Seligman KOA Seligman, AZ

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1 Seligman, AZ OFFERING MEMORANDUM

2 NON- ENDORSEMENT AND DISCLAIMER NOTICE Confidentiality and Disclaimer 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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap. All rights reserved. Non-Endorsement Notice Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ALL COMMUNICATION, INQUIRIES, AND REQUESTS SHOULD BE ADDRESSED TO: Ryan Grand Nick Steele Associate Senior Associate rgrand@marcusmillichap.com nsteele@marcusmillichap.com

3 TABLE OF CONTENTS SECTION INVESTMENT OVERVIEW 01 Offering Summary Property Photos Amenities Aerial Map Regional Map FINANCIAL ANALYSIS 02 Financial Summary MARKET OVERVIEW 03 Headlines

4 PROPERTY OVERVIEW 4

5 PROPERTY OVERVIEW Seligman KOA 801 East Highway 66 Seligman, AZ Offering Summary OFFERING SUMMARY Price $975,000 Total Spaces (RV, Tent & Cabins) 73 Price Per Space $13,356 Spaces Per Acre 3.95 Year Built 1973 Lot Size Type of Ownership Acres Fee Simple Investment Returns Cap Rate 15.29% GIM 3.72 NOI $149,087 Annual Cash Flow* $87,479 Cash on Cash Return* 35.89% *Based on proposed debt assumptions # 5

6 Investment Overview Seligman KOA is a 73-site RV park located in Seligman Arizona off Interstate- 40 and the Old Route-66. The Seligman KOA is a popular stop for travelers along Interstate-40 and is open year-round. Throughout the year, campers have the option to stay on a nightly, weekly or monthly basis. All RV sites offered at the campground are pull-through. Other ways to enjoy the park are the one and two room cabins as well as tent sites. OFFERING SUMMARY The park consists of 56 total RV sites. Of those 56 sites, 29 are pull-through full hook up sites. 12 of the full hook up sites are 50 amp while the remaining 17 are 30 amp. The remaining 27 RV sites are pull-through with water and electric. Six of the water and electric sites are 50 amp. The final 21 sites are 30 amp. All 56 RV sites come equipped with a fire pit/grill. The property also includes four total cabins. Two of the cabins are single-room with a bunk bed and queen bed, sleeping up to four guests. The other two cabins are larger, two-room cabins with two bunk bed sets and a queen bed. The two room cabins sleep up to six guests. In addition to RV sites and cabins, visitors have the option to camp at any of the 13 tent sites. The tent sites offer water hook ups. Currently underway at the park, a large teepee is being built as an additional accommodation option for campers.. Generating additional revenue, two single-wide mobile homes with two beds and one bath are rented to long term tenants. While staying at the Seligman KOA guests have access to wi-fi, cable TV, laundry open 24 hours and two playgrounds. Other amenities at the park include horse shoes, volleyball and a swimming pool. Campers can shop at the convenience store or take their dogs to the large fenced area fitted out with a dog jump, A-frame obstacle, doggie seesaw and raised dog walk. With prime location on I-40 campers can take day trips to Las Vegas to the west and the Grand Canyon to the northeast. Every May since 1988, the Annual Route-66 Fun Run starts in Seligman and ends in Topock. This local celebration is a big draw for the campground as more than 800 cars show up for this celebration of Old Route-66. 6

7 OFFERING SUMMARY THE OFFERING Property Seligman KOA Property Address 801 East Highway 66, Seligman, AZ Type of Park KOA Journey* Rental Agreement Daily, Weekly and Monthly Franchise KOA Assessors Parcel Number B, C Zoning Commercial SITE DESCRIPTION Number of Spaces 73 Year Built 1973 Water/Sewer Private/(Aubrey Water)/Extended Aeration Type of Ownership Fee Simple Residence Yes Flood Plane No SITE BREAKDOWN RV SPACES 56 CABINS 4 TENT SITES 13 TOTAL SPACES 73 * KOA Journey campgrounds are conveniently located near the highways and Byways of North America and are waiting for you after a long day on the road. KOA Journeys offer long pullthrough sites that help make setup fast and easy, have well-lit after-hour check-in service and offer a robust line of RV supplies. They are great places to unwind and relax before the next leg of your journey 7

8 Seligman KOA PICTURES 8

9 AMENITIES WIFI POOL VOLLEYBALL 24 HOUR LAUNDROMAT DOG PARK TWO PLAYGROUNDS DAY TRIP TO LAS VEGAS HORSE SHOES DAY TRIP TO GRAND CANYON 24 HOUR BATH HOUSES CONVENIENCE STORE FIREWOOD* PULL THRU (All SITES) PROPANE* FIREPITS DUMPSTATION *additional charge 9

10 Las Vegas Grand Canyon AERIAL MAP Seligman KOA Palm Springs Phoenix 10

11 AREA MAP 11

12 SITE MAP 12

13 FINANCIAL ANALYSIS 13

14 FINANCIAL SUMMARY - INCOME FINANCIAL ANALYSIS 2016 Income 2017 Income RV Registration RV Registration Daily/Weekly $147,547 Daily/Weekly $163,583 Monthly $9,965 Monthly $8,846 2 Room Kamping Kabin $5,071 2 Room Kamping Kabin $6,985 1 Room Kamping Kabin $11,388 1 Room Kamping Kabin $10,606 Registration Total: $173,971 Registration Total: $190,019 Goods Sold Goods Sold Grocery Sales $4,349 Grocery Sales $3,793 Apparel $3,496 Apparel $4,012 Souvenirs/Gifts $4,037 Souvenirs/Gifts $2,456 RV Supplies $1,552 RV Supplies $1,657 Goods Sold Total: $13,433 Goods Sold Total: $11,917 Other Other Deposit Forfeited $3,742 Deposit Forfeited $3,485 Laundry $13,805 Laundry $17,144 Off Site Storage $3,343 Off Site Storage $2,779 Propane $8,513 Propane $8,747 Value Kard $2,309 Value Kard $1,980 Facility Rent $4,298 Facility Rent $5,540 Mobile Home Rent $14,015 Mobile Home Rent $15,055 Miscellaneous $5,900 Miscellaneous $5,350 Other Total: $55,925 Other Total: $60, Total: $243, Total: $262,016 14

15 FINANCIAL SUMMARY FINANCIAL ANALYSIS Monthly % Of Gross Income Gross Scheduled Income $243,329 $262,016 $21,835 Expenses General & Administrative $7,081 $9,502 $792 4% Royalty Fee $18,815 $22,752 $1,896 9% Contract Services $1,749 $1,350 $112 1% Utilities $34,194 $35,307 $2,942 13% Cost of Goods Sold $14,704 $13,659 $1,138 5% Repairs & Maintenance $13,171 $14,479 $1,207 6% Advertisement $4,922 $5,660 $472 2% Property Taxes $2,811 $2,508 $209 1% Insurance $7,177 $7,712 $643 3% Total Expenses $104,624 $112,929 $9,411 43% Net Operating Income $138,705 $149,087 $12,424 15

16 MARKET Overview 16

17 Seligman THE PARKER KOAOFF PEARL MARKET OVERVIEW NOTEWORTHY HEADLINES Millennials Are Fueling New Growth in RV Sales May 26, Recreational vehicle buyers expected to drive sales to a new record this year, the highest since the Recreation Vehicle Industry Association started tracking sales in Manufacturers expect to ship 446,000 RVs in 2017, up 3.6% from las year s 430,691, which was also a record. Industry experts say that low gas prices, favorable interest rates and an increased interest in the outdoors mean more Americans than ever see this as a good time to buy an RV. The association estimates the total retail value of all RVs sold in 2017 will be $18.5 billion and RV manufacturers say the increase in demand has made it difficult to keep up. Source: USA Today 17

18 THE Seligman PARKER KOAOFF PEARL MARKET OVERVIEW Annual Route 66 Fun Run The Historic Route 66 Fun Run began as a dedication of Historic Arizona Route 66 in 1988, which had just been decommissioned with the opening of I entries total the first year (1988) with over 60 cars making the complete journey from Seligman to Topock. Today, more than 800 classic, custom and unique automobiles show up for this fantastic celebration of Route 66! Source: 18

19 Grand Seligman Island KOA KOA Doniphan, Seligman, Nebraska AZ OFFERING MEMORANDUM INTERWEST INTERWEST MULTIFAMILY MULTIFAMILY GROUP GROUP