Grove Mobile Home Park. A 34 Space Mobile Home Community in Lutz, Florida (Tampa Bay MSA)

Grove Mobile Home Park A 34 Space Mobile Home Community in Lutz, Florida (Tampa Bay MSA)

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Grove Mobile Home Park Table of Contents PROPERTY DESCRIPTION Investment Highlights... 6 Property Details... 7 Property Photos...8-11 AREA OVERVIEW...14-19 COMPETITIVE SET ANALYSIS...22-25 RECENT SALES COMPARABLES...28-31 FINANCIAL ANALYSIS Rent Roll.... 34 Operating Statement...35-36 Cash Flow Statement.... 37 Pricing Summary... 38 3

The Tampa Bay MSA Cost of Living is 12% Lower Than the National Average Florida GDP Has Topped $1 Trillion for the First Time, Making Florida the 18th Largest Economy in the World (According to a Report by the Florida Chamber Foundation)

Grove Mobile Home Park PROPERTY DESCRIPTION Section 1

Investment Highlights 34-space resident-owned Mobile Home Community located in an excellent class B+ Submarket in Tampa Bay Value-Add Opportunity with the ability to increase effective gross income by 21% Attractive 8.82% takeover cap rate with a 9.95% pro-forma in year two of ownership Ability to achieve in excess of 20% annual cash-on-cash returns Over $50,000 in recent capital improvements including septic tanks, lift station, well pump, well tank, drain fields, utility poles and upgrading laundry facility Tampa Bay named one of the nation s Top 10 markets for real estate investors Population growth in Tampa Bay is nearly twice the national average year-over-year 6

Offering Summary Property Address 1518 Clement Road, Lutz, FL 33549 Number of Units 34 Spaces Number of Buildings 34 Residential & 1 Laundry Facility Year Built 1978 Lot Size 3.88 +/- Acres Type of Ownership Resident Owned Homes Assessor s Parcel Number U-19-27-19-ZZZ-000001-19320.0 Hillsborough County is the Fourth Largest County in Florida Unit Type Unit Count Market Rent/ Unit/Month 2019 Projections Rent/Unit/Month 2020 Pro-Forma Rent/Unit/Month 2 Bdr 1 Bath 13 $430 $460 $470 2 Bdr 2 Bath 14 $430 $460 $470 3 Bdr 1 Bath 1 $430 $460 $470 3 Bdr 2 Bath 6 $430 $460 $470 Tampa-St. Petersburg-Clearwater MSA Ranked #4 in the Nation for Growth Fees Tax Pass-Thru $26.58 Late Fee $50 Schools Maniscalco Elementary School Liberty Middle School Freedom High School 1,408,566 2017 Hillsborough County Population 7

8 EXTERIOR PHOTOS

EXTERIOR PHOTOS 9

10 AERIAL PHOTOS

University Mall 3.9 Million Visitors Annually One of the Most Exclusive Golf & Country Clubs in Tampa 47,000 Students 16,000 Employees Grove Mobile Home Park 63,000 VPD 11

#4 Tampa Bay s Rank for South Atlantic Metros With the Most Corporate Projects in 2017 Tampa Bay Area Named One of the Top 10 Markets for Real Estate Investors (According to a Report by PwC US and Urban Land Institute)

Grove Mobile Home Park AREA OVERVIEW Section 2

#1 In U.S. for Year-Over-Year Rent Growth in Q1 2018 Tampa Area Highlights #4 Among South Atlantic Cities in Corporate Relocation #4 Tampa-St. Petersburg- Clearwater MSA s National Ranking for Growth Tampa Bay Was Ranked in the Top 10 Markets for Real Estate Investors in 2019 by PwC US and Urban Land Institute Tampa Bay s Projected Population for 2018 is 3.1 Million; Hillsborough County Has a Population of 1,408,566 Tampa/St. Petersburg Was Ranked #6 in the Top 10 U.S. Destinations for Sports and Adventure by Resonance Florida s Largest Port, the Port of Tampa, Currently Provides an Economic Impact of $8 Billion Annually, Contributing to Over 100,000 Area Jobs; as of September 2018, the Port Hit a Major Milestone of One Million Cruise Ship Passengers 14 Florida Has Topped $1 Trillion for the First Time, Making it the 18th Largest Economy in the World, With the Lowest Unemployment Rate Since 2007

New Developments Tampa Bay Rays Stadium - Rendering Tampa Bay Rays Stadium, proposed 28,216 seats, estimated at $892 million, plans indicate that the stadium could be complete by the 2023 season, renderings show a fixed translucent roof with sliding glass walls Marina Pointe, BTI, a Fort Lauderdale-based company, opened a lavish 16-Story, 120-unit condominium tower overlooking Tampa Bay; three planned towers Hard Rock Hotel and Casino Tampa, a $700 million expansion, new hotel tower with an additional 564 rooms and suites, pools, event center, an additional 700 parking spaces, spa and ballroom, estimated more than 6,000 new jobs, record $2.4 billion economic investment by the Seminole Tribe of Florida, completion slated for mid-2019 Hard Rock Hotel & Casino - Rendering Riverwalk Place Tower, Feldman Equities and Two Roads Development unveiled Plans for the $350 million tower, which will be the tallest tower on Florida s west coast; the tower will include 50-plus stories of restaurants, offices and about 240 high-rise condominiums; construction will begin in 2019 and has an estimated completion of 2022 Water Street Tampa, a $3 billion planned development of condominiums, apartments, retail stores and hotels, located along the waterfront between Channelside and the Downtown core Water Street Tampa - Rendering Channelside Bay Plaza to be Renamed as Sparkman Wharf, with plans to open a one-acre waterfront lawn, a beer garden, outdoor dining with large shade trees and 10 wellknown chefs and restaurateurs who will experiment with menus and street food, plus loft-style offices with water views 15

Tampa Trav e l & Medical Tampa International Airport, 16.6 million travelers each year, 7,500 employees, currently undergoing a $1 billion renovation to accommodate more than 25 million travelers per year St. Pete-Clearwater International Airport, had a record month with 171,040 passengers in November 2017, 62 destinations and three airlines Tampa International Airport (TIA) Tampa General Hospital, 1,018-bed hospital, ranked as Florida s #1 Hospital by U.S. News & World Report, considered a Level One Trauma Center with a fleet of five helicopters, serves 23 counties Florida Hospital Tampa, 536 beds, the Florida Hospital Pepin Heart Institute is located on the Tampa Campus, part of the Florida Healthcare System 16

Tampa Educat i o n University of South Florida University of South Florida, more than 42,000 students enrolled annually, 16,000 employees, ranked among the Top 100 Public Universities, has a local economic impact of more than $3.7 billion in annual revenue for Tampa University of Tampa, a private university with 7,200 students enrolled annually, 150 undergraduate degrees and 12 master s degrees, has a local economic impact of nearly $750 million in annual revenue for Tampa, ranked among the Top 25 Universities in the Southern Region University of Tampa Economic/Employer Highlights In 2017, the Tampa Bay Times reported that Tampa Bay added more than 41,000 new jobs and the second highest number of construction jobs of any state (31,000) Top 5 Area Employers Macdill Airforce Base Company Number of Employees School District of Hillsborough County 25,473 HCA West Florida 16,461 MacDill Airforce Base 12,000 Hillsborough County Government 10,600 Tampa International Airport 7,500 17

Proximity to Premier Shopping and Entertainment Tampa Premium Outlets 12 Minutes Away University Mall 16 Minutes Away International Plaza & Bay Street 24 Minutes Away 18

Grove Mobile Home Park 63,000 VPD 5,600 Employees 416 Beds 47,000 Students 16,000 Employees 139,000 VPD Over 1,300 Animals Currently Undergoing $1 Billion Renovation 3.9 Million Visitors Annually $700 Million Expansion, Estimated 6,000 New Jobs 164,500 VPD 19

63,000 Vehicles Per Day Interstate 275 (2.4 Miles from Subject) 42,000 Vehicles Per Day U.S. Hwy 41 (1.9 Miles from Subject)

Grove Mobile Home Park COMPETITIVE SET ANALYSIS Section 3

3 Grove Mobile Home Park 1. Livingston Mobile Home Park 2. Ralston Beach Mobile Home Park 3. Sunrise MHC Grove Mobile Home Park 1 2 22

Average Occupancy Grove Mobile Home Park 100% 90% 80% 70% 92% 100% 100% 83% Avg. 94% 60% 50% 40% 30% 20% 10% 0% Grove Mobile Home Park Livingston Mobile Home Park Ralston Beach Mobile Home Court Sunrise MHC 23

Competitive Set Analysis 1 LIVINGSTON MOBILE HOME PARK 5812 Livingston Avenue, Lutz, FL 33549 Site Info Service Included in Rent Homesites 65 Vacant Sites WNR Physical Occupancy 65 Repossessions WNR Inventory Homes WNR Occupied Sites* 65 Occupied Percent 100* Rent Control No Single Section 90% Multiple Section 10% Water No Sewer No Trash No Cable No Lawn No Service Last Next Date June 2017 June 2018 Amount $48 $25 Community Amenities No Site Type Market Rent Adjusted Rent** Multiple Section $445 $446 2 RALSTON BEACH MOBILE HOME COURT 6817 North Habana Avenue, Tampa, FL 33604 Site Info Homesites 170 Vacant Sites 22 Physical Occupancy 148 Repossessions 0 Inventory Homes 7 Occupied Sites* 141 Occupied Percent 83% Rent Control No Single Section 66% Multiple Section 34% Service Water Sewer Included in Rent No No Value Trash Yes $35 Cable No Lawn Yes $18 Service Last Next Date June 2017 June 2018 Amount $25 $25 24 Community Amenities Playground, Picnic Area, Pet Walk Areas, Activity Center Site Type Market Rent Adjusted Rent** All Homesites $525 $472

3 SUNRISE MHC 18118 US Highway 41 North, Lutz, FL 3359 Site Info Homesites 170 Vacant Sites 22 Physical Occupancy 148 Repossessions 0 Inventory Homes 7 Occupied Sites* 141 Occupied Percent 83% Rent Control No Single Section 66% Multiple Section 34% Service Service Included in Rent Value Description Water No Well Sewer No STP Trash Yes $27 Curbside Cable Lawn No Yes Last Next Date June 2017 June 2018 Amount $48 $20 Community Amenities Playground, Picnic Area, Pet Walk Areas, Activity Center Site Type Market Rent Adjusted Rent** All Homesites $457 $430 25

#4 Tampa-St. Petersburg-Clearwater MSA s National Ranking for Growth #75 Tampa s Ranking Out of 125 Largest Metropolitan Areas U.S. News & World Report s 2018 Best Places to Live in the U.S.

Grove Mobile Home Park RECENT SALES COMPARABLES Section 4

Grove Mobile Home Park 1 Grove Mobile Home Park 3 1. North Tampa Mobile Home Park 2. 77726 Gibsonton Drive 3. Shady Grove Mobile Home Park 28 2

Average Price Per Unit Grove Mobile Home Park $60,000 $50,000 $40,000 Avg. $43,718 $30,000 $20,000 $10,000 $ Grove Mobile Home Park North Tampa Mobile Home Park 7726 Gibsonton Drive Shady Grove Mobile Home Park (On Market) 29

Recent Sales Comparables 1 NORTH TAMPA MOBILE HOME PARK 1112 East 142nd Avenue, Tampa, FL 33613 Sale Date: September 2018 Sale Price: $1,200,000 Price Per Unit: $48,000 Number of Units: 25 Year Built: 1957 2 7726 GIBSONTON DRIVE 7726 Gibsonton Drive, Gibsonton, FL 33534 Sale Date: June 2018 Sale Price: $660,000 Price Per Unit: $41,250 Number of Units: 16 Year Built: 1974 30

3 SHADY GROVE MOBILE HOME PARK 12966 Morris Bridge Road, Thonotosassa, FL 33592 Sale Date: January 2018 Sale Price: $800,000 Price Per Unit: $44,444 Number of Units: 18 Year Built: 1987 31

7.6 Miles Distance to University of South Florida 7.6 Miles Distance to Busch Gardens

Grove Mobile Home Park FINANCIAL ANALYSIS Section 5

Grove Mobile Home Park Unit Type Unit Count Market Rent/Unit/ Month 2019 Projections Rent/Unit /Month 2020 Pro-Forma Rent/Unit /Month Two Bedroom / One Bathroom 13 $430 $460 $470 Two Bedroom / Two Bathroom 14 $430 $460 $470 Three Bedroom / One Bathroom 1 $430 $460 $470 Three Bedroom / Two Bathroom 6 $430 $460 $470 34 $430 $460 $470 500,000 10 Year Cash Flow (Excl Purchase/Sale) Effective Gross Income Total Operating Expenses Capital Expenditure Total Debt Service Net Cash Flow After Financing $48 K $64 K $68 K $73 K $78 K $83 K $89 K $94 K $100 K $106 K Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 34 (500,000)

Operating Statement 2020 2018 % of Per 2019 % of Pro-Forma Income Current GSR Unit Projections GSR Projections Projections Terminal Growth Rate Effective Rental Income Gross Potential Rent T12 175,440 187,680 191,760 3.00% Loss / Gain to Lease* T12 0 0.00% 0 0.00% 0 0.00% Gross Scheduled Rent 175,440 187,680 191,760 Physical Vacancy T12 (14,035) 8.00% (7,507) 4.00% (5,753) 3.00% Economic Vacancy Bad Debt** T12 (12,280) 7.00% (361) (7,507) 4.00% (5,753) 3.00% Total Vacancy (26,315) 15.00% (774) (15,014) 8.00% (11,506) 6.00% Economic Occupancy 85.00% 92.00% 94.00% 94.0% Total Effective Rental Income 149,125 85.00% 172,666 92.00% 180,254 Other Income Lawn Care Fee T12 0 0.00% 0 0 0.00% 8,160 3.00% Pass-Thru Fee T12 11,016 6.28% 324 11,424 6.09% 14,045 3.00% Laundry Income T12 400 0.23% 12 450 0.24% 500 3.00% Late Fees T12 2,000 1.14% 59 2,060 1.10% 2,122 3.00% Total Other Income 13,416 7.65% 13,934 7.42% 24,827 Effective Gross Income 162,541 92.65% 186,600 99.42% 205,081 LEGEND T12 Trailing 12 Months ASM Assumption FY2017 Fiscal Year 2017 * Percent of Gross Potential Rent ** Percent of Gross Scheduled Rent *** Percent of Effective Gross Income **** Trailing and Takeover Based on Year One Financing 35

Operating Statement 2018 Current % of EGI Per Unit 2019 Projections % of EGI 2020 Pro-Forma Projections Expenses Projections Terminal Growth Rate Controllable Lawn Care T12 7,600 4.68% 224 7,600 4.07% 7,752 2.00% Repairs & Maintenance T12 5,000 3.08% 147 5,000 2.68% 5,100 2.00% Legal T12 4,158 2.56% 122 3,000 1.61% 3,060 2.00% Permits & Licenses T12 300 0.18% 9 300 0.16% 306 2.00% Management Fee*** T12 16,254 10.00% 478 18,660 10.00% 20,508 10.00% Total Controllable 33,312 20.49% 980 34,560 18.52% 36,726 Non-Controllable Real Estate Taxes FY2017 11,500 7.08% 338 11,500 6.16% 11,730 2.00% RE Tax Reassessment Increase ASM 0 0.00% 0 2,545 1.36% 2,596 2.00% Insurance T12 2,642 1.63% 78 2,642 1.42% 2,695 2.00% Utilities - Other T12 9,320 5.73% 274 9,320 4.99% 9,506 2.00% Total Non-Controllable 23,462 14.43% 690 26,007 13.94% 26,527 Reserves 2,550 1.57% 75 2,550 1.37% 2,550 0.00% Total Expenses 59,324 36.50% 1,745 63,117 33.82% 65,803 Net Operating Income 103,217 63.50% 3,036 123,483 66.18% 139,278 Cash Flow Before Financing 103,217 123,483 139,278 Total Debt Service**** 75,505 75,505 75,505 Cash Flow After Debt Service 27,712 47,977 63,773 36

Cash Flow Statement Acquisition Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Income Effective Rental Income Gross Potential Rent 187,680 191,760 197,513 203,438 209,541 215,828 222,302 228,971 235,841 242,916 250,203 Loss / Gain to Lease* - - - - - - - - - - - Gross Scheduled Rent 187,680 191,760 197,513 203,438 209,541 215,828 222,302 228,971 235,841 242,916 250,203 Physical Vacancy (7,507) (5,753) (5,925) (6,103) (6,286) (6,475) (6,669) (6,869) (7,075) (7,287) (7,506) Economic Vacancy Bad Debt** (7,507) (5,753) (5,925) (6,103) (6,286) (6,475) (6,669) (6,869) (7,075) (7,287) (7,506) Total Vacancy** (15,014) (11,506) (11,851) (12,206) (12,572) (12,950) (13,338) (13,738) (14,150) (14,575) (15,012) Total Effective Rental Income 172,666 180,254 185,662 191,232 196,969 202,878 208,964 215,233 221,690 228,341 235,191 Other Income Lawn Care Fee - 8,160 8,405 8,657 8,917 9,184 9,460 9,743 10,036 10,337 10,647 Pass-Thru Fee 11,424 14,045 14,466 14,900 15,347 15,808 16,282 16,770 17,274 17,792 18,326 Laundry Income 450 500 515 530 546 563 580 597 615 633 652 Late Fees 2,060 2,122 2,185 2,251 2,319 2,388 2,460 2,534 2,610 2,688 2,768 Total Other Income 13,934 24,827 25,572 26,339 27,129 27,943 28,781 29,644 30,534 31,450 32,393 Effective Gross Income 186,600 205,081 211,234 217,571 224,098 230,821 237,745 244,878 252,224 259,791 267,584 Expenses Controllable Lawn Care (7,600) (7,752) (7,907) (8,065) (8,226) (8,391) (8,559) (8,730) (8,905) (9,083) (9,264) Repairs & Maintenance (5,000) (5,100) (5,202) (5,306) (5,412) (5,520) (5,631) (5,743) (5,858) (5,975) (6,095) Legal (3,000) (3,060) (3,121) (3,184) (3,247) (3,312) (3,378) (3,446) (3,515) (3,585) (3,657) Permits & Licenses (300) (306) (312) (318) (325) (331) (338) (345) (351) (359) (366) Management Fee*** (18,660) (20,508) (21,123) (21,757) (22,410) (23,082) (23,775) (24,488) (25,222) (25,979) (26,758) Total Controllable (34,560) (36,726) (37,666) (38,630) (39,620) (40,637) (41,681) (42,752) (43,852) (44,981) (46,140) Non-Controllable Real Estate Taxes (11,500) (11,730) (11,965) (12,204) (12,448) (12,697) (12,951) (13,210) (13,474) (13,744) (14,018) RE Tax Reassement Increase (2,545) (2,596) (2,648) (2,701) (2,755) (2,810) (2,866) (2,923) (2,982) (3,042) (3,102) Insurance (2,642) (2,695) (2,749) (2,804) (2,860) (2,917) (2,975) (3,035) (3,096) (3,157) (3,221) Utilities - Other (9,320) (9,506) (9,697) (9,890) (10,088) (10,290) (10,496) (10,706) (10,920) (11,138) (11,361) Total Non-Controllable (26,007) (26,527) (27,058) (27,599) (28,151) (28,714) (29,288) (29,874) (30,471) (31,081) (31,702) Reserves (2,550) (2,550) (2,550) (2,550) (2,550) (2,550) (2,550) (2,550) (2,550) (2,550) (2,550) Total Expenses (63,117) (65,803) (67,273) (68,779) (70,321) (71,901) (73,519) (75,176) (76,873) (78,612) (80,393) Net Operating Income 123,483 139,278 143,960 148,792 153,777 158,920 164,227 169,702 175,351 181,179 187,192 Purchase Price/Net Residual Value Purchase Price / Net Residual Value (1,400,000) - - - - - - - - - 2,717,745 Cash Flow Before Debt Financing (1,400,000) 123,483 139,278 143,960 148,792 153,777 158,920 164,227 169,702 175,351 2,898,924 Debt Financing Senior Loan Loan Amount 1,050,000 - - - - - - - - - (792,291) Debt Service - Principal - (20,099) (21,043) (22,343) (23,562) (24,847) (26,064) (27,624) (29,131) (30,720) (32,275) Debt Service - Interest - (55,406) (54,462) (53,162) (51,943) (50,658) (49,441) (47,881) (46,374) (44,785) (43,230) Cash Flow After Debt Financing (350,000) 47,977 63,773 68,455 73,286 78,271 83,415 88,721 94,197 99,846 2,031,127 Acquisition Cap Rate Including All Capex 8.82% 9.95% 10.28% 10.63% 10.98% 11.35% 11.73% 12.12% 12.53% 12.94% Debt Coverage Ratio 1.35 1.62 1.82 1.88 1.95 2.01 2.08 2.15 2.22 2.30 2.37 Investor Cash on Cash Return Unleveraged 8.82% 9.95% 10.28% 10.63% 10.98% 11.35% 11.73% 12.12% 12.53% Leveraged 7.92% 13.71% 18.22% 19.56% 20.94% 22.36% 23.83% 25.35% 26.91% 28.53% 37

Pricing Summary Price $1,400,000 Analysis Period Cap Rate Current 2018 Cap Rate 7.37% Projected 2019 Cap Rate 8.82% Projected 2020 Cap Rate 9.95% Price Per Unit $41,176 Review Analysis Year 1 - Leveraged Cash On Cash Return 13.71% Year Capitalized Year 10 Year 2 - Leveraged Cash On Cash Return 18.22% Gross Rent Multipler 8.0 Holding Period - Unleveraged IRR 15.24% Capitalization Rate - Terminal 6.75% Holding Period - Leveraged IRR 30.13% Cost of Sale 2.00% Market Financing Loan Amount $1,050,000 Total Debt Service Coverage - Takeover 1.35 Interest Rate 5.25% Total Debt Service Coverage - Year 1 1.62 Amortization Period 25 Years Years of Interest Only 0 Years Annual Loan Constant 7.19% Loan Term 10 Years Loan to Value 75.00% Total Down Payment $350,000 Property Detail Current Physical Occupancy 100.00% Total Number of Units 34 Average Monthly Rent Per Unit $430 38

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Grove Mobile Home Park 1518 Clement Road, Lutz, Florida 33549