dix mobile home park - loopnet...dix mobile home park income & expense analysis | 12 income june...
TRANSCRIPT
DIX MOBILE HOMEPARK1028 Dix Ave | Hudson Falls, NYOFFERING MEMORANDUM
Dix Mobile Home ParkCONTENTS
Exclusively Marketed by:
Steven [email protected]
We obtained the following 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 otherconditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent the current or future performance of the property. You and your tax and legal advisors should conduct yourown investigation of the property and transaction.
01 Executive Summary Investment Summary 5 Location Summary 6
02 Property Description Aerial Map 8
03 Rent Roll Rent Roll Details 10
04 Financial Analysis Income & Expense Analysis 12 Multiyear Cash Flow Assumptions 13 Cash Flow Analysis 14
05 Demographics Demographics 17 Demographic Charts 18
The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from IRE Investment and it shouldnot be made available to any other person or entity without the written consent of IRE Investment. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees thatrecipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property, please promptly return this offering memorandum to IRE Investment.This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest inthe subject property. The information contained herein is not a substitute for a thorough due diligence investigation. IRE Investment has not made any investigation, and makes no warranty or representation withrespect 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 presenceor absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or financial condition orbusiness prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe reliable; however, IRE Investment has not verified, and will not verify, any of the informationcontained herein, nor has IRE Investment conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness ofthe information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses ofinvestigating the subject property.
Dix Mobile Home Park Confidentiality and Disclaimer | 03
CONFIDENTIALITY AND DISCLAIMER
PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONTACT IRE INVESTMENT FOR MORE DETAILS.Copyright © 2020 CREOP, LLC. All Rights Reserved.
Dix M
obile Hom
e Park | Executive Summ
ary
Executive Summary
DIX
MO
BIL
E H
OM
E PA
RK
01
......
......
......
......
......
......
......
......
Investment Summary
Location Summary
Dix Mobile Home Park Investment Summary | 05
OFFERING SUMMARYADDRESS 1028 Dix Ave
Hudson Falls NY 12839COUNTY WashingtonNUMBER OF UNITS 38OWNERSHIP TYPE Fee Simple
FINANCIAL SUMMARYOFFERING PRICE $1,325,000PRICE PER UNIT $34,868OCCUPANCY 84.00 %NOI (June 1, 2020) $126,446NOI (June 1, 2021) $131,534CAP RATE (June 1, 2020) 9.54 %CAP RATE (June 1, 2021) 9.93 %GRM (June 1, 2020) 6.33GRM (June 1, 2021) 6.14
PROPOSED FINANCINGLOAN TYPE Fully AmortizedDOWN PAYMENT $331,250LOAN AMOUNT $993,750INTEREST RATE 4.30 %ANNUAL DEBT SERVICE $64,941LOAN TO VALUE 75 %AMORTIZATION PERIOD 25 Years
DEMOGRAPHICS 1 MILE 3 MILE 5 MILE2016 Population 3,757 29,091 56,8472016 Median HH Income $50,445 $47,167 $52,6972016 Average HH Income $65,778 $61,328 $69,150
Dix Mobile Home Park Location Summary | 06
Dix M
obile Hom
e Park | Property Description
Property Description
DIX
MO
BIL
E H
OM
E PA
RK
02
......
......
......
......
......
......
......
......
Aerial Map
Parcel Map
Dix Mobile Home Park Aerial Map | 08
Dix M
obile Hom
e Park | Rent R
oll
Rent Roll
DIX
MO
BIL
E H
OM
E PA
RK
03
......
......
......
......
......
......
......
......
Rent Roll Details
Site Number Site Type Rent Notes
1 Resident owned $455.80
2 Resident owned $455.80
3 Resident owned $455.80
4 Resident owned $455.80
5 Resident owned $455.80
6 Resident owned $455.80
7 Resident owned $455.80
8 Resident owned $455.80
9 Resident owned $455.80
10 Resident owned $455.80
11 Resident owned $455.80
12 Resident owned $455.80
13 Resident owned $455.80
14 Resident owned $455.80
15 Resident owned $455.80
16 Resident owned $455.80
17 Resident owned $455.80
18 Resident owned $455.80
19 Resident owned $455.80
20 Resident owned $455.80
21 Resident owned $455.80
22 Resident owned $455.80
23 Resident owned $455.80
24 Resident owned $455.80
25 Resident owned $455.80
26 Resident owned $455.80
27 Resident owned $455.80
28 Resident owned $455.80
29 Resident owned $455.80
30 Resident owned $455.80
31 Resident owned $455.80
32 Resident owned $455.80 Resident Manager
33 Yard rental $135.00
34 Vacant $0.00
35 Vacant $0.00
36 Vacant $0.00
37 Vacant $0.00
38 Vacant $0.00
Monthly Total $14,720.60
Dix MHP Rent Roll
Dix Mobile Home Park Rent Roll Details | 10
Dix M
obile Hom
e Park | Financial Analysis
Financial Analysis
DIX
MO
BIL
E H
OM
E PA
RK
04
......
......
......
......
......
......
......
......
Income & Expense
Multiyear Cash Flow Assumptions
Multiyear Cash Flow Projections
Dix Mobile Home Park Income & Expense Analysis | 12
INCOME JUNE 1, 2020 JUNE 1, 2021
Gross Potential Rent $207,844 $214,080
Other Income $1,620 $1,620
Gross Potential Income $209,464 $215,700
Less: General Vacancy $32,818 $33,802
Effective Gross Income $176,646 $181,898
Less: Expenses $50,200 $50,364
Net Operating Income $126,446 $131,534
Principal Reduction $22,210 $22,210
Total Return 25.3 % $83,715 26.8 % $88,803
Income Notes: Income calculated based off of rental rate increases recently sent out that willbecome effective June 1, 2020. A 3% YOY rental increase included in proforma.Other income is yard rental income a current resident pays for use of the lot.
EXPENSES JUNE 1, 2020 JUNE 1, 2021
Real Estate Taxes $348 $13,234 $348 $13,234
Insurance $36 $1,359 $36 $1,359
Management/Professional Fee $144 $5,470 $148 $5,634
Dues, subscriptions, bank service $5 $175 $5 $175
Repairs & Maintenance $266 $10,105 $266 $10,105
Bad Debt Expense/ Bank ServiceCharges
$75 $2,845 $75 $2,845
Permits, Licensing and operatingsupplies
$99 $3,763 $99 $3,763
Administration $17 $660 $17 $660
Utilities (water, electic) $172 $6,525 $172 $6,525
Rubbish removal $160 $6,064 $160 $6,064
Total Operating Expense $1,321 $50,200 $1,325 $50,364
Annual Debt Service $1,709 $64,941 $1,709 $64,941
% of EGI 28.42 % 27.69 %
Per Unit Per Unit
Expense Notes: Manager gets free lot rent in exchange for services. The management line item hasbeen included in this expense breakdown, but his lot rent has been added back intoincome.
REVENUE ALLOCATION
DISTRIBUTION OF EXPENSES
Dix Mobile Home Park Multiyear Cash Flow Assumptions | 13
GLOBALSale Price $1,325,000Analysis Period 2018 year(s)
INCOMEGross Potential Rent 3.00 %Other Income 0.25 %
EXPENSESReal Estate Taxes 1.85 %Insurance 1.85 %Management/Professional Fee 1.85 %Dues, subscriptions, bank service 1.85 %Repairs & Maintenance 1.85 %Bad Debt Expense/ Bank Service Charges 1.85 %Permits, Licensing and operating supplies 1.85 %Administration 1.85 %Utilities (water, electic) 1.85 %Rubbish removal 1.85 %
PROPOSED FINANCINGLoan Type Fully AmortizedDown Payment $331,250Loan Amount $993,750Interest Rate 4.30 %Annual Debt Service $64,941Loan to Value 75 %Amortization Period 25 Years
Dix Mobile Home Park Cash Flow Analysis | 14
CASH FLOWCalendar Year June 1,
2020June 1,2021
Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Gross Potential RevenueGross Rental Income $207,844 $214,080 $220,502 $227,117 $233,931 $240,949 $248,177 $255,623 $263,291 $271,190 $279,326 $287,706 $296,337 $305,227 $314,384Other Income $1,620 $1,620 $1,624 $1,628 $1,632 $1,636 $1,640 $1,644 $1,649 $1,653 $1,657 $1,661 $1,665 $1,669 $1,673Gross Potential Income $209,464 $215,700 $222,126 $228,746 $235,563 $242,585 $249,818 $257,267 $264,940 $272,843 $280,983 $289,367 $298,002 $306,896 $316,057General Vacancy $32,818 $33,802 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Effective Gross Income $176,646 $181,898 $222,126 $228,746 $235,563 $242,585 $249,818 $257,267 $264,940 $272,843 $280,983 $289,367 $298,002 $306,896 $316,057Operating ExpensesReal Estate Taxes $13,234 $13,234 $13,479 $13,728 $13,982 $14,241 $14,504 $14,773 $15,046 $15,324 $15,608 $15,896 $16,191 $16,490 $16,795Insurance $1,359 $1,359 $1,384 $1,410 $1,436 $1,462 $1,489 $1,517 $1,545 $1,574 $1,603 $1,632 $1,663 $1,693 $1,725Management/Professional Fee $5,470 $5,634 $5,634 $5,634 $5,634 $5,634 $5,634 $5,634 $5,634 $5,634 $5,634 $5,634 $5,634 $5,634 $5,634Dues, subscriptions, bank service $175 $175 $178 $182 $185 $188 $192 $195 $199 $203 $206 $210 $214 $218 $222Repairs & Maintenance $10,105 $10,105 $10,292 $10,482 $10,676 $10,874 $11,075 $11,280 $11,489 $11,701 $11,918 $12,138 $12,363 $12,591 $12,824Bad Debt Expense/ Bank Service Charges $2,845 $2,845 $2,898 $2,951 $3,006 $3,061 $3,118 $3,176 $3,235 $3,294 $3,355 $3,417 $3,481 $3,545 $3,611Permits, Licensing and operating supplies $3,763 $3,763 $3,833 $3,904 $3,976 $4,049 $4,124 $4,200 $4,278 $4,357 $4,438 $4,520 $4,604 $4,689 $4,776Administration $660 $660 $672 $685 $697 $710 $723 $737 $750 $764 $778 $793 $807 $822 $838Utilities (water, electic) $6,525 $6,525 $6,646 $6,769 $6,894 $7,021 $7,151 $7,284 $7,418 $7,556 $7,695 $7,838 $7,983 $8,130 $8,281Rubbish removal $6,064 $6,064 $6,176 $6,290 $6,407 $6,525 $6,646 $6,769 $6,894 $7,022 $7,152 $7,284 $7,419 $7,556 $7,696Total Operating Expense $50,200 $50,364 $51,192 $52,034 $52,893 $53,767 $54,657 $55,564 $56,488 $57,429 $58,387 $59,363 $60,357 $61,369 $62,401Net Operating Income $126,446 $131,534 $170,935 $176,711 $182,670 $188,818 $195,160 $201,703 $208,452 $215,414 $222,596 $230,004 $237,645 $245,527 $253,657Annual Debt Service $64,941 $64,941 $64,941 $64,941 $64,941 $64,941 $64,941 $64,941 $64,941 $64,941 $0 $0 $0 $0 $0Cash Flow $61,505 $66,593 $105,994 $111,770 $117,729 $123,877 $130,219 $136,762 $143,511 $150,473 $157,654 $165,062 $172,704 $180,586 $188,716
Effective Gross Income vs Operating Expenses Cash Flow
Dix Mobile Home Park Cash Flow Analysis | 15
Calendar Year June 1,2020
June 1,2021
Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Financial MetricsCash on Cash Return b/t 18.57 % 20.10 % 32.00 % 33.74 % 35.54 % 37.40 % 39.31 % 41.29 % 43.32 % 45.43 % 47.59 % 49.83 % 52.14 % 54.52 % 56.97 %CAP Rate 9.54 % 9.93 % 12.90 % 13.34 % 13.79 % 14.25 % 14.73 % 15.22 % 15.73 % 16.26 % 16.80 % 17.36 % 17.94 % 18.53 % 19.14 %Debt Coverage Ratio 1.95 2.03 2.63 2.72 2.81 2.91 3.01 3.11 3.21 3.32 3.43 3.54 3.66 3.78 3.91Operating Expense Ratio 28.41 % 27.68 % 23.04 % 22.74 % 22.45 % 22.16 % 21.87 % 21.59 % 21.32 % 21.04 % 20.77 % 20.51 % 20.25 % 19.99 % 19.74 %Gross Multiplier (GRM) 6.33 6.14 5.97 5.79 5.62 5.46 5.30 5.15 5.00 4.86 4.72 4.58 4.45 4.32 4.19Loan to Value 74.98 % 73.32 % 71.51 % 69.68 % 67.74 % 65.69 % 63.58 % 61.36 % 59.06 % 56.67 % 54.15 % 51.53 % 48.80 % 45.92 % 42.93 %Breakeven Ratio 65.18 % 63.39 % 52.28 % 51.14 % 50.02 % 48.93 % 47.87 % 46.84 % 45.83 % 44.85 % 43.89 % 42.96 % 42.05 % 41.16 % 40.29 %Price / Unit $34,868 $34,868 $34,868 $34,868 $34,868 $34,868 $34,868 $34,868 $34,868 $34,868 $34,868 $34,868 $34,868 $34,868 $34,868
Dix M
obile Hom
e Park | Dem
ographics
Demographics
DIX
MO
BIL
E H
OM
E PA
RK
05
......
......
......
......
......
......
......
......
Demographic Details
Demographic Charts
Dix Mobile Home Park Demographics | 17
POPULATION 1 MILE 3 MILE 5 MILE
2000 Population 3,205 25,794 50,856
2010 Population 3,719 27,865 55,134
2016 Population 3,757 29,091 56,847
2021 Population 3,725 29,516 57,792
2016 African American 40 449 856
2016 American Indian 13 89 157
2016 Asian 32 240 499
2016 Hispanic 97 830 1,498
2016 White 3,586 27,574 54,001
2016 Other Race 21 165 300
2016 Multiracial 63 570 1,024
2016-2021: Population: Growth Rate -0.85 % 1.45 % 1.65 %
2016 HOUSEHOLD INCOME 1 MILE 3 MILE 5 MILE
less than $15,000 182 1,685 2,743
$15,000-$24,999 186 1,495 2,627
$25,000-$34,999 209 1,619 2,781
$35,000-$49,999 199 1,712 3,163
$50,000-$74,999 323 2,559 4,832
$75,000-$99,999 202 1,502 3,171
$100,000-$149,999 166 1,341 3,143
$150,000-$199,999 58 349 968
$200,000 or greater 45 257 724
Median HH Income $50,445 $47,167 $52,697
Average HH Income $65,778 $61,328 $69,150
HOUSEHOLDS 1 MILE 3 MILE 5 MILE
2000 Total Housing 1,362 11,919 22,738
2010 Total Households 1,567 12,086 23,519
2016 Total Households 1,570 12,519 24,154
2021 Total Households 1,549 12,667 24,511
2016 Average Household Size 2.38 2.28 2.32
2000 Owner Occupied Housing 839 6,047 13,152
2000 Renter Occupied Housing 429 4,969 8,014
2016 Owner Occupied Housing 870 6,490 14,291
2016 Renter Occupied Housing 701 6,029 9,863
2016 Vacant Housing 162 1,230 2,108
2016 Total Housing 1,732 13,749 26,262
2021 Owner Occupied Housing 858 6,540 14,454
2021 Renter Occupied Housing 691 6,127 10,058
2021 Vacant Housing 221 1,536 2,596
2021 Total Housing 1,770 14,203 27,107
2016-2021: Households: Growth Rate -1.35 % 1.20 % 1.45 %
Source: esri
Dix Mobile Home Park Demographic Charts | 18
1 Mile Radius 3 Mile Radius 5 Mile Radius
2016 Household Income
1 Mile Radius 3 Mile Radius 5 Mile Radius
2016 Population by Race
Dix Mobile Home Park Demographic Charts | 19
2016 Household Occupancy - 1 Mile Radius
Average Income Median Income
2016 Household Income Average and Median
