moore haven mhp...2020/07/02 · total operating expense $27,893 $27,893 net operating income...
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MOORE HAVEN MHP1 Moore Haven Dr | Bath, NY
OFFERING MEMORANDUM
Moore Haven MHP
CONTENTS
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 10
04 Financial Analysis Income & Expense Analysis 12
Multiyear Cash Flow Assumptions 13
Cash Flow Analysis 14
05 Demographics Demographics 17
Demographic Charts 19
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 should
not 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 that
recipient 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 in
the 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 with
respect 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 presence
or 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 or
business 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 information
contained herein, nor has IRE Investment conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of
the 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 of
investigating the subject property.
Moore Haven MHP 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.
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Executive Summary
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Investment Summary
Location Summary
Moore Haven MHP Investment Summary | 05
OFFERING SUMMARY
ADDRESS 1 Moore Haven DrBath NY 14810
COUNTY Steuben
NUMBER OF UNITS 22
FINANCIAL SUMMARY
OFFERING PRICE $587,700
PRICE PER UNIT $26,714
OCCUPANCY 92.00 %
NOI (CURRENT) $66,907
NOI (2021) $76,055
CAP RATE (CURRENT) 11.38 %
CAP RATE (2021) 12.94 %
GRM (CURRENT) 5.60
GRM (2021) 5.44
PROPOSED FINANCING
LOAN TYPE Amortized
DOWN PAYMENT $205,695
LOAN AMOUNT $382,005
INTEREST RATE 4.50 %
LOAN TERMS 25
ANNUAL DEBT SERVICE $25,478
LOAN TO VALUE 65 %
AMORTIZATION PERIOD 25 Years
NOTES Bank financing
DEMOGRAPHICS 1 MILE 3 MILE 5 MILE
2019 Population 14,784 115,050 243,754
2019 Median HH Income $44,457 $51,908 $52,518
2019 Average HH Income $62,896 $72,990 $74,691
Moore Haven MHP Location Summary | 06
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Property Description
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Aerial Map
Parcel Map
Moore Haven MHP Aerial Map | 08
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Rent Roll
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Rent Roll Details
Lot # Rent Type Rent Amount Notes
1 Lot Rent $330 15 Year Resident
3 Lot Rent $330 16 Year Resident
4 Vacant $0
5 Home Rent $600 3 Year Resident
6 Lot Rent $330 4 Year Resident
7 Lot Rent $330 9 Year Resident
8 Lot Rent $330 19 Year Resident
9 Lot Rent $330 7 Year Resident
11 Lot Rent $330 5 Year Resident
12 Lot Rent $330 19 Year Resident
14 Lot Rent $330 20 Year Resident
15 Home Rent $600 2 Year Resident
16 Lot Rent $330 9 Year Resident
17 Lot Rent $330 8 Year Resident
19 Lot Rent $330 21 Year Resident
20 Lot Rent $330 15 Year Resident
21 Lot Rent $330 25 Year Resident
22 Home Rent $600 3 Year Resident
24 Home Rent $630 1 Year Resident
25 Lot Rent $330 7 Year Resident
26 Home Rent $700 New Resident
28 Vacant $0
Moore Haven MHP Rent Roll
Moore Haven MHP Rent Roll | 10
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Financial Analysis
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Income & Expense
Multiyear Cash Flow Assumptions
Multiyear Cash Flow Projections
Moore Haven MHP Income & Expense Analysis | 12
INCOME CURRENT 2021
Gross Potential Income $104,880 $108,026
General Vacancy $7,920 $4,078
Concessions $2,160
Effective Gross Income $94,800 $103,948
Total Operating Expense $27,893 $27,893
Net Operating Income $66,907 $76,055
Annual Debt Service $25,478 $25,478
Debt Coverage Ratio 2.63 2.99
Cash Flow After Debt Service $41,429 $50,577
Principal Reduction $8,288 $8,288
Total Return 24.2 % $49,717 28.6 % $58,865
Income Notes: Pro-forma include 3% YOY lot rent increases, the last vacant home site being filledand $15 rent concession for on time rent payments being eliminated.
EXPENSES CURRENT 2021
Real Estate Taxes $424 $9,336 $424 $9,336
Insurance $40 $875 $40 $875
On-site manager $120 $2,640 $120 $2,640
Septic Maintenance $91 $2,000 $91 $2,000
Repairs/Maintenance/Supplies/Garbage$348 $7,653 $348 $7,653
Water Testing $57 $1,260 $57 $1,260
Licensing & Permits $4 $94 $4 $94
Professional services (accounting) $40 $875 $40 $875
Utilities (electric) $123 $2,710 $123 $2,710
Landscaping & Grounds $20 $450 $20 $450
Total Operating Expense $1,268 $27,893 $1,268 $27,893
Annual Debt Service $1,158 $25,478 $1,158 $25,478
% of EGI 29.42 % 26.83 %
Per Unit Per Unit
REVENUE ALLOCATION
CURRENT
DISTRIBUTION OF EXPENSES
CURRENT
Moore Haven MHP Multiyear Cash Flow Assumptions | 13
GLOBAL
Offering Price $587,700
INCOME
Gross Potential Rent 3.00 %
PROPOSED FINANCING
Loan Type Amortized
Down Payment $205,695
Loan Amount $382,005
Interest Rate 4.50 %
Loan Terms 25
Annual Debt Service $25,478
Loan to Value 65 %
Amortization Period 25 Years
Notes Bank financing
Moore Haven MHP Cash Flow Analysis | 14
CASH FLOW
Calendar Year CURRENT 2021 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Gross Potential Revenue
Gross Rental Income $104,880 $108,026 $111,267 $114,605 $118,043 $121,584 $125,232 $128,989 $132,858 $136,844
Gross Potential Income $104,880 $108,026 $111,267 $114,605 $118,043 $121,584 $125,232 $128,989 $132,858 $136,844
General Vacancy $7,920 $4,078 $0 $0 $0 $0 $0 $0 $0 $0
Concessions $2,160 $0 $0 $0 $0 $0 $0 $0 $0 $0
Effective Gross Income $94,800 $103,948 $111,267 $114,605 $118,043 $121,584 $125,232 $128,989 $132,858 $136,844
Operating Expenses
Real Estate Taxes $9,336 $9,336 $9,336 $9,336 $9,336 $9,336 $9,336 $9,336 $9,336 $9,336
Insurance $875 $875 $875 $875 $875 $875 $875 $875 $875 $875
On-site manager $2,640 $2,640 $2,640 $2,640 $2,640 $2,640 $2,640 $2,640 $2,640 $2,640
Septic Maintenance $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Repairs/Maintenance/Supplies/Garbage $7,653 $7,653 $7,653 $7,653 $7,653 $7,653 $7,653 $7,653 $7,653 $7,653
Water Testing $1,260 $1,260 $1,260 $1,260 $1,260 $1,260 $1,260 $1,260 $1,260 $1,260
Licensing & Permits $94 $94 $94 $94 $94 $94 $94 $94 $94 $94
Professional services (accounting) $875 $875 $875 $875 $875 $875 $875 $875 $875 $875
Utilities (electric) $2,710 $2,710 $2,710 $2,710 $2,710 $2,710 $2,710 $2,710 $2,710 $2,710
Landscaping & Grounds $450 $450 $450 $450 $450 $450 $450 $450 $450 $450
Total Operating Expense $27,893 $27,893 $27,893 $27,893 $27,893 $27,893 $27,893 $27,893 $27,893 $27,893
Net Operating Income $66,907 $76,055 $83,374 $86,712 $90,150 $93,691 $97,339 $101,096 $104,965 $108,951
Annual Debt Service $25,478 $25,478 $25,478 $25,478 $25,478 $25,478 $25,478 $25,478 $25,478 $25,478
Cash Flow $41,429 $50,577 $57,895 $61,233 $64,672 $68,213 $71,860 $75,617 $79,487 $83,473
Effective Gross Income vs Operating Expenses Cash Flow
Moore Haven MHP Cash Flow Analysis | 15
Calendar Year CURRENT 2021 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Financial Metrics
Cash on Cash Return b/t 20.14 % 24.59 % 28.15 % 29.77 % 31.44 % 33.16 % 34.94 % 36.76 % 38.64 % 40.58 %
CAP Rate 11.38 % 12.94 % 14.19 % 14.75 % 15.34 % 15.94 % 16.56 % 17.20 % 17.86 % 18.54 %
Debt Coverage Ratio 2.63 2.99 3.27 3.40 3.54 3.68 3.82 3.97 4.12 4.28
Operating Expense Ratio 29.42 % 26.83 % 25.06 % 24.33 % 23.62 % 22.94 % 22.27 % 21.62 % 20.99 % 20.38 %
Gross Multiplier (GRM) 5.60 5.44 5.28 5.13 4.98 4.83 4.69 4.56 4.42 4.29
Loan to Value 64.97 % 63.57 % 62.09 % 60.50 % 58.88 % 57.16 % 55.36 % 53.49 % 51.53 % 49.48 %
Breakeven Ratio 56.30 % 51.34 % 47.97 % 46.57 % 45.21 % 43.90 % 42.62 % 41.38 % 40.17 % 39.00 %
Price / Unit $26,714 $26,714 $26,714 $26,714 $26,714 $26,714 $26,714 $26,714 $26,714 $26,714
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Demographics
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Demographic Details
Demographic Charts
Moore Haven MHP Demographics | 17
POPULATION 1 MILE 3 MILE 5 MILE
2000 Population 14,714 109,017 231,699
2010 Population 13,730 108,118 228,497
2019 Population 14,784 115,050 243,754
2024 Population 15,393 119,070 252,400
2019 African American 464 7,032 17,059
2019 American Indian 25 432 877
2019 Asian 448 3,208 6,617
2019 Hispanic 1,348 15,798 32,672
2019 Other Race 273 4,412 8,573
2019 White 13,334 96,818 203,744
2019 Multiracial 238 3,027 6,657
2019-2024: Population: Growth Rate 4.05 % 3.45 % 3.50 %
2019 HOUSEHOLD INCOME 1 MILE 3 MILE 5 MILE
less than $15,000 1,002 4,966 10,573
$15,000-$24,999 1,218 7,025 13,733
$25,000-$34,999 1,094 5,686 11,451
$35,000-$49,999 1,189 7,629 16,161
$50,000-$74,999 1,603 9,498 19,234
$75,000-$99,999 988 6,912 14,049
$100,000-$149,999 711 6,339 13,815
$150,000-$199,999 237 2,346 5,103
$200,000 or greater 251 2,323 5,255
Median HH Income $44,457 $51,908 $52,518
Average HH Income $62,896 $72,990 $74,691
HOUSEHOLDS 1 MILE 3 MILE 5 MILE
2000 Total Housing 9,616 55,732 116,244
2010 Total Households 7,800 50,348 104,036
2019 Total Households 8,293 52,724 109,374
2024 Total Households 8,605 54,361 112,880
2019 Average Household Size 1.78 2.16 2.19
2000 Owner Occupied Housing 6,832 37,240 73,926
2000 Renter Occupied Housing 1,475 12,764 29,519
2019 Owner Occupied Housing 6,231 36,300 71,571
2019 Renter Occupied Housing 2,062 16,423 37,803
2019 Vacant Housing 1,849 7,272 16,943
2019 Total Housing 10,142 59,996 126,317
2024 Owner Occupied Housing 6,478 37,899 74,718
2024 Renter Occupied Housing 2,127 16,462 38,163
2024 Vacant Housing 1,798 6,978 16,541
2024 Total Housing 10,403 61,339 129,421
2019-2024: Households: Growth Rate 3.70 % 3.05 % 3.15 %
Source: esri
Moore Haven MHP Demographics | 18
2019 POPULATION BY AGE 1 MILE 3 MILE 5 MILE
2019 Population Age 30-34 563 6,159 13,580
2019 Population Age 35-39 578 6,164 13,531
2019 Population Age 40-44 591 5,815 12,587
2019 Population Age 45-49 653 6,613 14,448
2019 Population Age 50-54 699 7,211 16,159
2019 Population Age 55-59 914 8,503 18,866
2019 Population Age 60-64 1,141 9,145 19,257
2019 Population Age 65-69 1,452 9,003 18,125
2019 Population Age 70-74 1,565 8,078 15,845
2019 Population Age 75-79 1,337 6,221 11,979
2019 Population Age 80-84 1,087 4,573 8,726
2019 Population Age 85+ 1,451 6,163 11,652
2019 Population Age 18+ 13,173 97,038 205,322
2019 Median Age 63 51 50
2019 INCOME BY AGE 1 MILE 3 MILE 5 MILE
Median Household Income 25-34 $59,855 $55,628 $55,297
Average Household Income 25-34 $72,162 $70,701 $71,779
Median Household Income 35-44 $69,551 $64,274 $64,692
Average Household Income 35-44 $84,112 $84,294 $86,049
Median Household Income 45-54 $67,791 $73,608 $72,785
Average Household Income 45-54 $90,166 $96,870 $97,203
Median Household Income 55-64 $56,523 $61,697 $62,723
Average Household Income 55-64 $74,394 $84,013 $85,949
Median Household Income 65-74 $41,916 $50,251 $50,038
Average Household Income 65-74 $60,539 $69,230 $69,348
Average Household Income 75+ $45,984 $48,134 $48,456
2024 POPULATION BY AGE 1 MILE 3 MILE 5 MILE
2024 Population Age 30-34 591 6,544 14,762
2024 Population Age 35-39 573 6,365 14,162
2024 Population Age 40-44 591 6,421 14,084
2024 Population Age 45-49 617 6,180 13,348
2024 Population Age 50-54 698 6,840 15,052
2024 Population Age 55-59 792 7,530 16,533
2024 Population Age 60-64 1,164 9,323 19,993
2024 Population Age 65-69 1,526 9,889 20,171
2024 Population Age 70-74 1,671 9,069 18,106
2024 Population Age 75-79 1,704 8,001 15,345
2024 Population Age 80-84 1,274 5,485 10,486
2024 Population Age 85+ 1,429 6,393 12,125
2024 Population Age 18+ 13,747 100,853 213,545
2024 Median Age 65 52 51
2024 INCOME BY AGE 1 MILE 3 MILE 5 MILE
Median Household Income 25-34 $65,221 $62,116 $61,876
Average Household Income 25-34 $81,216 $80,865 $82,682
Median Household Income 35-44 $78,178 $76,098 $77,128
Average Household Income 35-44 $96,285 $97,347 $100,411
Median Household Income 45-54 $78,361 $82,505 $81,999
Average Household Income 45-54 $104,567 $110,377 $110,949
Median Household Income 55-64 $63,126 $72,347 $74,613
Average Household Income 55-64 $86,956 $97,365 $100,429
Median Household Income 65-74 $49,901 $56,475 $56,293
Average Household Income 65-74 $72,546 $81,588 $82,048
Average Household Income 75+ $54,458 $57,114 $57,456
Moore Haven MHP Demographic Charts | 19
1 Mile Radius 3 Mile Radius 5 Mile Radius
2019 Household Income
1 Mile Radius 3 Mile Radius 5 Mile Radius
2019 Population by Race
Moore Haven MHP Demographic Charts | 20
2019 Household Occupancy - 1 Mile Radius
Average Income Median Income
2019 Household Income Average and Median
