Windmill pointe village & Kent City mhc

Transcription

1 Capital Markets Manufactured Housing Group Windmill pointe village & Kent City mhc Two MANUFACTURED HOUSING COMMUNITies Grand Rapids Metro area, michigan :: OFFERING MEMORANDUM

2 Windmill Pointe Village & Kent City MHC Confidentiality agreement 2 For more information, please contact: :: CHRIS BULTINCK Associate cell chris.bultinck@cbre.com :: CHRIS CLAY Associate cell chris.clay@cbre.com :: VAN MARTIN President & Senior Managing Director van.martin@cbre.com 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 selected Information 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 expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result 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 purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions 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 summaries 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 ELLIS Manufactured Housing Group Chicago 311 South Wacker Dr., Suite 400 Chicago, IL ATTN: 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 representation 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.

3 Table of contents Windmill pointe village & Kent city MHC grand rapids msa, michigan Windmill Pointe Village & Kent City MHC Executive Summary 4 windmill pointe village: kent city MHC: investment summary 5 Property DEtails 6-9 LOCATION OVERVIEW 10 operating statement 11 investment Summary 12 property details location overview 17 operating statement 18 Market rent COMPARABLES 19 MARKET SALES COMPARABLES 20 Disclosures, notices & Confidentiality 21

4 Windmill Pointe Village & Kent City MHC EXECUTIVE SUMMARY 4 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 parkowned homes are available for sale, but not included in the purchase price. Also included in the purchase price are two three-bedroom, site-built rental homes. An additional two three-bedroom, site-built rental home is 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 five park-owned, lease-to-own homes available for purchase, but not included in the purchase price. purchase price Windmill Pointe Village: $4,900,000 Kent City MHC: $800, Park-owned 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

5 Windmill Pointe Village INVESTMENT SUMMARY 5 INVESTMENT summary Price $4,900,000 Price per Space $14,671 Price per Occupied Space $21,875 In-place NOI $443,590 Cap Rate 9% Space Rent $306 Total Spaces 334 Vacant Spaces 110 Occupied Spaces (Revenue Producing) 224 Occupancy 67.1% Year Built 1970s Site Size acres Density per Acre 9.5 homes/acre

6 Windmill Pointe Village PROPERTY DETAILS 6 Jurisdiction and Taxes Jurisdiction City of Kentwood / Kent County Tax ID Number acres Taxable Value $2,095, Tax Year 2011 Tax Due By $83, due in the summer/$29, due in the winter 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 Flood Zone Map Number B Date November 18, 1981 Flood Zone No Utilities and Service Providers Utility/Service Provider Separately Metered Paid By Electricity Consumer Energy Yes Resident Flood Zone Description The 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. 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

7 Windmill Pointe Village PROPERTY DETAILS 7 street view

8 Windmill Pointe Village PROPERTY DETAILS 8 home view

9 Windmill Pointe Village PROPERTY DETAILS 9 AERIAL N. Rink Rd. W Stephenson St Rd. S. Rink Rd.

10 Windmill Pointe Village PROPERTY DETAILS 10 park layout

11 Windmill Pointe Village LOCATION OVERVIEW 11 map Windmill Pointe Village

12 Windmill Pointe Village LOCATION OVERVIEW 12 Demographics POPULATION: 3 mile radius 5 mile radius 10 mile radius 2010 Estimated Population 89, , , Projected Population 89, , , Census Population 88, , , Census Population 81, , ,588 HOUSEHOLDS: 3 mile radius 5 mile radius 10 mile radius 2010 Estimated Average Age Estimated Households 34,999 84, , Projected Households 35,114 85, , Census Households 34,383 81, , Census Households 30,710 71, ,932 INCOME: 3 mile radius 5 mile radius 10 mile radius Income Less than $15, % 10.8% 11.0% Income $15,000 to $24, % 11.6% 11.1% Income $25,000 to $34, % 12.6% 11.8% Income $35,000 to $49, % 18.7% 17.4% Income $50,000 to $74, % 23.2% 22.1% Income $75,000 to $99, % 11.6% 12.3% Income $100,000 Plus 9.7% 11.5% 14.4% Source: Claritas

13 Windmill Pointe Village operating statement 13 OPERATING STATEMENT INCOME: 2010 Actual $ per Space Forecast $ per Space GROSS MARKET RENT $1,226,448 $3,672 $1,226,448 $3,672 Vacancy Loss ($420,371) ($1,259) ($403,920) ($1,209) Concessions/Collection Loss $0 $0 ($16,451) ($49) EFFECTIVE RENTAL INCOME $806,077 $2,413 $806,077 $2,413 OTHER INCOME Electric Reimbursement $224,908 $673 $225,000 $674 Water Reimbursement $97, $293 $98,000 $293 Other $7,158 $21 $7,150 $21 TOTAL OTHER INCOME $330,045 $988 $330,150 $988 EFFECTIVE GROSS INCOME $1,136,123 $3,402 $1,136,227 $3,402 EXPENSES: 2010 Actual $ per Space % of Income Forecast $ per Space % of Income Payroll & Related ($168,209) ($504) 14.8% ($86,500) ($259) 7.61% General & Administrative ($34,550) ($103) 3.0% ($33,900) ($101) 2.98% Marketing ($11,479) ($34) 1.0% ($12,000) ($36) 1.06% Maintenance ($88,942) ($266) 7.8% ($83,400) ($250) 7.34% Management Fees $0 $0 0.0% ($45,449) ($136) 4.00% TOTAL VARIABLE EXPENSES ($303,180) ($908) 26.7% ($261,249) ($782) 22.99% Utilities ($260,928) ($781) 23.0% ($261,200) ($782) 22.99% Insurance ($10,018) ($30) 0.9% ($10,100) ($30) 0.89% Total Taxes ($143,389) ($429) 12.6% ($143,389) ($429) 12.62% TOTAL FIXED EXPENSES ($414,335) ($1,241) 36.5% ($414,689) ($1,242) 36.50% TOTAL OPERATING EXPENSES: ($717,515) ($2,148) 63.2% ($675,938) ($2,024) 59.49% NET OPERATING INCOME: $418,608 $1, % $460,290 $1, % RESERVES Reserves ($16,700) ($50) 1.5% ($16,700) ($50) 1.47% NOI AFTER RESERVES: $401,908 $1, % $443,590 $1, % 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

14 Kent City MHC INVESTMENT SUMMARY 14 INVESTMENT summary Price $800,000 Price per Space $10,811 Price per Occupied Space $12,903 In-place NOI $81,371 Cap Rate 11% Space Rent $273 Total Spaces 74 Vacant Spaces 12 Occupied Spaces (Revenue Producing) 62 Occupancy 83.8% Year Built 1970s Site Size acres Density per Acre 7.4 homes/acre

15 Kent City MHC PROPERTY DETAILS 15 Jurisdiction and Taxes Jurisdiction Village of Kent City Tax ID Number acres Taxable Value $412,500 Tax Year 2011 Tax Due By $3,300 due in the winter Jurisdiction Tyrone Township Tax ID Number acres Taxable Value $412,500 Tax Year 2011 Tax Due By $12, due in the summer/$7, due in the winter 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 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

16 Kent City MHC PROPERTY DETAILS 16 street view

17 Kent City MHC PROPERTY DETAILS 17 home view

18 Kent City MHC PROPERTY DETAILS 18 AERIAL N. Rink Rd. W Stephenson St Rd. S. Rink Rd.

19 Kent City MHC PROPERTY DETAILS 19 park layout

20 Kent City MHC LOCATION OVERVIEW 20 map Kent City MHC

21 Kent City MHC LOCATION OVERVIEW 21 Demographics POPULATION: 3 mile radius 5 mile radius 10 mile radius 2010 Estimated Population 4,093 12,099 42, Projected Population 4,129 12,239 43, Census Population 3,983 11,666 38, Census Population 3,554 10,508 33,310 HOUSEHOLDS: 3 mile radius 5 mile radius 10 mile radius 2010 Estimated Average Age Estimated Households 1,346 4,302 14, Projected Households 1,367 4,389 15, Census Households 1,287 4,059 13, Census Households 1,104 3,516 11,085 INCOME: 3 mile radius 5 mile radius 10 mile radius Income Less than $15, % 10.1% 8.7% Income $15,000 to $24, % 9.2% 8.4% Income $25,000 to $34, % 10.8% 10.7% Income $35,000 to $49, % 19.3% 18.3% Income $50,000 to $74, % 23.9% 25.8% Income $75,000 to $99, % 13.8% 14.2% Income $100,000 Plus 14.0% 12.9% 13.9% Source: Claritas

22 Kent City MHC Operating Statement 22 OPERATING STATEMENT INCOME: 2010 Actual $ per Space Forecast $ per Space GROSS MARKET RENT $242,080 $3,271 $242,080 $3,271 Vacancy Loss ($29,571) ($400) ($39,256) ($530) Concessions/Collection Loss $0 $0 ($4,056) ($55) EFFECTIVE RENTAL INCOME $212,509 $2,872 $198,768 $2,686 OTHER INCOME Other $737 $10 $740 $10 Application Fees $650 $9 $650 $9 TOTAL OTHER INCOME $1,387 $19 $1,390 $19 EFFECTIVE GROSS INCOME $213,896 $2,890 $200,158 $2,705 EXPENSES: 2010 Actual $ per Space % of Income Forecast $ per Space % of Income Payroll & Related $0 $0 0.0% ($6,271) ($85) 3.13% General & Administrative ($10,273) ($139) 4.8% ($9,250) ($125) 4.62% Marketing ($1,583) ($21) 0.7% ($1,200) ($16) 0.60% Maintenance ($36,885) ($498) 17.2% ($34,000) ($459) 16.99% Management Fees $0 $0 0.0% ($10,008) ($135) 5.00% TOTAL VARIABLE EXPENSES ($48,741) ($659) 22.8% ($60,729) ($821) 30.34% Utilities ($22,470) ($304) 10.5% ($22,700) ($307) 11.34% Insurance ($2,216) ($30) 1.0% ($2,250) ($30) 1.12% Total Taxes ($29,407) ($397) 13.7% ($29,407) ($397) 14.69% TOTAL FIXED EXPENSES ($54,093) ($731) 25.3% ($54,357) ($735) 27.16% TOTAL OPERATING EXPENSES: ($102,834) ($1,390) 48.1% ($115,086) ($1,555) 57.50% NET OPERATING INCOME: $111,062 $1, % $85,071 $1, % RESERVES Reserves ($3,700) ($50) 1.7% ($3,700) ($50) 1.85% NOI AFTER RESERVES: $107,362 $1, % $81,371 $1, % 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

23 Windmill Pointe Village & Kent City MHC MARKET RENT COMPARABLES # Park Name City ST No. Spaces Occupancy Space Rent Amenities 1 Windmill Pointe Village Kentwood MI % $306 Community building. 2 Kent City MHC Kent City MI % $273 None. 1 Algoma Estates Rockford MI % $299 Clubhouse, playground, basketball, park, RV Storage 2 Brentwood Village Kentwood MI % $441 Clubhouse, playground, RV storage 3 Green Acres Kent MI % $271 Ployground, basketball 4 Riverview Village Sparta MI % $276 Clubhouse, playground 5 Leonard Gardens Grand Rapids MI % $405 Community room, exercise room, Comparable Average % $338

24 DISCLOSURES, NOTICES AND CONFIDENTIALITY Interest Offered 100% fee simple interest in Windmill Pointe Village and Kent City MHC is located in Kentwood and Kent City, Michigan. Investment Opportunity CBRE has been engaged by the Seller as its exclusive advisor to offer Windmill Pointe Village and Kent City MHC for sale. Debt & Equity Finance CBRE 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 Property Tours CBRE representatives will accompany you on property tours. All tours will require a minimum 48 hours advance notice and are subject to schedule availability. All tours must be coordinated by CBRE. You may schedule a property tour by contacting the individual below. CHRISTOPHER BULTINCK / / chris.bultinck@cbre.com Due Diligence Please contact the individual below to obtain items. CHRISTOPHER BULTINCK / / chris.bultinck@cbre.com

25 CHRIS BULTINCK Associate cell CB RICHARD ELLIS Manufactured Housing Group Chicago 311 South Wacker Drive Suite 400 Chicago, IL phone fax CHRIS CLAY Associate cell VAN MARTIN President & Senior Managing Director