KW COMMERCIAL

2520 Mission College Blvd.

Santa Clara, CA 95054MAUREEN CALDWELL-MEURER, KW SILICON CITYCommercial Real Estate Analyst0: 510.915.0092C: 510.915.0092mcmeurer@kwcommercial.comCA DRE# #01908929 - CA DRE# #KW Silicon City 01996355

Clearlake Marina & Manufactured Home Park

OFFERING MEMORANDUM

PRESENTED BY:

1400 SOUTH MAIN ST, LAKEPORT, CA - SENIOR PARK (55+)

OFFERING MEMORANDUM

Each Office Independently Owned and Operated kwcommercial.com/ 2

KW COMMERCIAL

2520 Mission College Blvd.

Santa Clara, CA 95054

Confidentiality & Disclaimer

MAUREEN CALDWELL-MEURER, KW SILICON CITYCommercial Real Estate Analyst0: 510.915.0092C: 510.915.0092mcmeurer@kwcommercial.comCA DRE# #01908929 - CA DRE# #KW Silicon City 01996355

All materials and information received or derived from KW Commercial its directors, officers, agents, advisors, affiliates and/or any third party sourcesare provided without representation or warranty as to completeness , veracity, or accuracy, condition of the property, compliance or lack of compliancewith applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of theproperty for any party’s intended use or any and all other matters.

Neither KW Commercial its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy orcompleteness of the materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, thatmay be furnished for review are not a substitute for a party’s active conduct of its own due diligence to determine these and other matters ofsignificance to such party. KW Commercial will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed inwriting.

EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE.

Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections andinvestigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by theparty including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. KW Commercialmakes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. KW Commercialdoes not serve as a financial advisor to any party regarding any proposed transaction.

All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data orperformance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can beestablished at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as marketconditions,vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party withan attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by theparty with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmentalrequirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. Allproperties and services are marketed by Silicon City in compliance with all applicable fair housing and equal opportunity laws.

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. Itis 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 includeprojections, 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 advisorsshould conduct your own investigation of the property and transaction.

OFFERING MEMORANDUM

PRESENTED BY:

LAKEPORT, CA

PROPERTY INFORMATION

1 | PROPERTY INFORMATION

EXECUTIVE SUMMARY

PROPERTY DESCRIPTION

PROPERTY DETAILS

1PROPERTY INFORMATIONCLEARLAKE MARINA AND 55+ MANUFACTURED HOME PARK

OFFERING MEMORANDUM

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OFFERING SUMMARY

SALE PRICE: $2,100,000

NUMBER OF UNITS: 51 pad sites- 36 slips

CAP RATE: 7.3%

GOI $293,920

LOT SIZE: 5.25 Acres

YEAR BUILT: 1962

BUILDING SIZE: 2,000 SF

ZONING:Commercial - Mobile

Home Park

MARKET: Lake County, Clearlake

SUBMARKET: Lakeport

SFR/OFFICE/GARAGE 2500 SF

PROPERTY OVERVIEWThe panoramic lakefront view from Clearlake Marina and MHP is soothing, whetherbirdwatching, boating, skiing, or just watching the view. The Relaxing 55+Manufactured Home Park is on Main Street in Lakeport. The 51 pad sites include15 doublewides, and 26 singlewides, with 6 vacancies. There are 5 to 6recreational vehicles. The single family residence was remodeled, and now totalsapproximately 2500 SF - 3 bedrooms with office or sewing room, attached bath,plus the garage and carport. The adjoining office is on the backside of the house,complete with security cameras. The approximate 800 SF storage/workshop is agood place to rehab MH. The property assets include unit 28B, an internationaldump truck, pickup truck, golf cart, street sweeper, and more. See attached.

PROPERTY HIGHLIGHTS• 5.25 AC

• 51 pad site MHP, 1 SFR

• 36 Marina slips

• 15 Doublewides, 26 Singlewides, and 5-6 Recreational Vehicles

• Vacant - 6 (4 Dirt)

• New Asphalt! - Captital Expenditure of $122,000

• $1,052,000 Loan - interest rate at 5.5% (potential seller carry)

• Property assets valuing $55K to $60K

Executive Summary

CLEARLAKE MARINA AND 55+ MANUFACTURED HOME PARK 1 | PROPERTY INFORMATION

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FINANCIAL HIGHLIGHTS

There is City Water and Sewer. Per the manager, the Gross

Operating Income is $293K. The 2018 Pass-Through Utilities were

$54,870, increased during 2017 to $110/pad. Marina Income

totals: 2017 = $11,861, 2018 = approx $7,000. Other income

includes laundry, late fees, and storage. Add value items include

renting the SFR for $1500/month - $18K/year, Savings on Trash

$800/month, and increasing the Marina income to a potential of

$25,740. See Cap Rate ProForma detail.

LOCATION OVERVIEW

Clearlake is 19 miles long and 8 miles wide. A 40-minute beautiful

drive from Healdsburg brings you to the Lakeport side of

Clearlake, a convenient flight, 1 1/4 hours from the Santa Rosa or

Sonoma County Airports. The small town atmosphere provides for

local bands, shops and fairs. Renovation of the nearby Konocti

Harbor Resort are reported to begin soon, per a representative of

the new owners, with plans of a indoor theater, restaurant, bars,

and guest suites.

The community trade population of 35,00 work in local stores such

as UPS, Grocery Outlet, Dollar Store, Savings Bank of Mendocino,

rental boat and bike shops. The small town character with local

restaurants and activities such as the Pear Festival and Bass

Fishing, Water skiing bring people from a distance to enjoy the

lakeside community. The lakefront SFRs provide for a unique

owner-occupied property.

Property Description

CLEARLAKE MARINA AND 55+ MANUFACTURED HOME PARK 1 | PROPERTY INFORMATION

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SALE PRICE $2,100,000

LOCATION INFORMATION

Building Name Clearlake Marina and 55+ Manufactured Home Park

Street Address 1400 South Main Street

City, State, Zip Lakeport, CA 95453

County/Township Lake/Lakeport

Market Clearlake

Submarket Lakeport

Cross Streets Lakeport Boulevard, Royale

Side Of Street South

Road Type Paved

Market Type Small

Nearest Highway Hwy 101 to 175, or from Napa 29 to 175

BUILDING INFORMATION

SFR Building Size 2,000 SF

GOI $293,920

Cap Rate 7.3%

Building Class B-C

Year Built - Park 1962

Last Renovated - Pavement 2018

Occupancy % - 7 Sites 86.3%

Amenities Laundry 2 washer/dryers

Storage Building 800 SF

Walking/fishing from the dock

Pad Sites 51

Marina Slips 36

Framing SFR - Wood

Number Of Buildings 52

PROPERTY DETAILS

Property Type Marina and Mobile Home Park

Zoning Commercial - Mobile Home Park

Lot Size 5.25 Acres

APN Nos: 005-033-58 01 , 005-631-110

Submarket Lakeport

PARKING & TRANSPORTATION

Parking Type Surface

UTILITIES & AMENITIES

Restrooms 2

Landscaping Yes

Laundry Laundry Room - Two Washer Dryers

Utilities

Paid By

Tenant

City Water & Sewer

Submetered from Pedestal

Water & Sewer, see sheet

Propane tank on property

Exterior See MHP Guildlines for Paint Colors and trim,

etc. Tree'd park, view of Marina.

Interior

Description

Quaint home. Sunroom in the midst of

converting to a bedroom, or back to a room/

sunroom.

Property Details

CLEARLAKE MARINA AND 55+ MANUFACTURED HOME PARK 1 | PROPERTY INFORMATION

LOCATION INFORMATION

2 | LOCATION INFORMATION

REGIONAL MAP

LOCATION MAPS

AERIAL MAP

2LOCATION INFORMATIONCLEARLAKE MARINA AND 55+ MANUFACTURED HOME PARK

OFFERING MEMORANDUM

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Clearlake Marina and 55+Manufactured Home Park

Regional Map

CLEARLAKE MARINA AND 55+ MANUFACTURED HOME PARK 2 | LOCATION INFORMATION

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Location Maps

CLEARLAKE MARINA AND 55+ MANUFACTURED HOME PARK 2 | LOCATION INFORMATION

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Clearlake Marina and 55+Manufactured Home Park

Aerial Map

CLEARLAKE MARINA AND 55+ MANUFACTURED HOME PARK 2 | LOCATION INFORMATION

FINANCIAL ANALYSIS

3 | FINANCIAL ANALYSIS

CLEARLAKE P&L 2017-2019

RENT ROLL - FEBRUARY 2019

RENT ROLL - FEBRUARY 2019 - BOAT SLIPS

PROPERTY ASSETS INCLUDED

3FINANCIAL ANALYSISCLEARLAKE MARINA AND 55+ MANUFACTURED HOME PARK

OFFERING MEMORANDUM

Clearlake Marina and MHP P&L 2017 2018 2019 2020ALL FIGURES ARE ANNUAL UNLESS OTHERWISE STATED See Below

PAD SITE RENTAL INCOME 218,855.00 221,052.00 Less: Vacancy & Cr. Losses 4 dirt (22B, 24B rented 3/2019) 7.84 11% 7.84%

EFFECTIVE RENTAL INCOME

Utility Pass through Income 54,870.00 61,105.00 Fees and Fines Collected 2,455.00 1,490.00 Laundry Coin-Op Income 1,348.50 2,138.21 Parking/Storage - Not collected by previous property manager 850.00 See BelowMH Purchase 1,600.00 500.00 Marina Income + short term 10,411.00 7,635.00 GROSS OPERATING INCOME 290,389.39 293,920.21 Income not collectd from property manager

OPERATING EXPENSES: 2017 notesSFR APN 005-033 580 Property Taxes Below

Rental credit annual 6,700.00 6,780.00 Bank fees, late fees, dues BnkFees$113, Dues$210 323.36 402.71 Property Insurance annual 5,801.00 5,591.00 Office Supplies/Telecommunications 1,134.33 1,235.90 Bentax Accounting Firm Fees Bentax - Annual 1,750.00 1,850.00 Legal 280.00 72.00 On Site Management - Estimated Pro Forma 2018 11,400.00 4,000.00 Advertising/signage annual 206.85 202.27 State MH Licenses/Permits annual 929.00 196.00 Business taxes LLC+Refund+Lakeport 800.00 800.00 MHP Real Estate Taxes $12,801+12,078 24,879.00 26,304.00 Taxes/Worker's Comp - None

Utilities - Office/Main House 1,415.56 731.00 Utilities - Unit 28B - Unverified annual 3,862.70 1,969.30 Comm Morale/Volunteer Support 391.33 438.35 Water Base Fees $1333.63/month pd 13 pmnts =17337.48 16,003.83 16,003.56 Water - Usage overage annual 6,623.92 4,853.89 Sewer service " " 47,735.49 41,654.25 Waste Collections " " 13,843.16 12,161.40

Park Ground Operations:

Building Materials 4,115.50 735.67 Landscaping Trees, Supplies 1,117.14 596.32 Outside General Labor - Unverified 4,579.43 1,169.00 Park Vehicle 331.74 412.95 Waste/Dump Runs 700.81 371.04 Plumbing/Sewer/Pump Repair 3,094.00 1,245.58 Repairs and Maintenance - Unverified 5,533.12 2,000.00 Street Lights Security - Unverified funds 3,394.51 2,198.49 Laundry Repairs Maintenance 68.10 195.00 Laundry St Lights, shop Utilities Unit 28B 1,992.79 1,246.95 Tax Encroachment Lease Fee 3,153.06 3,153.00 Small Tools - Storm Damage/Dock Repair 7,077.97 2,000.00 TOTAL OPERATING EXPENSES 179,237.70 140,569.63

NET OPERATING INCOME 111,151.69 153,350.58 MH Repair - Not sure of year 3,072.00

668.93

Rent sttart dates, and estimated start dates24B - not collected 6,900.00 6,900.00 17B - Rent $400/month starts February 2019 per onsite manager. Estimated 1,200.00 4,550.00 rent collected unverified for 2018.

28B - $850/month starting March 2019 2,550.00 7,650.00 6 marina slips prorated for 9 months 5400 4,050.00 Start Date after County approval, estimated March 2019

Marina slips @ $75/month for covered, $50 uncovered

NOI of $153,50.58 + Leases starting March and April 2019 169,600.58 22B Start Date estimated March - April 5,175.00 24B Estimated start date March-May @ $400-$475/month 4,050.00

NOI of $153,50.58 + Leases starting March and April 2019 174,775.58

estimated purchase for 22B

4 vacant pad sites to fill see ProForma vacant single family residence

Unverified Funds not agreed to by owner- part or all paid for managers unit or manager

2019 Cap Rate Increase(s) and ProForma

Purchase Price NOI 2017 NOI 2018

Current leases NOI 2019

Cap Rate 2019 - Ad Value starting March-May 2019

2020 Add Value Items

2020 Pro Forma Income

2020 Cap Rate Itemized

2,100,000.00$ 111,151.69 TRUE 174,775.58 8.32%Cap Rate 2018 2020 0.00% 8.32%

2019 Pro Forma

NOI w/ Property Tax for SFR added 12,582.00 162,193.58 7.72%Add Value Figures calculated for 8 months Add Value - 8 months

1 SFR Rental 11,200.00 173,393.58 8.26% 16,800.00 178,993.58

2

Trash Reduction for individual trash cans/current cost to owner $1100/month. Chg to tenants 8,800.00 182,193.58 8.68% 13,200.00 192,193.58 9.15%

3Propane Start Lease to Suburban and/or credit 1,600.00 183,793.58 8.75% 1,600.00 193,793.58 9.23%

4Combine APNs -Local Property Tax reduction $3997 3,997.00 187,790.58 8.94% 3,997.00 197,790.58 9.42%

5Pad rental for 4 vacant pads @ 450/month +125 Utilities 15,200.00 202,990.58 9.67% 27,600.00 225,390.58 0.10733

6

Marina Rental Income avergaging of 18 slip rentals, estimate of 12 slips @$75/slilp, 6 slips @ $50/slip 8,000.00 210,990.58 10.05% 14400 239,790.58 0.11419

Property Assets:1990 Nissan Truck1990 International Dumpster w/ 8X16 Dump bedCedar sidingMH Receivables - TBDGolf carts, All Stainless Steel Galvanized bolts, dock hardware, 2,000 feet fencing, misc plumbing

Violations - RepairedUST Pre-lim #21

Clearlake Marina MHPRent Roll - February 2019

Homeowner UNIT TYPE HomeSite Rent Utilities

A Side 1 Bray Single 410$ 110$ A Side 2 Fambrini 0 RecVeh 0 370$ 110$ A Side 3 Butler Single 425$ 110$ A Side 4 Everhardt Single 350$ 110$ A Side 5 Poindexter Single 390$ 110$ A Side 6 Castanuela Single 400$ 110$ A Side 7 Matthews 0 RecVeh 0 425$ 110$ A Side 8 Higgs Single 380$ 110$ A Side 9 Steele Single 400$ 110$ A Side 10 Melder Single 405$ 110$ A Side 11 Simms Single 385$ 110$ A Side 12 Unick DOUBLE 395$ 110$ A Side 13 Speed Single 380$ 110$ A Side 14 Hurkett Single 420$ 110$ A Side 15 Winterburn Single 350$ 110$ A Side 16 Spina, Janice DOUBLE 475$ 110$ A Side 17 Welch DOUBLE 380$ 110$ A Side 18 Linker DOUBLE 475$ 110$ A Side 19 Duffy Single 385$ 110$ A Side 20 Barnes/Springer Single 410$ 110$ A Side 21 Robinson Single 430$ 110$ A Side 22 PARK / LAUNDRYA Side 23 Porter DOUBLE 475$ 110$

Double 5 8,915$

Single 15 2,420$ RV 2 Connections 23 sites

Vacant 0Non-Res 1 Total Rent + Utilities 11,335$

TOTAL RENTED 22

HOMESITE

Total Space Income

Total Utility Off Set

Clearlake Marina MHPRent Roll - February 2019

Homeowner UNIT TYPE HomeSite

Rent UtilitiesB Side 1 Bilbrey Single 385$ 110$ B Side 2 VacantB Side 3 PARK GARAGE/STORAGE N/A

B Side 4 Anderson, Margorie Single 395$ 110$ B Side 5 PARK HOME/OFFICEB Side 6 Garcia, Rosmarie DOUBLE 400$ 110$ B Side 7 Carver, Donna Single 385$ 110$ B Side 8 Mata, Michelle 0 RecVeh 0 345$ 110$ B Side 9 Rogers, Monty Single 385$ 110$ B Side 10 Vacant 385$ 110$ B Side 11 Means, Wendy/Rhonda Single 355$ 110$ B Side 12 Louden Single 385$ 110$ B Side 13 Moore Single 380$ -$ B Side 14 VacantB Side 15 Mendez, Chris Single 440$ 110$ B Side 16 Danelson, Vickie DOUBLE 395$ 110$ B Side 17 Speed, George 0 RecVeh 0 400$ B Side 18 Nelson DOUBLE 395$ 110$ B Side 19 Bearce DOUBLE 395$ 110$ B Side 20 Sheehan Single 380$ 110$ B Side 21 Thompson Single 375$ 110$ B Side 22 VacantB Side 23 Olney Single 375$ 110$ B Side 24 Vacant 0 RecVeh 0B Side 25 Vacant 0 RecVeh 0B Side 26 Wooldridge DOUBLE 395$ 110$ B Side 27 VacantB Side 28 Rents March 2019 DOUBLE 850$ 110$ B Side 29 Salisbury, Don, Grandson Alex DOUBLE 475$ 110$ B Side 30 Gannon DOUBLE 440$ 110$ B Side 31 Marley DOUBLE 475$ 110$

Double 9 9,590$

Single 11 2,310$ RV 4 30

Vacant Site 7Non-Res 2 Total Rent + Utilities 11,900$

TOTAL RENTED 24 (( 22- chk - income producing homesites on B Side))

All Vacancies, AR to be updated After any offersAccounts Receivable Not up to DateUnit 24B awaiting paperworkOffer on unit 22B

HOMESITE

Total Monthly Space Income

Total Utility Off Set

City of Lakeport Connections

Clearlake Marina MHPRent Roll - February 2019

First Name Last Name Boat Slips

Monthly Rental

M04 Jim Olney $50M06 Tarpin $75M15 Hector Johns (M.Johns) $50M16 Norma Aldeghi $55M17 Rotherford $55M19 Wolfgang Liebre $55M21 Kevin MurphyM23 Laurence Martin $55M24 Dustin Saylor $60M27 Tice $55

Jerry $75

Monthly Total $585

Clearlake Marina - Boat Slips

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