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Offering Memorandum
SUNSET OAKS
Plant City, FL
ACT ID ZAA0250077
N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E
Non-EndorsementsMarcus & Millichap Real Estate Investment Services of Florida, Inc. ("Marcus & Millichap") is not affiliated with, sponsored by, or endorsed by any commercial tenant or
lessee identified in this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or
endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is
solely included for the purpose of providing tenant lessee information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.
PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
DisclaimerTHIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN APPRAISAL. This information has
been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References
to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus &
Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.
TABLE OF CONTENTS
SECTION
INVESTMENT OVERVIEW 01Regional Map
Local Map
Aerial Photo
FINANCIAL ANALYSIS 02
Rent Roll Summary
Rent Roll Detail
Operating Statement
Notes
Pricing Detail
Growth Rate Projections
Cash Flow
Proposal Price
MARKET OVERVIEW 03
Market Analysis
Demographic Analysis
SUNSET OAKS
SUNSET OAKS
INVESTMENT
OVERVIEW
PROPERTY SUMMARY
PROPERTY SUMMARY
Property Sunset Oaks MHP
Property Address3201 Turkey Creek Road,
Plant City, FL 33566
Zoning PD
SITE DESCRIPTION
Number of Spaces 9 Spaces
Year Built/Rehabbed 1978/2018
Rental Type Lot Rent Only
Lot Size (Acres) 1.2 Acre(s)
Density 7.5
Landscaping Mature
Topography Relatively Flat
UTILITIES
Potable Water Well
Sewer Septic
OVERVIEW
Sunset Oaks MHP is a 9-space, lot rent only park with paved roads,
well/septic utility systems and new signage, fencing, landscaping and
outdoor amenity area.. Residents own their homes so there is very little
maintenance outside of servicing the well/septic systems and taking
care of the landscaping. Lot rents are currently at $340/mo for the
single-wide spaces and $395/mo for the double-wide space and will be
increasing by $20/mo in September/October. Because the park has
less than 10 spaces it is not governed by Chapter 723 and rents can be
raised with 30 days notice.
PROPERTY OVERVIEW
PROPERTY HIGHLIGHTS
▪ Fully-stabilized, Lot Rent Only Park
▪ Newly Paved Roads
▪ Below Market Rents of $340/mo
▪ Opportunity to quickly raise rents and improve cash-flow
▪ Quiet, clean park in a growing Plant City location near
schools, major roads and service retail
PROPERTY PHOTOS
PROPERTY PHOTOS
PROPERTY PHOTOS
PROPERTY PHOTOS
REGIONAL MAP
SUNSET OAKS
LOCAL MAP
SUNSET OAKS
AERIAL PHOTO
SUNSET OAKS
Sunset Oaks MHP is a turn-key,
stabile investment opportunity
with very little management
responsibility.
12
SUNSET OAKS
PROPERTY PHOTO
SUNSET OAKS
FINANCIAL
ANALYSIS
FINANCIAL ANALYSIS
SUNSET OAKS
RENT ROLL DETAIL
RENT ROLLAs of March,2019
Current Site Current Home Total Current Scheduled Potential
Rent / Rent / Rent / Rent / Rent /
Space Space Type Month Month Month Month Month
1 Single Wide - SW $340 N/A $340 $340 $360
2 Single Wide - SW $325 N/A $325 $325 $345
3 Single Wide - SW $340 N/A $340 $340 $360
4 Single Wide - SW $340 N/A $340 $340 $360
5 Single Wide - SW $340 N/A $340 $340 $360
6 Single Wide - SW $340 N/A $340 $340 $360
7 Single Wide - SW $340 N/A $340 $340 $360
8 Single Wide - SW $340 N/A $340 $340 $360
9 Double Wide - DW $395 N/A $395 $395 $415
Total $ 3 ,100 $ 0 $ 3 ,100 $ 3 ,100 $ 3 ,28 0
FINANCIAL ANALYSIS
SUNSET OAKS
OPERATING STATEMENT
Income Takeover Year 1
Gross Scheduled Rent $39,360 $40,541
Less: Vacancy/Deductions (GPR) 5.5% $2,160 2.8% $1,135
Total Effective Rental Income $37,200 $39,406
Other Income $300 $300
Effective Gross Income $37,500 $39,706
Less: Expenses 37.7% $14,120 35.7% $14,179
Net Operating Income $23,380 $25,526
Cash Flow $23,380 $25,526
Debt Service $16,180 $16,180
Net Cash Flow After Debt Service 9.60% $7,200 12.46% $9,347
Principal Reduction $4,474 $4,714
Total Return 15.57% $11,674 18.75% $14,061
Expenses Takeover Year 1
Real Estate Taxes $2,968 $3,027
Insurance $350 $350
Utilities - Electric $958 $958
Trash Removal (T12) $5,944 $5,944
Repairs & Maintenance $600 $600
Landscaping $3,000 $3,000
General & Administrative $300 $300
Management Fee $0 $0
Total Expenses 37.65% $14,120 35.71% $14,179
Expenses/Space $1,569 $1,575
FINANCIAL ANALYSIS
SUNSET OAKS
PRICING DETAIL
Price $300,000
Down Payment $75,000 25%
Number of Spaces 9
Price Per Space $33,333
Spaces/Acre 8
Lot Size 1.20 Acres
Approx. Year Built 1978/2017
Occupancy 95%
Returns Takeover Year 1
CAP Rate 7.79% 8.51%
GRM 7.62 7.40
Cash-on-Cash 9.60% 12.46%
Debt Coverage Ratio 1.45 1.58
Financing 1st Loan
Loan Amount $225,000
Loan Type New
Interest Rate 5.25%
Amortization 25 Years
Year Due 2029
Loan information is subject to change. Contact your Marcus & Millichap Capital Corporation representative.
# of Spaces Space Type Current Rents Market Rents
8 $338 $358
1 $395 $415
0 $0 $0
0 $0 $0
IRR Year IRR Unlevered IRR Levered
5 14.75% 32.94%
7 14.18% 29.69%
10 13.45% 26.42%
Summary
Single Wide
Double Wide
FINANCIAL ANALYSIS
SUNSET OAKS
GROWTH RATE PROJECTIONS
FINANCIAL ANALYSIS
SUNSET OAKS
CASH FLOW
Income Takeover 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Gross Potential Site Rent 39,360 40,541 42,568 44,271 46,041 47,423 48,845 50,311 51,820 53,375 54,976
Home Rent 0 0 0 0 0 0 0 0 0 0 0
Gross Scheduled Rent 39,360 40,541 42,568 44,271 46,041 47,423 48,845 50,311 51,820 53,375 54,976
Physical Vacancy 0 0 0 0 0 0 0 0 0 0 0
Economic Vacancy
Loss to Lease (2,160) (1,135) 0 0 0 0 0 0 0 0 0
Total Vacancy (2,160) (1,135) 0 0 0 0 0 0 0 0 0
Effective Rental Income 37,200 39,406 42,568 44,271 46,041 47,423 48,845 50,311 51,820 53,375 54,976
Other Income
All Other Income 300 300 306 312 318 325 331 338 345 351 359
Total Other Income 300 300 306 312 318 325 331 338 345 351 359
Effective Gross Income 37,500 39,706 42,874 44,583 46,360 47,747 49,177 50,649 52,165 53,726 55,334
Operating Expenses (9,844) (9,844) (9,942) (10,042) (10,142) (10,244) (10,346) (10,450) (10,554) (10,660) (10,766)
Real Estate Taxes (2,968) (3,027) (3,088) (3,150) (3,213) (3,277) (3,342) (3,409) (3,477) (3,547) (3,618)
Insurance (350) (350) (354) (357) (361) (364) (368) (372) (375) (379) (383)
Utilities (958) (958) (968) (977) (987) (997) (1,007) (1,017) (1,027) (1,037) (1,048)
Management Fee 0 0 0 0 0 0 0 0 0 0 0
Total Expenses (14,120) (14,179) (14,351) (14,526) (14,703) (14,882) (15,063) (15,247) (15,434) (15,623) (15,815)
Operating Reserves 0 0 0 0 0 0 0 0 0 0 0
Net Operating Income 23,380 25,526 28,522 30,057 31,657 32,866 34,113 35,401 36,731 38,103 39,520
0 0 0 0 0 0 0 0 0 0
Purchase Price/Net Residual Value (300,000) 493,995
Cash Flow Before Debt Financing 25,526 28,522 30,057 31,657 32,866 34,113 35,401 36,731 38,103 533,514
Loan Amount 225,000 0 0 0 0 0 0 0 0 0 0
Remaining Balance 0 0 0 0 0 0 0 0 0 (167,725)
Loan Origination Fees (2,250) 0 0 0 0 0 0 0 0 0 0
Prepayment Penalty 0 0 0 0 0 0 0 0 0 0
Closing Costs 0 0 0 0 0 0 0 0 0 (29,640)
Debt Service - Interest (11,706) (11,465) (11,212) (10,945) (10,663) (10,366) (10,054) (9,724) (9,377) (9,011)
Debt Service - Principal (4,474) (4,714) (4,968) (5,235) (5,517) (5,813) (6,126) (6,456) (6,803) (7,169)
Cash Flow After Debt Financing (77,250) 9,347 12,343 13,877 15,477 16,686 17,934 19,221 20,551 21,923 319,970
Debt Coverage Ratio 1.58 1.76 1.86 1.96 2.03 2.11 2.19 2.27 2.35 2.44
IRR-Unleveraged 0.00% 15.26% 14.75% 14.42% 14.18% 14.00% 13.86% 13.45%
Capitalization Rate 8.51% 9.51% 10.02% 10.55% 10.96% 11.37% 11.80% 12.24% 12.70% 13.17%
Expenses
Purchase Price / Net Residual Value
Debt Financing
Investor Return
SUNSET OAKS
MARKET
OVERVIEW
MARKET OVERVIEW
TAMPA-ST. PETERSBURGOVERVIEW
Tampa Bay refers both to a larger metropolitan area and to the bay
that extends inland from the Gulf of Mexico. The Tampa-St.
Petersburg metro contains 2.9 million residents and spans four
counties along the west coast of central Florida: Hillsborough, Pasco,
Hernando and Pinellas. Tampa, the county seat of Hillsborough
County, is the most populous city with more than 365,400 people and
is situated northeast of the bay. St. Petersburg follows with nearly
255,000 residents and is located on the peninsula near the mouth of
the bay. Robust job growth is attracting new people to the metro,
many of whom are living in higher-density redevelopment projects
near city cores.
MARKET OVERVIEW
METRO HIGHLIGHTS
FAVORABLE BUSINESS CLIMATE
A low cost of living and economic development
bring a thriving business landscape to the Tampa
Bay-St. Petersburg metro.
PORT ACTIVITY
One of the largest seaports in the Southeast, the
Port of Tampa services passenger cruise ships and
commercial freighters. The Port of St. Petersburg is
also in the metro.
DIVERSE ECONOMY
High-tech industries as well as the tourism, military,
finance and seaborne commerce segments drive
the region’s economy.
SUNSET OAKS
MARKET OVERVIEW
ECONOMY▪ Local ports contribute to a major presence in the shipping, distribution and logistics
industry. The CSX Intermodal facility in nearby Polk County provides quick access to
markets throughout the nation.
▪ Bioscience and other high-tech industries are expanding. Local Fortune 500 companies
include WellCare Health Plans, Tech Data and Jabil Circuit.
▪ Tourism also plays a significant role in the local economy. Visitors can go to Busch
Gardens, the Dali Museum and the region’s many beaches, among other sites.
SHARE OF 2017 TOTAL EMPLOYMENT
MAJOR AREA EMPLOYERS
BayCare Health Care Systems
Publix Supermarkets, Inc.
HCA West Florida
Walmart
Verizon Communications, Inc.
MacDill Air Force Base
University of South Florida
JPMorgan Chase
Citibank
TECO Energy Inc.* Forecast
MANUFACTURING
5%GOVERNMENT
HEALTH SERVICES
EDUCATION AND
+OTHER SERVICES
4%
LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES
AND UTILITIES
TRADE, TRANSPORTATION
19%
PROFESSIONAL AND
BUSINESS SERVICES
2%INFORMATION
18%
CONSTRUCTION
6%
12% 11% 8%
15%
SUNSET OAKS
MARKET OVERVIEW
DEMOGRAPHICS
SPORTS
EDUCATION
ARTS & ENTERTAINMENT
▪ The local population will expand to approximately 3.2 million residents through
2022. During this time the number of households will increase to 1.3 million.
▪ Homeownership of nearly 65 percent is slightly above the national rate of 64
percent; the median home price, at $226,300, is below the national median.
▪ More than 36 percent of residents hold bachelor’s degrees, with 9 percent having
also attained a graduate or professional degree.
The metro boasts a mild climate and a beautiful waterfront that attract many residents and
visitors. It has professional football, hockey and baseball teams. The area has more than
200 golf courses and abundant water-related activities, with Tampa Bay and the Gulf Coast
nearby. There are more than 11,000 acres of parkland and 100 trail acres within a 60-mile
radius. Numerous state parks, historic sites, museums, theaters and retail centers also dot
the landscape. The world-famous Busch Gardens theme park draws visitors. Educational
advancement is available at numerous institutions of higher learning located in the Tampa
Bay area. The University of South Florida, located in Tampa, is the third-largest university in
the state.
* Forecast
Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s
Analytics; U.S. Census Bureau
QUALITY OF LIFE
2017 Population by Age
0-4 YEARS
5%5-19 YEARS
17%20-24 YEARS
6%25-44 YEARS
25%45-64 YEARS
27%65+ YEARS
19%
SUNSET OAKS
42.1
2017MEDIAN AGE:
U.S. Median:
37.8
$48,700
2017 MEDIAN HOUSEHOLD INCOME:
U.S. Median:
$56,300
3M
2017POPULATION:
Growth2017-2022*:
6.4%
1.2M
2017HOUSEHOLDS:
7.7%
Growth2016-2022*:
MANUFACTURED HOUSING NATIONAL REPORT
SUNSET OAKS
Vacancy Continues to Tighten, Pushing Rent Gains;
Investors’ Appetite For Communities Remains Robust
Need for affordable housing and an aging population generate strong demand in
manufactured home communities. Vacancy in all regions remains at a 10-year low, with the
West maintaining the tightest rate at 5.1 percent. Within the regions, however, the rate varies
widely by metro. In cities where housing prices are beyond the means of many potential
homeowners, such as Long Island or Seattle, vacancy has stayed persistently beneath 3
percent. A number of communities in Sunbelt metros including Tampa and Fort Worth have
posted large drops in vacancy over the past four quarters due to steady employment gains,
which are drawing workers as well as retirees to warmer climates. Age-restricted parks
nationwide should benefit from a growing senior population over the next few decades.
Meanwhile, vacancy remains in double digits, especially in many Midwest cities with slower
household formation and more affordable home prices.
Rents climbing as demand improves. As manufactured home parks fill and many are
refurbished with amenities added or upgraded, rents are rising. Among regions, the West also
holds the highest rents at an average of $557 per month, with the South registering the
biggest year-over-year advance of 3.9 percent. During the past 12 months, Fort Meyers,
Florida, posted one of the largest rent gains at 8.5 percent to an average of $628 per month,
well above the national average.
• Capital-flush investors from other asset classes are seeking to capitalize
on higher yields in manufactured home communities. However, the
supply of available listings remains well below demand throughout most
areas of the nation, making it more difficult to find quality parks. In
addition, increased competition for properties is keeping cap rates
compressed.
• In mainly Western states, some buyers are hesitating on the added risk
of manufactured home communities in or near forested areas that are
susceptible to wildfires. This could result in some parks taking longer to
transact.
• A number of private investors are interested in smaller communities that
can be upgraded and have amenities added for value-add opportunities.
Parks with city services and fewer rental homes are especially desired,
although recently banks have been looking more favorably on rental or
RV income.
• Rising interest rates may motivate some investors to sell rather than
refinance, which may provide more listings during the quarters ahead.
Investment Highlights
* Forecast ** Trailing 12 months through 2Q18 Sources: CoStar Group, Inc.; U.S. Census Bureau
PROPERTY NAME
MARKETING TEAM
SUNSET OAKS
DEMOGRAPHICS
Source: © 2018 Experian
Created on February 2019
POPULATION 1 Miles 3 Miles 5 Miles
▪ 2023 Projection
Total Population 4,865 28,949 87,784
▪ 2018 Estimate
Total Population 4,572 27,211 82,068
▪ 2010 Census
Total Population 4,125 23,997 72,136
▪ 2000 Census
Total Population 3,539 19,251 56,801
▪ Daytime Population
2018 Estimate 3,247 22,815 70,198
HOUSEHOLDS 1 Miles 3 Miles 5 Miles
▪ 2023 Projection
Total Households 1,644 9,627 30,236
▪ 2018 Estimate
Total Households 1,522 8,867 27,809
Average (Mean) Household Size 2.98 2.97 2.87
▪ 2010 Census
Total Households 1,381 7,851 24,500
▪ 2000 Census
Total Households 1,203 6,440 19,961
HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles
▪ 2018 Estimate
$250,000 or More 2.40% 1.72% 1.65%
$200,000 - $249,999 2.06% 1.86% 1.32%
$150,000 - $199,999 6.29% 5.46% 4.63%
$125,000 - $149,999 6.42% 5.18% 4.60%
$100,000 - $124,999 13.03% 9.42% 7.16%
$75,000 - $99,999 15.23% 12.27% 12.41%
$50,000 - $74,999 25.17% 21.86% 20.77%
$35,000 - $49,999 9.01% 12.55% 14.06%
$25,000 - $34,999 6.79% 11.17% 11.20%
$15,000 - $24,999 6.92% 10.63% 11.47%
Under $15,000 6.68% 7.86% 10.74%
Average Household Income $89,080 $76,423 $70,556
Median Household Income $70,213 $58,363 $52,802
Per Capita Income $29,742 $25,160 $24,104
PROPERTY NAME
MARKETING TEAM
SUNSET OAKS
DEMOGRAPHICS
Source: © 2018 Experian
Created on February 2019
POPULATION PROFILE 1 Miles 3 Miles 5 Miles
▪ Population by Age
0 to 4 Years 5.79% 7.74% 7.47%
5 to 14 Years 14.01% 14.74% 14.87%
15 to 17 Years 4.54% 4.24% 4.09%
18 to 19 Years 2.68% 2.65% 2.45%
20 to 24 Years 5.72% 6.39% 5.97%
25 to 29 Years 6.64% 7.97% 7.53%
30 to 34 Years 5.75% 6.72% 6.83%
35 to 39 Years 6.31% 6.33% 6.51%
40 to 49 Years 14.33% 12.59% 12.56%
50 to 59 Years 14.64% 12.85% 12.63%
60 to 64 Years 5.85% 5.19% 5.28%
65 to 69 Years 5.30% 4.70% 4.93%
70 to 74 Years 3.54% 3.21% 3.43%
75 to 79 Years 2.49% 2.21% 2.41%
80 to 84 Years 1.39% 1.35% 1.55%
Age 85+ 1.01% 1.13% 1.49%
Median Age 38.90 34.65 35.59
POPULATION PROFILE 1 Miles 3 Miles 5 Miles
▪ Population 25+ by Education Level
2018 Estimate Population Age 25+ 3,076 17,478 53,458
Elementary (0-8) 5.97% 9.78% 8.74%
Some High School (9-11) 8.87% 10.29% 11.38%
High School Graduate (12) 29.92% 32.65% 33.52%
Some College (13-15) 20.29% 17.88% 18.54%
Associate Degree Only 7.55% 7.13% 7.20%
Bachelors Degree Only 17.16% 13.36% 12.86%
Graduate Degree 9.53% 6.82% 5.76%
Income
In 2018, the median household income for your selected geography is
$70,213, compare this to the US average which is currently $58,754.
The median household income for your area has changed by 19.94%
since 2000. It is estimated that the median household income in your
area will be $82,034 five years from now, which represents a change
of 16.84% from the current year.
The current year per capita income in your area is $29,742, compare
this to the US average, which is $32,356. The current year average
household income in your area is $89,080, compare this to the US
average which is $84,609.
Population
In 2018, the population in your selected geography is 4,572. The
population has changed by 29.19% since 2000. It is estimated that
the population in your area will be 4,865.00 five years from now,
which represents a change of 6.41% from the current year. The
current population is 50.40% male and 49.60% female. The median
age of the population in your area is 38.90, compare this to the US
average which is 37.95. The population density in your area is
1,457.06 people per square mile.
Households
There are currently 1,522 households in your selected geography. The
number of households has changed by 26.52% since 2000. It is
estimated that the number of households in your area will be 1,644
five years from now, which represents a change of 8.02% from the
current year. The average household size in your area is 2.98 persons.
Employment
In 2018, there are 871 employees in your selected area, this is also
known as the daytime population. The 2000 Census revealed that
58.09% of employees are employed in white-collar occupations in
this geography, and 41.41% are employed in blue-collar occupations.
In 2018, unemployment in this area is 4.48%. In 2000, the average
time traveled to work was 29.00 minutes.
Race and Ethnicity
The current year racial makeup of your selected area is as follows:
84.20% White, 3.47% Black, 0.01% Native American and 2.59%
Asian/Pacific Islander. Compare these to US averages which are:
70.20% White, 12.89% Black, 0.19% Native American and 5.59%
Asian/Pacific Islander. People of Hispanic origin are counted
independently of race.
People of Hispanic origin make up 26.53% of the current year
population in your selected area. Compare this to the US average of
18.01%.
PROPERTY NAME
MARKETING TEAM
SUNSET OAKS
Housing
The median housing value in your area was $241,758 in 2018,
compare this to the US average of $201,842. In 2000, there were
1,036 owner occupied housing units in your area and there were 166
renter occupied housing units in your area. The median rent at the
time was $486.
Source: © 2018 Experian
DEMOGRAPHICS
8
SUNSET OAKS
DEMOGRAPHICS