SHORT SALE A 340-SITE MANUFACTURED HOME COMMUNITY INVESTMENT OPPORTUNITY QUAIL RUN Willow Lane, Lenox Township,MI Price: $8,150,000

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1 SHORT SALE A 340-SITE MANUFACTURED HOME COMMUNITY INVESTMENT OPPORTUNITY QUAIL RUN Willow Lane, Lenox Township,MI Price: $8,150,000 F o r a v i d e o t o u r o f t h e p r o p e r t y, g o t o :

2 QUAIL RUN Price: $8,150,000 Price/Site: $23,971 Terms: A l l C a s h SITE INFORMATION Location Willow Ln. Lenox Township, MI County Macomb County Tax Parcel Number Zoning MH, Mobile Home Park District Price $8,150,000 Year Completed 1992 Community Type All age Sites 340 sites total Single-wide 136 sites Double-wide 204 sites Rare opportunity to acquire an attractive, high quality, all age manufactured home community with vacancy upside potential. Twenty seven homes will be included in the sale. Public water and sewer. All sites provide off street parking for at least two vehicles per home. INVESTMENT HIGHLIGHTS Extremely impressive amenity package including a clubhouse with a fully equipped exercise room, sauna, showers, and lounge area, as well as a swimming pool, basketball court and roller hockey rink, a wooded picnic area, and a children s playground. Land Size acres (6.0 sites per acre) Physical Occupancy 72.9% (November 2011) Inventory Homes 27; Cost: $246,289 Avg Land Lease Rents Roads Utility System Sewer Water Electricity Gas $434 (trash is included) Asphalt Public (submetered; billed back to resident) Public (submetered; billed back to resident) DTE Energy Semco Quail Run is conveniently located in New Haven, MI within the Lenox township, and is only 35 miles north of Detroit, the largest city in Michigan with a population of over 4,296,000 in the MSA. Just minutes from beautiful Lake St. Claire, which lies 5 miles to the Southeast. Close proximity to Interstate-94, which leads to Detroit to the South, and Port Huron 28 miles to the North. Selfridge Air National Guard Base lies minutes to the South and is one of the largest and most complex joint Reserves Forces bases in the nation. It is home to TACOM, the tankautomotive and armaments command. The community is situated less than a mile to the east of New Haven High School. AREA HIGHLIGHTS Quail Run is in close proximity to numerous golf courses, including Oak Ridge Golf Club directly to the east. Convenient access to multiple retail destinations, including Lakeside Mall, Chesterfield Center, as well as a Lowes, Home Depot, Walmart, and Target. The average household income within a 3 mile radius is $73,642.

3 RENT COMPARABLES

4 PROFORMA INCOME OCT 11 T-8 PROFORMA PER SITE GROSS SCHEDULED RENT 1 $1,730,838 $1,761,995 $1,765,686 $1,771,291 $5,210 Less: (Gain)/Loss-to-Lease 10, GROSS POTENTIAL INCOME $1,720,739 $1,761,995 $1,765,836 $1,771,291 $5,210 Less: Vacancy 296, ,477 $374,942 $478,249 $1,407 Less: Bad Debt 36,541 32,813 $64,316 $53, Less: Concessions 35, , ,227 79, TOTAL RENTAL INCOME $1,351,658 $1,260,990 $1,220,351 $1,160,196 $3,412 Plus: Utility Income 2 $112,168 $122,363 $162,099 $166,962 $491 Plus: Other Income 2 $29,087 $56,592 $50,500 $52,015 $153 Plus: Home Rental Income $21, TOTAL OTHER INCOME $141,255 $178,955 $212,599 $239,977 $706 EFFECTIVE GROSS INCOME $1,492,912 $1,439,945 $1,432,950 $1,400,173 $4,118 OPERATING EXPENSES OCT 11 T-8 PROFORMA PER SITE Repairs & Maintenance $64,297 $71,918 $78,342 $68,000 $200 Payroll 189, , , , Administrative 28,441 29,363 30,083 28, Marketing ,700 5 Utilities 4 Electricity 7,641 10,528 7,289 7, Water 95, , , , Gas 13,466 8,892 6,636 6, Trash 32,706 25,644 28,190 29, TOTAL VARIABLE EXPENSES $431,894 $457,417 $488,450 $458,003 $1,347 Taxes 5 178, , , , Other Tax 11,408 11,240 1,724 11, Insurance 48,313 48,959 33,815 49, Management Fee 73,466 70,899 72,102 56, TOTAL OPERATING EXPENSES $743,842 $756,356 $745,367 $730,893 $2,150 Plus: Capital Reserves , Total Expenses $743,842 $756,356 $745,367 $742,793 $2,185 NET OPERATING INCOME $749,071 $683,589 $687,583 $657,380 $1,933 1 Actual numbers based on financials provided by client 2 Proforma GSR grown 0% from the Site Mix 3 Utility and Other Income grown 3% from Oct 11 T-8 4 Adjusted Utilities grown 3% from Oct 11 T-8 5 Proforma Taxes = 2011 SEV Value x 2010 Tax Rate 6 Numbers do not reflect actual expense

5 LOCAL LENOX TOWNSHIP HOUSING COST COMPARISON

6 PRESENTED BY ARA National Manufactured Housing Group FOR MORE INFORMATION ON THIS PROPERTY PLEASE CONTACT NATIONAL MANUFACTURED HOUSING GROUP: Todd Fletcher Andrew Shih S. MoPac Expressway Barton Oaks Plaza II, Suite 275 Austin, Texas Tel: Fax: 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. F o r a v i d e o t o u r o f t h e p r o p e r t y, g o t o : MULTIHOUSING INVESTMENT SERVICES Atlanta Austin Boca Raton Boston Charlotte Chicago Dallas Dayton Denver Houston Irvine Jacksonville Kansas City Las Vegas Orlando Phoenix Portland Sacramento Salt Lake City Seattle Tampa Washington DC copyright 2011 Apartment Realty Advisors, Inc. All Rights Reserved