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SHERMAN OAKS MHC 1144 SHERMAN BLVD. JACKSON, MI 49201
TOTAL PRICE: TBD BY MARKETTERMS: ALL CASH
For a video tour of Sherman Oaks, please visit: http://youtu.be/RNKNwRHJw70
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 Nov ’14 with a cost of $2,524,367 (72 Occ lease with option to buy Homes & 4 vacant)
HOME NOTES 4 as of Nov ’14 (Current balance of $20,489.27)
MH PHYS OCC 74.3% (272 as of Nov ’14)
MH ECO. OCC 72.4% (265 as of Nov ’14)
MKT MH RENT $459 (Includes Water, Sewer & Trash)
AVG IN-PLACE MH RENT
$456 (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
TERMS: ALL CASH
• 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 4 home notes offered at the current balance.
SHERMAN OAKS PHOTOS
366 SITE MH COMMUNITYTOTAL PRICE: TBD BY MARKET
TERMS: ALL CASH
SHERMAN OAKS FINANCIAL ANALYSIS
1
Assumptions2 Gross Scheduled Rent 0.00%
Less: (Gain)/Loss-to-Lease 0.00%
Gross Potential Income
Less: Vacancy 25.68%
Less: Vacant Inventory 1.09%
Less: Bad Debt 3.00%
Less: Concessions 4.25%
Less: Other 0.82%
Total Rental Income 65.15%
UW vs Actuals & Proforma3 Plus: Utility Income 03 Plus: Other Income 153
Total Other Income 153
Effective Gross Income
EXPENSES per site
Repairs & Maintenance $164
Payroll 320
Administrative 75
Marketing 15
Professional Fees 504 Utilities
Electricity 74
Water 30
Sewer 60
Gas 16
Trash 113
Total Variable Expenses $918
2012
6,005
353
28 10,36458
0
85,677
$2,015,928
21,983
517,752
105
$926
40,189
19,560
100
$312,794
53
6,58218
36,486$855
110
$338,827 $321,320
23
$878
26,446
8,594
203
60,1144.37%
18,727$1,292,979
54,353
1.81%
149
65.20%
3.03%
$1,983,097
24.64% 488,66424.86%
87,486
474,1502.00% 38,090 3.05%
10,145
-3.96%
0
$1,263,429
$1,951,460$1,907,578
142
66.23%
130
0.00% 0.00%
0
0.53%
4.59%
47,62547,625130
54,722
Actuals
$1,311,053
per site
$150
$1,287,710-2.00%
0
$174
per site
$54,734
0
51,895
65.99%
0.00%
0.94%
0
0.89% 17,341
23.85%
4.24%
$1,983,0970
35,858
86,754
465,485
38,75982,665
59,499
Sept'14 T12
Financial Analysis
2013
$1,907,578 $1,951,460
1.80% 34,279 1.99%
0
0
33
$150
per site
$1,339,605
$1,313,465
55,983
5,490
$60,024117,120
0
Buyers Exp
10,98027,235
16,524
$2,015,928
60,47822,032
INCOME
Buyers UW
55,983
-1.58%
54,353
27,450
0
149
295338
72
15
142 51,895
22,666
$63,789
Actual Exp
107,885
Actual Exp
117 6,06216
7255
5,703
20,300 62
16
123,779
20,60070 25,457 56
5,354
11,99321,16458
19 6,92338,338
5,830
$335,982
21,343
26,442
$1,369,448$1,347,332
65
41,395
129,1367823,880
18,300
28,418
p $5 Taxes 330
Other Tax 27
Insurance 40
Management Fee 3.00%
Total Operating Expenses $1,4276 Plus: Capital Reserves 35
Total Expenses $1,462
NET OPERATING INCOME
UW vs Actuals & Proforma
14,7130.00%
$879,935
0
$1,292
299
0
$834,204
5.20%
0.00%
$866,701
3.75%
109,294
0
$431,118$1,178
13,30836
$ ,
27
$1,178
00.00%
260
$431,118
95,086
40
27
$ ,
14,712
$ ,300
0
0
10,071
$472,904
$455,714$1,292
9,936
0
6.44%
$891,618
$1,245
14,712
$472,904 $535,2450
120,720
0$455,714$1,245
9,930
12,810$522,435
41,083
40
109,746$ ,
9,93628
1. Actual 2012, 2013, and Sept ’14 T12 numbers provided by the client and include land lease operations only.
2. Proforma UW GSR based off the Nov ’14 Rent Roll.
3. Other Income grown 3% from Sept ’14 T12. There is no utility income.
4. Adjusted Utilities grown 3% from Sept ’14 T12.
5. Proforma Taxes = 2014 Taxable value of $2,337,497 X 2014 tax rate (4.695%) 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 Sept’ 14 T-12.
UNDERWRITING ASSUMPTIONS
366 SITE MH COMMUNITYTOTAL PRICE: TBD BY MARKET
TERMS: ALL CASH
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
193$924$%08603egarevA seitinummoC ybraeN
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 74%
Adjusted RentSites Av. Mkt Rent
366 SITE MH COMMUNITYTOTAL PRICE: TBD BY MARKET
TERMS: ALL CASH
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.
366 SITE MH COMMUNITYTOTAL PRICE: TBD BY MARKET
TERMS: ALL CASH
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
366 SITE MH COMMUNITYTOTAL PRICE: TBD BY MARKET
TERMS: ALL CASHOFFERED INDIVIDUALLY OR AS A PACKAGE
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
366 SITE MH COMMUNITYTOTAL PRICE: TBD BY MARKET
TERMS: ALL CASHOFFERED INDIVIDUALLY OR AS A PACKAGE
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
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 is available on our website at: www.arausa.com/listinglab/ShermanOaksFor a video tour of Sherman Oaks, please visit: http://youtu.be/RNKNwRHJw70