For a video tour, please visit: https://youtu.be/ts1bVbWnryQ

101 Dale DriveGeorgetown, KY 40324

501 SITE COMMUNITY(INCLUDES 22 UNDEVELOPED LOTS)

COMMUNITY PRICE: CONTACT BROKERTERMS: ALL CASH

REO SALE

SITE INFORMATION

ADDRESS 101 Dale Drive Georgetown, KY 40324

COUNTY Fayette and Scott

TAX PARCEL IDS (FAYETTE) 19302540

TAX PARCEL IDS (SCOTT) 17040063.000 & 17020031.001

YEAR BUILT 1968-2003

SITES 501 (includes 22 undeveloped lots)

COMMUNITY TYPE All Age

COMBINED LAND 69.06 acres

DENSITY 6.94 sites/acre

ABANDONED HOMES 33 (33 vacant as of Mar ‘16)

THIRD PARTY HOMES 30 (14 vacant as of Mar ‘16)

AVERAGE LOT RENT $315 (includes trash)

MH PHYS OCC 85% (428 sites as of Mar ‘16)

MH ECO. OCC 76% (381 sites as of Mar ‘16)

ZONING Scott County: R-1, Fayette County: M-1P

ROADS Asphalt

FLOODPLAIN Zone X, AE (see FEMA map)

UTILITIES

WATER Kentucky American Water (some direct billed, others rebilled)

SEWER Private waste water treatment plan (included in rent)

ELECTRICITY Kentucky Utilities (direct billed)

TRASH Innovative Trash Service (included in rent)

PROPERTY DETAILS

INVESTMENT HIGHLIGHTS

• Rare opportunity to acquire a 501-site community in an MSA of over 700,000.

• Very few park-owned homes. Community has an agreement with a third party investor who has approximately 30 homes on the property. The community helps with the cost of moving the homes in and gives $1,000 credit once a tenant has signed a two year lease and other conditions are met.

• Strong collections and high occupancy should qualify the park for an attractive, non-recourse loan through the conduit market.

• Potential to hook onto the city sewer system. The cost of the project has been estimated at $3MM. $1,075,000 had been appropriated from elected officials as of Jan 2015 to help with the cost of the project and there may be a $1MM grant that could be applied for. These funds are not guaranteed and the current amounts, if any, will need to be reconfirmed.

• There are 22 undeveloped lots that will need runners/footers poured, utility lines ran, connections made (water/sewer and electric) and driveways paved. The average estimated cost to develop is $3k per lot.

• 362 of the lots are currently individually metered for water, while the remaining 142 are on a master meter. Potential to capture upside by submetering the remaining sites.

• Park consists of three sections catering to different price points. Monthly lot and home payment for older homes goes almost as low $400, with newer homes going for $600.

• A new Phase I Environmental Report was completed March 14, 2016. The findings were “clear,” and no REC’s were identified.

• Comparable single-family and multi-family properties in the market rent for an estimated 22% more than newer units at Georgetown Estates, positioning the property well for a new owner to come in and increase occupancy.

AREA HIGHLIGHTS

• Georgetown Estates is conveniently located with visibility from Route 25 between Georgetown and Lexington, KY - the ninth and second largest cities in the state.

• Lexington boasts a diverse job base and a 3.7% unemployment rate as of August 2015, not seasonally adjusted.

• Renowned as “Horse Capital of the World,” Lexington attracts equestrian enthusiasts from across the nation with its myriad of horse-related attractions and events.

• The Keeneland race and auction facility contributed $590MM to Lexington and Fayette County in 2014.

• Georgetown is home to Toyota Motor Manufacturing Kentucky, the largest Toyota manufacturing plant outside of Japan. It employs 7,500, making it the largest employer in the county.

• The University of Kentucky had an enrollment of 29,385 in the fall of 2013 and offers 93 fields of undergraduate study through 16 different colleges. The University is ranked #129 for national universities by U.S. News and World Report, with select programs such as pharmacy and nursing ranked in the top ten.

• Louisville, KY and Cincinnati, OH are within driving distance of the property, putting a diverse selection of attractions in reach—the Kentucky Derby, Thunder Over Louisville, the Cincinnati Art Museum and the Great American Ball Park.

501 SITE COMMUNITY(INCLUDES 22 UNDEVELOPED LOTS)

COMMUNITY PRICE : CONTACT BROKERTERMS: ALL CASH

FINANCIAL ANALYSIS

1

2 Gross Scheduled RentLess: (Gain)/Loss-to-Lease 0.00%

Gross Potential Income3 Less: Vacancy 22.36%

Less: Employee/Model 0.26%

Less: Bad Debt 1.00%

Less: Concessions 0.17%

Less: Retro Rent 0.00%

Total Rental Income 76.21%4 Plus: Utility Income 1014 Plus: Other Income 47

Total Other Income 149

Effective Gross Income

EXPENSES per site5 Repairs & Maintenance $2006 Payroll 168

Administrative 75

Marketing 10

Professional Fees 507 Utilities

Fuel/Gas 0

Water 310

Treatment Plant 0

Utilities / Electric 97

Trash 148

Total Variable Expenses $1,0578 Taxes 1069 Insurance 38

10 Management Fee 3.00%

Total Operating Expenses $1,29211 Plus: Capital Reserves 50

Total Expenses $1,342

NET OPERATING INCOME

76,324

$1,258

28,124

51,538

047,038

126,672152

0

6,257

73,404 25,050

33,959

45,647

$1,517,621$1,573,732

12

74,019$529,641

0

147

0189

84,319

41,511

10

per site

93

26

10

168

$95,630

25,050

53 26,639

$647,10945,529

0

28,67657

97 48,69228,35857

68

94,993

34,6890 0 69

000

034

0

16,852 18 9,036

Actual Exp

84,270

Actuals

77

62,377Actuals

$1,746,101

168190

63

0

0 0

0

0

12,820

37,575

0

74,4618,620

38,748

$1,906,676

$133,134

0

Proforma

$1,491,667

-2.13%

INCOME$1,893,780

18,9385,015

46,435

67,371$628,936$1,255

155,170

0

0

90,217

0

4,200

4,859

150,650

0$777,833

53,084

$1,443,160

23,641

5,010

$100,20084,168

50,820

Proforma Exp

69,600

0$672,159

$713,834

$1,255

13,014

$456,986$912

$1,553

$944,796

$1,553

0

4.28%3.51%

$777,8334.67%

$628,936

56

$56

per site

$1,711,294

8

0.00% 0 0.00%

0

0

$1,746,101 $1,711,294

2013 Actuals Feb '16 T12 Actuals

Financial Analysis

Dec '14 T7 Ann

$1,936,9630

4,500

2,177

0

00

0

(8,005)

0

100.00%

-0.41%

86

0.00%

0.00%

$1,711,2940

$191

per site

$27,928per site

$125

000

0.00% 0.00%

0

0.00%

0.00%

$1,711,294$1,746,101

0.00%

0

100.00%

0

0

$1,746,1010

0.00%

0

00.00% 0 0.00%

22.20%

0.17%

5,015

3,307

0.26%

36,9141.94%

$1,944,968

15.81% 306,1610.23%

77

$1,947,369

423,286

$1,478,84777.56%79.25%

2.14%

2.87% 55,6340.11%

$1,534,9840.00%

38,662 17

$630,056

Actual Exp

$266

103

180

31,364

94,798

4,881

301

$502,904

189

$1,004

91

0

60,000$456,986

24

246

$342,130

12,008 26

$1,230

60,0003.44%

10,600

82

$1,008

$616,213

$1,230

10,22320

29,319

21

$505,019

59

44,23988

0

$616,213

94

123,123

$1,254,308

42,847

$845,462

$683

$1,129,888

0$912

86

0

40,971

(40,693) 0

3,307

$1,893,780

0

423,360

18,855

2012 Actuals

48,449

253

417 208,7020

1. Actual numbers based on financials provided by the client; 2012 and 2013 financials are from Owner; Dec ’14 T7 and Feb ’16 T12 financials are from Receiver

2. Proforma GSR = $315 x 501 sites x 12 months3. Proforma vacancy assumes fill of 8 tenants4. Proforma Utility Income includes approximately 121 tenants who are not

submetered and pay a flat fee of $35/month; Other income average of last two years; Dec ’14 T7 Ann and Feb ’16 T12 include the $35/mo water charges in Gross Potential Income

5. Feb ’16 T12 R&M includes significant one-time expenses related to upgrading and repairing wastewater treatment plant

6. There is currently a property manager ($15/hr) and assistant manager ($13/hr); Maintenance is subcontracted and not listed in payroll; Historical payroll was higher as they used to have an office manager, assistant, three maintenance workers, one truck repair worker and one grounds worker

7. Proforma Utilities / Electric grown 3% from Feb ’16 T12; Proforma Water expense grown 3% from Feb ’16 T12; Low water expense in 2013 is result of previous owner not staying current with monthly water invoices; At the time the property went into receivership there were over $100k in past due water expenses which have since been paid off; Trash provider was replaced, and the proforma expense is set to 110% of the contracted expense of $5607.5/mo

8. Proforma Taxes grown 3% from Feb ’16 T129. Feb ’16 T12 Insurance is artificially high due to a timing issue – annual

insurance expense is approximately $19k10. Dec ’14 T7 Ann and Feb ’16 T12 Management Fee includes $1,300/mo

receiver fee11. Numbers do not reflect actual expense

UNDERWRITING ASSUMPTIONS

501 SITE COMMUNITY(INCLUDES 22 UNDEVELOPED LOTS)

COMMUNITY PRICE : CONTACT BROKERTERMS: ALL CASH

PROPERTY location and AERIAL

DEMOGRAPHIC INFORMATION 1 mile 5 mile 10 mile2015 Population Estimate 1,515 43,917 185,712

2020 Population Projection 1,572 47,346 196,247

Population Growth Estimate 2015 - 2020 0.74% 1.51% 1.11%

Renter Occupied Percentage 41.6% 32.2% 45.8%

Owner Occupied Percentage 58.4% 67.8% 54.2%

2015 Est. Average Family Household Income $61,798 $72,320 $60,700

2015 Est. Median Owner-Occupied Housing Value $109,862 $186,137 $198,433Source: U.S. Census Bureau

LEXINGTON

LOUISVILLE

FRANKFORTGEORGETOWN

N

501 SITE COMMUNITY(INCLUDES 22 UNDEVELOPED LOTS)

COMMUNITY PRICE : CONTACT BROKERTERMS: ALL CASH

Property LOCATION

LEXINGTON

FRANKFORT

GEORGETOWN

KENTUCKY HORSE PARK

• 1,200-acre working horse farm and educational theme park including the Alltech Arena and Rolex Stadium capable of seating over 40,000 spectators. The park offers educational events and hosts numerous prestigious competitions each year.

• The park’s “Hall of Champions” is home to some of the most decorated competition horses in the world.

KEENELAND PARK

• A National Historic Landmark hosting thoroughbred races and the Keeneland Library, one of the world’s largest repositories of Thoroughbred racing history.

• The site for the 2015 Breeders’ Cup World Championships, a two-day $26 million racing event attracting horses, trainers, and owners from across the globe.

TOYOTA MANUFACTURING KENTUCKY

• Has capacity to build more than 550,000 vehicles a year with total employment of 7,500.

• From 2013 to 2015, Toyota invested $360 million toward a new dedicated assembly line for the Lexus ES 350 creating 750 new jobs.

N

501 SITE COMMUNITY(INCLUDES 22 UNDEVELOPED LOTS)

COMMUNITY PRICE : CONTACT BROKERTERMS: ALL CASH

Property photos

501 SITE COMMUNITY(INCLUDES 22 UNDEVELOPED LOTS)

COMMUNITY PRICE : CONTACT BROKERTERMS: ALL CASH

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 ARA, A Newmark Company (ARA Newmark) 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 Newmark 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.

www.aranewmark.comManufactured Housing Group: 901 S. MoPac Expressway, Barton Oaks Plaza II, Suite 275, Austin, TX 78746 T 512.342.8100

Additional information for Georgetown Estates is available on our website at:http://arausa.listinglab.com/GeorgetownEstates

Jon Shayjshay@aranewmark.com T 303.260.4486

NATIONAL MANUFACTURED HOUSING GROUP

Andrew Shihashih@aranewmark.com T 512.637.1219

Todd Fletchertfletcher@aranewmark.com T 303.260.4470

PRIMARY CONTACTS:

For a video tour, please visit: https://youtu.be/ts1bVbWnryQ