102 SPACES EUGENE, OREGON CALL FOR OFFERS DUE NOVEMBER 2, 2015 DETAILS INSIDE >> COLLIERS INTERNATIONAL P. 1
OFFERING MEMORANDUM Table of Contents INVESTMENT SUMMARY PAGE 3 PROPERTY INFORMATION PAGE 6 MARKET OVERVIEW PAGE 10 COMPARABLES PAGE 14 FINANCIAL OVERVIEW PAGE 18 Exclusive Advisors This Offering Memorandum contains select information pertaining to the business and affairs of the Property at 3220 Crescent Avenue, Eugene, Oregon. It has been prepared by Colliers International. This Offering Memorandum may not be allinclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. For further information regarding the purchase and sale of this asset, to schedule a tour, or to submit a bid, please contact the following Colliers International professionals: TRANSACTION GUIDELINES PAGE 21 Skip Rotticci CCIM Associate Vice President Multifamily DIRECT +1 503 499 0062 EMAIL skip.rotticci@colliers.com Alex Cheng Associate Multifamily DIRECT +1 503 499 0075 EMAIL alex.cheng@colliers.com 851 S.W. Sixth Ave., Suite 1200 Portland, Oregon 97204 503.223.3123 COLLIERS INTERNATIONAL P. 2
> Investment Summary
INVESTMENT HIGHLIGHTS CALL FOR OFFERS DUE NOVEMBER 2, 2015 Investment Opportunity First time to market since its inception! NORTH SUMMER OAKS N GAME FARM ROAD Summer Oaks Manufactured Home Community offers an investor the opportunity to own a premier five star, 55+ manufactured home community with strong cash flow, 100% occupancy, professional management, and long-term growth. With 102 meticulously kept home sites, professionally maintained landscaping, underground utilities with City of Eugene services, the gated community of Summer Oaks is located on 21.80 acres in the Crescent Village neighborhood of northeast Eugene, Oregon. All homes are double/ triple/quad sections, with attached garages, large yards and no deferred maintenance. Summer Oaks provides many amenities for its residents, including a luxury community center, with a kitchen, meeting spaces, and fitness center. Summer Oaks features superbly maintained paving, curbs, sidewalks, and lush landscaping. All in a resort like retirement gated community. Summer Oaks has 100% economic and physical occupancy, virtually no credit loss or bad debt, and below market rents. Monthly rents include all utilities and have not yet been sub-metered. The table below summarizes key metrics from the year end 2014 Profit and Loss Statement, and the 2015 projections: CRESCENT AVENUE 2014 Gross Revenue $718,749.00 2014 Gross Expenses $261,928.00 2014 Net Operating Income $465,220.00 2014 Property Taxes $24,474.00 2015 Projected Gross Revenue $739,939.00 2015 Projected Gross Expenses $265,629.00 2015 Projected Net Operating Income $474,670.00 COLLIERS INTERNATIONAL P. 4
INVESTMENT HIGHLIGHTS Property Details NAME: Summer Oaks Manufactured Home Community ADDRESS: 3220 Crescent Avenue, Eugene, Oregon PARCEL NUMBER(S): 1703160003500 YEAR BUILT: 1997 HOME SITES: 102 with attached garages LAND AREA: 21.80 acres, or 949,608 SF PROPERTY TAXES ( 2014): $21,297 INSURANCE (2014): $10,081 UTILTIES: Water and sewer provided by City of Eugene, EWEB (Eugene Water & Electric Board) STREET TYPE: 4 paved asphalt with curb, gutter, and sidewalks ZONING: R1 Residential MHP- PUD Overlay AGE RESTRICTIONS: 55+ COMMUNITY AMENITIES: Luxury club house with, meeting and game rooms, library with a fireplace, kitchen, fitness center; park-like landscaping with seasonal color spots. OCCUPANCY: 100% PARK-OWNED HOMES: None OFFERING PRICE: Unpriced CALL FOR OFFERS: All offers due by November 2, 2015 COLLIERS INTERNATIONAL P. 5
> Property Information
PROPERTY INFORMATION Summer Oaks Manufactured Home Community Summer Oaks Manufactured Home Community is a premier five star, 55 and over gated community. It is ideally located in the upscale Crescent Village neighborhood and is in close proximity to neighborhood services, retail, restaurants, and the new Peace Health Hospital. It also offers easy access to all major transportation. Summer Oaks features a luxurious clubhouse and fitness center, 102 large, meticulously maintained home sites on 21.80 acres. All homes are double/triple/quad sections all with attached garages, large yards, and no deferred maintenance giving the community the look and feel of a luxury site built single family home community. Community features: 102 manufactured home spaces 100% occupied. No credit loss history Constructed in 1997 Gated 55+ community Utilities are underground and provided by EWEB (Eugene Water & Electric Board) Beautifully landscaped Paved roads, curb, gutter, and sidewalks All homes are privately owned Very high home resale values Very little management responsibility with in-place management in place Luxury Clubhouse with indoor fitness center Excellent Crescent Village location Nearby retail, dining and medical facilities COLLIERS INTERNATIONAL P. 7
PROPERTY INFORMATION PARK MAP COLLIERS INTERNATIONAL P. 8
PROPERTY INFORMATION NORTH SUMMER OAKS 99 CRESCENT AVENUE MCKENZIE RIVER 569 BELTLINE HIGHWAY 569 BELTLINE ROAD PEACEHEALTH RIVERBEND HOSPITAL GATEWAY MALL COLLIERS INTERNATIONAL P. 9
> Market Overview
MARKET OVERVIEW Eugene, Oregon Eugene is Oregon s second largest city and is often referred to Track Town USA. With a population of 156,185 and a total of 351,715 population in Eugene s MSA (Eugene-Springfield), Eugene covers approximately 41.5 square miles, with the Willamette River running through the heart of the City and the McKenzie River joining the Willamette to the north of town. The elevation is 426 above sea level and the city s topography features Skinner Butte to the north of downtown and to the south, the well-known Spencer Butte landmark is now a 310-acre city park. Nestled at the southern end of the Willamette Valley, between breathtaking views of the Cascade Mountains and the Oregon Coastal Range, Eugene prides itself on being one of the nation s most livable cities. It is ranked 9th on the Livability Top 100 Best Places to Live Index, and the downtown area has earned the city a spot within the top 10. (Livability) Residents make good use of the network of sidewalks, integrated bikeways and the Lane Transit District (LTD) to get around downtown. The city is also known for its natural beauty, recreational opportunities (especially bicycling, running/ jogging, rafting, kayaking), and focus on the arts. Willamette River near the University of Oregon Eugene s climate, with an average temperature of 53 degrees, is one of the city s attractive features. It s mild winters, long growing seasons, and few drastic weather changes are the norm. PeaceHealth Sacred Heart Medical Center at RiverBend COLLIERS INTERNATIONAL P. 11
MARKET OVERVIEW Local Economy & Employment Eugene s economy is supported by a number of industries and by businesses of all sizes. At the core of Eugene s economy are the homegrown small-and medium-sized businesses. Most of Eugene s businesses employ fewer than 20 workers, Including sole proprietorships and limited partnerships, there are more than 10,000 businesses in and around Eugene. Government, education, healthcare, professional services and leisure & hospitality make up 54% of the MSA s total employment of the MSA s total employment. Eugene has a high percentage of professionals including doctors, lawyers, architect and educators. One third of the city s population has completed four or more years of college. Eugene is home to the University of Oregon, Northwest Christian University, Lane Community College and New Hope Christian College. The world famous Nike Corporation had its beginnings in Eugene, and today, its co-founder and Chairman, Phil Knight and his wife Penny, continue to make strong investments in the Eugene community and the University of Oregon. REGIONAL TOP EMPLOYERS EMPLOYER NAME EMPLOYEES INDUSTRY University of Oregon 4,847 Education PeaceHealth Medical Group 4,212 Healthcare Lane County 2,000 Government Eugene School District 1,900 Education U.S. Government 1,625 Government Springfield School District 1,500 Education City of Eugene 1,347 Government State of Oregon 1,151 Government Walmart 1,100 Retail NORTH SUMMER OAKS According to the City of Eugene Annual Financial Report, June 30, 2014 more than 20 new businesses have opened in the downtown area since 2012 while developers invested more than $200 million in construction projects. Since it is home to the University of Oregon and a Federal courthouse, government employment adds stability to the County s economy. Sources: City of Eugene Annual Financial Report 2014, Eugene Chamber of Commerce and Colliers Research COLLIERS INTERNATIONAL P. 12
MARKET OVERVIEW Local Demographics DISTANCE TO/FROM SUMMER OAKS 1 MILE 3 MILE 5 MILE 2015 Total Population: 7,007 56,209 157,657 2020 Population: 7,294 57,895 161,261 Average Age: 44.0 37.9 34.3 HOUSEHOLDS 2015 Total Households: 3,029 25,024 68,074 2020 Total Households: 3,166 25,901 69,976 SUMMER OAKS 2015 Median Household Income: $58,086 $42,933 $37,905 2015 Average Household Size: 2.29 2.22 2.21 2020 Median Household Income: $70,325 $50,064 $42,720 2020 Average Household Size: 2.28 2.21 2.20 HOUSING 2015 Median Home Value: $282,479 $269,347 $242,578 2015 Renter Occupied: 37.3% 50.2% 52.8% COLLIERS INTERNATIONAL P. 13
> Comparables
RENT COMPARABLES Rent Comparables PROPERTY NAME FALCON WOOD LAKERIDGE SONGBROOK ADDRESS 1475 Green Acres Road 3355 North Delta Highway 4055 Royal Avenue CITY, STATE Eugene, Oregon Eugene, Oregon Eugene, Oregon YEAR BUILT 1972 1990 1993 SPACES 183 192 140 PARK TYPE 55+ 55+ 55+ ADJUSTED RENT* $706 $652 $615 *Rent adjusted to equalize utility cost COLLIERS INTERNATIONAL P. 15
RENT COMPARABLES Rent Comparables PROPERTY NAME BRIARWOOD DANELAND GAINSBOROUGH ADDRESS 4800 Barger Drive 1199 North Terry Street 2555 Lansdown Road CITY, STATE Eugene, Oregon Eugene, Oregon Eugene, Oregon YEAR BUILT 1977 1981 1996 SPACES 249 277 73 PARK TYPE 55+ 55+ 55+ ADJUSTED RENT* $589 $558 $540 *Rent adjusted to equalize utility cost COLLIERS INTERNATIONAL P. 16
RENT COMPARABLES Rent Survey June 2015 $800 $750 $700 $650 $600 $550 $500 Rent Survey: Eugene-area Mobile Home Parks PROPERTY NAME RENT Falcon Wood $706 Lakeridge $652 SongBrook $615 Briarwood $589 Summer Oaks $575 Daneland $558 Gainsborough $540 *SongBrook closed 06/2015 at $98,571 per space. COLLIERS INTERNATIONAL P. 17
> Financial Overview
FINANCIAL OVERVIEW 2016 Annual Pro Forma PROJECTED INCOME MONTHLY ANNUAL Permanent Space Rents $56,639.43 $679,673.16 Additional Spaces $0.00 $0.00 Other Income $5,575.32 $66,903.84 Storage Rent $0.00 $0.00 Subtotal $62,214.75 $746,577.00 Vacancy and Credit Loss- Permanent (3%) $0.00 $0.00 Vacancy and Credit Loss- Temporary (35%) $0.00 $0.00 Late Fees $0.00 $0.00 Screening Fee Income $0.00 $0.00 Gross Income $62,214.75 $746,577.00 Operating Expense $21,884.04 $262,608.48 Net Operating Income $40,330.71 $483,968.52 ANNUAL NET OPERATING INCOME $483,968.52 Permanent Space Rent Additional Spaces SPACES MO. RENT 2014 2015 102 $61,661.61 $739,939.32 $746,577.00 0 $0.00 $0.00 $0.00 Total 102 $61,661.61 $739,939.32 $746,577.00 ESTIMATED PRO FORMA EXPENSES MONTHLY ANNUAL % Management Fees and Expenses $1,000.00 $12,000.00 2% Payroll & Payroll Taxes $2,000.00 $24,000.00 3% Ins. & Health Benefits. Taxes $209.71 $2,516.52 0% Screening Fees & Tenant Legal $39.82 $477.84 0% Professional Services $462.73 $5,552.76 1% Office Supplies & Postage $0.00 $0.00 0% Tenant Services $0.00 $0.00 0% Marketing & Advertising $0.00 $0.00 0% Repairs & Maintenance $1,674.00 $20,088.00 3% Maintenance Supplies $33.95 $407.40 0% Licenses & Permits $6.25 $75.00 0% Dues & Subscriptions $9.17 $110.04 0% Collections $0.00 $0.00 0% Landscaping $1,204.88 $14,458.56 2% Travel $278.69 $3,344.28 0% Utilities Electricity & Gas $0.00 $0.00 0% Garbage/Recycling $1,319.70 $15,836.40 2% Water/Sewer $7,101.92 $85,223.04 11% Cable TV $3,811.68 $45,740.16 6% Telephone/Internet $74.14 $889.68 0% Property Taxes $1,817.32 $21,807.84 3% Insurance $840.08 $10,080.96 1% TOTAL EXPENSES $21,884.04 $262,608.48 35% *The Pro Forma data contained herein are projections of future performance and are based on various assumptions and subjective determinations as to which no guarantee or assurance can be given. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. COLLIERS INTERNATIONAL P. 19
FINANCIAL OVERVIEW 10-Year Pro Forma Cash Flow 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Potential Rental Income $673,036.00 $693,266.00 $709,342.00 $719,109.00 $735,712.00 $743,841.00 $766,156.23 $789,140.92 $812,815.14 $837,199.60 Vacancy & Credit Loss $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Effective Rental Income $673,036.00 $693,266.00 $709,342.00 $719,109.00 $735,712.00 $743,841.00 $766,156.23 $789,140.92 $812,815.14 $837,199.60 Other Income $66,903.00 $68,910.00 $70,249.00 $72,257.00 $74,932.00 $78,277.00 $80,625.31 $83,044.07 $85,535.39 $88,101.45 Gross Operating Income $739,939.00 $762,176.00 $779,591.00 $791,366.00 $810,644.00 $822,118.00 $846,781.54 $872,184.99 $898,350.54 $925,301.05 Operating Expenses Real Estate Taxes $21,807.00 $22,243.14 $22,688.00 $23,141.76 $23,604.60 $24,076.69 $24,558.22 $25,049.39 $25,550.38 $26,061.38 Property Insurance $8,481.33 $8,650.96 $8,823.98 $9,000.46 $9,180.46 $9,364.07 $9,551.36 $9,742.38 $9,937.23 $10,135.97 Offsite Management $12,000.00 $12,240.00 $12,484.80 $12,734.50 $12,989.19 $13,248.97 $13,513.95 $13,784.23 $14,059.91 $14,341.11 Payroll $24,000.00 $24,480.00 $24,969.60 $25,468.99 $25,978.37 $26,497.94 $27,027.90 $27,568.46 $28,119.83 $28,682.22 Payroll Taxes/Workers Comp $7,885.00 $8,042.70 $8,203.55 $8,367.63 $8,534.98 $8,705.68 $8,879.79 $9,057.39 $9,238.53 $9,423.30 Repairs & Maintenance $20,089.00 $20,490.78 $20,900.60 $21,318.61 $21,744.98 $22,179.88 $22,623.48 $23,075.95 $23,537.47 $24,008.21 Utilities $154,960.00 $158,059.20 $161,220.38 $164,444.79 $167,733.69 $171,088.36 $174,510.13 $178,000.33 $181,560.34 $185,191.54 Accounting and Legal $2,168.77 $2,212.15 $2,256.39 $2,301.52 $2,347.55 $2,394.50 $2,442.39 $2,491.24 $2,541.06 $2,591.88 Licenses/Permits $260.00 $265.20 $270.50 $275.91 $281.43 $287.06 $292.80 $298.66 $304.63 $310.72 Advertising $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Supplies $613.90 $626.18 $638.70 $651.48 $664.51 $677.80 $691.35 $705.18 $719.28 $733.67 Misc Contract Services $13,004.00 $13,264.08 $13,529.36 $13,799.95 $14,075.95 $14,357.47 $14,644.62 $14,937.51 $15,236.26 $15,540.98 Total Operating Expense $265,269.00 $270,574.38 $275,985.87 $281,505.58 $287,135.70 $292,878.41 $298,735.98 $304,710.70 $310,804.91 $317,021.01 Net Operating Income $474,670.00 $491,601.62 $503,605.13 $509,860.42 $523,508.30 $529,239.59 $548,045.56 $567,474.29 $587,545.62 $608,280.04 *The Pro Forma data contained herein are projections of future performance and are based on various assumptions and subjective determinations as to which no guarantee or assurance can be given. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. COLLIERS INTERNATIONAL P. 20
> Transaction Guidelines CALL FOR OFFERS DUE NOVEMBER 2, 2015
TRANSACTION GUIDELINES Offering Timeline CALL FOR OFFERS DUE NOVEMBER 2, 2015 Summer Oaks is being offered unpriced. Potential buyers will have approximately thirty days to tour the property with two scheduled tour dates and submit offers. The Sellers will select one or more offers immediately following the deadline for submittal and may request best and final offers from selected finalists. All potential buyers will be required to sign and submit the provided Confidentiality Agreement prior to receiving Financial Statements, Rent Rolls, and Seller s documents. Immediately following selection of the finalist, Buyer and Seller will complete a Purchase and Sale Agreement on the form supplied, and have 30 days to complete its Due Diligence. At completion of Due Diligence Buyer s earnest money will become non-refundable to Seller with the exception of Seller default. *All offers will be required to meet the Seller s 1031 Improvement Exchange initiation which is scheduled to occur between January 3, 2016 and April 15, 2016, with a closing date no later than April 29, 2016. TOUR DATE October 21, 2015 10:00 AM-1:00 PM TOUR DATE October 24, 2015 11:00 AM 3:00 PM DEADLINE FOR OFFER SUBMITTAL November 2, 2015 5PM - Call for offers due to Colliers International SELECTION OF FINALISTS November 3, 2015 Notification to finalists to present their Best and Final Offer BEST/FINAL SUBMISSIONS November 6, 2015 Deadline for Submission of Best & Final PURCHASE/SALE AGREEMENT November 10, 2015 Completion of Purchase & Sale Agreement DUE DILIGENCE December 18, 2015 Completion of Due Diligence Period CLOSE OF TRANSACTION April 29, 2015 Close of Transaction (Dependent on Seller s 1031 Improvement Exchange) BUYERS BROKER FEE No Buyer Broker fee will be including in this offering COLLIERS INTERNATIONAL P. 22
TRANSACTION GUIDELINES Offering Timeline CALL FOR OFFERS DUE NOVEMBER 2, 2015 Sep 30 - Nov 1 Offering Period Nov 2 - Nov 6 Nov 6 - Nov 10 Best and Final Period Purchase and Sale Agreement Completion Period Nov 11 - Dec 18 Due Diligence Period Jan 5 - Apr 15 Seller 1031 Improvement Exchange Closing Period Release Offering Memorandum Sep 30 Offer Due Date Nov 2 Execute Purchase and Sale Agreeement Nov 10 2015 2016 Sep Oct Nov Dec Jan Feb Mar Apr Today Best and Final Due Date Nov 6 Expiration of Due Dilegence Dec 18 2016 Property Tour Date Oct 21 Property Tour Date Oct 24 COLLIERS INTERNATIONAL P. 23
TRANSACTION GUIDELINES Offering Procedure CALL FOR OFFERS DUE NOVEMBER 2, 2015 The offering of Summer Oaks is being conducted exclusively by Colliers International as a Call for Offers due by November 2, 2015. Seller requests all questions and inquiries directed to the Colliers representatives listed in this memorandum. Colliers will be available to assist prospective investors with their review of the offering. On-site inspections of the property and tours of the market area can be arranged directly with Colliers. Potential buyers will need to sign a Confidentiality Agreement prior to receiving seller documents including financial statements, rent roll, leases, and vendor contracts. Offers should include, at a minimum, the following: The purchase price and closing date; The source of capital, both equity and debt, for the transaction; The amount of earnest money deposit; A detailed schedule of the due diligence and requisite approval process; and A description of assumptions utilized for the offer. Acceptance of closing and 1031 Exchange requirements. Please address your offers to the brokers listed below. 851 S.W. Sixth Ave., Suite 1200 Portland, Oregon 97204 SKIP ROTTICCI CCIM Associate Vice President skip.rotticci@colliers.com +1 503 499 0062 ALEX CHENG Associate alex.cheng@colliers.com +1 503 499 0075 DAVID KOTANSKY Managing Director david.kotansky@colliers.com +1 503 233 3123 COLLIERS INTERNATIONAL P. 24
TRANSACTION GUIDELINES CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of the Property at 3220 Screscent Avenue,, Eugene, Oregon. It has been prepared by Colliers International. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Colliers International. The material is based in part upon information supplied by the Seller and in part upon financial information obtained by Colliers International from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness or this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum from Colliers, you agree: 1) The Offering Memorandum and its contents are confidential; 2) You will hold it and treat it in the strictest of confidence; and 3) You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Colliers International expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Colliers International or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum. COLLIERS INTERNATIONAL P. 25
851 S.W. Sixth Ave., Suite 1200 Portland, Oregon 97204 503.223.3123 Skip Rotticci CCIM Associate Vice President DIRECT +1 503 499 0062 EMAIL skip.rotticci@colliers.com Alex Cheng Associate DIRECT +1 503 499 0075 EMAIL alex.cheng@colliers.com