brokers opinion of value - mhc-rvresorts.com€¦ · property name henderson’s mobile home...

Michael FryMRV GROUP LLC

Director Investment Sales407.284.7774

[email protected]

OFFERING MEMORANDUM

Nalls Court & Henderson’sMobile Home Communities

OFFERING MEMORANDUM| NALLS COURT & HENDERSON’S MHC MRV GROUP LLC

Nalls Court MHC

1002 & 1009 Nalls Ct Clewiston, FL 33440

PROPERTY INVESTMENT SUMMARY

OFFERING SUMMARY

Total Number of Sites 79

Acres 8.92

Year Built 1976/1990

Occupancy 88.61%

Price Per Site $41,772

Average Lot Rent $350/ $225

Cap Rate 6-7%

Henderson’s MHC

950 & 42143 Old US Hwy 27 South Bay, FL 33493

Purchase Price: $3,300,000


PROPERTY INVESTMENT SUMMARY

Henderson's and Nalls Court MHCs are both All-Age communitiesconsisting of 69 mobile home sites, 6 RV sites, garage, 2 apartmentunits and a single family dwelling. The park owns 1 RV trailer andthe rest are resident owned homes. The lot rents are $225 in NallsCourt & $350 In Henderson’s, $650 & $750 (including $200 forutilities) for the apartment units and $1000 for the 3/3 home.These do not include lawn maintenance of $7 and garbagecollection of $2. The park is in close proximity to shopping, jobs,highways and major cities such as Palm Beach, Sebring andOrlando. The communities are situated on 8.30 acres +/- and haveCity Water & Sewer for Henderson’s and City Water and Septic forNalls Court.

South Bay is located in Florida's "Heartlands" on the very southerntip of Lake Okeechobee, less than an hour from Palm Beach, 2 hoursfrom Orlando and 1.5 hours to Miami. Its predominate business isthe commercial sugarcane industry. South Bay and Palm BeachCounty accounts for approximately 70% of the commercialsugarcane acreage and 75% of the total harvested tonnage. Theremainder is grown in the adjacent counties of Hendry, Glades, andMartin. Both Henderson's and Nall's offer a good mix of "NorthernSnow Birds" and workers employed both directly and indirectly bythe sugarcane industry. They all enjoy the outdoor amenities thatbeautiful Lake Okeechobee has to offer.

LOCATION OVERVIEWINVESTMENT HIGHLIGHTS▪ Value Add Opportunity with up to $21,100

added yearly income based on 5 added RV lots.

▪ High occupancy with strong rental history▪ Strategic location along/ near Hwy 27▪ Close proximity to supermarkets, hospital,

city hall, school, restaurants, employment▪ Location has high demand for affordable

housing▪ Rent/lot is below market

PROPERTY DESCRIPTION

▪ Property Summary▪ Photos▪ Parcel View

MRV Group LLC is pleased to offer the saleof Nalls Court & Henderson’s Mobile HomeCommunities located south of LakeOkeechobee. The communities are about12.5 mi apart. The parks are clean, wellmaintained, well laid out and landscapedwith lots of trees. Henderson’s is locatedalong US Hwy 27 while Nalls Court is just offthe highway. Surrounding properties aresimilar parks, retail, commercial and openspace.


DIRECTION

Henderson’s MHC is located along US Hwy27, southeast side of Lake Okeechobee. 12.5mi to the west is Nalls Court MHC. From USHwy 27, turn left to Evercrane Rd then rightat Davidson Rd then left at Nalls Rd.

PROPERTY SUMMARY

SUMMARY OF SALIENT FACTS

Property Name Henderson’s Mobile Home Community Nalls Court Mobile Home Community

Address 850, 950 & 42143 Old US Hwy 27 1002 & 1009 Nalls Ct

City, State, Zip South Bay, FL 33493 Clewiston, FL 33440

County Palm Beach Hendry

Property Type Mobile Home & RV Park Mobile Home & RV Park

Owner of Record Hendersons MHC LLC Nalls Court MHC LLC

Parcel ID

58-36-44-10-00-000-102058-36-44-10-00-000-1010& 00-36-44-10-00-000-1000

1-34-43-23-020-0000-002.0& 1-34-43-23-020-0000-003.0

Land Area - SF 263,468 125,161

Land Area - Acres 6.05 2.87

Year Built 1976 1990

Mobile Home Lot 50 19

RV Lot 5 -

RV 1 -

Improvements

3 bed/3 bath single family home2 bed/1 bath apartment1 bed/1 bath apartment2,000 sq ft storage/ industrial garageRV trailer with rental history + extra RV lot11 rentable storage containers/storage lots

Septic, underwent $60k upgrade in 2017/2018

Utilities City utilities paid directly by tenantsCity water, sub-metered and billed,Septic Sewage fee charged to tenants at 1x water

Zoning DesignationB1 - CommercialR1 - Residential R-1 Not Zoned


PROPERTY SUMMARY

UTILITIES & SERVICE PROVIDERS

Henderson’s MHC Nalls Court MHCUtility Provider Metered Paid By Provider Metered Paid By

Water City Yes Tenant City Sub-metered TenantSewer City - Tenant Septic - TenantElectric FPL Yes Tenant FPL Yes Tenant

Gas/Oil Glades Gas* - - - - -

Trash PBC** - Park - - Park

Lawn Maintenance Park - Park Tenants - Park

Internet Unk - Tenant Unk - TenantTelephone Unk - Tenant Unk - Tenant

*for Laundry** for Solid waste


PROPERTY SUMMARY

88%

6%

1%3%

1%1%

MH Lot

RV Lot

RV Trailer

Apartment

House

Garage

Henderson’s Nalls Court Total Ave Monthly Rent Henderson’s Nalls Court

MH Lot 50 19 69 $350/ $225 98.00% 94.74%RV Lot 5 5 $350 0.00% -RV Trailer 1 1 $450** 0.00% -

Apartment 2 2 $450 / $550* 100.00% -House 1 1 $1,000 100.00% -

Garage 1 1 $750 0.00% -Total 60 19 79 88.61%Storage Containers 11 11 $50 54.55%

1. *plus $200 for utilities2. **plus $150 for utilities3. $7 lawn and $2 garbage not included

4. Storage Containers not included in the Unit count and chart.


PHOTOS – HENDERSON’S MHC


PHOTOS – NALLS COURT ’S MHC


PARCEL VIEW

HENDERSON’S MHC PLAT


PARCEL VIEW

NALLS COURT’S MHC PLAT

MARKET OVERVIEW

▪ Rent Comparables▪ Sales Comparables


MARKET RENT COMPARABLES

2 - Geraldine Johnson MHP

240 US-27, South Bay, FL 33493

Distance ~1.25mi Total Sites 31

Rent $300 Occupancy 96.8%

Utilities not included

1 - Seminole Village MHP

1536 US-441, Okeechobee, FL 34974

Distance < 40mi Total Sites 44

Rent $375 Occupancy Unk

Utilities not included

3 - Casablanca RV Mobile Home9441 State Road 78 West, Okeechobee

Distance ~30mi Total Sites 70

Rent $450 Occupancy Unk

Includes water


MARKET RENT COMPARABLES

Comp# Property Name # Sites Monthly Remarks

1 Seminole Village MHP 44 $375 Utilities not included

2 Geraldine Johnson MHP 31 $300 Utilities not included

3 Casablanca RV MHP 70 $415 $450 Includes water. Assumption of $35/mo for water.

Average $363

Subject Subject 79 $350/225 Utilities not included

Geraldine Johnson


MARKET SALES COMPARABLES

1 - County Line

1475 N Bridge St, LaBelle, FL 33935


Sales Price $847,500 $/site $40,357

Date Sold Mar-19 Class Rating C

No amenities. Similar to Subject.

2 - Camp Bravo5430 US-441, Okeechobee, FL 34974



Date Sold Nov-18 Class Rating C


3 - Jims Place Park

8651 FL-78, Okeechobee, FL 34974



Date Sold Sep-16 Class Rating C


4 - Seminole Village MHP

1536 US-441, Okeechobee, FL 34974


Sales Price $1,479,400 $/site $33,623

Date Sold Apr-18 Class Rating C



MARKET SALES COMPARABLES

Seminole Village MHP

Park Name Sites Yr built Acre Date Sold Sales Price Price/site Water Sewer Amenities

1 County Line 21 1981 2.3243 Mar-19 $847,500 $40,357 Well Septic -

2 Camp Bravo 20 - 1.312 Nov-18 $650,000 $32,500 City City -

3 Jims Place Park 22 1959 2.299 Sep-16 $850,000 $38,636 City City -

4 Seminole Village MHP 44 1967 5.3 Apr-18 $1,479,400 $33,623 City City -

Average $36,279

Subject Subject 79 1976/1990 6.05 $3,300,000 $41,772.15 City City/Septic -


MARKET COMPARISON

The monthly rent per site per the rent comparablesranges from $300 to $415 excluding utilities. Theaverage rent per site is at $363. This is higher thanthe subject’s at $225 for Nalls Court and $350 forHenderson’s.

The average sold price/site per the sales comparablesranges from $32,500 to $40,360. The average is at$36,280. The subject is near the upper range at$41,139.

Prices per site and cap rates have changeddramatically since most of the comparable salestransacted. Cap rates have dropped a minimum of 1%and prices per site have risen at least $4000 per site.

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

Seminole Village MHP Geraldine JohnsonEstate MHP

Casablanca RV MHP

Rent Comps - Monthly Rent

Rent Nalls Court Henderson Average

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

County Line Camp Bravo Jims Place Park Seminole Village MHP

Price/Site

Price/site Subject Average

INVESTMENT ANALYSIS

▪ Rent Roll▪ Annual Operating Data▪ Operating Income Analysis


RENT ROLL Sept 2019


ANNUAL OPERATING DATA

ANNUAL OPERATING DATAPROFORMA

Description Sep-19 Projected 2019 Year 1 Year 2 Year 3 Year 4 Year 5

Income Annual Increase, assumed *see note 1 3.00% 3.00% 3.00% 3.00%

Expense Annual Increase, assumed 2.00% 2.00% 2.00% 2.00% 2.00%

Vacancy 7.5% 6.3% 5.0% 3.8% 2.5%

Bad Debt 0.50% 0.50% 0.50% 0.50% 0.50%

INCOMEHenderson's Rent $19,835 $238,020 $291,078 $299,810 $308,805 $318,069 $327,611 Nalls Court Rent $4,050 $48,600 $52,839 $54,424 $56,057 $57,739 $59,471 Water & Sewer Revenues $22,004 $22,664 $23,344 $24,044 $24,766 $25,509

Gross Potential Income $23,885.00 $308,624.00 $366,581 $377,579 $388,906 $400,573 $412,590 Vacancy ($27,494) ($23,599) ($19,445) ($15,021) ($10,315)Bad Debt ($1,833) ($1,888) ($1,945) ($2,003) ($2,063)

EFFECTIVE GROSS INCOME $23,885.00 $308,624.00 $337,255 $352,092 $367,516 $383,549 $400,213 Annual EGI Increase 9.28% 4.40% 4.38% 4.36% 4.34%EXPENSESInsurance ($7,491.00) ($7,641) ($7,794) ($7,950) ($8,108) ($8,271)Legal & Accounting ($1,250.00) ($1,275) ($1,301) ($1,327) ($1,353) ($1,380)Real Estate Taxes ($13,149.00) ($44,181) ($45,065) ($45,966) ($46,885) ($47,823)Non‐Ad Valorem Taxes ($8,501.00) ($8,671) ($8,844) ($9,021) ($9,202) ($9,386)Electricity, Water & Septic Expenses ($10,898.00) ($11,116) ($11,338) ($11,565) ($11,796) ($12,032)Trash Collection ($8,889.00) ($9,067) ($9,248) ($9,433) ($9,622) ($9,814)Common Area Utilities ($1,788.00) ($1,824) ($1,860) ($1,897) ($1,935) ($1,974)Maintenance, Landscaping & Repairs ($20,400.00) ($20,808) ($21,224) ($21,649) ($22,082) ($22,523)On‐site Park Manager ($20,928.00) - - - - -Office Expenses / Software / Licenses ($3,602.00) ($3,674) ($3,748) ($3,822) ($3,899) ($3,977)Capital Reserves - ($3,950) ($4,029) ($4,110) ($4,192) ($4,276)Management Fee - ($13,490) ($13,760) ($14,035) ($14,316) ($14,602)

- - - - -Total Operating Expenses $0.00 ($96,896.00) ($125,696.78) ($128,210.71) ($130,774.93) ($133,390.43) ($136,058.24)Expense % of EGI 31.40% 37.27% 36.41% 35.58% 34.78% 34.00%

NOMINAL NOI $23,885.00 $211,728.00 $211,557.85 $223,881.29 $236,741.16 $250,158.30 $264,154.34


ANNUAL OPERATING DATA

As underwritten in this analysis, the Pro Forma economics of Nalls Court & Henderson’s MHCs will generate revenue to satisfy the required rates of return of both private equity and institutional investors for assets in today’s capital market environment. Overall operational performance, economic stability within the region and continuously improving market fundamentals will support the sustainability of the Pro Forma assumptions presented.

Notes:Proforma1. Proforma Yr 1 Income is based on a rent income and water & sewer revenues increase of 3% from 2019. 2. Year 1 Income is based on 5 New RV sites occupied @ $350 each.3. Occupancy rate is assumed to be 92.5% on year 1 and improves by 1.25% yearly.4. Annual expense increase of 2% from 2019.5. Taxes for Proforma Yr 1 is based on 60% of the purchase price X Millage Rate X 96% for early bird. Current Millage Rate is 18.7273 for Nalls Court & 24.0633 for Henderson proportioned based on rental income.6. Bad debt @ 0.5% of gross potential rent.7. Considered a capital reserves of $50/site per year.8. Removed On‐site Park Manager expense and replaced by Management Fee at 4% of EGI.

2019 Income1. September 2019 rental income is based on the rental charge per Rent Roll.2. 2019 Rental income is based on the annualized Sept 2019 Rent Roll.3. Expenses are based on the Grove Banyan Projections in the May 2019 Overview & Projections report.

NOMINAL NOI $23,885.00 $211,728.00 $211,557.85 $223,881.29 $236,741.16 $250,158.30 $264,154.34 Interest ($118,800.00) ($116,852.68) ($114,817.74) ($112,691.22) ($110,469.01)Principal ($43,273.67) ($45,220.99) ($47,255.93) ($49,382.45) ($51,604.66)Debt Service ($162,073.67) ($162,073.67) ($162,073.67) ($162,073.67) ($162,073.67)BEFORE TAX CASH FLOW $49,484 $61,808 $74,667 $88,085 $102,081 CAP RATE* 0.72% 6.42% 6.41% 6.78% 7.17% 7.58% 8.00%Cash on Cash Return 7.14% 8.92% 10.77% 12.71% 14.73%

INVESTMENT AND FINANCING SUMMARY

Sale Price $3,300,000Price/ Unit $41,772.15

Cap Rate 6.41%

NOI $211,558

Financing

Loan Amount $2,640,000

Down Payment $660,000

Interest Rate 4.50%

Cost of Sale 1.00%

Term (years) 30

Loan per pad $33,417.72

Annual Debt Service ($162,073.67)

Monthly Payment ($13,506.14)

LTV Ratio 80.00%

DCR 1.31


OPERATING INCOME ANALYSIS

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

Year 1 Year 2 Year 3 Year 4 Year 5

EFFECTIVE GROSS INCOME NOMINAL NOI BEFORE TAX CASH FLOW

SUBJECT NEIGHBORHOOD

▪ Demographics▪ Location Map


DEMOGRAPHICS


LOCATION MAP

RECENT SALES AND NEW LISTINGS

Property Name Location No. of Spaces

Hidden Valley Campground & MHP Brooksville, FL 84

Sonrise Palms RV Resort Cocoa, FL 105

Four Acres RV Resort Okeechobee, FL 71

Sunset King Lake RV Resort De Funiak Springs, FL 231

Camp Mach RV Resort Lake Wales, FL 220

Lake City Campground Lake City, FL 80

Scenic Mountain RV Resort Milledgeville, GA 72

Half Shell Resort Putnam County 34

Crossroads Travel Park Perry, GA 72

Galveton Bay RV Resort Galveston, Texas 140

RECENTLY CLOSED

RV Resorts

Manufactured Housing Communities

Property Name Location No. of Spaces

April Estates Titusville, FL 35

Minerva Mobile Home Park Haines City, Fl 85

Aurora Acres MHP Inglis, Fl 134

McGrady’s Trailer Park Frostproof ,FL 15

Lake Bradford Estates Tallahassee, FL 113

Lake Griffin MHP Leesburg, FL 109

Brittany Estates Tallahassee, FL 300

Palm Paradise MHP Vero Beach, FL 65

Aurora Park MHP Melbourne, FL 64

Santa Fe Lake Butler 122


MOBILE HOME TRANSACTIONS

CURRENT LISTINGS

Property Type Location No. of Spaces Status

MHP Development Dunnellon, Fl 94 Active

Mobile Home Community Avon Park, Fl 54 Active

MH Rental Community Orlando FL 11 Active

Manufactured Home Park Cape Canaveral, FL 15 Active

Mobile Home Park Cordova, SC 49 Active

Nalls Court & Henderson’s MHC South Bay/ Clewiston, FL

79 Active


MOBILE HOME TRANSACTIONS

All materials and information received or derived from Dalton Wade Inc. and MRV Group LLC its directors, officers, agents,advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness ,veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmentalrequirements, developability or suitability, financial performance of the property, projected financial performance of theproperty for any party’s intended use or any and all other matters.

Neither MRV Group LLC and or Dalton Wade Inc., its directors, officers, agents, advisors, or affiliates makes anyrepresentation or warranty, express or implied, as to accuracy or completeness of the any materials or informationprovided, derived, or received. Materials and information from any source, whether written or verbal, that may befurnished for review are not a substitute for a party’s active conduct of its own due diligence to determine these and othermatters of significance to such party. Dalton Wade Inc. will not investigate or verify any such matters or conduct duediligence for a party unless otherwise agreed in writing.

EACH PARTYSHALLCONDUCT ITSOWN INDEPENDENT INVESTIGATIONANDDUEDILIGENCE

Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conducttheir own inspections and investigations including through appropriate third party independent professionals selected bysuch party. All financial data should be verified by the party including by obtaining and reading applicable documents andreports and consulting appropriate independent professionals. Dalton Wade Inc. makes no warranties and/orrepresentations regarding the veracity, completeness, or relevance of any financial data or assumptions. Dalton Wade Inc.does not serve as a financial advisor to any party regarding any proposed transaction..

All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differfrom actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party donot necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicablecontractual and governmental limitations as well as market conditions, vacancy factors and other issues in order todetermine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questionsshould be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed bythe party with a title officer or attorney. Questions regarding the condition of the property and whether the propertycomplies with applicable governmental requirements should be discussed by the party with appropriate engineers,architects, contractors, other consultants and governmental agencies. All properties and services are marketed by OrlandoCentral in compliance with all applicable fair housing and equal opportunity laws.


CONFIDENTIALITY AGREEMENT

MRV Group LLC is an affiliate of Dalton Wade Inc. DBA DW Commercial and is backed by an entire company and a

network of over 350 professional agents across Florida and the Southeast Region. Additionally, MRV Group LLC is a

member of the National Association of RV Parks and Campgrounds, the Florida Chapter, FLARVC and the Manufactured

Housing Institute providing exposure to thousands of park owners throughout the country. MRV Group LLC solely focuses

on the sale of Manufactured Home Communities and RV Resorts. We utilize the latest technologies, market research, and

business strategies to exceed your expectations. More importantly, we listen and that means we find solutions that are

tailored for you.

Our platforms offers a wide array of customized services to fit the specific needs of both larger REITS and institutionalportfolio operators, as well as themid-market, private, single andmulti-asset investors.

MRVGroup LLC has a proven track record for exceeding its client’s expectations by offering the following services:

▪ Sales-Marketing and Distribution of RV Resorts andManufactured Housing Communities nationwide

▪ Local and national market and trend knowledge

▪ Buyer Representation to include Site Selection, Operational Costs and Budgeting Estimating, andManagement

Services

▪ Valuation andAppraisal Services including Broker’sOpinion ofValue andOffering Memorandum

▪ Equity and Debt Placement Services through Industry alliances with both Private and Institutional Lenders

▪ PropertyManagement Services andCost Evaluation Services

▪ Exclusive MHC and RV Resort Asset Sale and Disposition

MRV Group LLC is dedicated to provide our clients with the best real estate investment sales, financing, research, and

advisory services available on both a national and local scale.


ABOUT MRV GROUP LLC

Keeping a positive, friendly and assertive attitude is what it takes to realize the best sales and

investments outcomes. MRV GROUP LLC is dedicated to your success.

MRV GROUP LLC

DETAILEDVALUATIONS

Finding out what a business and property are worth and how it operates is a critical step inrealizing how much to buy, sell or invest in it for. MRV GROUP LLC streamlines the process ofreaching an intelligent conclusion of value and creates well documented business appraisals orvaluation reports that are comprehensive and highlight what is important to your needs.

MRV GROUP LLC in conjunction with FRY Design and Development now offers land planning,

development cost projections, landscape architecture, graphics and video animations that can

take your project from inception to competition.

PLANNING,

DESIGN AND DEVELOPMENT

Transitional Exit Planning is a very specific and well-designed roadmap to the successful exit of

your business or investment. MRV GROUP LLC can assist you at any stage of your business

operations. It’s never too early to start planning your Exit Strategy. Statistics show that owner

with 2-3 year transitional exit strategy are more likely to receive or exceed fair market value for

their business.

EXITSTRATEGIES

WINNINGATTITUDE

OFFERING MEMORANDUM | NALLS COURT & HENDERSON’S MHC MRV GROUP LLC

OUR PROCESS

Mike FryDirector of Investment Sales

[email protected]

Mike Fry has an extraordinary record of successdating back to 1992 with expertise in the brokerageof Manufactured Home Communities and RVResorts, asset management, RV resort site selectionand development, asset repositioning, construction,and valuation. Mike and his team routinely receiveawards as "Top Producer" and are ranked in the top5% of MHP Brokers nationwide .

Jon CarleenDirector of Marketing

and Land Planning407-309-1188

[email protected]

Jon Carleen’s expertise is in Marketing and GraphicDesign, large scale resort development, masterplanning, density studies, RV resort site planning,amenity design, landscape architecture, graphicsand government approvals.

Jon has designed and planned some of Florida’smost elite RV & Golf Resorts. His past clients haveincluded The Jack Nicklaus, Nicklaus Design Team &The Davis Love Team along with nationwide RVResort Portfolio owners.


OUR BROKERAGE TEAM

Please contact us for more information.

Mike FryDirector Investment [email protected] Lee Rd, Suite 405Orlando, FL 32810http://mhc-rvresorts.com/

brokers opinion of value - mhc-rvresorts.com€¦ · property name henderson’s mobile home...

Documents