BEAVER LAKE MOBILE HOME COMMUNITY ROGERS, AR

Transcription

1 BEAVER LAKE MOBILE HOME COMMUNITY ROGERS, AR OFFERING MEMORANDUM

2 The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. CONFIDENTIALITYAGREEMENT AND DISCLAIMER ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

3 Offering Process & Terms Offering Process & Terms 1. The Owner of Beaver Lake MHC is offering the property on a fee simple basis. The Property will be sold free of any debt and in its as-is condition, with no post closing liabilities to the Seller. Terms shall be either Cash to Seller through Escrow at Closing; or, Seller carryback financing is offered at the seller's sole discretion, subject to seller's review and approval of buyer's financial condition and management plan.. INTRODUCTION 2. By accepting this Offering Memorandum, Prospective Buyers agree not to contact the Owner of the Property, nor to circumvent Marcus & Millichap in any way. The Information in this Offering Memorandum shall be used for the sole purpose of evaluating the potential purchase of the Property and for no other purpose. Prospective Buyer shall not tour the property without permission, contact directly any persons concerning the Property, including, without limitation, Owner s employees,management company, residents, or lenders. 3. Any transaction shall be negotiated and closed through Marcus & Millichap. All communications regarding a possible transaction, request for additional information, requests for tours of the property, and discussion or questions regarding the Property shall be submitted or directed to your Marcus & Millichap representative. 4. The Seller specifically reserves the right to accept, to reject, or not to respond to any offer in its sole discretion for any reason or no reason, regardless of the offered price or terms. The Seller may respond to offers as they are received and/or notify interested parties of the Final Call Date for offers. All offers will be evaluated by the Seller and the Seller requests a minimum of 7 days to respond to written offers, although efforts to respond more quickly will be made. 5. The Seller shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase of the Property has been fully executed, delivered and approved by the Seller, and Seller s legal council, and any conditions to the Seller s obligations therein have been satisfied or waived.

4 SECTION ONE...PRICING & FINANCIAL ANALYSIS SECTION TWO...PROPERTY DESCRIPTION SECTION THREE...RECENT SALES SECTION FOUR...RENT COMPARABLES TABLE OF CONTENTS SECTION FIVE...DEMOGRAPHIC ANALYSIS

5 PRICING & FINANCIAL ANALYSIS BEAVER LAKE MOBILE HOME COMMUNITY ROGERS, AR

6 Offering Summary Price $2,116,000 Down Payment 30% $634,800 Total Spaces 82 Price per Space $25,805 Spaces per Acre 4.38 Vacant Spaces 3 Vacant Park Owned Homes 3 Number of Rentals 4 Year Built/Renovated 1970 / 1985 Lot Size Type of Ownership Fee Simple VITAL DATA CAP Rate - Current 9.38% PRICING & FINANCIAL ANALYSIS GRM - Current 8.21 Net Operating Income - Current $198,550 Net Cash Flow After Debt Service - Current 10.0% $63,400 Total Return - Current 15.7% $99,678 CAP Rate - Pro Forma 9.06% GRM - Pro Forma 8.21 Net Operating Income - Pro Forma $191,713 Net Cash Flow After Debt Service - Pro Forma 8.9% $56,563 Total Return - Pro Forma 14.6% $92,840 COMMENTS The park has 75 rent producing sites. The park has four park owned homes. One has been sold on a lease-to-own contract. The manager owns her own home and receive free rent and free sewer. There are three vacant spaces, including one abandoned home that requires environmental (meth) remediation. 1

7 Financing EXISTING FINANCING Loan Type PROPOSED FINANCING FIRST TRUST DEED Free and Clear Loan Amount $1,481,200 Loan Type Proposed New Interest Rate 6.75% Amortization 20 Years Loan to Value 70% Debt Coverage Ratio 1.47 PRICING & FINANCIAL ANALYSIS 2

8 Space Mix No. of Spaces Space Type Current Rents Monthly Income Pro Forma Rents Monthly Income 82 Single-Wide $262 $21,484 $262 $21, TOTAL $21,484 $21,484 PRICING & FINANCIAL ANALYSIS SPACE MIX SPACE RENT $270 $240 $210 $180 $150 $120 $90 $60 SW: 100% $30 $0 SW Single-Wide (SW) Double-Wide (DW) Triple-Wide (TW) Recreational Vehicle (RV) Park-Owned Home (POH) Travel Trailer (TT) Other (O) COMMENTS Effective 2/1/12 lot rent increased $19 to $262 The Community Center is located on a space that is not included in the space count. 3

9 Expenses CURRENT PER SPACE PRO FORMA PER SPACE Real Estate Taxes $8,227 $100 $20,345 $248 Insurance 2, , On-Site Management 7, , (1) Off-Site Management 4, , Repairs & Maintenance 9, , Marketing & Promotion General & Administrative 5, , Reserves & Replacements 5, Computer 2, , Bank Service Charges TOTAL EXPENSES $41,718 $509 $59,546 $726 % of EGI 17.4% 23.7% PRICING & FINANCIAL ANALYSIS COMMENTS (1) Current Off-site Management is actual less net resident utility reimbursements of $4819. The park's actual P & L shows Utility Expense at -$4819. Contact your Marcus & Millichap representative for actual financial statements. 4

10 Income & Expenses Total Number of Spaces: 82 INCOME CURRENT PER SPACE PRO FORMA PER SPACE GROSS POTENTIAL RENT $257,808 $3,144 $257,808 $3,144 Other Income Security Deposit Forfeits Security Deposit Refunds 1, , Total Other Income $1,185 $14 $1,185 $14 GROSS POTENTIAL INCOME $258,993 $3,158 $258,993 $3,158 Vacancy/Collection Allowance (% of GPR) (7.3%) 18, (3.0%) 7, EFFECTIVE GROSS INCOME $240,268 $2,930 $251,259 $3,064 Total Expenses $41,718 $509 $59,546 $726 % of EGI 17.4% 23.7% PRICING & FINANCIAL ANALYSIS NET OPERATING INCOME $198,550 $2,421 $191,713 $2,338 COMMENTS (1) Please see note concerning Utility Income on expense page. 5

11 Financial Overview LOCATION East Highway 12 Rogers, AR Price $2,116,000 Down Payment 30% $634,800 Number of Spaces 82 Price/Space $25,805 CAP Rate - Current 9.38% CAP Rate- Pro Forma 9.06% GRM - Current 8.21 GRM- Pro Forma 8.21 Year Built/Renovated 1970 / 1985 Lot Size Spaces/Acre 4.38 Type of Ownership Fee Simple FINANCING FIRST TRUST DEED Loan Amount $1,481,200 Loan Type Proposed New Interest Rate 6.75% Amortization 20 Years Loan to Value 70% Loan information is time sensitive and subject to change. Contact your local Marcus & Millichap Capital Corporation representative. ANNUALIZED OPERATING DATA INCOME CURRENT PRO FORMA Gross Potential Rent $257,808 $257,808 Other Income 1,185 1,185 Gross Potential Income $258,993 $258,993 Less: Vacancy/Deductions 7.3% 18, % 7,734 Effective Gross Income $240,268 $251,259 Less: Expenses 41,718 59,546 Net Operating Income $198,550 $191,713 Debt Service 135, ,150 Debt Coverage Ratio Net Cash Flow After Debt Service 10.0% $63, % $56,563 Principal Reduction 36,278 36,278 Total Return 15.7% $99, % $92,840 EXPENSES Real Estate Taxes $8,227 $20,345 Insurance 2,785 2,785 On-Site Management 7,927 7,927 (1) Off-Site Management 4,990 5,000 Repairs & Maintenance 9,816 9,816 Marketing & Promotion General & Administrative 5,392 5,392 Reserves & Replacements 5,700 Computer 2,032 2,032 Bank Service Charges TOTAL EXPENSES $41,718 $59,546 EXPENSES/SPACE $509 $726 % of EGI 17.4% 23.7% PRICING & FINANCIAL ANALYSIS SCHEDULED INCOME No. of Spaces Space Type Current Rents Monthly Income Pro Forma Rents Monthly Income 82 Single-Wide $262 $21,484 $262 $21, Total $21,484 $21,484 6

12 PROPERTY DESCRIPTION BEAVER LAKE MOBILE HOME COMMUNITY ROGERS, AR

13 Investment Overview INVESTMENT HIGHLIGHTS Located Near Employment Centers and Next to Scenic Beaver Lake Manager Owns Her Home that Serves as the Office Blank Year Construction 74 Rent Producing Sites (as of January 1, 2012) $19 Rent Increase February 1, 2012 to $262 Submetered City Water and Private Septic System Price Includes Inventory of Parkowned Homes and One Note Beaver Lake Mobile Home Community is an 82-space, two-star, all-ages park in the Rogers-Lowell area of Benton County near Beaver Lake. Because of the park's location to this scenic recreational area, many of the residents are retired, however, the park is only a 20 to 30 minute drive to employment centers. Benton is the international headquarters of Walmart. The park is wooded and is accessed from state Highway 12. The park is on city water and septic. Residents are submetered by the park for water, and are billed directly for sewer. Trash collection (three dumpsters) is included in the space rent. The park has a community center. The streets are in good condition and are asphalt paved with cement curbs. The average space size is 3,200 square feet. Rents were increased February 1, 2012 by $19 from $243 to $262, which should further increase the return to the future investor. The current management has established value by filling the park nearly to capacity. The income from the rental homes, but not the note, were included in the calculation of the park's net operating income. This offering is ideal for buyers looking for a well-managed asset that does not require expensive upgrades and headaches to achieve value. PROPERTY DESCRIPTION Value Already Established by Current Management 8

14 Investment Overview The park enjoyed steady lease-up of vacant spaces during the past four years, in spite of the recession. The park has 74 rent producing sites. The park has five park-owned homes, of which four have been sold on lease-to-own agreements, and one sold on conventional-contract terms. The park-owned homes and one note are included in the asking price. There are no vacant park-owned homes. The manager, and one other employee, own their own home and receive free rent. The employees do not receive free utilities. There are six vacant spaces, including one abandoned home that requires environmental (meth) remediation. A total of three of the vacant spaces are rent-ready. The park is operated by an on-site manager who reports to an in-state institutional owner. There is stable demand for attainable housing in this growing community. PROPERTY DESCRIPTION 9

15 Q & A Questions and Answers Concerning Beaver Lake & Rentals 1) What s included in the rent and when was the last rent increase?: Rents were increased by $19 on February 1, 2012, when it was increased from $243 to $262. The increased rent of $262 was used to prepare the pro forma financial analysis. The park has one occupied rental home and three vacant rental homes. One of the rental homes is a meth home that need to be removed or remediated. The park is an all-ages park. Trash is included in the space rent or lease-to-own rates. The park is master metered; and, each space is submetered by the park for water. The manager reads the meters monthly. Residents are billed $8 per month for privateseptic system service. Residents are billed directly by the utility companies for gas, electric and cable television. 2) How is the park managed? The park has been run by a manager who reports to an out-of-state owner for the past four years. The manager owns her homes and receives free rent and free sewer as part of her compensation package. The manager pays all-other utilities. Residents mow their own lawns. 3) Do RVs occupy any of the spaces and are there any rental homes, repossessed homes, contract homes or evictions?: There are no RV's. The spaces will accommodate full-size manufactured homes. There are three vacant spaces. There are no third-party rentals allowed. The Seller is including the inventory of park-owned homes, and one note, in the asking price. PROPERTY DESCRIPTION 4) How are the utilities delivered?: The town of Rogers provides water. The park is billed for the entire amount, and the park submeters and bills back the residents for water/water sewer costs, at a recovery rate of above 100%. Currently, no problems are reported from the water and sewer system. The park is served by natural gas and electric delivered by above-ground lines. Residents place garbage in one of three dumpsters. Residents receive mail at a central mail box. 5) Any Insurance Claims?: There have not been any insurance claims in the past three years. 6) Does the park have park rules and does it allow pets?: The park has park rules. Residents are allowed to have small pets -- no vicious breeds. 7) Does the park uses leases?: Yes. The park has a 6- month rental agreements. 8) Is there room to expand the park?: No. 10

16 Q & A 9) What is the condition of the streets?: The roads are asphalt and they are in good condition. The roads are curbed, and there a drainage system. 10) How many parking spaces per space?: Vehicles are parked on the spaces. There is typically room for two vehicles per dwelling. 11) Upside?: There is upside in implementing consistent annual rent increases. PROPERTY DESCRIPTION 11

17 Rogers-Lowell Area Rogers-Lowell Area Rogers (pop. 54,967) and Lowell (pop. 7,046) are part of the dynamic northwest Arkansas Region consistently ranked one of the fastest-growing metro areas in the nation and it s the only Midwestern area to demonstrate such growth. Overall, the region has grown more than 25 percent since 2000 and is ranked the 17th fastest-growing and 110th largest metro area in the nation. Since 1990, the region has doubled in population, with more than 2.4 million people currently living within a 100-mile radius (NWA Regional Planning Commission).The community s growth has been predominantly driven by several major and secondary economic engines. This area is the world headquarters of three Fortune 1,000 companies: Wal-Mart Stores, Inc., Tyson Foods Inc. and J.B. Hunt Transport Inc. Additionally, hundreds of consumer product companies as well as thousands of third-party suppliers, professional services and small businesses propel the local economy. A strong and continually expanding retail, dining, hospitality and amenity base has become a significant driver of the economy, bringing a caliber of establishments to the community typically found in larger urban areas. The Arkansas World Trade Center opened in Rogers in 2007 to promote import and export trade opportunities. Industrial and manufacturing operations have not been left by the wayside in northwest Arkansas: the region, as well as Rogers and Lowell specifically, are home to dozens of major employers who have experienced success and expansion despite tough economic times and a national downturn in most manufacturing. In 2007 and 2008, Rogers and Lowell have even welcomed a handful of new industries as well as announcements of expansions with unique and cutting-edge green technology and sustainable manufacturing processes and products. PROPERTY DESCRIPTION Tourism continues to be a strong foundation of the economy, although the community s focus has transformed in recent years as the region has emerged as a convention and meeting destination. Corporate travel remains a major component of the tourism market and leisure travel generated by regional events. Events such as worldrenowned craft fairs and sporting events complement the community s long-standing reputation first established by Beaver Lake as a vacation destination. Northwest Arkansas has enjoyed national acclaim thanks to repeated top 20 accolades from the Milken Institute as well as Forbes Magazine, Kiplinger s, Inc. Magazine and Money Magazine.Quality of life is consistently ranked high for our communities, with the area named one of the least stressful and most secure places in the nation, as well as one of the best places to relocate a family. 12

18 Property Summary THE OFFERING Property Beaver Lake Mobile Home Community Property Address East Highway 12 Type of Park Rental Agreement Space Size Breakdown Current Home Size Breakdown Rogers, AR All-Age 6-month lease 82 Single Wide 76 Single Wide Rent Raise History Annual / $19-2/1/12 Rent Control Assessor's Parcel Number Zoning NO None in County SITE DESCRIPTION Number of Spaces 82 Vacant Spaces 3 Number of Rentals Park-Owned Year Built/Renovated 1970 / 1985 Lot Size Type of Ownership Fee Simple Spaces/Acre 4.38 Parking On-Space Parking Ratio 2:1 Resident Off Street Parking Guest Parking RV Storage Capital Improvements Flood Plain Landscaping Topography Streets/Drainage Yes None None Water Line/Garage Roof/Tree Removal No Wooded Gently Rolling Curbed Streets PROPERTY DESCRIPTION UTILITIES PAID BY METER OTHER Water Tenant Submetered Electric Tenant Direct Gas Tenant Direct Sewer Tenant Direct $8 Septic Fee Trash Landlord 3 Dumpsters Cable TV Tenant Direct Positive Coliform Reading Past Three Years Cathodic Protection No No 13

19 Property Photos PROPERTY DESCRIPTION 14

20 Area Maps PROPERTY DESCRIPTION LOCAL MAP REGIONAL MAP 15

21 Aerial Photo PROPERTY DESCRIPTION 16

22 RECENT SALES BEAVER LAKE MOBILE HOME COMMUNITY ROGERS, AR

23 Recent Sales Map RECENT SALES 1) 2) 3) 4) 5) 6) Beaver Lake Mobile Home Community Oklahoma City Portfolio Town & Country Mobile Estates Brookshire Village and Bush Ranch in MHC Arnold Missouri Portfolio Country Club Manor 18

24 CAP Rate & GRM AVERAGE CAP RATE Avg 7.65% RECENT SALES 0.00 Subject Brookshire Village and Bush Ranch in MHC Arnold Missouri Portfolio Country Club Manor Siesta Manor The Grove Mobile Home Community AVERAGE GRM Avg Subject Brookshire Village and Bush Ranch in MHC Arnold Missouri Portfolio Country Club Manor Siesta Manor The Grove Mobile Home Community 19

25 Price/Space AVERAGE PRICE/SPACE $24,000 $21,000 $18,000 $15,000 $12,000 $9,000 $6,000 $3,000 Avg $16,698 RECENT SALES $0 Subject Oklahoma City Portfolio Town & Country Mobile Estates Brookshire Village and Bush Ranch in MHC Arnold Missouri Portfolio Country Club Manor Siesta Manor The Grove Mobile Home Community 20

26 Recent Sales BEAVER LAKE MOBILE HOME COMMUNITY East Highway 12 Rogers, AR No. of Spaces: 82 Price/Space: $25,805 Year Built/Renovated: 1970 / 1985 CAP Rate: 9.38% Offering Price: $2,116,000 GRM: 8.21 RECENT SALES SUBJECT PROPERTY 1 COMMENTS OKLAHOMA CITY PORTFOLIO 1617 Southeast 44th Street Oklahoma City, OK Close of Escrow: 8/12/2011 Price/Space: $10,035 No. of Spaces: 284 CAP Rate: N/A Year Built/: N/A Sales Price: $2,850,000 Three parks built in 1983, 1964 and Cap rate not available. Total land area 54.1 acres. 2 TOWN & COUNTRY MOBILE ESTATES th Street Lubbock, TX Close of Escrow: 03/31/2011 Price/Space: $8,077 No. of Spaces: 130 N/A Year Built: 1965 N/A Sales Price: $1,050,000 COMMENTS Zoned R1. 21

27 Recent Sales 3 BROOKSHIRE VILLAGE AND BUSH RANCH IN MHC 4800 West Four Ridge Road House Springs, MO Close of Escrow: 02/17/2010 Price/Space: $18,701 No. of Spaces: 237 CAP Rate: 8.04% Year Built: 1985 GRM: 4.23 Sales Price: $4,432,200 RECENT SALES COMMENTS On city water and city sewer that is sub-metered back to the residents. Amenities include swimming pool, playground and clubhouse. 4 ARNOLD MISSOURI PORTFOLIO 201 Rockview Lane Arnold, MO Close of Escrow: 02/17/2010 Price/Space: $21,869 No. of Spaces: 200 CAP Rate: 8.35% Year Built: 1970 GRM: 4.83 Sales Price: $4,373,889 COMMENTS Eighty-five percent occupied at time of sale. On city water and city sewer that is sub-metered back to the residents. Amenities include swimming pool, playground and clubhouse. 5 COUNTRY CLUB MANOR 4003 Birch Drive Imperial, MO Close of Escrow: 02/17/2010 Price/Space: $19,303 No. of Spaces: 252 CAP Rate: 8.21% Year Built: 1982 GRM: 4.34 Sales Price: $4,864,453 COMMENTS Eighty percent occupied at the time of sale. On city water and city sewer that is sub-metered back to the residents. Amenities include swimming pool, playground and clubhouse. 22

28 Recent Sales 6 SIESTA MANOR 35 San Aymores Court Fenton, MO Close of Escrow: 02/17/2010 Price/Space: $18,643 No. of Spaces: 192 CAP Rate: 8.52% Year Built: 1970 GRM: 4.24 Sales Price: $3,579,458 RECENT SALES COMMENTS Seventy-eight percent occupied at the time of sale. On city water and city sewer that is sub-metered back to the residents. Amenities include swimming pool, playground and clubhouse. 7 THE GROVE MOBILE HOME COMMUNITY 8647 Arlington Drive Foley, AL Close of Escrow: 04/05/2010 Price/Space: $20,257 No. of Spaces: 165 CAP Rate: 5.15% Year Built: 2006 GRM: 5.24 Sales Price: $3,342,458 COMMENTS A premier gated senior community. 23

29 RENT COMPARABLES BEAVER LAKE MOBILE HOME COMMUNITY ROGERS, AR

30 Rent Comparables Map RENT COMPARABLES 1) 2) 3) 4) 5) 6) Beaver Lake Mobile Home Community Blue Hill Mobile Home Park New Hope Mobile Home Park Southgate Mobile Home Park Northern Hills (ARC) Oak Glen (ARC) 25

31 Occupancy & Average Rents AVERAGE OCCUPANCY Avg 80% RENT COMPARABLES 0 Subject Blue Hill Mobile Home Park New Hope Mobile Home Park Southgate Mobile Home Park Northern Hills (ARC) Oak Glen (ARC) Western Park (ARC) AVERAGE RENTS - SINGLE & DOUBLE-WIDE Avg $269 Avg $ Subject Blue Hill Mobile Home Park New Hope Mobile Home Park Southgate Mobile Home Park Northern Hills (ARC) Western Park (ARC) Single-Wide Double-Wide 26

32 Rent Comparables SUBJECT PROPERTY Total Spaces: 82 Vacant Spaces: 3 Year Built/Renovated: 1970/1985 BEAVER LAKE MOBILE HOME COMMUNITY East Highway 12 Rogers, AR Space Type No. of Spaces Rent Monthly Income Single-Wide 82 $262 $21,484 Total/Wtd. Avg. 82 $262 $21,484 RENT COMPARABLES 1 BLUE HILL MOBILE HOME PARK 3300 Blue Hill Road Rogers, AR Space Type No. of Spaces Rent Single-Wide Unknown $245 - $265 Total Spaces: 13 Vacant Spaces: 2 Total/Wtd. Avg. $255 COMMENTS Space set up for RV is never used; current homeowners pay $245, new homes coming in $265. All rents will go up to $265 in January. Water, sewer and trash included 2 NEW HOPE MOBILE HOME PARK 1905 South 17th Place Springdale, AR Space Type No. of Spaces Rent Double-Wide Unknown $235 Single-Wide Unknown $220 Total Spaces: 61 Vacant Spaces: 5 COMMENTS All properties are owner occupied. Total/Wtd. Avg. $227 27

33 Rent Comparables 3 Total Spaces: 38 Vacant Spaces: 4 COMMENTS Water, sewer and trash included. SOUTHGATE MOBILE HOME PARK 910 West Olrich Fayetteville, AR Space Type No. of Spaces Rent Single-Wide Unknown $275 Total/Wtd. Avg. $275 RENT COMPARABLES 4 NORTHERN HILLS (ARC) 1901 West Shady Grove H35 Springdale, AR Space Type No. of Spaces Rent Single-Wide Unknown $303 Total Spaces: 180 Vacant Spaces: 48 Total/Wtd. Avg. $303 5 OAK GLEN (ARC) 5909 Wilkerson Road Fayetteville, AR Space Type No. of Spaces Rent Unknown Unknown $290 Total Spaces: 65 Vacant Spaces: 15 Total/Wtd. Avg. $290 28

34 Rent Comparables 6 Total Spaces: 114 Vacant Spaces: 40 WESTERN PARK (ARC) 2575 West Martin Luther King Boulevard Fayetteville, AR Space Type No. of Spaces Rent Single-Wide Unknown $290 Total/Wtd. Avg. $290 RENT COMPARABLES 29

35 DEMOGRAPHIC ANALYSIS BEAVER LAKE MOBILE HOME COMMUNITY ROGERS, AR

36 Demographic Report 1 Mile 3 Miles 5 Miles 1990 Population 0 0 1, Population 0 0 1, Population 702 5,779 20, Population 714 5,826 22, Population 756 6,127 24, Households Households Households 316 2,400 7, Households 326 2,455 8, Households 373 2,790 9, Average Household Size DEMOGRAPHIC ANALYSIS 2011 Daytime Population , Median Housing Value $41, Median Housing Value $71, Owner Occupied Housing Units 58.38% 2000 Renter Occupied Housing Units 32.39% 2000 Vacant 9.23% 2011 Owner Occupied Housing Units 77.98% 74.99% 65.22% 2011 Renter Occupied Housing Units 7.74% 8.48% 19.73% 2011 Vacant 14.28% 16.52% 15.04% 2016 Owner Occupied Housing Units 77.92% 74.94% 65.13% 2016 Renter Occupied Housing Units 7.72% 8.45% 19.78% 2016 Vacant 14.36% 16.61% 15.09% $ 0 - $14, % 7.0% 10.2% $ 15,000 - $24, % 7.0% 10.6% $ 25,000 - $34, % 8.7% 15.2% $ 35,000 - $49, % 17.2% 16.5% $ 50,000 - $74, % 19.6% 22.0% $ 75,000 - $99, % 14.6% 10.3% $100,000 - $124, % 8.6% 5.9% $125,000 - $149, % 6.5% 3.2% $150,000 - $199, % 5.2% 3.4% $200,000 - $249, % 2.0% 1.0% $250, % 3.6% 1.9% 2011 Median Household Income $62,230 $63,756 $47, Per Capita Income $34,114 $35,571 $22, Average Household Income $80,706 $84,671 $64,436 Demographic data 2010 by Experian/Applied Geographic Solutions. 31

37 Summary Report Geography: 5 Miles Population In 2011, the population in your selected geography was 22,788. The population has changed by 1,268.26% since It is estimated that the population in your area will be 24,447 five years from now, which represents a change of 7.28% from the current year. The current population is 50.1% male and 49.9% female. The median age of the population in your area is 34.3, compare this to the U.S. average which is The population density in your area is people per square mile. Households There are currently 8,007 households in your selected geography. The number of households has changed by 1,190.69% since It is estimated that the number of households in your area will be 9,269 five years from now, which represents a change of 15.77% from the current year. The average household size in your area is 2.85 persons. Income In 2011, the median household income for your selected geography is $47,869, compare this to the U.S. average which is currently $53,620. The median household income for your area has changed by 49.44% since It is estimated that the median household income in your area will be $53,744 five years from now, which represents a change of 12.27% from the current year. DEMOGRAPHIC ANALYSIS The current year per capita income in your area is $22,897, compare this to the U.S. average, which is $28,713. The current year average household income in your area is $64,436, compare this to the U.S. average which is $73,458. Race & Ethnicity The current year racial makeup of your selected area is as follows: 77.27% White, 0.75% African American, 1.29% Native American and 0.40% Asian/Pacific Islander. Compare these to U.S. averages which are: 72.40% White, 12.60% African American, 0.95% Native American and 4.93% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin make up 33.08% of the current year population in your selected area. Compare this to the U.S. average of 16.90%. Housing The median housing value in your area was $71,343 in 2000, compare this to the U.S. average of $110,796 for the same year. In 2000, there were 399 owner occupied housing units in your area and there were 221 renter occupied housing units in your area. The median rent at the time was $430. Employment In 2011, there are 7,543 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 41.8% of employees are employed in white-collar occupations in this geography, and 58.2% are employed in blue-collar occupations. In 2011, unemployment in this area is 8.42%. In 2000, the median time traveled to work was 15.8 minutes. Demographic data 2010 by Experian/Applied Geographic Solutions. 32

38 Population Density DEMOGRAPHIC ANALYSIS Demographic data 2010 by Experian/Applied Geographic Solutions. Population Density Theme Low High Low less than 55 Below Average Average Above Average High or more Number of people living in a given area per square mile. 33

39 Employment Density DEMOGRAPHIC ANALYSIS Demographic data 2010 by Experian/Applied Geographic Solutions. Employment Density Theme Low High Low less than 9 Below Average 9 96 Average Above Average High or more The number of people employed in a given area per square mile. 34

40 Average Household Income DEMOGRAPHIC ANALYSIS Demographic data 2010 by Experian/Applied Geographic Solutions. Average Household Income Theme Low High Low less than $29,500 Below Average $29,500 $48,500 Average $48,500 $80,000 Above Average $80,000 $132,500 High $132,500 or more Average income of all the people 15 years and older occupying a single housing unit. 35

41 Traffic Counts DEMOGRAPHIC ANALYSIS Traffic Count data 2010 by TrafficMetrix. All rights reserved. Two-way, average daily traffic 36

42 BEAVER LAKE MOBILE HOME COMMUNITY ROGERS, AR OFFERING MEMORANDUM Exclusively Listed By: Chris Child Associate Vice President Investments National Manufactured Home Communities Group Salt Lake City Office Tel: (801) Fax: (801) License: UT: AB00, ID: AB34806, CO: EA Offices Nationwide