Viewpoint Mobile Home Park 3564 E. 2 nd St. The Dalles, Oregon A 45 mobile home space and 34 RV space senior 55 and older community located within the Columbia River Gorge January 2011 For further information contact: Don Kilpatrick 503.546.7653 Loren Landau 503.546.7662 Commonwealth Commercial Brokerage Company 7007 SW Cardinal Ln. Suite 185 Lake Oswego, Oregon 97035 Fax: 503-546.7654
Viewpoint MHP The Dalles, OR Pro Forma of Income and Expenses Income (1) Rent Current Income 45 Mobile Home Spaces @ $370 $ 199,800 34 RV Spaces 155,879 (2) 79 Total Spaces Income 355,679 Less: Vacancy/Credit Loss (5,994) (3) Gross Effective Income $ 349,685 Operating Expenses Property Taxes 19,912 (4) Insurance 2,040 (5) Electricity 16,466 (5) Water/Sewer 29,187 (5) Garbage 10,105 (5) Cable/Phone 7,545 (5) Water Testing 540 (5) On-Site Manager Fees (6) Salary 4,800 Space Rent 10,440 Payroll Expense 864 Repair/Maintenance - Budget 10,491 (7) Office Expenses 1,000 (5) Legal and Accounting 500 Total Operating Expenses 113,890 Net Operating Income $ 235,795 Debt Service 152,664 Before Tax Cash Flow $ 83,131 1/17/2011 Viewpoint MHP.xls.xls
Notes 1. Viewpoint MHP The Dalles, OR Pro Forma of Income and Expenses Rents last increased $20.00 per month on 1/1/2011. The rents include water, sewer and garbage. 2. Based on the 2009 actual collected income. There are 34 total "approved" RV spaces in the park that are occupied on a monthly basis only. Of the total "approved" RV spaces, 19 are located within the BPA powerline easement. There is one RV space rented at $350, 6 RV spaces rent for $380.00 per month with the remaining renting for $435.00 per month. The rent includes cable, electricity, garbage and water/sewer. There is space and utility connections for an additional 4 "unapproved" RV spaces. 3. Vacancy based on 3% for mobile homes. There have historically been no vacancies in the mobile home portion of the park. 4. Actual 2010/2011 property taxes. 5. Based on actual 2009 expenses as provided by Seller. 6. Pro forma reflects current on-site management expenses. The manager receives free RV space rent (Space #9), $400 per month salary, all laundry income (approximately $200 per month) and the water income from providing water to neighboring properties (approximately $100 per month). The landscape maintenance employee receives free RV income. 7. Budgeted at 3% of gross collections. Actual 2009 expenses were $2,768.70. The park provides free RV space rent (Space #24) to a tenant in exchange for regular landscape maintenance. 1/17/2011 Viewpoint MHP.xls.xls
Viewpoint MHP The Dalles, OR Terms of Sale Park Price: $ 2,800,000 Down Payment: 1,000,000 Balance: $ 1,800,000 Financing: Purchaser to secure a new loan on the best available terms. Any and all costs associated with securing the new loan shall be borne by Purchaser. The debt service appearing in the pro forma reflects the following terms: Principal Amortization Term (mos.) Interest Monthly Payments Annual Payments 10-year Fixed $ 1,800,000 300 7.00% $ 12,722 $ 152,664 Investment Summary Price per Space $ 35,443 Capitalization Rate 8.4% Net Operating Income $ 235,795 Cash Flow $ 83,131 Return on Cash Invested 8.3% Additional Development Land that MUST be purchased along with Viewpoint MHP. Description: 4.00 acre parcel located adjacent to Viewpoint MHP with a preliminary site plan for 31 additional mobile home spaces. Price: $ 300,000 Down Payment: 75,000 Balance: $ 225,000 Financing: Seller provided 10-year financing with monthly interest-only payments calculated at 6.0% interest with monthly payments of $1,125 per month/ $13,500 per year. 1/17/2011 Viewpoint MHP.xls.xls
PROPERTY DESCRIPTION General Description: Viewpoint Trailer Park features a unique view location that allows virtually every resident with a wonderful view of the Columbia River and Bonneville Dam. The park is located at the east end of The Dalles in Wasco County. Originally developed to providing housing for the construction workers on the Bonneville and John Day Day Dams, Viewpoint has become a senior community that has enjoyed strong home resales and occupancy over the years. The Dalles is located in the Columbia River Gorge approximately 80 miles east of Portland. The Dalles 2007 population was 13,430. The city serves a trading area of over 70,000 people in Washington and Oregon. Principal economic activities are agriculture, and tourism, along with health care government, and retail services. The Dalles is an agricultural producer for both domestic and overseas markets. There are in excess of 6,000 acres of sweet cherry trees around the city. Wheat is another important agricultural product with 50,000 acres currently in cultivation in The Dalles area. Additional agricultural production includes cattle, hay and fruits. Most recently the city became the home to a new data center for Google. The Dalles is a hub for many year around recreational activities including boating, fishing, and one of the finest wind surfing areas in the United States on the Columbia River. Other nearby activities include camping, hiking, skiing and sight-seeing. Fair Housing Status: Age: Size: Zoning: Viewpoint is designated as a senior 55 and older community. Originally developed in 1950 s, Viewpoint was reconfigured in the 1970 s and expanded in the 1980 s. 11.06 acres. Medium Density Residential. Viewpoint is an approved use within this zoning. Viewpoint Narrative.doc - 01/17/11
Wetland/Flood Plain Status: Viewpoint is not located within a 100 year floodplain nor are there any wetlands on the property. Improvements: - Interior Streets Interior streets paved 15 25 asphalt. Street surfaces are in good condition. - Off-Street Parking Each manufactured home space is provided with parking for two vehicles. Off street parking is also provided for each RV space. Guest parking is located throughout the park. - Carport/Storage Sheds Most, if not all, mobile home spaces have tenantowned wood carports as well as tenant-owned storage sheds. - Interior Lighting Overhead street lights are located throughout the park. Utility Systems: - Water Water service is by a single well. The park provides domestic water to a hotel located west of the park and five private residents located adjacent to the park. The park receives additional compensation as a water provider. - Sewer Public sewer service is provided by The Dalles and is included with the space rent. - Electricity 200 amp underground electrical service is provided by Northern Wasco County PUD and individually billed to each resident, including RV tenants. - Cable TV & Telephone Service is provided by Charter Communication (cable) and Embarque (telephone) and is individually billed to each resident. - Garbage Garbage service is provided by The Dalles Disposal and consists of centrally located dumpster service. - Fire Protection Fire hydrants are located at various points in the community. Singlewide- Doublewide Ratio: Approximately one-half of the spaces are occupied by double wide homes. Spaces sizes vary; most mobile home spaces accommodate a doublewide home. Viewpoint Narrative.doc - 01/17/11
Buildings: A cement block building measuring approximately 20 x 40 serves as a laundry/restroom facility. A two-bay metal pole structure is currently used as a shop storage building. On-site Management: RV Storage: The on-site management team consists of two employees that live in their own homes. One employee handles rent collection and administrative duties; the second employee performs maintenance duties. Each employee receives a salary of $200/month plus free space rent. An area at the west edge of the park that is unimproved and could be used for RV or extra vehicle storage. Tax Value Information 2010/2011 Acct. # Acres RMV MAV Tax 8856 7.36 $283,160 $739,022 $15,318 8174 0.20 20,530 5,599 116 8858 0.50 44,720 15,845 328 8855 3.00 491,960 200,169 4,149 Total 11.06 $1,840,370 $960,635 $19,912 Financing: Additional Land: The park is encumbered by loan with Union Bank of California. The loan balance is $1,595,000 at 7.13% interest. The loan was originated in May, 2007 and provides interest only payments for the first three years. Thereafter payments reflect a 30 year amortization with the balance due May 1, 2017. The loan can be assumed, if desired, as part of a sale with a 1% fee to be paid by Buyer. The Seller owns a 10.39 acre parcel to the east of Viewpoint MHP and a separate 0.8 acre parcel to the west of the 4.24 acre parcel that are not included with the sale. The Seller will require that any Purchaser agree not to oppose the annexation of these parcels into the City of The Dalles. Viewpoint Narrative.doc - 01/17/11