Offered at $2,595,000 Columbia River Mobile Home Park Arlington, Oregon Prepared for: Prospective Purchasers Prepared by: Randy Smith Principal Broker W Western Equities Investment Real Estate Services 1910 N.E. 30th Ave., Portland, OR 97212 USA Tel: (503) 242-0033 Fax: (503) 281-4054
Columbia River Mobile Home & RVPark Executive Summary Here is the opportunity you have been looking for! The combination of excellent financing terms, high leverage, and right timing can make the savvy investor an excellent profit! Currently the park is 100% occupied! The park consists of 85 spaces currently, 74 with utilities, and 11 without utilities. The City of Arlington has placed certain requirements for these 11 spaces (please refer to the letter dated June 12, 2008 in this package for the requirements.) The site consists of 9.33 acres overlooking the Columbia River. Prospective buyers should verify with the city any proposed additions or modifications to the park! Included in the sale is a 3 bedroom rental home, beautiful renovated swimming pool and free standing laundry & shower facility which were re-plumbed and renovated 5-6 years ago. The restrooms were renovated last year. Also included is a double wide managers home with attached office, 45 park owned mobile homes, and underground utilities including city water and sewer, which can be sub-metered for additional income! Currently the owner bills tenants $75 per month for all utilities. The park is located in Zone C, an area with no known flood hazards. Of the 85 spaces, majority are mobile homes and the balance are monthly RV pads. Please refer to the current rent roll, a copy of which is included in this package. The seller will consider flexible contract terms to qualified buyers, possibly with small down payment, stepped interest rates, interest only payments for a period of time, etc. He is a very creative investor, and will work with the qualified buyer to provide the right financing terms! Possible trades for down payment!
The City of Arlington participated in the development and construction of a nearly new public golf course, which surrounds Columbia River MHP on three sides! In addition, the city maintains a beautiful public marina on the Columbia River, less than a mile from the park. Arlington is a small rural community in Gilliam County, North Central Oregon, founded in 1885, with a stable economy based on agriculture and tourism. Population growth is strong, and median family income was $45,875 in the 2000 census. It is convenient to Portland, Oregon & Boise, Idaho via Interstate 84. For further information or if you have questions, please contact the listing agent, Randy Smith of Western Equities by cell: 503-320-3030 or by email: randysmith@westernequities.com.
Annual Property Operating Data Purpose Listing Package Name Location Arlington, Oregon Property Type Manufactured Home Community Date 13 July 2010 Units 85 Price $2,595,000 -Loans 2,200,000 Down Payment 395,000 +Acq Costs 5,000 +Loan Points 0 Investment 400,000 $/Unit % of GI Annual $ Gross Income $3,752 100.0% $318,950 - Vacancy & Credit Loss 0 0.0% 0 Effective Income $3,752 100.0% $318,950 Less: Operating Expenses Water, Sewer & Garbage 528 14.1% 44,920 Maintenance 151 4.0% 12,820 Insurance 28 0.7% 2,390 Taxes - Real Property 40 1.1% 3,400 Taxes - Residential Property 15 0.4% 1,250 Electric 30 0.8% 2,530 Management 78 2.1% 6,600 Bookkeeping 21 0.6% 1,800 Professional Fees 24 0.6% 2,000 Advertising 12 0.3% 1,040 Telephone 11 0.3% 920 Misc. (Pool Maint., etc.) 29 0.8% 2,500 Total Operating Expenses $967 25.8% $82,170 Net Operating Income $2,786 74.2% $236,780 Less: Debt Service Owner carry - proposed 2,014 53.7% 171,230 Total Debt Service $2,014 53.7% $171,230 Cash Flow Before Taxes $771 20.6% $65,550 Capitalization Rate 9.12% Gross Income Multiplier 8.14 Debt Coverage Ratio 1.383 Cash on Cash 16.39% Price/Unit $30,529 The data and calculations presented herein, while not guaranteed,have been obtained from sources we believe to be reliable, primarily from the seller. Potential purchasers must verify all information regarding this property independently, and are urged to obtain the advice of qualified accounting, legal, and 1031 tax-deferred exchange professionals.
Property Acquisition Report This report shows the projected cash requirement for acquisition of the Columbia River Mobile Home Park on 1 January 2011. Cost of Property Acquired Price of Property $2,595,000 + Closing Costs 5,000 Total Cost of Property Acquired $2,600,000 Property Financing Owner carry - proposed Loan Principal $2,200,000 Owner carry - proposed Loan Proceeds $2,200,000 Total Net Loan Proceeds 2,200,000 Cash Required $400,000 The data and calculations presented herein, while not guaranteed,have been obtained from sources we believe to be reliable, primarily from the seller. Potential purchasers must verify all information regarding this property independently, and are urged to obtain the advice of qualified accounting, legal, and 1031 tax-deferred exchange professionals.
Analysis Assumptions Report Investment Assumptions Price of Property $2,595,000.00 Closing Costs $5,000.00 Date of Acquisition 1 January 2011 Holding Period 5 Years Inflation Rate 3% per Year Sale Price Method 9% Capitalization of NOI on Sale Date Selling Costs 4.5% Investor's Assumptions Present Value Discount Rate 8% per Year Tax Rate - First Year 28% Tax Rate - Following Years 28% Capital Gain Rate 20% Cost Recovery Recapture Rate 25% - Losses Carried Forward Owner carry - proposed Loan Assumptions Loan Amount $2,200,000.00 Loan Interest Rate 6.75% Annually Original Loan Period 30 Years Loan Origination Date Loan Type Monthly Payments, Amortizing Pad & home rents annualized Revenue Assumptions Annual Revenue $241,360.00 Revenue Start Date Revenue Period Revenue Growth Method Utility Income Revenue Assumptions Annual Revenue $65,430.00 Revenue Start Date Revenue Period Revenue Growth Method Laundry Revenue Assumptions Annual Revenue $6,280.00 Revenue Start Date Revenue Period Revenue Growth Method Misc. Income Revenue Assumptions Annual Revenue $5,880.00 Revenue Start Date Revenue Period Revenue Growth Method
Analysis Assumptions Report Water, Sewer & Garbage Expense Assumptions Annual Expense $44,920.00 Maintenance Expense Assumptions Annual Expense $12,820.00 Insurance Expense Assumptions Annual Expense $2,390.00 Taxes - Real Property Expense Assumptions Annual Expense $3,400.00 Taxes - Residential Property Expense Assumptions Annual Expense $1,250.00 Electric Expense Assumptions Annual Expense $2,530.00 Management Expense Assumptions Annual Expense $6,600.00
Analysis Assumptions Report Bookkeeping Expense Assumptions Annual Expense $1,800.00 Professional Fees Expense Assumptions Annual Expense $2,000.00 Advertising Expense Assumptions Annual Expense $1,040.00 Telephone Expense Assumptions Annual Expense $920.00 Misc. (Pool Maint., etc.) Expense Assumptions Annual Expense $2,500.00
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