Bavarian Village 830 N. Main Street Mt. Angel, Oregon

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1 Bavarian Village 830 N. Main Street Mt. Angel, Oregon A Quality, 72 space plus two RV space, All-Ages Manufactured Home Community May 2009 Offered by: Commercial Brokerage Company 7007 SW Cardinal Lane, Suite 185 Portland, OR For Further Information Contact: Don Kilpatrick or Loren Landau

2 Bavarian Village Mt. Angel, OR Terms of Sale Applied Down Payment Balance Financed Park Value $ 3,425,000 $ 1,260,000 $ 2,165,000 Contract Value 174, ,000 - Park-Owned Home Value 312, , ,000 Total Sales Price $ 3,911,000 Down Payment: 1,546,000 Balance: $ 2,365,000 Park Financing: Seller financing will be provided to a qualified Purchaser with an initial three (3) year term but may be extended at the option of the Seller. The debt service appearing in the pro forma reflects the following terms: Principal Amortization Term (mos.) Interest Monthly Payments Annual Payments $ 2,165, % $13,155 $157,860 Home Financing: Seller financing will be provided to a qualified Purchaser for the purchase of the park-owned homes based on a fully amortizing loan with the terms shown below. Home titles may be released upon payment of an amount equal to 75% of its' "discounted value" as shown on the schedule: Principal Amortization Term (mos.) Interest Monthly Payments Annual Payments $ 200, % $2,322 $27,864 Park Investment Summary Current Price per Space $ 47,569 CAP Rate 6.7% Net Operating Income $ 229,002 Cash Flow $ 71,142 Return on Cash Invested 5.6% 5/11/2009 Bavarian Village P and L.xls

3 Bavarian Village Mt. Angel, OR Pro Forma of Income and Expenses Income (1) Rent Current Income 72 $435 $ 375,840 Misc. Income 9,840 (2) Less: Vacancy/Credit Loss 2.0% (7,517) Gross Effective Income $ 378,163 Operating Expenses (3) Property Taxes - 08/09 22,652 Insurance 2,443 Water/Sewer 47,046 Electricity 3,610 Garbage 14,752 Natural Gas 293 On-Site Manager Fees Salary 28,575 Space Rent 5,220 SAIF 1,118 Payroll Taxes 7,881 Repair/Maintenance - 3% 11,345 Office Expenses 3,152 Legal and Accounting 1,074 Total Operating Expenses 149,161 Net Operating Income $ 229,002 Debt Service 157,860 Before Tax Cash Flow $ 71,142 Notes 1. The park last increased rents $20.00 in January, Based on actual Seller income from RV space rental and RV storage. 3. Unless otherwise noted, figures based on actual 2008 expenses. 5/7/2009 Bavarian Village P and L.xls

4 Bavarian Village Mt. Angel, Oregon PROPERTY DESCRIPTION GENERAL DESCRIPTION: Bavarian Village is a modern, predominately double wide manufactured home community located within the city limits of Mt. Angel, Oregon. Mt. Angel is a small, bedroom community of approximately 3,100 residents and is located approximately 7 miles south east of Woodburn, Oregon, 18 miles northeast of Salem, Oregon and approximately 30 miles southeast of Portland (see enclosed vicinity map). The immediate neighborhood is a mix of residential and commercial/light industrial uses. AGE: Approximately one half of the park was developed in 1975; the balance of the spaces were developed in the early 1980 s (date unconfirmed). PROPERTY SIZE: ZONING: FAIR HOUSING STATUS: FLOOD PLAIN STATUS: LOT SIZES: SW/DW RATIO: HOME CONDITION: acres RM. Residential Multiple Family. Bavarian Village is an approved use within the RM zone. Bavarian Village is designated as an all-ages community. The property is located outside of the 100-year flood plain zone. Space sizes and shapes vary considerably throughout the park as a result of the street and space configuration. Double wide spaces are approximately wide by deep; single wide lots are approximately wide by deep. There are currently 27 single wide and 45 double wide homes in the park. It appears that some, but not a majority, of the spaces currently occupied by single wide homes would accommodate a double wide home. A majority of the homes are modern double wide homes with wood siding and composition roofs. Approximately a dozen older single wide homes are metal skinned. The homes are generally in good to excellent condition and have mature landscaping. Bavarian Village Info Pkg- 05/07/09

5 IMPROVEMENTS: Interior Streets: Interior Lighting: Perimeter Fencing: Off-Street Parking: Carports/Storage Units: Common Area: RV Storage: Interior streets are 30 wide in excellent condition. All street surfaces were seal coated in The streets are bordered by 31/2 side concrete sidewalks. The streets are designed with crowned profile which diverts storm water into a system of catch basins located along the edge of the streets. Subdivision style overhead streetlights are located throughout the community. A majority of the spaces also have individual yard lights located at the front of the space adjacent to the driveway. The perimeter is screened by a combination of arborvitae hedges and chain link fencing. It appears that the chain link fencing is on the property line but owned by the adjacent property owners. Each space is provided with off-street parking on asphalt driveways and concrete parking pads for two vehicles. All homes are improved with a free standing, park owned, wood frame carport with attached storage shed. The carports and storage sheds appear to be well maintained. A spacious grass, island is located near the center of the park in the middle of a large traffic circle. A small (estimated 12 by 16 ) laundry building with park owned laundry equipment-two washers and two dryers- is located in the center of the island. A grass/graveled RV storage area is located near the north east boundary of park. The storage area is unfenced. This area is also an area where tenants dispose of yard debris which is burned, when allowed. UTILITIES: Sewer: Electricity: Public sewer is provided to the property by the City of Mt. Angel. Sewer service is included in the base rent. Underground 200 amp electrical service is provided to each space and is billed directly to the homeowner by the utility provider. Bavarian Village Info Pkg- 05/07/09

6 Cable TV: Water: Private Well: Garbage: Cable TV is provided by a private vendor and billed directly to each homeowner. Public water is provided by the City of Mt. Angel. Water service is included in the base rent. A private well located in the park was previously used to provide domestic water to the park residents but was disconnected from the domestic water system when the community connected to city water. Individual can garbage service is provided by a private vendor and is included in the base rent. 2008/2009 REAL PROPERTY TAX INFORMATION: PARCEL LAND IMPROVEMENT NUMBER VALUE VALUE TOTAL VALUE TAXES R $682,060 $1,301,620 $1, $22, UNDERLYING FINANCING: Bavarian Village is encumbered by a loan in favor of Washington Mutual Bank. The loan has a current balance of approximately $700,000 and will be paid off by the Seller at closing. PARK OWNED CONRACTS: The Seller currently holds private contracts on ten manufactured homes in the park. A detailed listing of the homes together with the current balances, interest rates, monthly payments and maturity dates is attached. The Seller intends that these contracts be purchased along with the park (see attached table). PARK OWNED HOMES: The Seller currently owns twelve homes, of which ten are currently rented; two homes are for sale. A detailed listing of these homes together with value, as identified by the Seller, is attached (see attached table). Bavarian Village Info Pkg- 05/07/09

7 Bavarian Village MHC Park-Owned Homes - For Rent/For Sale Space Make Year Size Home Rent Tax Value 08/09 Taxes Insurance Market Value Discounted Value (85%) Note 2 Redmond x52 $440 $40,580 $431 $35,000 $29,750 7 Fleetwood x48 $355 $34,090 $363 $32,000 $27, Golden West x48 $320 $40,230 $415 $30,000 $25, Fleetwood x54 $310 $37,760 $394 $32,000 $27, Moduline x60 $420 $53,100 $545 $39,000 $33, Golden West x40 $255 $30,160 $497 $26,000 $22, Fleetwood x60 $320 $37,910 $391 $35,000 $29, Golden West x48 $350 $42,760 $519 $30,000 $25,500 Currently Vacant 48 Guerdon x60 $200 $7,150 $122 $9,500 $8, Redmond x38 $250 $34,010 $554 $25,000 $21, Champion x51 $375 $41,400 $680 $30,000 $25, Skyline x48 $300 $20,830 $345 $15,000 $12, Champion x48 $350 $36,220 $596 $28,000 $23,800 Currently Vacant $4,245 $456,200 $5,852 $3,000 $366,500 $311,525

8 Bavarian Village MHC Contracts Receivable Home Description Space Origination Date Loan Term Interest Monthly Payment Projected Balance as of 8/1/ /01/07 $ 18, % $ $9, /01/12 Golden West x /01/06 $ 7, % $ $ /01/09 Camelot x /15/06 $ 37, % $ $31, /15/19 Golden West x52 Final Payment Make Year Size Notes % $ $39, /15/09 Skyline x % $ $35, /11/16 Golden West x % $ $2, /01/10 Great Lakes x /15/09 $ 29, % $ $28, /01/15 Fleetwood x48 Payments Increase 49 11/01/08 $ 27, % $ $22, /01/16 Homette x52 Payments Increase 49A 08/01/05 $ 27, % $ $20, /01/16 Grath x67 Payments Increase 58 10/01/05 $ 19, % $ $14, /01/17 Golden Eagle x60 Total $204, % of Total Est. Balance $ 174,153.32

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