Anza Pines MHC. Offering Memorandum ERIC COULSELL US Highway 371, Anza, CA 92539

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1 Offering Memorandum ERIC COULSELL Direct: BRE License # Eric@Calcomadvisors.com

2 Property Pictures Very high quality MHC with exceptional pride of ownership. Excellent real estate with tremendous upside development potential.

3 Property Pictures

4 Investment Opportunity Anza Pines MHC is a prime real estate investment opportunity for an investor to complete the development of a 170 space 4-5 star manufactured housing community in Riverside County, Southern California, while enjoying the cash flow from the existing 47 space high quality MHC. Anza Pines MHC is well located in southern Riverside County, sitting on a nearly 35 acre parcel. The vibrant City of Temecula lies 40 minutes west, the always growing desert communities (Palm Desert, Palm Springs, La Quinta, etc.) are 40 minutes northeast and world famous San Diego is located 90 minutes south. Residents can live in beautiful rural Anza, enjoying the Southern California climate (with 4 seasons!) while being very close to employment centers and travel destinations. The location over time will drive demand to fill a 170 space attractive manufactured housing community. In addition, the significant commercial acreage at the north end of the parcel has served as a profitable manufactured home dealership, providing homes to both the developing Anza Pines community and new residential residents in the Anza Valley. Future development of this land for self storage and convenience store retail can be a profitable investment long term as well. Property Background The current ownership invested heavily with both capital and sweat equity to turn Anza Pines MHC completely around with better tenant profile and rehabbed/refurbished park homes. To this point, there have been approximately 30 new tenants in the past 4 years along with dramatic improvement in the quality of the majority of homes in the park. Anza Pines is now very well regarded in the community and well set up for additional expansion. Anza Pines MHC is an excellent investment opportunity for the savvy park investor to continue the stewardship and growth of this excellent property. Space Summary Number of spaces Tenant owned spaces 12 Total Offering Price $ 4,400,000 Park owned rentals 31 Vacant POH (sp 31) 1 Vacant Home Rehab (sp 1, 25) 2 Vacant Pad (sp 26) 1 Real Estate portion $ 2,250,000 Park Owned Homes portion $ 2,150,000 Develop lost spaces 7 Fully entitled expansion spaces 116 Total 170

5 Offering Narrative Anza Pines Detail: Anza Pines MHC is a 47 space manufactured housing community located at US Highway 371 Anza, CA The community is designated all age. The tenancy at Anza Pines is roughly half family and half retiree, 55+. The City of Anza is located in southern Riverside County, in the Anza Valley. As stated previously, the manufactured housing community is located 40 minutes southwest of Palm Desert via CA-74, 43 minutes east of Temecula via CA- 79 and 50 minutes southeast of Hemet via CA City of San Diego is located only 90 minutes south. The Cahuilla Casino is located just 1.28 miles west of Anza Pines MHP on Highway 371. These highways are always well traveled. Anza Valley is a high desert bordered by three mountains with a beautiful spring season. Given the warm-summer Mediterranean climate, quiet expansive natural setting and tight knit community, Anza is increasingly attractive to retirees and residents looking for some serenity from the daily grind. More information can be found at Manufactured Housing Community Property details: APN: Riverside County, acres Spaces: The park currently has 47 physical spaces/lots. The MHP is permitted (via CUP) with the County of Riverside for 52 spaces. Seven spaces were lost as a result of previous ownership improvements to the property; such as making larger spaces to accommodate double wide manufactured homes and changing smaller RV spaces into rehabbed single wide home spaces. There are an additional 118 spaces approved to be built under a second CUP (CUP# 2372-W) with the County of Riverside. Two of these spaces (117 and 118) were constructed on the existing improved front portion of the parcel. These are spaces 54 and 53 located near the clubhouse building in the rear of the existing community. CUP summary: One for 52 spaces, 45 spaces currently; second CUP for 118 spaces, 2 spaces are built out. Therefore, a total of 47 existing spaces; 7 more spaces can be added to the existing MHC portion of the parcel for a total of 54 spaces. There is available land on this portion to accommodate these 7 spaces. The 116 second CUP approved spaces are to be constructed on the unimproved back two-thirds portion of the parcel. This portion has existing well water infrastructure of a 100,000 gallon water tank. The second CUP is believed to be in good order, building permits available when property owner is ready to build.

6 Offering Narrative Utilities: Water: The park is serviced by well water. There is a 30,000 gallon water tank servicing the existing 47 spaces, laundry room, office and clubhouse buildings. The well water system is designated a community water system. The State of California allows for a tenant monthly water charge based upon a capital budget plan for the water system. The park does not currently bill for water. Septic system. The park is serviced by septic tanks and leach fields. The leach fields are located at the north end of the parcel, under the commercial land frontage and in the south end of the parcel under the vacant land south of the clubhouse building. Propane: The park is serviced by propane provided by the park. Tenants pay for propane monthly as a separate charge along with space rent and home rent. Electricity: The park is serviced by Anza Electric Cooperative, tenants are billed directly and are required to establish service with the cooperative prior to move in. Trash: There are trash dumpsters for use by the tenants. The park pays for the trash service. Spaces/Homes detail: There are 12 spaces that are occupied by resident owned homes. Average space rent is $350. The highest space rent is $409. There are 30 homes that are on rental agreements. Average home rent is $491. This amount is in addition to space rent paid by these tenants. One park owned rental is rented to a tenant that does maintenance work at the park property in exchange for free home rent. The park employee pays space rent of $300. There are two vacant park owned homes that need refurbishing prior to rental or sale. There is one vacant park owned home for sale (#31) and one vacant space (#26). Park Owned Homes detail: The park owned home rentals at Anza Pines are of very good to exceptional quality manufactured homes. The current property ownership is highly experienced in the rehab of manufactured homes. Approximately of the park owned rentals were completely gutted to the studs and totally rehabbed. Park pictures attest to the quality of the homes within the park. The homes are included in the sale of the property and are of substantial value. It is not uncommon for mobile home park operators to have the cost of sourcing, purchasing, hauling, set up, rehab and permitting of quality double wide homes be in excess of $80,000 each. Excess Land detail: There is approximately 5 acres of vacant land zoned M3 commercial with approximately 700ft of frontage to CA This land has been used as a successful mobile home dealership by the previous ownership. There is significant potential for self storage in the Anza area. Continuous traffic flow along CA-371 to Cahuilla Casino and to City of Anza proper. Southern two thirds portion of parcel is approximately 22 acres and is approved to build 116 mobile home spaces. The site plan approved by the County details a beautifully laid out manufactured housing community with wide streets, a park area and large lot sizes. CUP date September 1980.

7 Financials Park Income Annual Gross Potential Space Rent $ 186,816 Gross Potential Rental Income $ 196,262 Utility Reimbursement $ 33,000 Laundry $ 1,000 Misc Income $ 1,700 Vacancy Rate Vacancy POH $ (31,202) 8.15% Vacancy Pads $ (3,900) 1.02% Total Income $ 383,676 Expenses Annual Notes Onsite Manager $ 18,000 Paid $1,500 monthly, no rent concession Repairs & Maintenance Park $ 12,748 Rentals $ 10,000 Utility Expense Trash $ 12,000 Electricity $ 7,000 Propane $ 37,000 Auto & Travel $ 162 Legal and accounting $ 2,500 Advertising $ 1,500 Commissions/Referrals $ 1,470 Insurance Park $ 4,000 Rentals $ 9,200 License Permits Fees $ 2,000 RE Property Taxes (1.12%) $ 26,980 Adjusted to new RE price RE Property Tax fixed $ 1,767 Taxes Rentals $ 5,222 Total Expenses $ 151,549 Expense Ratio 39.50% Net Operating Income $ 232,127

8 Rent Roll (page 1) Rent Roll Type Space Rent Home Rent Total Other Space # 1 Home on lot need refurb $ 325 $ 475 $ 800 Vacant 2 POH Rental $ 325 $ 575 $ lost space/reconstruct $ - $ - 4 Resident owned $ 354 $ POH Rental $ 325 $ 525 $ lost space/reconstruct $ - $ - 7 Resident owned $ 354 $ lost space/reconstruct $ - $ - 9 POH Rental $ 325 $ 525 $ lost space/reconstruct $ - $ - 11 POH Rental $ 325 $ 425 $ lost space/reconstruct $ - $ - 13 Resident owned $ 332 $ POH Rental $ 325 $ 325 $ POH Rental $ 325 $ 225 $ POH Rental $ 325 $ 300 $ lost space/reconstruct $ - $ - 18 POH Rental $ 325 $ 475 $ lost space/reconstruct $ - $ - 20 Resident owned $ 332 $ Resident owned $ 300 $ POH Rental $ 325 $ 325 $ Resident owned $ 332 $ POH Rental $ 325 $ 775 $ 1, Home on lot need refurb $ 325 $ 475 $ 800 Vacant 26 Pad only $ 325 $ 325 Vacant 27 POH Rental $ 325 $ 525 $ POH Rental $ 325 $ 525 $ POH Rental $ 325 $ 525 $ POH Rental $ 325 $ 325 $ 650

9 Rent Roll (page 2) Rent Roll Type Space Rent Home Rent Total Other 31 POH Vacant $ 325 $ 675 $ 1,000 Vacant 32 POH Rental $ 325 $ 675 $ 1, Resident owned $ 350 $ POH Rental $ 300 $ - $ 300 Park worker 35 POH Rental $ 325 $ 625 $ POH Rental $ 325 $ 375 $ POH Rental $ 325 $ 425 $ POH Rental $ 325 $ 575 $ POH Rental $ 325 $ 525 $ POH Rental $ 325 $ 525 $ Resident owned $ 376 $ Resident owned $ 333 $ POH Rental $ 325 $ 675 $ 1, POH Rental $ 341 $ 630 $ POH Rental $ 325 $ 625 $ POH Rental $ 325 $ 475 $ POH Rental $ 325 $ 725 $ 1, POH Rental $ 325 $ 425 $ POH Rental $ 325 $ 425 $ POH Rental $ 325 $ 425 $ POH Rental $ 325 $ 225 $ Resident owned $ 332 $ Resident owned $ 398 $ Resident owned $ 409 $ 409 Totals $ 15,568 $ 16,355 $ 31,923 Vacancy $ (2,925) Net Monthly Rent $ 28,998 Annual Income $347,976

10 Anza Pines MHC Aerial Photo Anza Pines MHC Aerial: From North to South: 1) Commercial land with CA-371 frontage 2) 47 space MHP, can add additional 7 spaces to this portion 3) Approx 22 acres CUP approved to build 116 spaces. 100,000 gallon water tank can be seen at eastern edge of parcel.

11 Property Pictures (amenities) Laundry Room (top) Clubhouse building Playground, park area

12 Property Pictures 30,000 gallon water tank servicing the community (top). New retaining wall and utility infrastructure, east side of park.

13 116 approved spaces land, approx 22 acres 100,000 gallon water tank.

14 Commercial (M3) acreage

15 US Hwy 371Commercial Frontage

16 Anza Valley Pictures and Map Location