:: OFFERING MEMORANDUMWindmill pointe village &Kent City mhCtWo manUFaCtURed hoUSing CommUnitieSGRAND RApIDs MEtRO AREA, MIchIGAN
www.cbre.com/mhrv
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2Windmill Pointe Village & Kent City MHC | ConFidentiality agReement
This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of Windmill Pointe Village and Kent City MHC (“Property”).
This Memorandum contains selectedInformation pertaining to the Property and does not purport to be a representation of the state of affairs of the Owner or the Property, to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the Owner and CB Richard Ellis. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation.
All references to acreages, square footages and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. Neither the Owner nor CB Richard Ellis, nor any of their respective directors, officers, affiliates or representatives make any representation
or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents.
The Owner expressly reserves the right, at its sole discretion, to reject any or all ex-pressions of interest or offers to purchasethe Property, and/or to terminate discus-sions with any entity at any time with or without notice which may arise as a re-sult of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to pur-chase the Property unless and until written agreement(s) for the purchase of the Prop-erty have been fully executed, delivered and approved by the Owner and any con-ditions to the Owner’s obligations therein have been satisfied or waived.
By receipt of the Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or CB Richard Ellis. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of
the Owner or CB Richard Ellis. In this Memorandum, certain documents,including leases and other materials, are described in summary form. These sum-maries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner.
If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to CB Richard Ellis:
CB RICHARD ELLISManufactured Housing GroupChicago311 South Wacker Dr., Suite 400 Chicago, IL 60606ATTN: Chris Bultinck
© CB Richard Ellis. We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or repre-sentation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.
For more information,please contact:
chRIs BULtINcKAssociate312.935.1048847.727.9385 [email protected]
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chRIs cLAYAssociate757.228.1801757.652.9087 [email protected]
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VAN MARtINPresident & Senior Managing [email protected]
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ExECutivE SuMMary 4
windMill pointE villaGE:
invEStMEnt SuMMary 5
propErty dEtailS 6-10
loCation ovErviEw 11-12
opEratinG StatEMEnt 13
kEnt City MHC:
invEStMEnt SuMMary 14
propErty dEtailS 15-19
loCation ovErviEw 20-21
opEratinG StatEMEnt 22
MarkEt rEnt CoMparaBlES 23
diSCloSurES, notiCES & ConfidEntiality 24
table oF ContentS
Windmill pointe village & Kent City mhCGRAND RApIDs MsA, MIchIGAN
Windmill Pointe Village & Kent City MHC
4Windmill Pointe Village & Kent City MHC | eXeCUtive SUmmaRy
ExEcUtIVE sUMMARY CB Richard Ellis, Inc., as the exclusive marketing broker, is pleased to offer Windmill Pointe Village and Kent City MHC for sale. The two communities are offered for sale together as a portfolio, but also can be purchased individually.
Windmill Pointe Village is an all-age manufactured housing community located in Kentwood, Michigan. The community consists of 334 spaces situated on 35 acres. Windmill Pointe Village was built in the 1970s and is serviced by public utilities that are billed directly to the tenants. There are 16 park-owned homes, including 13 lease-to-own homes and three vacant homes being marketed for sale. The park-owned homes are available for sale, but not included in the purchase price. Two additional three-bedroom, stick-built rental homes are available for sale, but not included in the purchase price.
Kent City MHC is an all-aged manufactured housing community located in Kent City, Michigan. The community consists of 74 spaces and is situated on 20 acres, including 10 acres of undeveloped land at the back of the property. Kent City MHC was built in the 1970s. Water is provided via a private well system. Sewer is provided by the city. There are seven park-owned homes available for purchase, but not included in the purchase price.
pURchAsE pRIcE
Windmill Pointe Village: $4,500,000 Kent City MHC: $700,000 23 Park-owned Homes: Price negotiable 2 Stick-built homes: Price negotiable
INVEstMENt hIGhLIGhts
• Each park includes a snowplow-equipped truck to service the property
• Well-maintained, family-owned communities
• Opportunity to increase occupancy and capture upside
• Below market rent
5Windmill Pointe Village | inveStment SUmmaRy
INVEstMENt sUMMARY
Price $4,500,000
Price per Space $13,473
Price per Occupied Space $20,362
In-place NOI $433,226
Cap Rate 9.6%
Space Rent $306
Total Spaces 334
Vacant Spaces 113
Occupied Spaces (Revenue Producing) 221
Occupancy 66.2%
Year Built 1970s
Site Size 35.00 acres
Density per Acre 9.5 homes/acre
6Windmill Pointe Village | pRopeRty detailS
community Description
Year Built 1970s
Total Spaces 334
Roads Paved
Sidewalks Yes
On Street Parking Yes
Dedicated Off Street Parking Per Space Yes
Dedicated Parking Per Space 2 per space
Parking Construction Paved
Utilities and service providers
Utility/Service Provider Separately Metered Paid By
Electricity Consumer Energy Yes Resident
Natural Gas DTE Yes Resident
Water City of Kentwood Yes Resident
Sewer City of Kentwood Yes Resident
Trash Removal Rosendale (contracted by park) No Park
Lawn - Common Areas Windmill Pointe Village No Park
Snow Removal Windmill Pointe Village No Park
Cable Comcast Yes Resident
Internet Comcast Yes Resident
Telephone Comcast Yes Resident
Jurisdiction and taxes
Jurisdiction City of Kentwood / Kent County
Tax ID Number 41-18-30-401-029 35.0 acres Taxable Value $2,095,500.00
Tax Year 2011
Tax Due By $83,055.14 due in the summer/$29,470.48 due in the winter
Flood Zone
Map Number 2601070005B
Date November 18, 1981
Flood Zone No
Flood Zone DescriptionThe building or mobile home is not currently located in an area designated by the Director of FEMA as a SFHA. NFIP flood insurance is not required, but may be available.
7Windmill Pointe Village | pRopeRty detailS
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park layout
11Windmill Pointe Village | loCation oveRvieW
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windmill pointe village
12Windmill Pointe Village | loCation oveRvieW
pOpULAtION: 3 mile radius 5 mile radius 10 mile radius2010 Estimated Population 89,368 224,875 475,5062015 Projected Population 89,140 226,034 480,3672000 Census Population 88,997 218,553 457,6801990 Census Population 81,437 194,668 410,588hOUsEhOLDs: 3 mile radius 5 mile radius 10 mile radius2010 Estimated Average Age 35.73 35.04 36.032010 Estimated Households 34,999 84,769 179,7052015 Projected Households 35,114 85,614 182,3632000 Census Households 34,383 81,264 170,7561990 Census Households 30,710 71,402 149,932INcOME: 3 mile radius 5 mile radius 10 mile radiusIncome Less than $15,000 9.7% 10.8% 11.0%Income $15,000 to $24,999 12.1% 11.6% 11.1%Income $25,000 to $34,999 12.7% 12.6% 11.8%Income $35,000 to $49,999 19.2% 18.7% 17.4%Income $50,000 to $74,999 24.8% 23.2% 22.1%Income $75,000 to $99,999 11.8% 11.6% 12.3%Income $100,000 Plus 9.7% 11.5% 14.4%
Source: Claritas
dEMoGrapHiCS
13Windmill Pointe Village | opeRating Statement
CB Richard Ellis | Manufactured Housing Groupwww.cbre.com/mhrv
Windmill Pointe Village588 48th St., SEKentwood, MI 49548
OPERATING STATEMENT
INCOME: 2010 Actual $ per Space Forecast $ per Space
GROSS MARKET RENT $1,226,448 $3,672 $1,226,448 $3,672Vacancy Loss ($420,371) ($1,259) ($414,936) ($1,242)Concessions/Collection Loss $0 $0 ($16,230) ($49)
EFFECTIVE RENTAL INCOME $806,077 $2,413 $795,282 $2,381
OTHER INCOMEElectric Reimbursement $224,908 $673 $225,000 $674W t R i b t $97 980 $293 $98 000 $293Water Reimbursement $97,980 $293 $98,000 $293Other $7,158 $21 $7,150 $21
TOTAL OTHER INCOME $330,045 $988 $330,150 $988
EFFECTIVE GROSS INCOME $1,136,123 $3,402 $1,125,432 $3,370
EXPENSES: 2010 Actual $ per Space % of Income Forecast $ per Space % of Income
Payroll & Related ($168,209) ($504) 14.8% ($86,500) ($259) 7.69%General & Administrative ($34,550) ($103) 3.0% ($33,900) ($101) 3.01%M k ti ($11 479) ($34) 1 0% ($12 000) ($36) 1 07%Marketing ($11,479) ($34) 1.0% ($12,000) ($36) 1.07%Maintenance ($88,942) ($266) 7.8% ($83,400) ($250) 7.41%Management Fees $0 $0 0.0% ($45,017) ($135) 4.00%TOTAL VARIABLE EXPENSES ($303,180) ($908) 26.7% ($260,817) ($781) 23.17%
Utilities ($260,928) ($781) 23.0% ($261,200) ($782) 23.21%Insurance ($10,018) ($30) 0.9% ($10,100) ($30) 0.90%Total Taxes ($143,389) ($429) 12.6% ($143,389) ($429) 12.74%TOTAL FIXED EXPENSES ($414,335) ($1,241) 36.5% ($414,689) ($1,242) 36.85%
TOTAL OPERATING EXPENSES: ($717,515) ($2,148) 63.2% ($675,506) ($2,022) 60.02%TOTAL OPERATING EXPENSES: ($717,515) ($2,148) 63.2% ($675,506) ($2,022) 60.02%
NET OPERATING INCOME: $418,608 $1,253 36.8% $449,926 $1,347 39.98%
RESERVESReserves ($16,700) ($50) 1.5% ($16,700) ($50) 1.48%
NOI AFTER RESERVES: $401,908 $1,203 35.4% $433,226 $1,297 38.49%
© 2011 CB Richard Ellis, Inc. The information above has been obtained from sources believed reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example
l d d h f f f h h l f h d d d h f h h h ld b l d bonly and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.
14Kent City MHC | inveStment SUmmaRy
INVEstMENt sUMMARY
Price $700,000
Price per Space $9,459
Price per Occupied Space $11,667
In-place NOI $75,280
Cap Rate 10.75%
Space Rent $273
Total Spaces 74
Vacant Spaces 14
Occupied Spaces (Revenue Producing) 60
Occupancy 81.1%
Year Built 1970s
Site Size 20.00 acres
Density per Acre 7.4 homes/acre
15Kent City MHC | pRopeRty detailS
community Description
Year Built 1970s
Total Spaces 74
Roads Paved
Sidewalks No
On Street Parking No
Dedicated Off Street Parking Per Space Yes
Dedicated Parking Per Space 2 per space
Parking Construction Paved
Jurisdiction and taxes
Jurisdiction Village of Kent City
Tax ID Number 41-18-32-228-009 20.00 acres Taxable Value $412,500
Tax Year 2011
Tax Due By $3,300 due in the winter
Utilities and service providers
Utility/Service Provider Separately Metered Paid By
Electricity Consumer Energy Yes Resident
Natural Gas DTE Yes Resident
Water Kent City MHC (on-site wells) No Park
Sewer Village of Kent City No Park
Trash Removal Blue Dolphin No Park
Lawn - Common Areas Kent City MHC No Park
Snow Removal Kent City MHC No Park
Cable Varies Yes Resident
Internet Varies Yes Resident
Telephone Varies Yes Resident
Jurisdiction Tyrone Township
Tax ID Number 41-18-32-228-009 20.00 acres Taxable Value $412,500
Tax Year 2011
Tax Due By $12,532.63 due in the summer/$7,264.54 due in the winter
16Kent City MHC | pRopeRty detailS
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19Kent City MHC | pRopeRty detailS
park layout
20Kent City MHC | loCation oveRvieW
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kent City MHC
21Kent City MHC | loCation oveRvieW
pOpULAtION: 3 mile radius 5 mile radius 10 mile radius2010 Estimated Population 4,093 12,099 42,2192015 Projected Population 4,129 12,239 43,3652000 Census Population 3,983 11,666 38,9751990 Census Population 3,554 10,508 33,310hOUsEhOLDs: 3 mile radius 5 mile radius 10 mile radius2010 Estimated Average Age 35.31 35.80 36.412010 Estimated Households 1,346 4,302 14,8692015 Projected Households 1,367 4,389 15,3942000 Census Households 1,287 4,059 13,4421990 Census Households 1,104 3,516 11,085INcOME: 3 mile radius 5 mile radius 10 mile radiusIncome Less than $15,000 9.0% 10.1% 8.7%Income $15,000 to $24,999 9.6% 9.2% 8.4%Income $25,000 to $34,999 9.2% 10.8% 10.7%Income $35,000 to $49,999 17.8% 19.3% 18.3%Income $50,000 to $74,999 25.5% 23.9% 25.8%Income $75,000 to $99,999 14.9% 13.8% 14.2%Income $100,000 Plus 14.0% 12.9% 13.9%
Source: Claritas
dEMoGrapHiCS
22Kent City MHC | opeRating Statement
CB Richard Ellis | Manufactured Housing Groupwww.cbre.com/mhrv
Kent City MHC135 S. Main St.Kent City, MI 49548
OPERATING STATEMENT
INCOME: 2010 Actual $ per Space Forecast $ per Space
GROSS MARKET RENT $242,080 $3,271 $242,080 $3,271Vacancy Loss ($29,571) ($400) ($45,799) ($619)Concessions/Collection Loss $0 $0 ($3,926) ($53)
EFFECTIVE RENTAL INCOME $212,509 $2,872 $192,356 $2,599
OTHER INCOMEOther $737 $10 $740 $10A li ti F $650 $9 $650 $9Application Fees $650 $9 $650 $9
TOTAL OTHER INCOME $1,387 $19 $1,390 $19
EFFECTIVE GROSS INCOME $213,896 $2,890 $193,746 $2,618
EXPENSES: 2010 Actual $ per Space % of Income Forecast $ per Space % of Income
Payroll & Related $0 $0 0.0% ($6,271) ($85) 3.24%General & Administrative ($10,273) ($139) 4.8% ($9,250) ($125) 4.77%Marketing ($1,583) ($21) 0.7% ($1,200) ($16) 0.62%M i t ($36 885) ($498) 17 2% ($34 000) ($459) 17 55%Maintenance ($36,885) ($498) 17.2% ($34,000) ($459) 17.55%Management Fees $0 $0 0.0% ($9,687) ($131) 5.00%TOTAL VARIABLE EXPENSES ($48,741) ($659) 22.8% ($60,409) ($816) 31.18%
Utilities ($22,470) ($304) 10.5% ($22,700) ($307) 11.72%Insurance ($2,216) ($30) 1.0% ($2,250) ($30) 1.16%Total Taxes ($29,407) ($397) 13.7% ($29,407) ($397) 15.18%TOTAL FIXED EXPENSES ($54,093) ($731) 25.3% ($54,357) ($735) 28.06%
TOTAL OPERATING EXPENSES: ($102,834) ($1,390) 48.1% ($114,766) ($1,551) 59.24%
NET OPERATING INCOME: $111,062 $1,501 51.9% $78,980 $1,067 40.76%
RESERVESReserves ($3,700) ($50) 1.7% ($3,700) ($50) 1.91%
NOI AFTER RESERVES: $107,362 $1,451 50.2% $75,280 $1,017 38.85%
© 2011 CB Richard Ellis, Inc. The information above has been obtained from sources believed reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors You and your advisors should conduct a careful independent investigation of the property to determine to your satisfaction the suitability of the property for your financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.
23Windmill Pointe Village & Kent City MHC | maRKet Rent CompaRableS
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# Park Name City ST No. Spaces Occupancy Space Rent Amenities
1 Windmill Pointe Village Kentwood MI 334 66.2% $306 Community building.
2 Kent City MHC Kent City MI 74 81.1% $273 None.
1 Algoma Estates Rockford MI 343 80.0% $299 Clubhouse, playground, basketball, park, RV Storage
2 Brentwood Village Kentwood MI 195 94.0% $441 Clubhouse, playground, RV storage3 Green Acres Kent MI 54 80.0% $271 Ployground, basketball4 Riverview Village Sparta MI 157 77.0% $276 Clubhouse, playground5 Leonard Gardens Grand Rapids MI 319 58.0% $405 Community room, exercise room,
Comparable Average 214 77.8% $338
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diSCloSUReS, notiCeS and ConFidentiality
Interest Offered100% fee s imple in teres t in Windmil l Pointe Vi l lage and Kent Ci ty MHC is located in Kentwood and Kent Ci ty, Michigan.
Investment OpportunityCBRE has been engaged by the Sel ler as i t s exc lus ive advisor to of fer Windmil l Pointe Vi l lage and Kent Ci ty MHC for sale.
property toursCBRE representat ives wi l l accompany you on proper ty tours. Al l tours wi l l require a minimum 48 hours advance not ice and are subject to schedule avai labi l i t y . Al l tours must be coordinated by CBRE. You may schedule a proper ty tour by contact ing the indiv idual below. chRIstOphER BULtINcK / 312.935.1048 / [email protected]
Due DiligencePlease contact the indiv idual below to obtain i tems.
chRIstOphER BULtINcK / 312.935.1048 / [email protected]
Debt & Equity FinanceCBRE Capital Markets, the real estate investment banking division of CB Richard Ellis, originates a broad range of debt and equity capital. In 2008, the firm generated $10 billion in real estate financing transactions, and currently maintains a servicing portfolio of more than 8,500 loans totaling approximately $94 billion through its affiliates, GEMSA Loan Services, L.P. The firm operates offices in 36 major metropolitan markets in North America. For more information, visit www.cbremelody.com.
www.cbre.com/mhrv
CB RICHARD ELLISManufactured Housing GroupChicago311 South Wacker DriveSuite 400 Chicago, IL 60606
312.935.1400 phone312.935.1880 fax
chRIs BULtINcKAssociate
312.935.1048847.727.9385 cell
chRIs cLAYAssociate
757.228.1801757.652.9087 cell
VAN MARtINPresident & Senior Managing Director
