Paradise Gardens Mobile Home Park

Transcription

1 Paradise Gardens Mobile Home Park OFFERING MEMORANDUM

2 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. NONENDORSEMENT 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 PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

3 TABLE OF CONTENTS Section 1 PRICING AND FINANCIAL ANALYSIS Section 2 PROPERTY DESCRIPTION Section 3 RECENT SALES Section 4 ON MARKET COMPARABLES Section 5 RENT COMPARABLES Section 6 DEMOGRAPHIC ANALYSIS

4 PRICING AND FINANCIAL ANALYSIS Paradise Gardens Mobile Home Park

5 OFFERING SUMMARY Major Employers PRICING AND FINANCIAL ANALYSIS Company Local Employees Walmart 1,140 Casa Grnde Regional Med Centre 625 Border Patrol Station 366 Abbott Nutrition 341 FritoLay 300 Casa Grande Clinic 264 Smiths 247 Casa Grande High School 200 Casa Verde Charter High School 200 Home Depot The 200 McDonalds 188 Price $1,800,000 Down Payment 35% $630,000 Total Spaces 49 Price per Space $36,735 Spaces per Acre 17.5 Vacant Spaces 3 Year Built 1960 Lot Size 2.8 Acres Type of Ownership Fee Simple Vital Data CAP Rate Current 8.03% GRM Current 8.86 Net Operating Income Current $144,487 Net Cash Flow After Debt Service Current 11.0% / $69,117 Total Return Current 13.7% / $86,379 At Home Solutions LLC 185 Demographics 1Mile 3Miles 5Miles 2014 Total 9,726 36,004 49, Total 10,641 41,109 56, Total 3,450 13,028 17, Total 3,776 14,935 20,575 Median HH Income $39,785 $39,714 $42,478 Per Capita Income $19,259 $19,414 $20,412 Average (Mean) HH $54,034 $53,337 $56,401 TwoStar, AllAge, 49 Site Community in Casa Grande, Arizona. 94% Occupied. Three POHs For Sale (4, 25 & A36) and Three Occupied POH Rentals (10, 35 & A33) All City Services. Direct Gas (41 Sites) and Electric (41 Sites) with Submetered Electricity to (Eight Sites) and Water (49 Sites). There are Eight Sites that are Propane and do not have Natural Gas. Sewer and Trash are Pass Through. Upgrade Infrastructure (Sewer and Water Lines). Florence Avenue Corridor Location. Intersection of Florence and Pueblo. Existing Note Portfolio of Approximately $33,000 with Monthly Payments of $1,156 Included in the Price but not Underwritten Into the NOI. 1

6 PRICING AND FINANCIAL ANALYSIS FINANCIAL OVERVIEW Location 517 North Avenue A Casa Grande, AZ Price $1,800,000 Down Payment 35% $630,000 Number of Spaces 49 Price/Space $36,735 CAP Rate Current 8.03% GRM Current 8.86 Year Built 1960 Lot Size 2.8 Acres Spaces/Acre 17.5 Type of Ownership Fee Simple Annualized Operating Data Income Current Gross Potential Rent $203,052 Other Income $47,150 Gross Potential Income $250,202 Less: Vacancy/Deductions 6.3% / $12,780 Effective Gross Income $237,422 Less: Expenses $92,935 Net Operating Income $144,487 Net Cash Flow Before Debt $144,487 Debt Service $75,370 Debt Coverage Ratio 1.92 Net Cash Flow After Debt Service 11.0% / $69,117 Principal Reduction $17,262 Total Return 13.7% / $86,379 Financing FIRST TRUST DEED Loan Amount $1,170,000 Loan Type Proposed New Interest Rate 5.0% Amortization 30 Years Loan information is time sensitive and subject to change. Contact your local Marcus & Millichap Capital Corporation representative. Expenses Real Estate Taxes $2,700 Insurance $3,500 Payroll & Worker's Comp $18,375 OffSite Management $10,400 Gas $600 Electric $8,500 Water $9,000 Trash $2,800 Sewer $11,500 Total Utilities $32,400 Advertising & Promotion $1,500 Tree Maint $500 Background Check $300 Telephone $900 Business Licenses & Permits $250 Legal Fees $500 Meals & Entertainment $100 Total Other Expenses $21,510 TOTAL EXPENSES $92,935 EXPENSES/SPACE $1,897 % of EGI 39.1% Scheduled Income No. of Space Current Monthly 48 SingleWide DoubleWide $305 $381 $16,511 1 TripleWide $410 $ Total $16,921 2

7 <Text Box> PRICING AND FINANCIAL ANALYSIS FINANCING Existing Financing Loan Amount $1,125,000 Loan Type Assumption Interest Rate 6.800% Amortization 30 Year Due Date January 31, 2017 Lender Name Private Proposed Financing First Trust Deed Loan Amount $1,170,000 Loan Type Proposed New Interest Rate 5.0% Amortization 30 Years Debt Coverage Ratio 1.92 Payment 6,281 Loan Quote as of July 9, 2015 Loan Amount $1,260,000 Loan to Value 70% of Appraisal Interest Rate 4.50% Amortization 30 Years Term 10 Years Recourse Yes *Interest only for the first 24 months 3

8 PRICING AND FINANCIAL ANALYSIS RENT ROLL SP# Notes/POH RENT SP# Notes/POH RENT 1 $ $ $ $ $ $ Note 34 $ $ VPOH 35 $26.00 $ POHR 5 $ $ $ $ $ Note 7 $ $ $ A11 $ $ A33 $ $ POHR 10 $20.00 $ POHR A34 $80.00 $ Note 11 $50.00 $ Note A35 $80.00 $ Note 12 $ A36 $ VPOH 13 $ A37 $ $ B01 $ $ B02 $ $ B03 $80.00 $ Note 17 $ $ MGR/Note B04 $ $ Note 18 $ B05 $ $ Note 19 $ B06 $ $ Note 20 $ $ SP# Notes/POH RENT 22 $ $1, $16, $ $ $ Note V Vacant $355 = $1, $ VPOH M Manager 26 $ POH Park Ow ned Home 27 $ POHR Park Ow ned Home Rental 28 $ $ * $10 Rent Increase 1/1/15 30 $ * A33 is a triple w ide POH Notes: 3, 11, 17, 24, 37, A34, A35, B03, B04, B05 & B06 POHs #4, 10, 25, 35 & 36 are included in the sales price POH Rental #A33 is NOT included, but can be purchased for $25,000. 4

9 PRICING AND FINANCIAL ANALYSIS HISTORICAL SPREADSHEET Income 2012 Actual 2013 Actuals 2014 Actuals Current Budget Estimate POH/Notes Rent Income $ 174,215 $ 180,139 $ 191,348 $ 203,052 $ Application Fee $ 925 $ 100 $ 225 $ 250 $ Bounced Check Fee $ 35 $ 35 $ $ $ Laundry Machines $ 2,425 $ 1,853 $ 1,614 $ 1,700 $ MH Lease To Own $ 15,680 $ 24,339 $ 11,206 $ $ 13,871 Site Rent Late Fees $ 1,835 $ 1,000 $ 1,055 $ 1,100 $ Electrical $ 3,739 $ 4,858 $ 4,576 $ 4,600 $ Sewer $ 13,383 $ 14,146 $ 16,105 $ 16,500 $ Trash $ 10,191 $ 10,860 $ 10,860 $ 11,000 $ Water $ 11,914 $ 12,256 $ 11,932 $ 12,000 $ Physical Vacancy $ $ $ $ (12,780) $ POH Rent $ $ $ $ $ 2,952 Total Income $ 234,342 $ 249,585 $ 248,922 $ 237,422 $ 16,823 Expenses Advertising and Promotion $ 2,301 $ 918 $ 2,369 $ 1,500 $ Automobile $ 48 $ 97 $ $ 100 $ Background Checks $ 970 $ 111 $ 250 $ 300 $ Bank Fees $ 62 $ 24 $ 169 $ 200 $ Business Licenses and Permits $ 65 $ 171 $ 220 $ 250 $ Gain/Loss $ 7,727 $ $ $ $ Insurance $ 3,706 $ 3,460 $ 3,931 $ 3,500 $ Legal Fees $ 481 $ 320 $ 370 $ 500 $ Management Bonus $ 3,887 $ $ $ $ Meals and Entertainment $ 176 $ 36 $ 51 $ 100 $ Office Supplies $ 206 $ $ 807 $ 1,000 $ Payroll & Worker's Comp $ 12,000 $ 23,936 $ 17,384 $ 18,375 $ Professional Fees $ 1,243 $ 2,520 $ 1,235 $ 500 $ Rent Billing $ 794 $ 794 $ 875 $ 1,000 $ Asphalt $ $ 3,121 $ 1,155 $ $ Community Maintenance $ 8,631 $ 6,580 $ 9,448 $ 7,000 $ HVAC $ $ 1,004 $ $ 500 $ Gas Line $ 1,365 $ $ $ 500 $ Laundry $ 372 $ 188 $ 454 $ 500 $ Locksmith $ $ 300 $ $ 150 $ MH Maintenance $ 12,205 $ 20,483 $ 17,007 $ $ 10,000 Plumbing $ 2,324 $ 436 $ 2,082 $ 3,000 $ Scorpion Control $ 2,026 $ 1,972 $ 2,020 $ 2,160 $ Tree Maintenance $ $ 490 $ 900 $ 500 $ California State Tax $ 800 $ $ $ $ Mobile Home Tax $ 2,071 $ 1,412 $ 4,964 $ $ 5,000 Property Tax $ 4,385 $ 4,460 $ 4,638 $ 2,700 $ Telephone $ 714 $ 439 $ 832 $ 900 $ Reserves $ $ $ $ 4,900 $ 1,000 OffSite Management $ $ $ $ 10,400 $ Total Expenses $ 68,558 $ 73,272 $ 71,160 $ 60,535 $ 16,000 Utilities: Electric $ 6,223 $ 7,736 $ 8,413 $ 8,500 $ Gas $ 571 $ 497 $ 515 $ 600 $ Sewer $ 9,060 $ 9,747 $ 11,180 $ 11,500 $ Trash $ 2,642 $ 2,729 $ 2,714 $ 2,800 $ Water $ 7,901 $ 8,505 $ 8,893 $ 9,000 $ Total Utilities $ 26,397 $ 29,213 $ 31,716 $ 32,400 $ Total Expenses Including Utilities $ 94,955 $ 102,486 $ 102,876 $ 92,935 $ 16,000 Net Operating Income $ 139,388 $ 147,100 $ 146,046 $ 144,487 $ 823 5

10 PRICING AND FINANCIAL ANALYSIS NOTE AND PARK OWNED HOME INVENTORY Notes Payment Start Date (1st Payment) Pymnts Made Prior to 8/1/2015 Ending Balance 7/31/2015 Trailer Finance Last Payment Site No. Trailer Payment Trailer Info B6 05/01/11 51 $ Apr16 60 $ Alfa Leisure Inc VIN x40 B5 04/01/13 28 $3, Mar18 60 $ Manor Sassi Chassi VIN SCAZ4RV x40 Term (Mnth) 3 08/01/13 24 $3, Jul18 60 $ Delma VIN: P4S A 11/01/13 21 $2, Oct17 48 $ Santa Fe Trailer Co VIN x40 34A 01/01/14 19 $ Mar16 27 $ Sportsman VIN 4EZTS4027WS /01/15 5 $6, Feb20 60 $ Lifestyle Homes Inc 14'x60' VIN: LHAZ /01/14 17 $3, Feb18 60 $ Fleetwood 12'x52' VIN: S /01/14 10 $6, Sep19 60 $ Skyline 20'x45' VIN: MC9PA3562HIS0964U & X B4 10/01/14 10 $2, Mar17 30 $ Alfa Leisure Inc VIN x /01/15 7 $1, Apr17 28 $ Winne VIN: B3 03/01/15 5 $3, Feb19 48 $ Sundowner VIN 1S9RL2221DA x40 TOTAL $32, $1, POH RENTALS SITE # Site Rent POH Rent Home Note 10 $200 $20.00 Travel Trailer 33A $410 $ TW 1600 Sq Ft 3Bd/2Ba 35 $355 $26.00 SW TOTAL $965 $246 ANNUAL : $13,

11 PRICING AND FINANCIAL ANALYSIS SPACE MIX No. of Spaces SPACE MIX Space Type SPACE RENT Current Rents Monthly Income 48 SingleWide DoubleWide $305 $381 $16,511 1 TripleWide $410 $ TOTAL $16,921 TW: 2% $400 $360 $320 $280 $240 $200 $160 $120 $80 $40 SW: 98% $0 SW TW SingleWide (SW) DoubleWide (DW) TripleWide (TW) Recreational Vehicle (RV) ParkOwned Home (POH) Travel Trailer (TT) Other (O) 7

12 PRICING AND FINANCIAL ANALYSIS EXPENSES Current Per Space Real Estate Taxes $2,700 $55 Insurance $3,500 $71 Payroll & Worker's Comp $18,375 $375 OffSite Management $10,400 $212 Utilities Gas $600 $12 Electric $8,500 $173 Water $9,000 $184 Trash $2,800 $57 Sewer $11,500 $235 Advertising & Promotion $1,500 $31 Tree Maint $500 $10 Background Check $300 $6 Telephone $900 $18 Business Licenses & Permits $250 $5 Legal Fees $500 $10 Meals & Entertainment $100 $2 Office Supplies $1,000 $20 Professional Fees $500 $10 Rent Billing $1,000 $20 Community Maint. $7,000 $143 HVAC $500 $10 Laundry $500 $10 Plumbing $3,000 $61 Reserves $4,900 $100 Other Expenses $3,110 $63 TOTAL EXPENSES $92,935 $1,897 % of EGI 39.1% The renovation expense of the resale POHs is not included in the expense budget and the revenue of $13,872 is not underwritten into the income. 8

13 PRICING AND FINANCIAL ANALYSIS INCOME & EXPENSES Total Number of Spaces: 49 Income Current Per Space GROSS POTENTIAL RENT $203,052 $4,144 Other Income Laundry Income $1,700 $35 Late Fees $1,100 $22 Application Fees $250 $5 Utility Income Electric $4,600 $94 Water $12,000 $245 Trash $11,000 $224 Sewer $16,500 $337 Total Other Income $47,150 $962 GROSS POTENTIAL INCOME $250,202 $5,106 Physical Vacancy (% of GPR) 6.3% / $12,780 $261 EFFECTIVE GROSS INCOME $237,422 $4,845 Total Expenses $92,935 $1,897 % of EGI 39.1% NET OPERATING INCOME $144,487 $2,949 9

14 PROPERTY DESCRIPTION Paradise Gardens Mobile Home Park

15 PROPERTY DESCRIPTION INVESTMENT OVERVIEW Investment Highlights TwoStar, AllAge 49 Site Community in Casa Grande, Arizona 94% Occupied, Three Vacant Resale POHs (4, 25 and A36) and Three POHs (10, 33A & 35) All City Services, Direct Meter for 41 Sites for Electric, 49 Sites for Gas and 49 Water Meters Pass Through for Sewer and Trash Upgraded Infrastructure: Sewer and Water Lines Offered at a 8.03 Cap with 39% ($1,917 Expense Per Site) Existing Note Portfolio of $32,828 (approximate) Included in the Sales Price. Annual Income of $13,872 and $2,972 POH Rent is Not Underwritten Into the NOI Paradise Gardens Mobile Home Park is a well maintained twostar, all age community located in Casa Grande, Arizona. The park is composed of 41 standard Mobile Home sites and eight smaller mobile home sites on 2.8 acres with a space density of 17.5 spaces per acre. The park has all city services and is direct billed for electric and gas. The park is located on the west side of North Avenue A and the east side of North Pueblo Drive in a mixed commercial and residential area of Casa Grande, Arizona. The property has one (1) triplewide manufactured home totaling approximately 1,600square feet and several doublewides, and the balance of the homes are singlewide and park models. The property was developed with the current improvements in There are three (3) park owned resales currently in the park (4, 25 and A36). There are three (3) occupied park owned home rentals (10, 35 and A33) There are 46 leased sites occupied by residents who own their own mobile home or park model. There is a laundry facility and a park office. The current onsite manager lives in #17. Adjoining the park are five residential lots totaling 2.33 acres of vacant land. These five contiguous parcels were formally a mobile home park which has been closed. There is a possibility that this land can be developed into single family residence lots or multifamily condos or apartments. These parcels are not included in the sale price, but are available for purchase. 11

16 PROPERTY DESCRIPTION INVESTMENT OVERVIEW The park has 30 to 100 Amp electrical service at each site. The electricity is direct metered to 41 sites and submetered to eight sites. There are water meters installed at all 49 spaces and gas is direct metered to 41 spaces. There are eight sites that are propane and do not have natural gas. The sewer and trash are passed through to the residents. The park has all city services and the water and sewer lines have been substantially upgraded upon replacement. The park has perimeter block wall fencing and the asphalt road surfaces are in good condition. There is a modest tree canopy and gravel used throughout the park to minimize irrigation and landscaping. There is a common area rest room facility and onsite laundry where the machines are owned by the park. The community has overhead street lighting, speed bumps, group mail boxes and three points of ingress and egress with street visible signage. Many of the residents are long term and the convenient center city location on the Florence Avenue corridor keep the park well occupied. Paradise Gardens is priced competitively at a 8.03 Cap with a 39% ($1,897 per site) expense load. The note income of $13,872 and the POH Rental income of $2,972 is not underwritten into the income and the renovation capital expense is not included in the expense budget. The note portfolio of $32,829 (approximate) is included in the purchase price as are the POH Rentals and resales on sites 4, 25, A36, 35 & 10. The triple wide on site A33 is not included, but must be purchased with the sale of the park. This is a turnkey opportunity to take over a well maintained and managed asset with rent growth upside. 12

17 PROPERTY DESCRIPTION PROPERTY SUMMARY The Offering Property Property Address Type of Park Rental Agreement Rent Raise History Rent Control Assessor's Parcel Number Zoning Paradise Gardens Mobile Home Park 517 North Avenue A Casa Grande, AZ AllAge MonthtoMonth Yearly No A X Site Description Number of Spaces 49 Vacant Spaces 3 Number of Rentals 0 Year Built 1960 Lot Size 2.8 Acres Type of Ownership Fee Simple Spaces/Acre 17.5 Parking Ample Parking Ratio 2:1 Resident Off Street Parking Yes Guest Parking Yes RV Storage No Capital Improvements Laundry & Common Area Bathroom Flood Plain Flood Zone X Landscaping Minimal Topography Flat Streets/Drainage Surface Sheet Drainage Utilities Paid By Meter Other Water Tenant Submetered Arizona Water Co. Electric Tenant Direct APS Electric Gas Tenant Direct Southwest GAs Sewer Tenant PassThrough City of Casa Grande Trash Tenant PassThrough City of Casa Grande Cable TV Tenant Direct Cox Cable Electric: Submetered to 38, A11 and B1B6. Gas: No Natural Gas to site # 38, A1 & B1B6 Three vacant POH (4, 25 and A36) and no vacant sites. 13

18 PROPERTY DESCRIPTION AMENITIES Common Area Amenities Direct Gas to 41 Sites and Electric to 41 Sites. Eight Sites are Submetered for Electricity. All City Services Block Wall Perimeter Fencing Laundry and Park Office Overhead Street Lighting Speed Bumps on Wide Asphalt Streets Modest Tree Canopy Street Visible Signage and Decorative Entry Eight Sites use Propane and do not have Natural Gas Unit Amenities Amp Electrical Services One to Two Car Off Street Parking Low Maintenance Landscaping Good Circulation and Three Point Access to the Park Room for Storage Unit at Each Site 14

19 PROPERTY DESCRIPTION PROPERTY PHOTOS 15

20 PROPERTY DESCRIPTION AREA MAPS Local Map Regional Map 16

21 PROPERTY DESCRIPTION SITE PLAN 17

22 PROPERTY DESCRIPTION SITE LOCATION MAP 1 18

23 PROPERTY DESCRIPTION SITE LOCATION MAP 2 19

24 PROPERTY DESCRIPTION AERIAL PHOTO 20

25 RECENT SALES Paradise Gardens Mobile Home Park

26 RECENT SALES RECENT SALES MAP 1) 2) 3) 4) 5) 6) 7) Paradise Gardens Mobile Home Park Cottonwood Palo Verde Hills Peri Winkle Moblie Home Park La Verde Mobile Home Park Hidden Mobile Home Park Juanita Mobile Home Park Arizonan Mobile Home Park 22

27 RECENT SALES CAP RATE AND GRM Average Cap Rate Subject Cottonwood Palo Verde Hills Peri Winkle Moblie Home Park La Verde Mobile Home Park Hidden Mobile Home Park Juanita Mobile Home Park Arizonan Mobile Home Park Average GRM Subject Cottonwood Palo Verde Hills Peri Winkle Moblie Home Park La Verde Mobile Home Park Hidden Mobile Home Park Juanita Mobile Home Park Arizonan Mobile Home Park 23

28 RECENT SALES PRICE PER SPACE Average Price per Space $40,000 $36,000 $32,000 $28,000 $24,000 $20,000 $16,000 $12,000 $8,000 $4,000 $0 Subject Cottonwood Palo Verde Hills Peri Winkle Moblie Home Park La Verde Mobile Home Park Hidden Mobile Home Park Juanita Mobile Home Park Arizonan Mobile Home Park 24

29 RECENT SALES RECENT SALES Paradise Gardens Mobile Home Park 517 North Avenue A Casa Grande, AZ No. of Spaces: 49 Price/Space: $36,735 Year Built: 1960 CAP Rate: 8.03% Offering Price: $1,800,000 GRM: 8.86 Subject Property Comments TwoStar, All Age, 96% Occupied. Average Rent at $305$ Mobile Home Sites & 8 small Mobile Home Sites. Two Resale Homes in the Park Sites Per Acre. Direct Gas/Electric, Submetered Water and Pass Through Sewer and Trash 1 Cottonwood 225 North 10th Street Cottonwood, AZ Close of Escrow: 06/30/2014 Price/Space: $35,524 No. of Spaces: 8 CAP Rate: 12.20% Year Built: 1970 GRM: 5.60 Sales Price: $284,188 Comments Eight Unit Class C MultiFamily Manufactured Housing/Mobile Home Park Building Built in Built on.67 acres the park yields an site per acre density. 2 Palo Verde Hills 939 North Acacia Road Apache Junction, AZ Close of Escrow: 01/09/2014 Price/Space: $32,653 No. of Spaces: 49 CAP Rate: 9.00% Year Built: 1972 GRM: 7.22 Sales Price: $1,600,000 Comments 49 Unit Class C MultiFamily Manufactured Housing/Mobile Home Park Building. Built on 5 acres the park yields a 9.8 site per acre density. 25

30 RECENT SALES RECENT SALES 3 Peri Winkle Moblie Home Park 2728 West Colter Street Phoenix, AZ Close of Escrow: 10/10/2014 Price/Space: $35,246 No. of Spaces: 61 CAP Rate: 9.00% Year Built: 1958 GRM: 7.20 Sales Price: $2,150,000 Comments 61 Unit Class C MultiFamily Manufactured Housing/Mobile Home Park Building Built in Built on 4.66 acres the park yields a site per acre density. 4 La Verde Mobile Home Park 1310 North French Street Casa Grande, AZ Close of Escrow: 08/22/2014 Price/Space: $22,143 No. of Spaces: 14 CAP Rate: 8.21% Year Built: 1975 GRM: 7.91 Sales Price: $310,000 Comments 14 Unit Class C MultiFamily Manufactured Housing/Mobile Home Park Building Built in Built on.96 acres the park yields a site per acre density. 5 Hidden Mobile Home Park 2619 West Glendale Avenue Phoenix, AZ Close of Escrow: 11/25/2014 Price/Space: $37,037 No. of Spaces: 27 CAP Rate: 10.00% Year Built: 1950 GRM: 6.50 Sales Price: $1,000,000 Comments 27 Unit Class C MultiFamily Manufactured Housing/Mobile Home Park Building Built in Built on 4.51 acres the park yields a 5.98 site per acre density. 26

31 RECENT SALES RECENT SALES 6 Juanita Mobile Home Park 156 North Hawes Road Mesa, AZ Close of Escrow: 12/17/2014 Price/Space: $36,944 No. of Spaces: 72 CAP Rate: 7.20% Year Built: 1971 GRM: 9.02 Sales Price: $2,660,000 Comments 72 Unit Class C MultiFamily Manufactured Housing/Mobile Home Park Building. Built on 16 acres the park yields a 4.5 site per acre density. 7 Arizonan Mobile Home Park 3168 North Romero Road Tucson, AZ Close of Escrow: 01/15/2015 Price/Space: $33,333 No. of Spaces: 63 CAP Rate: 8.00% Year Built: 1953 GRM: 8.12 Sales Price: $2,100,000 Comments 63 Unit Class C MultiFamily Manufactured Housing/Mobile Home Park Building Built in Built on 4.49 acres the park yields a site per acre density. 27

32 ON MARKET COMPARABLES Paradise Gardens Mobile Home Park

33 ON MARKET COMPARABLES ON MARKET COMPARABLES MAP 1) Paradise Gardens Mobile Home Park Larada Mobile Home Park 29

34 ON MARKET COMPARABLES CAP RATE AND GRM Average Cap Rate Subject Larada Mobile Home Park Average GRM Subject Larada Mobile Home Park 30

35 ON MARKET COMPARABLES PRICE PER SPACE Average Price per Space $40,000 $36,000 $32,000 $28,000 $24,000 $20,000 $16,000 $12,000 $8,000 $4,000 $0 Subject Larada Mobile Home Park 31

36 ON MARKET COMPARABLES ON MARKET COMPARABLES Paradise Gardens Mobile Home Park 517 North Avenue A Casa Grande, AZ No. of Spaces: 49 Price/Space: $36,735 Year Built: 1960 CAP Rate: 8.03% Offering Price: $1,800,000 GRM: 8.86 Subject Property Comments TwoStar, All Age, 94% Occupied. Average Rent at $305$ Mobile Home Sites & 8 small Mobile Home Sites. 3 Resale Homes in the Park Sites Per Acre. Direct Gas/Electric, Submetered Water and Pass Through Sewer and Trash 1 Larada Mobile Home Park 1823 N 40th Street Phoenix, AZ Close of Escrow: On Market Price/Space: $42,857 No. of Spaces: 49 CAP Rate: 7.00% Year Built: 1956 GRM: 9.09 List Price: $2,100,000 Comments 49 Unit Class C MultiFamily Manufactured Housing/Mobile Home Park Building Built in Built on 3.24 acres the park yields a site per acre density. 32

37 RENT COMPARABLES Paradise Gardens Mobile Home Park

38 RENT COMPARABLES RENT COMPARABLES MAP 1) 2) 3) 4) Paradise Gardens Mobile Home Park Cottonwood Cove Mobile Home Park Casa Verde Estates Casa Grande Mobile Ranch Sunwest Resort Village 34

39 RENT COMPARABLES OCCUPANCY AND AVERAGE RENTS Average Occupancy Subject Cottonwood Cove Mobile Home Park Casa Grande Mobile Ranch Sunwest Resort Village AVERAGE RENTS SINGLEWIDE Subject Cottonwood Cove Mobile Home Park Casa Verde Estates Casa Grande Mobile Ranch Sunwest Resort Village 35

40 RENT COMPARABLES RENT COMPARABLES Paradise Gardens Mobile Home Park 517 North Avenue A Casa Grande, AZ Space Type No. of Spaces Rent Monthly Income SingleWide Double 48 $305 $381 $16,511 TripleWide 1 $410 $410 Subject Property Total Spaces: 49 Vacant Spaces: 3 Year Built: 1960 Comments Total/Wtd. Avg. 49 $345 $16,921 TwoStar, All Age, 94% Occupied. Average Rent at $305$ Mobile Home Sites & 8 small Mobile Home Sites. 3 Resale Homes in the Park Sites Per Acre. Direct Gas/Electric, Submetered Water and Pass Through Sewer and Trash 1 Cottonwood Cove Mobile Home Park 426 West Cottonwood Lane Casa Grande, AZ Space Type No. of Spaces Rent Monthly Income SingleWide DoubleWide 120 $390 $500 Total Spaces: 120 Vacant Spaces: 24 Year Built: 1974 Comments Total/Wtd. Avg. 120 $445 Class C MultiFamily Manufactured Housing/Mobile Home Park Building Built in Built on acres the park yields an 8.2 site per acre density. Rent includes all utilities. 2 Casa Verde Estates 2100 North Trekell Road Casa Grande, AZ Space Type No. of Spaces Rent Monthly Income SingleWide DoubleWide 348 $415 $415 Total Spaces: 348 Vacant Spaces: 348 Year Built: 7 Total/Wtd. Avg. 348 $415 Comments Class B MultiFamily Manufactured Housing/Mobile Home Park Building Built in Built on 56.3 acres the park yields a 6.18 site per acre density. Rent includes water, sewer and trash. 36

41 RENT COMPARABLES RENT COMPARABLES 3 Casa Grande Mobile Ranch 1409 North French Street Casa Grande, AZ Space Type No. of Spaces Rent Monthly Income SingleWide DoubleWide 152 $246 $246 Total Spaces: 152 Vacant Spaces: 45 Year Built: 1961 Comments Total/Wtd. Avg. 152 $246 Class C MultiFamily Manufactured Housing/Mobile Home Park Building Built in Built on acres the park yields an site per acre density. Space rent does not include any utilities. 4 Sunwest Resort Village 450 West Sunwest Drive Casa Grande, AZ Space Type No. of Spaces Rent Monthly Income SingleWide DoubleWide 243 $455 $465 Total Spaces: 243 Vacant Spaces: 5 Year Built: 1988 Comments Total/Wtd. Avg. 243 $ site park model and RV resort. Located north of downtown Casa Grande. Park is 98% occupied and has a full amenity package. Built on acres the park yields a 6.65 site per acre density. 37

42 DEMOGRAPHIC ANALYSIS Paradise Gardens Mobile Home Park

43 DEMOGRAPHIC ANALYSIS DEMOGRAPHIC REPORT 1 Mile 3 Miles 5 Miles 2000 Population 7,609 23,682 29, Population 9,663 35,514 48, Population 9,726 36,004 49, Population 10,641 41,109 56, Households 2,637 8,349 10, Households 3,471 12,995 17, Households 3,450 13,028 17, Households 3,776 14,935 20, Average Household Size Daytime Population 3,968 11,663 15, Owner Occupied Housing Units 54.51% 50.59% 53.14% 2000 Renter Occupied Housing Units 33.54% 29.75% 28.28% 2000 Vacant 11.94% 19.65% 18.58% 2014 Owner Occupied Housing Units 56.30% 59.03% 62.86% 2014 Renter Occupied Housing Units 43.70% 40.97% 37.14% 2014 Vacant 24.07% 23.41% 22.07% 2019 Owner Occupied Housing Units 55.90% 59.13% 63.26% 2019 Renter Occupied Housing Units 44.10% 40.87% 36.74% 2019 Vacant 24.20% 23.21% 22.11% $ 0 $14, % 15.5% 13.9% $ 15,000 $24, % 14.1% 13.1% $ 25,000 $34, % 14.6% 14.2% $ 35,000 $49, % 16.3% 16.2% $ 50,000 $74, % 18.4% 19.1% $ 75,000 $99, % 10.7% 11.7% $100,000 $124, % 5.4% 6.0% $125,000 $149, % 1.9% 2.3% $150,000 $199, % 1.6% 1.8% $200,000 $249, % 0.6% 0.6% $250, % 0.9% 1.1% 2014 Median Household Income $39,785 $39,714 $42, Per Capita Income $19,259 $19,414 $20, Average Household Income $54,034 $53,337 $56,401 Demographic data 2012 by Experian. 39

44 DEMOGRAPHIC ANALYSIS SUMMARY REPORT Geography: 5 miles Population In 2014, the population in your selected geography is 49,029. The population has changed by 65.76% since It is estimated that the population in your area will be 56,884 five years from now, which represents a change of 16.02% from the current year. The current population is 48.59% male and 51.40% female. The median age of the population in your area is 37.8, compare this to the Entire US average which is The population density in your area is people per square mile. Households There are currently 17,666 households in your selected geography. The number of households has changed by 69.25% since It is estimated that the number of households in your area will be 20,575 five years from now, which represents a change of 16.46% from the current year. The average household size in your area is 2.76 persons. Income In 2014, the median household income for your selected geography is $42,478, compare this to the Entire US average which is currently $51,972. The median household income for your area has changed by 23.64% since It is estimated that the median household income in your area will be $49,568 five years from now, which represents a change of 16.69% from the current year. The current year per capita income in your area is $20,411, compare this to the Entire US average, which is $28,599. The current year average household income in your area is $56,400, compare this to the Entire US average which is $74,533. Race & Ethnicity The current year racial makeup of your selected area is as follows: 66.12% White, 4.31% Black, 0.17% Native American and 1.72% Asian/Pacific Islander. Compare these to Entire US averages which are: 71.60% White, 12.70% Black, 0.18% Native American and 5.02% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin make up 41.53% of the current year population in your selected area. Compare this to the Entire US average of 17.13%. Housing In 2000, there were 6,812 owner occupied housing units in your area and there were 3,625 renter occupied housing units in your area. The median rent at the time was $458. Employment In 2014, there are 15,677 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 50.40% of employees are employed in whitecollar occupations in this geography, and 50.17% are employed in bluecollar occupations. In 2014, unemployment in this area is 6.55%. In 2000, the average time traveled to work was 21.4 minutes. Demographic data 2012 by Experian. 40

45 DEMOGRAPHIC ANALYSIS POPULATION DENSITY Demographic data 2012 by Experian. Number of people living in a given area per square mile. 41

46 DEMOGRAPHIC ANALYSIS EMPLOYMENT DENSITY Demographic data 2012 by Experian. The number of people employed in a given area per square mile. 42

47 DEMOGRAPHIC ANALYSIS AVERAGE HOUSEHOLD INCOME Demographic data 2012 by Experian. Average income of all the people 15 years and older occupying a single housing unit. 43

48 DEMOGRAPHIC ANALYSIS TRAFFIC COUNTS Traffic Count data 2012 by TrafficMetrix. All rights reserved. Twoway, average daily traffic volumes. * Traffic Count Estimate 44

49 OFFERING MEMORANDUM Douglas A. Danny First Vice President Investments Senior Director, National Manufactured Home Communities Group San Diego Office License: CA: Tel: (858) Fax: (858) Donald Morrow Broker Marcus & Millichap License: AZ: BR Tel: (602) Fax: (602) Offices Throughout the U.S. and Canada