GROVE ACRES MANUFACTURED HOME COMMUNITY

GROVE ACRES MANUFACTURED HOME COMMUNITY 2183 OLD BRANDON RD. PEARL, MS 3928 For a video tour of Grove Acres, please visit: http://youtu.be/znh2a14b-kw 11 SITE MANUFACTURED HOME COMMUNITY

GROVE ACRES ADDRESS COUNTY SITE INFORMATION 2183 Old Brandon Rd Pearl, MS 3928 Rankin TAX MAP PARCEL 9793/9794/9795 ZONING SITES 11 COMMUNITY TYPE COMBINED LAND SIZE C-2 (General Commercial District) All-Age 1.2 (1 sites/acre) MH PHYSICAL OCC. 93.7% (94 sites as of Feb 14) MH ECONOMIC OCC. 89.1% (9 sites as of Feb 14) AVERAGE LAND LEASE RENTS $173 LAST RENT INCREASE $5 (Oct 14) INVENTORY HOMES 43 (4 vacant as of Feb 14) ROADS FLOODPLAIN WATER SEWER ELECTRICITY GAS TRASH Asphalt No UTILITIES City of Pearl City of Pearl Entergy Center Pointe City of Pearl Contact Broker for Price Terms: All Cash INVESTMENT HIGHLIGHTS Opportunity to acquire a stable all-age community with public utilities conveniently located at the intersection of Interstate Highways 55 and 2. Interstate Highway 55 runs north and south, connecting New Orleans to the south all the way through Chicago to the north. Interstate 2 runs east and west connecting Georgia to Texas by the way of Dallas and Atlanta. This puts the Jackson/Pearl area in the middle of two major U.S. commerce thoroughfares. Offering includes 43 inventory homes, 39 of which are currently being rented to residents. The price of the inventory homes is included in the asking price for the community. Opportunity to continue to bring homes to fill the remaining vacant sites either through a lease-to-own or sales program. Lack of competition in the area makes this property a very attractive and affordable option to renters living in Rankin County. Amenity package includes a recently added playground. Area continues to go through positive change with a new $8 million outlet mall (Outlets of Mississippi) built just to the west of the property. The property has been legally operating for years as a non-conforming property, under city zoning regulations. The City of Pearl is now trying to enforce new regulations on Grove Acres and other similar properties. As a result, the property is currently the subject of litigation brought by the property owner against the City of Pearl. The litigation concerns whether, and to what extent, current zoning and other municipal regulations that would restrict operations can be now be applied to these pre-existing non-conforming uses. Please contact the Broker with additional questions. AREA HIGHLIGHTS Grove Acres is conveniently located less than 15 minutes from downtown Jackson, the state capital and the largest city in Mississippi. Since 25, Jackson has experienced $7 million in development and $16 million of development is currently underway. Major development projects include the $53 million, 25 room Westin Hotel, and the $7 million Mississippi Civil Rights Museum and Museum of Mississippi History. The community sits less than five minutes from Trustmark Park, home to the Mississippi Braves minor league baseball team. The Outlets of Mississippi opened in 213 and is less than 2 miles from the property. At 325, square feet the Outlets of Mississippi features a robust merchant roster including Saks Fifth Avenue OFF 5TH, COACH Factory, Michael Kors, Gap Factory Store, Banana Republic Factory Store, J.Crew, White House/Black Market, Chico s Outlet, Nike Factory Store and Under Armour, among many more. The U.S. Census population estimate for the city of Jackson was 172,638 for 213. Several major employers reside in Jackson: the University of Mississippi, employing 8,; AT&T, employing 1,3; Jackson State University, employing 1,667; and the Baptist Health System, employing 2,875. 11 SITE MANUFACTURED HOME COMMUNITY

GROVE ACRES FINANCIAL ANALYSIS Financial Analysis 1 212 213 214 Proforma INCOME 2 Gross Scheduled Rent Less: (Gain)/Loss-to-Lease Gross Potential Income 2.8% $157,193 $164,25 $169,964 4,397 -.64% (1,52).25% 432 $152,796 $165,78 $169,532.% $29,94 $29,94 Less: Vacancy Less: Bad Debt Less: Concessions Total Rental Income 3 Plus: Other Income Plus: Home Income Total Other Income Effective Gross Income.%.%.% 97.2% 17 1666 1836 $152,796 17,144 168,39 185,453 $338,249.%.%.% 1.64% 128 1,893 2,21 $165,78 12,886 191,214 24,1 $369,178.%.%.7% 114 99.68% $169,418 129 12,983 1,848 186,679 1,977 199,663 $369,81 1.89% 3.%.% 86.11% 132 1,94 2,36 22,865 6,298 $18,777 13,373 192,28 25,652 $386,429 EXPENSES Repairs & Maintenance 4 Payroll Administrative Marketing Professional Fees 5 Utilities Electricity Water & Sewer Gas Trash Total Variable Expenses 6 Taxes 7 Taxes - Homes Insurance Management Fee Total Operating Expenses 8 Plus: Capital Reserves Total Expenses $569 271 68 24 Actual Exp Actual Exp Actual Exp 57,437 $65 $61,13 $519 $52,455 27,411 43 43,468 397 4,78 6,889 16 1,685 99 1,4 2,444 27 2,98 13 1,49 57 5,87 57 5,8 62 6,228 29 2,882 19 1,924 18 1,79 1 57 1 65 2 24 $1,19 $12,926 $1,425 $143,951 $1,2 $121,168 195 19,669 195 19,7 24 2,629 75 7,581 71 7,188 65 6,552 125 12,627 75 7,569 124 12,514 5.24% 17,74 5.22% 19,284 5.22% 19,282 $1,59 $16,544 $1,957 $197,693 $1,784 $18,146 $1,59 $16,544 $1,957 $197,693 $1,784 $18,146 $564 19 85 1 25 64 18 2 $877 235 67 125 5.% $1,495 5 $1,545 Proforma Exp $56,998 11, 8,585 1,1 2,525 6,414 1,844 21 $88,586 23,724 6,748 12,625 19,321 $151,5 5,5 $156,55 NET OPERATING INCOME $177,76 $171,485 $188,935 $23,375 UNDERWRITING ASSUMPTIONS 1. Actual numbers based on financials provided by the client 2. Proforma GSR = $173 x 11 sites x 12 months 3. Other Income grown 3% from 214 4. Regional manager costs taken out of payroll expense in the Proforma 5. Adjusted Utilities grown 3% from 214 6. Buyers UW Taxes = 214 Tax grown by 15% 7. Home Taxes grown 3% from 214 8. Numbers do not reflect actual expense 9. Two SFHs not included in sale: current rent and estimated expenses were taken out of historical financials using a 6% expense ratio 11 SITE MANUFACTURED HOME COMMUNITY

GROVE ACRES PHOTOS 11 SITE MANUFACTURED HOME COMMUNITY

GROVE ACRES LOCATION AERIAL MISSISSIPPI STATE CAPITOL JACKSON CONVENTION CENTER OUTLETS OF MISSISSIPPI GROVE ACRES The Best Seat I n Town JACKSON STATE UNIVERSITY Jackson State University s enrollment has increased almost 13% in the past ten years from 7,815 students in 24 to 9,58 students in 214. Jackson State University is accredited by the Southern Association of Colleges and Schools and is one of only two historically black colleges and universities to be classified as a research intensive university with high research activity by the Carnegie Classification of Institutions of Higher Education, along with Howard University. Jackson State University is located in Jackson, the capital and cultural, political, geographic and business center of Mississippi. The campus is 245- (.99 km2) with 51 academic and administrative buildings. TRUSTMARK PARK Trustmark Park is the home of the Mississippi Braves, Class AA affiliate of the Atlanta Braves. With a capacity of 8,48, Trustmark Park ranks fourth in the Southern League behind Jacksonville, Birmingham and Huntsville in total seating capacity. To add to the fan experience, each seat in the seating bowl has a chairback, arm rests and cupholders. The Extra Innings Team Store features the latest in Mississippi and Atlanta Braves merchandise. Fans can get everything from clothing to team baseball card sets. The Extra Innings Team Store is open to the public year-round. The Farm Bureau Grill is a full service restaurant beyond the right field wall that overlooks the playing field. The Farm Bureau Grill is open year-round for private party bookings, banquets, meetings and corporate events. OUTLETS OF MISSISSIPPI Outlets of Mississippi is the state s largest outlet shopping destination. At 325, square feet the Outlets of Mississippi features a robust merchant roster including Saks Fifth Avenue OFF 5TH, COACH Factory, Michael Kors, Gap Factory Store, Banana Republic Factory Store, J.Crew, White House/Black Market, Chico s Outlet, Nike Factory Store and Under Armour, among many more. 11 SITE MANUFACTURED HOME COMMUNITY

Information for Grove Acres is available on our website at: www.arausa.com/listinglab/groveacres For a video tour of Grove Acres, please visit: http://youtu.be/znh2a14b-kw This information has been derived from sources deemed reliable. However, it is subject to errors, omissions, price change and/or withdrawal, and no warranty is made as to the accuracy. Further, no warranties or representation shall be made by Apartment Realty Advisors (ARA) and/or its agents, representatives or affiliates regarding oral statements which have been made in the discussion of the above property. This presentation, prepared by ARA, was sent to the recipient under the assumption that s/ he is a buying principal. Any potential purchaser is advised that s/ he should either have the abstract covering the real estate which is the subject of the contract examined by an attorney of his/her selection, or be furnished a policy of title insurance. Do not contact the Property. ARA NATIONAL MANUFACTURED HOUSING 91 S MoPac Expressway Barton Oaks Plaza II Suite 275 Austin, TX 78746 www.arausa.com ARA. All Rights Reserved PRIMARY CONTACTS: Todd Fletcher tfletcher@arausa.com T 33-26-447 Andrew Shih ashih@arausa.com T 512-637-1219 Jon Shay jshay@arausa.com T 33-26-4486 Kay C. Davis kdavis@ngkf.com T 77-552-248 RELATIONSHIPS THAT DELIVER RESULTS.