $ Actual Exp $3,126 25,151 6,3 1,597 1,731 $ Actual Exp $41,17 27,85 13, ,861 $ Actual Exp $5,489 29,628 7,685 3,297 Proforma Exp $3 $42,9 2 28,6 5 7,15 1 1, ,575 Electricity & Gas Water Sewer Trash Total Variable Expenses 6 Taxes Insurance Management Fee Total Operating Expenses 7 Plus: Capital Reserves Total Expenses NET OPERATING INCOME Debt Service NET CASH FLOW $ % $1,628 $1,628 2,55 37,748 17,37 19,648 $133,93 67,922 3,913 27,46 $232,784 $232,784 $1,655 $236,76 $37,221 ($197,67) $19, $957 2,361 37,211 14,576 17,817 $136, , ,275 5.% 28,189 $1,655 $236,76 $327,86 ($197,67) $129, $1,11 2,299 36,967 16,33 17,488 $158, , , , , % 28, % 28,528 5.% $1,794 $256,529 $1,832 $262,35 $1,83 $1,794 $256,529 $38,317 ($197,67) $11, $1,13 $1,832 3,18 27,625 2,14 19,599 $161,68 $262,35 $39,24 ($197,67) $111, $1,19 5 $1,853 2,368 38,76 16,514 18,13 $158,626 64,384 4,29 3,54 $257,83 7,15 $264,953 $345,123 ($197,67) $147,516 UNDERWRITING ASSUMPTIONS 1. Actual numbers based on financials provided by the client 2. Proforma GSR = $333 x 143 sites x 12 months (includes $13 rent increase) 3. Utility & Other Income grown 3% from Corporate level accounting expenses removed from financials 5. Adjusted Utilities grown 3% from Proforma Taxes = 216 tax bill grown 5% 7. Numbers do not reflect actual expense SEWER UPGRADE DISCLOSURE The owner of the Altoona asset was notified by the DNR in March of 215 that the sewage lagoon would need to be upgraded by 219 to meet more stringent effluent requirements. The seller obtained, and has in file, a solution that we believe is fully engineered and meets this requirement to upgrade the lagoon at a cost of approximately $635,, the funds for which have been escrowed by the lender who recently refinanced the asset. Also on file, and available in the document library, is a letter from the City of Altoona with a plan to hook up to the city sewer system at a cost of approximately $1,,. The cost of which could potentially be shared with other benefiting property owners through the negotiation of an agreed to Development Agreement. Because the sewage issue came up at the same time that the 1 year loan became due and the asset was ready to sell based on investors expectations of a 1 year hold, the seller felt it best to refinance the asset and then finalize the sewage solution so as to present a possible turnkey solution to the ultimate buyer. COMMUNITY PRICE: $4,935, NOTES PRICE: $12,66 TOTAL PRICE: $5,134,84

4 PROPERTY location and AERIAL DES MOINES LOCAL DEMOGRAPHICS ANKENY ALTOONA 2 Population 27,117 1, Population 45,582 14,541 Population Growth 68% 41% Source: U.S. Census Bureau TOP TEN EMPLOYERS EMPLOYEES Wells Fargo & Co. 14,5 Hy-Vee Food Corp. 7,5 Mercy Hospital Medical Center 7,55 Unity Point Health 6,435 Principal Financial Group 6,184 Nationwide/Allied Insurance 4,282 John Deere 3,89 Pioneer Hi-Bred International Inc. 3, Kum & Go 1,82 UPS 1,6 DEMOGRAPHIC INFORMATION 3 MILES 5 MILES 1 MILES 215 Population Estimate 12,557 46,32 23, Population Projection 14,261 5, ,82 Population Growth Estimate % 1.89% 1.53% Renter Occupied Housing Units 26.9% 24.5% 3.2% Owner Occupied Housing Units 69.7% 71.3% 64.5% 215 Est. Median Household Income $59,736 $59,519 $53, Est. Median Owner-Occupied Housing Value $21,863 $24,186 $192,795 COMMUNITY PRICE: $4,935, NOTES PRICE: $12,66 TOTAL PRICE: $5,134,84 Source: U.S. Census Bureau

5 Property LOCATION N Prairie Crossing Outlet Mall DES MOINES ADVENTURELAND AMUSEMENT PARK Over 1 rides, shows and attractions sit on 18 acres. I n 214 Adventureland added the Storm Chaser - a 26 foot $4 million giant tower swing ride; other recent expansions include a theatre, BBQ restaurant and a german beer garden. L odging is available at the seasonal campground and Adventureland Inn, which features 185 rooms, three pools and dining. PRAIRIE MEADOWS P rairie Meadows Casino is a Thoroughbred and quarter horse racetrack located seven minutes from Country Living. 1,9 slot machines and casino game tables featuring games such as poker, roulette and blackjack are included in the on-site casino. T o date, Prairie Meadows has given more then $1.4 billion through taxes, grants and charitable donations to the state of Iowa - more than $6 million of which has remained in Polk County. SEVEN OAKS RECREATIONS Y ear-round outdoor recreation including snow skiing, snowboarding, snow tubing, full-service canoeing, kayaking, river tube floats, paintball, tent camping, mountain bike/hiking trails and special events are offered at the facility.. W ith its vaulted ceilings and natural knotty pine interior, the Lodge at Seven Oaks seats over 4 in a relaxed and private atmosphere; three main areas make up The Lodge, including the Main Lodge, Conference Center and Coal Creek Lounge. COMMUNITY PRICE: $4,935, NOTES PRICE: $12,66 TOTAL PRICE: $5,134,84

6 For a video tour, please visit: Additional information for Country Living is available on our website at: NATIONAL MANUFACTURED HOUSING GROUP PRIMARY CONTACTS: Todd Fletcher tfletcher@aranewmark.com T Andrew Shih ashih@aranewmark.com T Jon Shay jshay@aranewmark.com T Manufactured Housing Group: 91 S. MoPac Expressway, Barton Oaks Plaza II, Suite 275, Austin, TX T 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 ARA, A Newmark Company (ARA Newmark) 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 Newmark 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.