orchard mobile park - salem, or mobile park salem, oregon pro forma of income and expenses income...

Orchard Mobile Park 3195 Ellis Way, NE

Salem, Oregon

A 71-Space, All Ages Mobile Home Park

July 2012

For further information contact:

Loren Landau Commonwealth Commercial Brokerage Company

18150 SW Boones Ferry Rd. Portland, Oregon 97224

503-546-7652 • Fax: 503-768-4660 • [email protected]

Orchard Mobile Home ParkSalem, OR

Terms of SalePark Price: 3,000,000$ Down Payment: 950,000 Balance: 2,050,000$

10-year Fixed$ 2,050,000

3605.00%

$ 11,005 $ 132,060

Investment SummaryPrice per Space 42,254$

Capitalization Rate 7.5%Net Operating Income 223,667$

Cash Flow 91,607$ Return on Cash Invested 9.6%

Financing: Purchaser to secure a new loan on the best available terms. Any and all costs associated with securing the new loan shall be borne by Purchaser. The debt service appearing in the pro forma reflects the following terms:

PrincipalAmortization Term (mos.)

InterestMonthly PaymentsAnnual Payments

7/9/2012Orchard Mobile Park Salem.xls.xls

Orchard Mobile ParkSalem, Oregon

Pro Forma of Income and Expenses

Income (1) RentPro Forma

Income68 MH Spaces @ $415 338,640$

3 RV Spaces @ $299 10,764 71 Space Rental Income 349,404

Sewer Income (2) 12,649 Water Income (2) 7,281 Other Income (2) 4,251

Total Gross Income 373,585$ Less: Vacancy/Credit Loss (3) 5.0% (17,470) Gross Effective Income 356,115$

Operating Expenses (4)

Real Property Taxes (11/12) 24,515 Insurance 923 Water 8,311 Sewer 16,171 Gas 1,686 Electricity 5,821 Garbage 13,950 On-Site Manager

Salary 24,100 Space Rent 7,470

Payroll Expense 2,289 Utility Billing 2,799 Repair/Maintenance - 5% (5) 17,806 Office Expenses 5,106 Legal and Accounting - Budget 1,500

132,448

Net Operating Income 223,667$ Debt Service 132,060

Before Tax Cash Flow 91,607$ Notes

1.2.3.

4.5.

Rents last increased $10.00/month in January, 2012.

Unless otherwise noted represents actual 2011 expenses.

There are currently three (3) vacancies plus one (3) park-owned home for sale. If the park-owned homes are not sold prior to closing, the Seller will pay space rent until the homes are sold to a qualified resident to remain in the park. Stablilized pro forma vacancy is projected at 5%.

Represents actual 2011 income.

The pro forma figure represents 5% of total gross income. The actual 2011 repair and maintenance expense was $94,079.88 which included $91,022.18 in expenses to establish Spaces 1A and 1B and remodel five homes within the park.

7/9/2012Orchard Mobile Park Salem.xls.xls

Orchard Mobile Park, Salem, OR - 05/16/12 - 1

PROPERTY DESCRIPTION GENERAL DESCRIPTION: Orchard Mobile Park is an older, all ages mobile

home community centrally located within the city limits of Salem, Oregon. The property is located west of Interstate 5 and south of Market Street in an older, established residential neighborhood. Orchard Mobile Park is located within walking distance of numerous commercial businesses located along Market Street. See enclosed vicinity map and site plan.

AGE: 1950’s ACREAGE: 4.72 acres. ZONING: RS – Single Family Residential. FLOOD PLAIN STATUS: Orchard Mobile Park is located outside any 100

flood plain zone or flood risk area. IMPROVEMENTS: - Interior Streets Interior streets are 22 feet wide and are in average

condition. The streets are flat without curbs or adjacent sidewalks.

- Off-Street Parking Off-street parking for two vehicles is provided on

each space. The driveways are typically gravel although there are some paved.

- Carports/Storage Sheds Carports and storage sheds are optional. Most

residents have awnings over their entry doors; a few residents have free standing or awning style carports. Tenants are responsible for providing their own storage sheds and maintaining their storage sheds and/or carports.

- Space Sizes Spaces are typically 35 feet wide by 50 to 55 feet

deep.


- SW/DW Ratio There are two doublewide spaces in the park. The remaining spaces are singlewide. Several of the spaces are occupied with permanent, monthly RV’s.

- Perimeter Fencing The perimeter is enclosed with a 6-ft. high chain

link fence with green vinyl slats along the west boundary. The north boundary is enclosed with a 6-ft. high chain link fence without slats. Portions of the east boundary are enclosed with 4-ft. high chain link fences or 6-ft. high chain link fences. The south boundary fronts on Ellis Avenue and is unfenced.

- Laundry Room/ A wood frame building measuring 30 ft by 76 ft. is

Recreation Room / located in the center of the park and houses the Apartment recreation center, park office, laundry room, and men’s and women’s restrooms. The

laundry room contains two park-owned Speed Queen washers and dryers.

- Park-Owned Homes Three manufactured park-owned homes are

located within the park. The Seller will pay space rent on the homes until they are sold to a qualified buyer to remain in Orchard.

- Utility Shed A wood frame utility shed measuring 9 feet by 12

feet is located adjacent to the recreation center and is used to store park equipment.

UTILITY SYSTEMS:

- Interior Lighting Overhead street lights on power poles are located

throughout the community.

- Electricity 200 amp electrical service is provided to each space.

- Water System Orchard Mobile Park is connected to City of Salem

public water. The current owner installed new water lines and individual meters within the last seven years.


- Sewer System Orchard Mobile Park is connected to City of Salem public sewer.

- Natural Gas Natural gas service is extended throughout the

park. UNDERLYING FINANCING: All existing underlying debt will be paid off at

closing. 2011/2012 TAX INFORMATION:

Parcel # RMV - Land RMV – Imp. Total RMV

Assessed Value Taxes

R26897 $487,250 $1,436,250 $1,923,500 $1,309,100 $20,572.10

feetmeters

300100

©2011 MapQuest, Inc. Use of directions and maps is subject to the MapQuest Terms of Use. We make no guarantee of the accuracy of their content, road conditions or route usability. You assume all risk of use. View Terms of Use

Map of: 3195 Ellis Way NE Salem, OR 97301-1743

Notes Orchard Mobile Home Park

©2012 MapQuest - Portions ©2012 , Intermap | Terms

2000ft500m

Page 1 of 13195 Ellis Way NE, Salem, OR 97301 Directions, Location and Map | MapQuest

5/7/2012http://www.mapquest.com/print?a=app.core.d1ad944ff2cbe5069e5bd834

©2011 MapQuest, Inc. Use of directions and maps is subject to the MapQuest Terms of Use. We make no guarantee of the accuracy of their content, road conditions or route usability. You assume all risk of use. View Terms of Use

Map of: 3195 Ellis Way NE Salem, OR 97301-1743

Notes

Orchard Mobile Home Park Vicinity Map

©2012 MapQuest - Portions ©2012 , Intermap | Terms

2mi5000m

Page 1 of 13195 Ellis Way NE, Salem, OR 97301 Directions, Location and Map | MapQuest

5/7/2012http://www.mapquest.com/print?a=app.core.d1ad944ff2cbe5069e5bd834

Orchard Mobile Home Park - Salem, Oregon

orchard mobile park - salem, or mobile park salem, oregon pro forma of income and expenses income...

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