APPLEWOODManufactured hoMe coMMunity PRICE: $1,235,000

A 45-SITE COMMUNITY

820 North 16th StNebraska City, NE 68410

For a video tour, please visit: https://vimeo.com/410806615

PLEASE DO NOT SPEAK WITH TENANTS OR EMPLOYEES

SITE INFORMATION

ADDRESS 820 North 16th St, Nebraska City, NE 68410

COUNTY Otoe

TAX PARCEL IDS Multiple (see Online Document Library)

YEAR BUILT 1970s

SITES 45*

COMMUNITY TYPE All Age

LAND SIZE / DENSITY 6.21 acres (7.25 sites/acre)

MH PHYSICAL OCCUPANCY 84.44% (38 sites as of May ‘20)

MH ECONOMIC OCCUPANCY 84.44% (38 sites as of May ‘20)

INVENTORY HOMES 3 (3 occupied as of May ‘20)

AVERAGE LOT RENT $315 (base rent only)

RENT INCREASE $10 (Jan ’19); $15 (Jan ‘20)

ROADS Gravel and asphalt

FLOODPLAIN Zone X

ZONING Commercial

UTILITIES

WATER Nebraska City (direct billed)

SEWER Nebraska City (direct billed)

ELECTRICITY Nebraska City (direct billed)

TRASH Nebraska City (direct billed)*The property is zoned for 45 usable lots. Seller estimates that 4-5 of the empty lots may require new

lines to be run and utilities to be upgraded (estimated cost of $3-4K per lot).

INVESTMENT HIGHLIGHTS

AREA HIGHLIGHTS• Nebraska City is off of Interstate 29, less than an hour from both Omaha and

Lincoln, the two largest cities in Nebraska, and is just under two hours from Kansas City.

• The seat of Otoe County (population, 15,985), Nebraska City is home to several manufacturing plants and is a regional hub of business activity.

• The community sits less than 3 miles from a Walmart Supercenter which recently announced plans to hire 150,000 people for its stores and fulfillment centers around the nation. Other national chains located in Nebraska City include Caribou Coffee, McDonald’s, Pizza Hut, Wendy’s, Subway, Taco Bell, Burger King and Arby’s.

• Conveniently located an hour from downtown Omaha, the largest city in Nebraska and home to five Fortune 500 companies and an additional five companies in the Fortune 1000. Google plans to open a $600 million data center within the Omaha suburbs in the very near future.

• Lincoln, Nebraska, is also just an hour from Applewood, and is the state capitol as well as home to the state’s flagship University of Nebraska (NU). NU currently enrolls over 26,000 students

• Applewood MHC is a 45-site, all-age community at 84% economic occupancy positioned on 6 acres of land located near three large MSAs with a total population of over 3.5 million. The park is serviced by public utilities that are direct billed to tenants.

• According to the owner, both April and May rents are being collected without any tenant issues. This is mostly consistent with what MHC owners are telling us around the country.

• The existing lender has expressed interest in financing the acquisition for a qualified borrower.

• The community is within a 5-minute drive from Cargill Value Added Meats, the employer of choice for many of the area’s residents. Cargill is the largest employer in Otoe County and a major source of food supply for the country.

• Offering includes 3 park-owned homes, all of which are currently occupied averaging $243 for the home rent portion. Low number of vacant homes in community indicates strong demand for affordable rents in Nebraska City and provides an owner the opportunity to bring in more tenants to fill the remaining vacant spaces. The owner recently brought in 4 used homes that were all sold within 30 days, including 1 in cash.

• The Owner recently spent approximately $44,000 in capital expenditures for bringing in 4 new homes ($33K), road upgrades ($9.2K), and tree trimming ($1.8K). Gravel roads have been well maintained and owner plans to re-gravel at some point during the spring/summer of 2020.

• Property sits on an elevated plane. With recent Midwest flooding issues, the park has seen increased inquiries and demand from displaced people.

A 45-SITE COMMUNITYPRICE: $1,235,000

APPLEWOODManufactured hoMe coMMunity

PROPERTY DETAILS

INCOME2 Gross Scheduled Rent3 Less: Vacancy

Less: Employee/ModelLess: Bad DebtTotal Rental Income

4 Plus: Other IncomeTotal Other IncomeEffective Gross Income

EXPENSES5 Repairs and Maintenance6 Payroll

AdministrativeMarketingProfessional Fees

7 Utilities8 Water/Gas/Electric9 Trash

Total Variable Expenses10 Taxes

InsuranceManagement FeeTotal Operating Expenses

11 Plus: Capital Reserves12 Total Expenses

Net Operating Income

Expense Ratio

Totals % GSR

$170,100

26,460

1,322

0

Financial Analysis1

0

0

163

3,329 74

32.37%

170

0

$1,197

0$115,735

15 0

$145,530

7

$19,5380

5,388000

3

7,321

2019 Actuals Apr '20 T4 Inc Ann

$37,4680

$37,468$78,267

7,6650

$32,5913,904

993

$39,292

$53,860

2018 Actuals

9730 11,389 7.83%

$35,174 $782

324$724

Actuals

120

0

0

0

29

$2,986Per Site

$599

0

35

0 0

15

$873

$3,234

87 5

0

0 0

22

8,596 6.00%

$38,605 $858

2,250 50

$40,855 $908

$143,261 $3,184Proforma Per Site

$11,250 $250

4,500 100

1,575 35

225

7,541 168

0 0

Totals % GSR

0.00%

0.00%

0.00%

100.00%0

$115,735

000

$115,7350

1,284$134,364Actuals

$26,9590

1,5650

1180

203

1,284$133,080

0

$2,572Per Site

$434

0

$833$1,739

22

13,372 9.95%

$53,8600 0

22

0.00%

$8330

29

Totals % GSR

$135,885

0 0.00%

2,685 1.98%

120 0.09%

0 0.00%

375 0.26%

$23,462 $521

97.94%

40.09%

Actuals Per Site

$12,006 $267

0 0

833 19

10,608 236

0 0

$145,515 99.44%

15 0

450 0.31%

Totals % GSR

$146,340

Proforma

15.56%

0 0.00%

1,701 1.00%

$25,541 $568

29

990

$141,939 83.44%

1,322 29

28.52%

$80,503 $102,406 $2,276

0 0

$35,174 $782

$110,356 $2,452

24.17%

$1,197$1,789

0 0

0

3,478 77

450 10

5

Todd Fletcher303‐260‐4470Todd.Fletcher@ngkf.com

Andrew Shih512‐637‐1219

Andrew.Shih@ngkf.com

1. Actual numbers based on financials provided by the client.

2. Proforma Gross Scheduled Rent (“GSR”) = 45 sites x $315 average lot rent x 12 months. Historical GSR from owner’s financials only provides Total Rental Income received for that period. Our Proforma GSR shows all potential income as if the community were 100% occupied and then deducts a vacancy percentage based on the current rent roll.

3. Assumes 0 homes get filled.

4. Other Income grown 3% from 2019 Actuals. Other Income includes late fees and maintenance income.

5. Repairs and Maintenance reduced on the proforma to exclude one-time items (i.e. gravel road repairs).

6. Two on-site employees that get discounted site rent.

7. Adjusted Utilities grown 3% from 2019 Actuals. Owner said, “All utilities and trash are direct billed. The agreement with Nebraska City Utilities is that the utility company will read, bill, and collect from each resident based on their metered water/sewer usage. The difference between the master meter and the sum of all the individual meters is then billed to us, so we usually have a small monthly slippage balance. We also get billed for any busted or frozen water meters that the utility company replaces (at ~$280/each and we seem to go through 4 to 6

meters every year). Nebraska City Utilities does provide us which unit they replaced a water meter at and Utilities does encourage us to pass it through and bill the resident (we never did though).”

8. The 2019 actuals balance shown for utilities of $7,321 includes street lights, the water/sewer master meter base fee, the slippage between the sum of the individual meters and the master meter, and the cost of replacing 6 water meters. Like above, the Mar ’20 T4 expense totaling $3,536 (not annualized) includes small amounts for street lights and around $1,800 for replacing the 6 water meters.

9. Proforma excludes trash expense as it related to dumpsters for home removal (non-recurring expense).

10. Proforma Taxes = 2020 Taxable Value x 2019 mill rate grown 10% (see Online Document Library for more details).

11. Numbers do not reflect actual expenses.

12. The historical financials exclude non-recurring expenses related to the demolition of homes at the park. The expenses are included on the financial statements in the “6000 Other Expenses” line item. Please see the Online Document Library for further details.

UNDERWRITING ASSUMPTIONS

A 45-SITE COMMUNITYPRICE: $1,235,000

APPLEWOODManufactured hoMe coMMunity

FINANCIAL ANALYSIS

DEMOGRAPHIC INFORMATION 1 MILE 5 MILES 10 MILES

2019 Population Estimate 5,906 8,451 10,213

Population Growth 2010 - 2019 2.6% 3.0% 3.8%

2019 Renter Occupied Housing Percentage 33.1% 32.3% 30.1%

2019 Owner Occupied Housing Percentage 57.4% 59.1% 61.2%

2019 Estimated Average Household Income $59,648 $61,299 $65,633

2019 Estimated Average Owner-Occupied Housing Value $129,816 $147,906 $165,847 Source: U.S. Census Bureau

GREATER OMAHA TOP EMPLOYERS EMPLOYEES

Nebraska Medical Center 9,666 Offutt Air Force Base 9,584 University of Nebraska Medical Center 9,000 CHI Health 8,368 The Methodist Health System 5,043 Hy-Vee Inc. 4,295 Walmart Inc. 4,082 Union Pacific 3,500 Mutual of Omaha 3,235 Valmount Industries Inc. 3,160

Source: Council Bluffs, Greater Omaha Economic Development Partnership

OTOE COUNTY TOP EMPLOYERS EMPLOYEES

Cargill Meat Solutions 635Honeywell American Meter 527Arbor Day Farm & Arbor Lodge Arbor 298Nebraska City Public Schools 207Walmart 180CHI-St. Mary’s Community Hospital 170Nebraska City Public Power District 164Ambassador Group 102Nebraska City 72

Source: Nebraska City Area Economic Development Corporation

A 45-SITE COMMUNITYPRICE: $1,235,000

APPLEWOODManufactured hoMe coMMunity

AREA EMPLOYMENT & DEMOGRAPHICS

Offutt Air Force Base

• Home of the 55th Air Wing, the largest operational wing in the US Air Force; Offutt is the home of Strategic Command

• Strategic Command is charges with space operations, information warfare, missile defense, intelligence surveillance, and reconnaissance, as well as combating weapons of mass destruction

• The Air Force Base is the second largest employer in the greater Omaha area employing over 9,500 employees

CHI Health Saint Mary’s Medical Center

• Facility opened in 2014 on a 110,000 square foot campus serving Otoe County and surrounding areas

• The medical center sits less than 3 miles from Applewood MHC and employs approximately 170 people

Cargill Value Added Meats

• Major foodservice and food distribution business employing 635 residents and the largest employer in Otoe County

• Located within a 5-mile drive from Applewood MHC

Nebraska City High School

Nebraska City Middle School

Northside Elementary School

~31 MILES FROM APPLEWOOD MHC

The Golf Club at Table Creek

APPLEWOOD MHC

ArborLinks Golf Club

WildwoodGolf Course

Arbor Lodge State Historical Park

Arbor Day Farm

Steinhart Park

Kregel Windmill Factory Museum

Midwest Farmers Co-Op

KANSAS CITY

WICHITA

LINCOLN

DES MOINES

SIOUX FALLS

COLUMBIA

SPRINGFIELD

CEDAR RAPIDS

ST. LOUIS

CHICAGO

OMAHA

APPLEWOOD MHC

A 45-SITE COMMUNITYPRICE: $1,235,000

APPLEWOODManufactured hoMe coMMunity

LOCATION MAP & AREA ATTRACTIONS

8TH AVE

7TH AVE

N 15TH

ST

N 16TH

ST

APPLEWOOD MHC

PLEASE DO NOT SPEAK WITH TENANTS OR EMPLOYEES

Additional information is available on our website at: http://arausa.listinglab.com/ApplewoodMHC

!

For a video tour, please visit: https://vimeo.com/410806615

PRIMARY CONTACTS

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 Newmark Knight Frank (NKF) 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 NKF 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 Do not contact the Property.not contact the Property.

www.ngkf.comManufactured Housing 2530 Walsh Tarlton Ln, Suite 200, Austin, TX 78746 | T 512.342.8100

Todd Fletchertodd.fletcher@ngkf.com 303.260.4470

Joe Gossjoe.goss@ngkf.com 512.637.1228

Andrew Shihandrew.shih@ngkf.com512.637.1219