valley brook mhc - mobilehomeparkstore.com oaks and...mkt mh rent $459 (includes water, sewer &...

SHERMAN OAKS MHC 1144 SHERMAN BLVD. JACKSON, MI 49201

VALLEY BROOK MHC

4620 S. HIGH SCHOOL RD. INDIANAPOLIS, IN 46241

2 MH COMMUNITIES - 1,164 TOTAL SITESTOTAL PRICE: TBD BY MARKET

TERMS: ALL CASHOFFERED INDIVIDUALLY OR AS A PACKAGE

For a video tour of Sherman Oaks, please visit: http://youtu.be/RNKNwRHJw70

For a video tour of Valley Brook, please visit: http://youtu.be/9JB7K65LSvg

SHERMAN OAKS Community/Homes/Notes Price : TBD by Market Terms: All Cash

SHERMAN OAKS SITE INFORMATION

ADDRESS 1144 Sherman Blvd.Jackson, MI 49201

COUNTY Jackson

TAX PARCEL ID 000-03-33-476-001-01

SITES 366

COMMUNITY TYPE All Age

YEAR BUILT 1973-1991 in phases

COMBINED LAND SIZE & DENSITY 107.96 Acres (3.39 sites/acre)

INVENTORY HOMES76 as of May ’14 with a cost of $2,514,978 (73 Occ lease with option to buy Homes & 3 vacant)

HOME NOTES 6 as April ’14 (Current balance of $45,596)

MH PHYS OCC 75.1% (275 as of May ’14)

MH ECO. OCC 73.5% (269 as of May ’14)

MKT MH RENT $459 (Includes Water, Sewer & Trash)

AVG IN-PLACE MH RENT

$452 (Includes Water, Sewer & Trash)

LAST RENT INCREASE $10 (April 2014)

ROADS Asphalt

SCHOOL DISTRICT Jackson ISD

ZONING Commercial

FLOODPLAIN No

UTILITIES

WATER 3 Private Wells

SEWER 2 Waste Water Disposal Lagoons

ELECTRICITY Consumers Energy (direct billed to tenants)

GAS Consumers Energy

TRASH Allied Waste

366 SITE MH COMMUNITYTOTAL PRICE: TBD BY MARKET


• Sherman Oaks is conveniently located just 15 minutes from downtown Jackson, MI and 30 minutes from the Waterloo State Recreation Area, which boasts four campgrounds, 11 fishing lakes, horseback riding trails and nearly 50 miles of hiking trails.

• The property lies less than 40 minutes away from the Michigan International Speedway - the fastest NASCAR track and venue of the NASCAR Sprint Cup.

• Lansing, the state capital of Michigan, is a short 30 minute drive away, and features a multitude of museums, theaters, parades and a zoo.

• Ann Arbor is just 40 miles to the East, home of the University of Michigan’s main campus.

• The local elementary and middle schools are within 5 miles of the property.

• Entertainment and shopping are nearby with the Airport Lanes bowling alley, the Michigan Theatre of Jackson, and two major shopping malls including Jackson Crossing, home to Sears, Target, Kohl’s, Toys “R” Us, Best Buy, TJ Maxx and Bed Bath & Beyond.

• Several major employers in Jackson include CMS Energy, which provides electricity to most of Michigan, Allegiance Health, which employs 3,700, Consumers Energy, which employs 2,400 and Cooper Street Correctional Facility.

INVESTMENT HIGHLIGHTS

AREA HIGHLIGHTS

• Great opportunity to purchase a stable 3 star community with upside within an attractive low density layout located in Jackson, MI.

• Community should qualify for a very attractive non-recourse loan at historically low rates.

• Tremendous upside potential to fill vacant sites. Park currently has strong demand from potential tenants but few homes to accommodate them.

• Recourse agreement in place with 21st Mortgage that must be assumed by new buyer (22 Occupied 21st homes currently in place).

• Outstanding amenity package that includes a clubhouse with a fitness center, a pool and a basketball court.

• Offering includes 76 inventory homes offered at cost and 6 home notes offered at the current balance.

SHERMAN OAKS PHOTOS



SHERMAN OAKS FINANCIAL ANALYSIS

1

2 Gross Scheduled Rent

Less: VacancyLess: Vacant InventoryLess: Bad DebtLess: Concessions

7 Less: OtherTotal Rental Income

3 Plus: Utility Income3 Plus: Other Income

Total Other IncomeEffective Gross Income

EXPENSESRepairs & Maintenance

8 PayrollAdministrativeMarketingProfessional Fees

4 Utilities Electricity Water Sewer Gas TrashTotal Variable Expenses

5 TaxesOther TaxInsuranceManagement FeeTotal Operating Expenses

6 Plus: Capital ReservesTotal Expenses

NET OPERATING INCOME

Proforma

Financial Analysis

2012 2013 March'14 T12

$1,961,726$1,951,460

24.86%

2.00%

INCOME

34,27987,486

$1,907,578

10,145

474,15038,090

$1,263,42966.23%

1.80%

4.59%

0.53%

047,625

0

130

47,625

$1,178

$1,178 $431,118

$879,935 $878,779$866,701

130

$1,311,053

0

260

27

20,300

0$1,284

00.00% 0.00%$1,284$1,292

0

0$472,904

00

$472,904$1,292

0.00%

$470,082

$470,0820

14,71240

Actual Expper site

$150

353

65

17

16

55

53

28 10,364

14,7124036

$855

19

$334,893

1819,560

100

10,053

$338,827299

129,136

9,930

38,338

10,071

62

58

105$926

2795,086 110,424

36,486

21,75321,164

302109,294

6,58238,151

6,923

$312,794

7628,418

25,45715

13,308

0$431,118

22,66611,993

$150

Actual Exp

$54,734per site

6,062 15,35427,918

346

54,974

5,703

23,880126,508123,779

$146 $53,462Actual Exp

54,722

$1,348,861

065.96% $1,293,887

54,974

0.84%

4.29%48,158

16,453

53,507465,576

84,145

465,48559,499

$1,287,7100

51,895

38,75982,66517,341

51,895$1,339,605

1.99%

4.24%

0.89%

23.85%

3.05%

65.99%

0

142

per site

338

33

142

23.73%

2.73%

2.45%

0

150

78

70

28

10,92959

150

36324,059

25,361

66

69

30

$915104

6,38917

0.82%

2.00%

4.25%

0.85%

24.86%

155

67.22%

0

per site

$150

155

71

31

61

350

75

15

50

27

18

107$929

332

35$1,479

40

3.00%$1,444

$2,015,928

501,16016,53140,31985,67717,135

56,623

$1,355,1070

$1,411,730

Proforma Exp

$54,900

56,623

26,12211,25722,406

128,10027,450

5,49018,300

$528,567

6,58139,296

$339,900121,548

10,05314,71342,352

12,810$541,377

$870,353

1. Actual 2012, 2013, and March’14 T12 numbers provided by the client and include land lease operations only.

2. Proforma UW GSR based off the April’14 Rent Roll.

3. Other Income grown 3% from March’14 T12. There is no utility income.

4. Adjusted Utilities grown 3% from March’14 T12.

5. Proforma Taxes = 2014 Taxable value of $2,337,487 X 2013 tax rate (4.7272%) grown by 10%.

6. Capital Reserves numbers do not reflect actual expense.

7. Other rent deductions includes Repossessed Homes and In Lieu of Inventory.

8. Payroll includes salary, wages, payroll taxes, workers comp and health benefits for 1 community manager with full benefits, 1 office coordinator with dental, 1 maintenance with no benefits and seasonal employees. Health benefits costs allocation averaged ~ $11,660 for 2012, 2013 and March’ 14 T-12.

UNDERWRITING ASSUMPTIONS



SHERMAN OAKS RENT COMPS

12

3

1 English Meadows 3977 Sherwood Lakes Blvd., Jackson, MI 49201 304 84% $405 W/S/T $375

2 Walnut Ridge 3201 Hawthorn Dr., Jackson, MI 49201 248 53% $445 W/S/T $400

3 Windham Hills 4020 County Farm Rd., Jackson, MI 49201 365 96% $438 W/S/T $398

Nearby Communities Average 306 80% $429 $391

Rent IncludesAddress

Sherman Oaks

RENT COMPARABLES

$459 W/S/T $398

Subject Property#

Note: Information from Market Survey - Water, Sewer, and Trash (W/S/T) amounts vary by community

Nearby Communities

1144 Sherman Blvd., Jackson, MI 49201

PhysicalOccupancy

366 75%

Adjusted RentSites Av. Mkt Rent



SHERMAN OAKS AREA AERIAL

VAN HORN RD

W PARNALL RD

W PARNALL RDSPRINGPORT RD

BRILLS LAKE RD

W MICHIGAN AVE

PAGE AVE

BUNKERHILL RD

COO

PER

ST

LAN

SING

AVE

RIVES JUN

CTION

RD

CLINTO

N RD

W MICHIGAN AVE

E MICHIGAN AVEJACKSON

Baker College

SPRINGPORT RD

JACKSON COUNTYAIRPORT

NorthwestElementary School

ParnallElementary School

RW KidderMiddleSchool

Duane WatersHospitalJackson Crossing/Westwood Mall

BT h e B e s t S e a t I n T o w n

Taking Care of Business

94

94

127

127

127

127

60

WATERLOO STATERECREATION AREA

COOPER STREETCORRECTIONAL FACILITY



Consumers Energy• The principal subsidiary of CMS Energy, Consumers Energy provides natural gas and electricity to 68% of Michigan’s

population.

• The company recently partnered with the city’s governor in the Anchor Initiative to renew the downtown economy and plans to open an R&D center in the Woolworth building downtown.

Allegiance Health System• Allegiance Health, a community owned company, offers quality health care to individuals throughout South Central

Michigan. In 2013, Healthgrades awarded them the Patient Safety Excellence Award, denoting it among the top 5% of all hospitals with regards to patient safety.

• With 3,620 employees, or over 18% of the cities labor force, Allegiance is the largest employer in the area.

Eaton Corporation• Eaton aids businesses and individuals in the sustainable and safe management of electric, mechanical and hydraulic

power.

• The company has joined other large businesses in supporting the Anchor Initiative – an effort to revitalize the downtown area.

Westwood Mall• Anchored by a Walmart Supercenter, JCPenney and Younkers, and home to over 50 stores, Westwood mall offers

numerous shopping and employment opportunities.

• The mall spans 510,000 square feet and is managed by Rouse Properties.

SHERMAN OAKS LOCATION MAP & DEMOGRAPHICS

WISCONSINILLINOIS

MIC

HIG

AN

WISC

ON

SIN

CANADA

USA

OH

IOIN

DIA

NA

IND

IAN

AILLIN

OIS

MICHIGAN88

90

43

43

96

94

94

69

69

75

94

94

5565

90

90

7175

80

8057

89

2

25MANISTEENATIONAL

FOREST

LAKEMICHIGAN LAKE

ST. CLAIR

LAKEHURON

LAKE ERIE

31

41

131

23

12

127

127

224

10

FLINTGRAND RAPIDS

ANN ARBOR

SOUTH BEND

FORT WAYNE

TOLEDO

LANSING

DETROIT

CHICAGO

MILWAUKEE

CLEVELAND



SHERMAN OAKS DEMOGRAPHIC INFORMATION 1 mile 3 mile 5 mile

2014 Population Estimate 905 7,010 28,382

2014 Est. Average Family Household Income $66,697 $63,283 $52,389

2014 Est. Median Owner-Occupied Housing Value $113,151 $121,747 $106,720

Renter Occupied Percentage 18.71% 14.55 % 34.07%

Owner Occupied Percentage 80.99% 85.49% 65.92%

Source: 2014 Claritas, Inc.

SHERMAN OAKS SITE PLAN

LANSING AVE



VALLEY BROOK SITE INFORMATION

ADDRESS 4620 S. High School Rd. Indianapolis, IN 46241

COUNTY Marion

TAX PARCEL ID2006514/2008544/2001341/2000900/2000901/2000902/2000903/2008873

SITES 798

COMMUNITY TYPE All Age

YEAR BUILT 1973-1998 in phases

COMBINED LAND SIZE & DENSITY 130.02 acres (6.14 sites/acre)

INVENTORY HOMES147 as of May ’14 with a cost of $4,050,106 (140 Occ lease with option to buy homes & 7 vacant)

HOME NOTES 2 as of March ’14 (Offered at current balance of $12,669)

MH PHYS OCC 52.4% (418 as of May ’14)

MH ECO. OCC 51.1% (408 as of May ’14)

MKT MH RENT $437 (includes trash and July rent increase)

AVG IN-PLACE MH RENT $430 (includes trash)

RENT INCREASE $9 (Scheduled July 2014)

ROADS Asphalt (some curbs; overhead streetlights)

ZONINGDwelling District 3, Dwelling District 11 and Light Industrial Suburban District (D3, D11, I25)

SCHOOL DISTRICT MSD Of Decatur Township

FLOODPLAIN No

UTILITIES

WATER Indianapolis Water Co. (submetered billed back to tenants)

SEWER Indianapolis Water Co. (submetered billed back to tenants)

ELECTRICITY Indianapolis Power & Light (direct billed to tenants)

GAS City of Indianapolis/Marion County Public Works

TRASH Citizens Gas

VALLEY BROOK



Community/Homes/Notes Price : TBD by Market Terms: All Cash

• Valley Brook is conveniently located just 15 minutes from the heart of downtown Indianapolis, the state capital of Indiana and 13th largest US city with a population in the MSA of nearly 1.8 million.

• Public bus transport sits a short five minute walk from the property and will take you directly to downtown shopping and entertainment with no transfers.

• Indianapolis features many famous sporting events including the Indianapolis 500, Brickyard 400 and NHRA US Nationals.

• The local elementary, middle and high schools are all within walking distance of the property.

• A multitude of large companies are headquartered in Indianapolis including Eli Lilly, Brightpoint, Wellpoint, Marsh Supermarkets, Finish Line, hhgregg, Inc. and many others.

• The unemployment rate in Indianapolis for March 2014 was 5.6%, well below the national rate of 6.8%.

• The community is in close proximity to numerous major thoroughfares including Interstate 70, which cuts through the center of Indianapolis.

• Minutes from the Indianapolis International Airport, the second largest hub in the world for FedEx, and the 8th largest cargo center in the U.S.

INVESTMENT HIGHLIGHTS

AREA HIGHLIGHTS

• Rare opportunity to purchase an extremely high quality 4 star community within the Indianapolis MSA.

• Community should qualify for very attractive non-recourse debt at historically low rates.

• Tremendous upside potential to fill vacant sites. Park currently has strong demand from potential tenants but few homes to accommodate them.

• Recourse agreement with in place with 21st Mortgage that must be assumed by new buyer (30 Occupied 21st homes currently in place).

• Outstanding amenity package that includes a clubhouse, 2 swimming pools, 2 basketball courts, 2 playgrounds, and RV storage.

• Offering includes 147 inventory homes offered at cost and 2 home notes offered at the current balance.

VALLEY BROOK PHOTOS



VALLEY BROOK FINANCIAL ANALYSIS

2 Gross Scheduled Rent

Less: VacancyLess: Vacant InventoryLess: Bad DebtLess: Concessions

7 Less: OtherTotal Rental Income

3 Plus: Water & Sewer Income3 Plus: Other Income

Total Other IncomeEffective Gross Income

EXPENSESRepairs & Maintenance

8 PayrollAdministrativeMarketingProfessional Fees

4 Utilities Electricity Water & Sewer Gas TrashTotal Variable Expenses

5 TaxesInsuranceManagement FeeTotal Operating Expenses

6 Plus: Capital ReservesTotal Expenses

NET OPERATING INCOME

Proforma

Financial Analysis

2012 2013 March'14 T12

$4,075,468$4,054,09945.12%

1.67%

INCOME

65,712132,810

$3,979,864

16,666

1,795,75866,414

$1,902,50447.80%

1.65%

3.34%

0.42%

205,83388,104

258

110

293,938

$1,196

$1,196 $954,548

$1,241,894 $1,214,636$1,243,484

368

$2,196,442

0

328

32,320

0

$1,212

00.00% 0.00%

$1,212$1,1900

0$949,430

00

$949,430$1,190

0.00%

$966,862

$966,8620

32,07640

Actual Expper site

$109

318

43

6

14

41

240 191,443

32,0764036

$832

3

$709,237

2

60

$693,484281

254,128

51,682

40

65

$869

261,675 225,549

47,752

283223,870

1,34952,229

2,069

$663,857

3025,118

14,29614

29,016

0$954,548

31,777212,311

$154

Actual Exp

$122,662per site

4,452 1311,04223,705

267

290,911

11,016

34,570212,780222,527

$161 $128,190Actual Exp

86,826

$2,181,497

193,63346.39% $1,890,587

97,278

0.83%

2.92%71,639

33,664

59,2691,901,478

118,831

1,875,00159,699

$1,903,802198,69590,417

59,956121,04234,600

289,112$2,192,914

1.48%

2.99%

0.85%

46.25%

1.47%

46.96%

249

113

per site

279

266

362

46.66%

1.45%

1.76%

243

122

31

18

230,760

365

10,11416,374

32,667

21

41

289

$88965

2,4173

0.75%

1.50%

3.00%

0.50%

47.62%

126

46.63%

332

per site

$160

458

42

332

275

30

10

20

3

67

$940289

25

$1,381

40

3.00%

$1,356

$4,187,489

1,994,08231,40662,812

125,62520,937

100,197

$1,952,626265,239

$2,318,062Proforma Exp

$127,680

365,436

33,647264,930

219,45023,9407,980

15,960

$1,082,079

2,48953,795

$749,872230,58632,08069,542

19,950$1,102,029

$1,216,032

1. Actual 2012, 2013, and March’14 T12 numbers provided by the client and include land lease operations only.

2. Proforma UW GSR includes a $9 rent increase for July’14.

3. Other Income grown 3% from March’14 T12. Historically water/sewer reimbursement has been ~100% of expense. Due to abnormally harsh winter in 2013/2014, spring repairs were necessary for water meters (~60) and main line breaks. As a result of that work, PF assumes reimbursement goes back to ~100%.

4. Adjusted Utilities based on 2014 budget and account for anticipated cost increase through the city. The increased expenses will be passed through to tenants.

5. Proforma Taxes = 2014 Taxable value of $9,658,800 X 2013 tax rate (2.3178%) grown by 3%.

6. Capital Reserves numbers do not reflect actual expense.

7. Other rent deductions includes Repossessed Homes and In Lieu of Inventory.

8. Payroll includes salary, wages, payroll taxes, workers comp and health benefits for 1 community manager with no benefits, 1 office coordinator with dental, 1 office coordinator with no benefits, 1 maintenance with no benefits, 1 maintenance with dental and vision and seasonal employees. Health benefits cost allocation decreased from $20,606 in March 2013 to $15,851 in March 2014 due to manager electing no benefits in 2014.

UNDERWRITING ASSUMPTIONS



VALLEY BROOK RENT COMPS

1

2

3

4

5

1 Countryview 1199 Hospital Rd., Franklin, IN 46131 283 39% $466 T $449

2 Greenwood Estates 1598 US Hwy 31 South, Greenwood, IN 46143 591 72% $494 T $477

3 North Glen Village 18200 US Hwy 31 North, Westfield, IN 46074 289 80% $390 None $390

4 Pebble Creek 225 Pebble Creek Dr., Greenwood, IN 46143 257 94% $442 None $442

5 West Glen Village 1207 Rushmore Blvd. East, Indianapolis, IN 46243 552 77% $432 T $415

Indianapolis Area Communities Average 394 71% $445 $435

Physical Occupancy

798 52%

Adjusted RentSites Av. Rent

Note: Some information from 2013 JLT Survey: Adjusted rent assumes Trash (T) = $17

Indianapolis Area Communities

4620 S. High School Rd., Indianapolis, IN 46241

Rent IncludesAddress

Valley Brook

RENT COMPARABLES

$437 T $420

Subject Property#



VALLEY BROOK AREA AERIAL

10TH ST

MINNESOTA ST MINNESOTA ST

HO

LT RD

TIBBA A

VE

MORRIS ST

PROSPECT ST

RAYMOND ST

SAM LONES EXPY

RAYMOND ST

KENTUCKY AVE

KENTUCKY A

VE

HA

RDIN

G ST

MERID

IAN

ST

MA

DISO

N A

VE

SOUTHEASTERN AVE

MAD

ISON

AVE

MAN

N R

D

WASHINGTON ST

ROCKVILLE RD

10TH ST65

65

65

65

70

70

70

70

74

74

74

485

485

485

70

36

40

67 EAST ST

Decatur Middle School

DecaturHigh School

American WoodMolding

IndianapolisInternational

Airport

INDIANAPOLISCBD

Stout ArmyAir Field

DistributionCenter

DistributionCenters

Buffer ParkGolf Course

LillyRecreation

Park

Metropolis Mall

DSW®



FedEx at the Indianapolis International Airport• FedEx’s second largest hub resides at the Indianapolis International airport; it employs 4,000 FedEx employees and

processes an average of 50,000 packages a day.

• The FedEx hub has supported the airport in ranking among the top 25 busiest air cargo facilities in the world.

Eli Lilly and Company• Eli Lilly and Company, a global pharmaceutical company, researches treatments for diseases and is credited with many

breakthroughs including insulin, Prozac, and cephalosporin.

• The company employs 10,421 in Indianapolis alone, making it the region’s third largest employer.

WellPoint• WellPoint, one of the nation’s leading managed health care companies, insures nearly 67 million individuals through its

UniCare, Specialty Companies, National Government Services, CareMore, Amerigroup, and other brands.

• 4,500 employees work for WellPoint in the Indianapolis area, and 47,500 worldwide.

Marsh Supermarkets• A subsidiary of Sun Capital Partners, Marsh Supermarkets employs 8,890 and operates 63 grocer locations in Indiana

and Ohio.

• The company is the largest pharmacy chain in the state with 41 pharmacies.

VALLEY BROOK LOCATION MAP & DEMOGRAPHICS 69

69

465

46574

74

74

465

65

65

65

65

65

74

74

70

70

70

70

29 13

37

28

26 26

22

421

421

52

231

231

136

136

36

40

52

3137

40

40

37 31

36

31

3135

INDIANAPOLIS

LAFAYETTEKOKOMO

FRANKFORT

KOKOMORIVER

ESTATES

CRAWFORDSVILLELEBANON

AVON

LAWRENCE

WARREN

GREENWOOD

BROWNSBURG

FRANKLIN

GREENCASTLE RUSHVILLE

SHELBYVILLE

MOORSVILLE

WESTFIELD NOBLESVILLE

ELWOODTIPTON

ANDERSON

ALEXANDRIA

39

67

67

MARTINSVILLE



VALLEY BROOK DEMOGRAPHIC INFORMATION 1 mile 3 mile 5 mile

2014 Population Estimate 4,635 31,001 84,441

2014 Est. Average Family Household Income $55,779 $50,100 $52,285

2014 Est. Median Owner-Occupied Housing Value $113,315 $108,416 $112,803

Renter Occupied Percentage 28.82% 34.70% 32.55%

Owner Occupied Percentage 71.18% 65.30% 67.45%

Source: 2014 Claritas, Inc.

VALLEY BROOK SITE PLAN

74

485

67

W HANNAH AVE

KOLLM

AN

RD

KENTUCKY A

VE

DECATUR BLVD



RELATIONSHIPS THAT DELIVER RESULTS.

www.arausa.com

© ARA. All Rights Reserved

ARA NATIONAL MANUFACTURED HOUSING901 S MoPac ExpresswayBarton Oaks Plaza IISuite 275Austin, TX 78746

Todd [email protected] T 303-260-4470

Andrew [email protected] T 512-637-1219

Brian [email protected] T 512-637-1221

Jon [email protected] T 303-260-4486

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.

wInformation for Sherman Oaks & Valley Brook is available on our website at: www.arausa.com/listinglab/ShermanOaksValleyBrook

For a video tour of Sherman Oaks, please visit: http://youtu.be/RNKNwRHJw70For a video tour of Valley Brook, please visit: http://youtu.be/9JB7K65LSvg

valley brook mhc - mobilehomeparkstore.com oaks and...mkt mh rent $459 (includes water, sewer &...

Documents