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COUNTY LINEMANUFACTURED HOME COMMUNITY
SEPTEMBER 2017
CONFIDENTIAL EXECUTIVE OFFERING MEMORANDUM
ROCKY MOUNT, NC 278039042 COUNTY LINE ROAD
MAXWELL BAKER/404-442-2807/MBAKER@LEEATLANTA.COMGLENN ESTERSON/423-483-0492/GESTERSON@LEEATLANTA.COM
MAXWELL BAKER/404-442-2807/MBAKER@LEEATLANTA.COMGLENN ESTERSON/ 423-483-0492/GESTERSON@LEEATLANTA.COM
TABLE OF CONTENTSOFFERING OVERVIEW• Welcome Letter
COUNTY LINEMANUFACTURED HOME COMMUNITY • Executive Summary• Key Considerations• Rent Roll• Investment Highlights• Property Description• Financial Overview / Infrastructure• Aerial Map• Rent Comps• Demographics• Location Map• Park Map
ADVISOR BIOS
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03
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WELCOME LETTERINVESTMENT OPPORTUNITYWe welcome the opportunity to provide you with our in depth overview of County Line Manufactured Home Community and its position in this current market. We will give you our honest, no holds barred assessment of this 37-unit community so you have a better understanding of how this investment currently performs, its investment potential, and what it takes to get it there.
As leading specialists in the industry, our primary interest is to give you a clear understanding of the driving forces in the current marketplace. Our evaluation is based on verifiable data, market knowledge and proven experience that we feel will serve your best interest at this time.
We invite you to thoroughly review this offering memorandum, If you have further interest, please contact us to discuss any questions you may have, as well as schedule a tour of the property.
GUIDELINES
Offers must be presented in writing and include:
• Price
• Source of capital and relevant experience
• Proposed schedule of due diligence and closing
• Amount of earnest money
• List of contingencies including committee approvals, possible 1031 exchanges, etc.
OFFERING OVERVIEW | 3MAXWELL BAKER/404-442-2807/MBAKER@LEEATLANTA.COMGLENN ESTERSON/423-483-0492/GESTERSON@LEEATLANTA.COM
PROPERTY ADDRESS: 9042 County Line RoadRocky Mount, NC 27803
PROPERTY TYPE: Manufactured Home Community
TOTAL LOTS: 37 pads
VACANT PADS: 14
TOTAL POH: 8 POH
LOT RENT: $190 per month
AVERAGE POH RENT: $239 per month plus lot rent ($429 total)
ACRES: ± 7.5
PRICE PER PAD: $9,459.00
EXECUTIVE SUMMARY
INVESTMENT OPPORTUNITYLee & Associates and The MHP Broker are pleased to offer the sale of County Line Manufactured Home Community in Rocky Mount (Edgecombe County), North Carolina.
County Line MHC is offered as a value-add with plenty of upside in a strong market in Rocky Mount MSA. This excellent location is near all amenities along a main artery into Sharpsburg, NC. The park has 37 lots, with 14 lot-rent-only tenants each paying $190 a month. There are 14 vacant lots. Current occupancy is approximately 57%. Current market data suggests that a new effective owner should be able to reach 85% occupancy within two years.
Market lot rent in the area ranges from $195-$245 plus water. County Line MHC has city sewer and city water that is sub-metered and is direct billed to the tenant.
There are 8 park-owned homes (POH), including an office, that are in good condition with an average model year of 1993 (1985 - 2000). The tenant-owned units are in fair condition with the majority of them being 1980s and 1990s models.
The privately maintained roads are gravel and in fair condition, but may need some work as our offering price indicates. The park is NOT in a flood zone.
County Line MHC is being offered as a value-add investment with a 9.50% CAP on current lot rent only using a 34.5% expense ratio plus consideration for the park-owned homes. There is an additional $20,040 of POH rental income this is not included in the CAP rate. We are asking investors for shell value only on the 8 POH of $2,500 each which is below replacement cost. We have secured Bridge Loan Financing for this transaction at approximately 8% interest on an interest only loan with 50% down to stabilize the asset.
The price per lot is approximately $9,500 each and includes full infrastructure for each lot. We are requesting our investors submit offers at or above $350,000 for the entire park including POH. The potential of this park using 85% occupancy, and only calculating the $190 Lot Rent Value, is $525,000.
COUNTY LINE MANUFACTURED HOME COMMUNITY | 4MAXWELL BAKER/404-442-2807/MBAKER@LEEATLANTA.COMGLENN ESTERSON/423-483-0492/GESTERSON@LEEATLANTA.COM
KEY INVESTMENT CONSIDERATIONSPROPERTY ADDRESS:
# Pads: 37 PPP= $9,459.00 Seller BuyerBased on Purchase Price of List Price: $350,000 Current YEAR 1
Base RentPad Rents Oct‐17 47,880$ 47,880$ Vacant Pads at Market Rents 16 (14 Lots / 2 POH) 31,920$ 31,920$
Gross Potential Rent Income (GPRI) 79,800$ 79,800$ Reimbursements
Water None ‐$ ‐$ Total Expense Reimbursement -$ -$ GROSS POTENTIAL INCOME (GPI) 79,800$ 79,800$
VACANCY 43.24% 31,920$ 31,920$
EFFECTIVE GROSS INCOME (EGI) 47,880$ 47,880$ EXPENSES:
R/E TAX Land 2,984$ 3,730$ INSURANCE Liability 295$ 750$ FLOOD INS Not in Flood Zone -$
MANAGEMENT 4,800$ 4,788$ MAINTENANCE 2,504$ 2,500$ MAINTENANCE POH 2,209$ -$
WATER Direct Bill, City -$ -$ SEWER Direct Bill, County -$ -$ TRASH Dumpsters (New 3 year Contract) 2,400$ 2,750$
ELECTRICTY Street Lights 500$ LANDSCAPE Tenant Responsible -$ 1,500$
TOTAL EXPENSES 15,192$ 16,512$
NOI----------------------------------------------------------------------------------------- 32,688$ 31,362$
County Line MHC - 9042 County Line Road Rocky Mount NC
INCOME & EXPENSE REPORT
OTHER INCOME (Not Capitalized Income)POH Rents 20,040$ 20,040$ POH Expense 50% -$ (10,020)$
TOTAL OTHER INCOME 20,040$ 10,020$
OPERATING CASH FLOW BEFORE DEBT 52,728$ 41,382$ Interest Rate Amort. Years Down Payment
DEBT SERVICE #1 8.000% 0 50% 14,000$ 14,000$ DEBT SERVICE #2 Bridge Loan - Priced For Cash -$ TOTAL DEBT SERVICE------------------------------------------------------------ 14,000$ 14,000$
CASH FLOW--------------------------------------------------------------------------- 38,728$ 27,382$ PRINCIPAL REDUCTION ‐$ ‐$
38,728$ 27,382$
CAP RATE (NOI/PP) 9.34% 9.50%COCR (CF/DP) 22.1% 15.6%EXP RATIO (EXP/EGI) 31.7% 34.5%TOTAL RETURN (CF+PRIN / DP) 22.1% 15.6%PRINCIPAL REDUCTION -$ -$ DCR (NOI/DS) 2.33 2.24PRICE PER PAD 9,459.46$ 9,459.46$
TOTAL PRE-TAX CASH FLOW
ADVISED PRICING Current OccupancyLOT VALUE 330,126$ 9.50% CAPPOH VALUE 20,040$ 1 | 2500 GRM / Per POHTOTAL VALUE 350,166$ 8 POH
PRO-FORMA VALUE 85% OccupiedLOT VALUE 613,275$ 9% CAP $225 Lot RentPOH VALUE 20,040$ 1 | 2500 GRM / Per POHTOTAL VALUE 633,315$ 35% Exp Ratio
COUNTY LINE MANUFACTURED HOME COMMUNITY | 5MAXWELL BAKER/404-442-2807/MBAKER@LEEATLANTA.COMGLENN ESTERSON/423-483-0492/GESTERSON@LEEATLANTA.COM
RENT ROLL Lot POH INFO Address Owner & Status Lot Rent House Rent Total Rent
A1 1997 Oakw 314 Camland Cir POH ‐ Vacant 190$ 310$ 500$
A2 300 Camland Cir VACANT LOT
A3 290 Camland Cir Lot Rented 190$ 190$
B1 2000 Amer 9060 County Line Rd POH ‐ Rented 190$ 260$ 450$
B10 235 Camland Cir VACANT LOT
B11 1988 Adva 213 Camland Cir POH ‐ Rented 190$ 210$ 400$
B12 1996 Champ 201 Camland Cir POH ‐ Vacant 190$ 260$ 450$
B13 274 Camland Cir VACANT LOT
B14 1993 Hort 250 Camland Cir Lot Rented 190$ ‐$ 190$
B15 228 Camland Cir VACANT LOT
B16 216 Camland Cir Lot Rented 190$ 190$
B17 196 Camland Cir POH ‐ Rented
B18 1989 Oakw 184 Camland Cir Lot Rented 190$ ‐$ 190$
B2 9058 County Line Rd VACANT LOT
B3 9056 County Line Rd VACANT LOT ‐$ ‐$
B4 9052 County Line Rd Lot Rented 190$ 190$
B5 9050 County Line Rd Lot Rented 190$ 190$
B6 9046 County Line Rd VACANT LOT
B7 265 Camland Cir VACANT LOT
B8 261 Camland Cir Lot Rented 190$ 190$
B9 1994 Oakw 247 Camland Cir POH ‐ Rented 190$ 210$ 400$
C1 9038 County Line Rd VACANT LOT
C10 1991 Oakw 111 Camland Cir POH ‐ Rented 190$ 160$ 350$
C11 91 Camland Cir Lot Rented 190$ ‐$ 190$
C12 1988 Clay 75 Camland Cir Lot Rented 190$ ‐$ 190$
C13 61 Camland Cir Lot Rented 190$ ‐$ 190$
C14 49 Camland Cir Lot Rented 190$ ‐$ 190$
C2 1998 Oakw 9034 County Line Rd POH ‐ Rented 190$ 260$ 450$
C3 9032 County Line Rd Lot Rented 190$ 190$
C4 9026 County Line Rd VACANT LOT
C5 9024 County Line Rd Lot Rented 190$ 190$
C6 9022 County Line Rd VACANT LOT ‐$ ‐$
C7 13 Camland Cir VACANT LOT
C8 149 Camland Cir Lot Rented 190$ ‐$ 190$
C9 1985 Oakw 131 Camland Cir POH ‐ Park Office
D1 18 Camland Cir VACANT LOTD2 30 Camland Cir VACANT LOT
COUNTY LINE MANUFACTURED HOME COMMUNITY | 6MAXWELL BAKER/404-442-2807/MBAKER@LEEATLANTA.COMGLENN ESTERSON/423-483-0492/GESTERSON@LEEATLANTA.COM
INVESTMENT HIGHLIGHTS
• Value-Add MHC with Motivated Seller• 9.5% CAP on Lot Rent with 34.5% Expense Ratio• Direct Billed City Water and Sewer• Large Lots• 8 POH - $2,500 Shell Value• Price Per Lot = $9,459
• Park needs landscaping improvements• Homes are 1990s models; some need renovations• Seller’s Books and Records are limited• Gravel roads• High vacancy• County demographics show negative growth, but
city demographics are strong• Only Bridge Financing available• Actual seller expenses = $15,000 including POH
repairs
KNOWN ISSUES
COUNTY LINE MANUFACTURED HOME COMMUNITY | 7MAXWELL BAKER/404-442-2807/MBAKER@LEEATLANTA.COMGLENN ESTERSON/423-483-0492/GESTERSON@LEEATLANTA.COM
THE OFFERING
PROPERTY ADDRESS: 9042 County Line Road Rocky Mount, NC 27803
COUNTY: Edgecombe
PARCEL NUMBERS: 3757-00-3496-00
SITE DESCRIPTION
# OF PADS: 37
TOTAL LAND AREA: ± 7.5 acres
POH / LEASE OPTION HOMES: 8 / None
ZONING: N/A
MECHANICAL
WATER: CITY WATER, SUB-METEREDDIRECT BILL TO TENANT
ELECTRIC: 200 AMP
PROPERTY DESCRIPTION
COUNTY LINE MANUFACTURED HOME COMMUNITY | 8MAXWELL BAKER/404-442-2807/MBAKER@LEEATLANTA.COMGLENN ESTERSON/423-483-0492/GESTERSON@LEEATLANTA.COM
LOT RENT: $190 per month
POH (NOT INCLUDING LOT RENT): $239 per month plus lot rent ($429 total)
TOTAL PRICE: $350,000
DOWN PAYMENT: 50% / $175,000
TOTAL PADS: 37
PRICE PER PAD: $9,459.00
PARCEL SIZE: ± 7.5 ACRES
FINANCIAL OVERVIEW
INFRASTRUCTURE County Line MHP Number of Spaces 37 Number of Park‐Owned 8 Vacant Pads 14 Number of Vacant Park‐Owned 2 Lot Rent Only Tenants 14 Single‐Wide Homes N/A Double‐Wide Homes N/A Number of Lot Renters 14 Homes Used for Storage/Office 1
Road Type Gravel Flood Plane No Topography Flat Parking Spaces 2/1 Mowing Responsibilities Tenant Other Amenities N/A
COUNTY LINE MANUFACTURED HOME COMMUNITY | 9MAXWELL BAKER/404-442-2807/MBAKER@LEEATLANTA.COMGLENN ESTERSON/423-483-0492/GESTERSON@LEEATLANTA.COM
AERIAL
COUNTY LINE MANUFACTURED HOME COMMUNITY | 10MAXWELL BAKER/404-442-2807/MBAKER@LEEATLANTA.COMGLENN ESTERSON/423-483-0492/GESTERSON@LEEATLANTA.COM
COMPETITIVE RENT COMPSPHOTO PARK NAME # OF PADS LOT RENT COMP DATE
COUNTY LINE MHCROCKY MOUNT, NC
37 $190 2017
1CONETOE SCHOOL HOUSE TRAILER PARKCONETOE, NC
24 $190 2017
2NABATOFF GOLDIE MHPWILSON, NC
65 $195 2017
3MIDLAKE MOBILE HOME PARKTARBORO, NC
162 $195 2017
COUNTY LINE MANUFACTURED HOME COMMUNITY | 11MAXWELL BAKER/404-442-2807/MBAKER@LEEATLANTA.COMGLENN ESTERSON/423-483-0492/GESTERSON@LEEATLANTA.COM
COMPETITIVE RENT COMPSPHOTO PARK NAME # OF PADS LOT RENT COMP DATE
4HOUSES MHPLUCAMA, NC
50 $200 2017
5CROSS CREEK MOBILE PARKROCKY MOUNT, NC
265 $200 2017
6RIVER WEST MHPROCKY MOUNT NC
70 $200 2017
7KINGS WAY MHPROCKY MOUNT, NC
209 $245 2017
COUNTY LINE MANUFACTURED HOME COMMUNITY | 12MAXWELL BAKER/404-442-2807/MBAKER@LEEATLANTA.COMGLENN ESTERSON/423-483-0492/GESTERSON@LEEATLANTA.COM
DEMOGRAPHICS3 MILE 5 MILES 10 MILES
POPULATION
2022 PROJECTION 4,974 20,423 97,073
2017 ESTIMATE 5,214 20,357 98,271
2010 CENSUS POPULATION 5,337 20,887 101,052
HOUSEHOLDS
2022 HH PROJECTION 2,181 8,920 42,516
2017 HH ESTIMATE 2,182 8,456 41,085
2010 HH CENSUS 2,144 8,330 40,536
2017 ESTIMATED POPULATION BY RACE
WHITE 58.3% 42.4% 46.0%
BLACK OR AFRICAN AMERICAN 38.0% 54.0% 48.1%
OTHER 3.7% 3.6% 5.9%
INCOME
2017 ESTIMATED AVERAGE HH INCOME $46,903 $47,783 $57,585
2017 ESTIMATED MEDIAN HH INCOME $34,686 $38,049 $47,344
2017 ESTIMATED PER CAPITA INCOME $19,631 $19,897 $24,164
AGE
MEDIAN AGE 39.1 39.7 40.0
COUNTY LINE MANUFACTURED HOME COMMUNITY | 13MAXWELL BAKER/404-442-2807/MBAKER@LEEATLANTA.COMGLENN ESTERSON/423-483-0492/GESTERSON@LEEATLANTA.COM
LOCATION, SCHOOLS, WALMART & MHC SUPPLY
COUNTY LINE MANUFACTURED HOME COMMUNITY | 14MAXWELL BAKER/404-442-2807/MBAKER@LEEATLANTA.COMGLENN ESTERSON/423-483-0492/GESTERSON@LEEATLANTA.COM
PARK MAP
Everett Faircloth Everett
Everett Everett Everett Office Everett Everett
Everett Everett Everett
Owned by Tim EverettIndividually OwnedVacant Lot
201 - B12
9060 - B1
9058 - B2
314 - A1
300 - A2
9032 - C3
Camland Circle
9026 - C4
Camland Circle
9046 - B6
265 - B7
261 - B8
247 - B9
235 - B10
213 - B11
290 - A3
9050 - B5
9052 - B4Ca
mla
nd C
ircle
274 - B13
250 - B14
228 - B15
216 - B16
196 - B17
9056 - B3
30 - D2
18 - D1
49 - C14
184 - B18
149 - C8
131 - C9
13 - C7
111 - C10
91 - C11
75 - C12
COUNTY LINE ROAD
Field - Owned by Billy Eatmon (2.3 acres)
Field - Owned by Eatmon's - multiple tracts Eatmon House
9038 - C1
9034 - C2
9024 - C5
9022 - C6
61 - C13
COUNTY LINE MANUFACTURED HOME COMMUNITY | 15MAXWELL BAKER/404-442-2807/MBAKER@LEEATLANTA.COMGLENN ESTERSON/423-483-0492/GESTERSON@LEEATLANTA.COM
Maxwell R. Baker joined Lee & Associates in 2014 as a commercial real estate broker specializing in purchasing and sellingmobile home communities in the Southeast. His family has been involved with mobile home parks for more than 15 years,and he has been a part of management, rehabilitation, and disposing mobile home parks since his family purchased theirfirst park. Max is also Founder and President of The MHP Broker offering mobile home park owners and investors brokerageservices, free mobile home park analyses, in-depth market research, and mobile home park financing consultation.
In 2014 and 2015, Max completed approximately 80% of all Georgia manufactured home community transactions andhas also closed transactions in other Southeast states including Tennessee, Alabama, North Carolina, South Carolinaand Florida. Max's core competencies include structuring and negotiating complicated transactions, owner financing,research and outsourcing, and his "deal-making" capabilities.
Max, along with his expert team of researchers, compile and maintain the industryÕs most comprehensive database ofmobile home community data in the Southeast. Max and The MHP Broker are recognized as a trusted advisor in this rapidlygrowing multifamily, affordable housing sector.
¥ Georgia State University - B.A. Real Estate¥ United States Marine Corps
¥ Atlanta Commercial Board of Realtors¥ Real Estate Broker - Georgia¥ Georgia Manufactured Housing Association (GMHA) member¥ Southeast Community Owners (SECO) member
Biography
Education
Memberships & Associations
3500 Lenox RoadSuite 200Atlanta, GA 30326
T 404.442.2807mbaker@leeatlanta.com
Partial Client ListBeal BankColony CapitalMarket Street CapitalAffordable Housing Communities Inc. Capital Square Holdings LLCThe Reach GroupMidland Loan ServicesHartman Wright Group, LLC Affordable Communities Group, LLC
PrincipalMAXWELL BAKER
ADVISOR BIO // MOBILE HOME PARKS
ADVISOR BIO - MAXWELL BAKER
ADVISOR BIOS| 16MAXWELL BAKER/404-442-2807/MBAKER@LEEATLANTA.COMGLENN ESTERSON/423-483-0492/GESTERSON@LEEATLANTA.COM
Glenn Esterson is a Senior Director with Lee & Associates, specializing in investment grade mobile home communities.During his fifteen years in the commercial real estate business, Mr. Esterson has successfully owned and operated mobilehome parks as well as assisting his clients in the sales, leasing and management of mobile home communities throughoutthe southeastern U.S. markets.
Early in his career, Mr. Esterson was working on apartment sales, condo-conversions and property management. Fromthere, Mr. Esterson transitioned into investment sales of multi-tenanted small business parks throughout the Southeast andmid-Atlantic. He and his team has transacted in nearly every southeastern state and holds multiple real estate licenses.
Mr. Esterson works exclusively with private investors as their primary real estate investment advisor for their acquisition anddisposition needs. Mr. Esterson provides clients with expertise in asset management, portfolio analysis, site selection, leaseadvisory and consulting. Mr. Esterson has executed over 200 sale or lease transactions over his career with a transactionalvolume in excess of $100 million.
¥ 2016-Present Lee & Associates, Atlanta - Senior Director Mobile Home Communities¥ 2013-2016 Marcus & Millichap, National Office & Industrial Properties Group¥ 2003-2013 Esterson Management Solutions, Inc. Ð Founding Member¥ 2001-2005 American Commercial Properties, Director of Multi-Family Investment
¥ Sierra Nevada CollegeBachelor of Arts
Profile
Experience
Education
3500 Lenox RoadSuite 200Atlanta, GA 30326
T 404.442.2825C 423.483.0492gesterson@lee-associates.com
Senior DirectorGLENN ESTERSON
ADVISOR BIO // MOBILE HOME PARKS
ADVISOR BIO - GLENN ESTERSON
ADVISOR BIOS| 17MAXWELL BAKER/404-442-2807/MBAKER@LEEATLANTA.COMGLENN ESTERSON/423-483-0492/GESTERSON@LEEATLANTA.COM
The information contained in this Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Lee & Associates and should not be made available to any other person or entity without the written consent of Lee & Associates. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Lee & Associates has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Lee & Associates has not verified, and will not verify, any of the information contained herein, nor has Lee & Associates conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.
NON-ENDORSEMENT NOTICELee & Associates is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Lee & Associates, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Lee & Associates, and is solely included for the purpose of providing tenant lessee information.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE LEE & ASSOCIATES AGENT FOR MORE DETAILS.
EXCLUSIVELY LISTEDBIRMINAAL
MAXWELL BAKER / PRINCIPALPHONE: 404.442.2807 | mbaker@leeatlanta.comLEE & ASSOCIATES | ATLANTA 3500 LENOX ROAD, SUITE 200 | ATLANTA, GA 30326