saratoga springs mhc portfolio - mh...
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Portfolio of 8 Manufactured Housing Communities
OFFERING MEMORANDUM
Saratoga Springs MHC Portfolio SARATOGA SPRINGS, NEW YORK
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This is a confidential memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Saratoga Springs MHC Portfolio (“Portfolio”).
The information contained within this offering is gathered from sources deemed to be reliable. However, it is subject to errors, omissions, price change and/or withdrawal, and no warranty is made as to the accuracy. All materials and information received or derived from Keller Williams Capital District, 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 governmental requirements, suitability for development, financial performance of the property, projected financial performance of the property for any party’s intended use or any and all other matters.
Neither Keller Williams Capital District, its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due diligence to determine these and other matters of significance to such party. Keller Williams Capital District will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing.
EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE.
Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. Keller Williams Capital District makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. Keller Williams Capital District 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 differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions, vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies 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 Keller Williams Capital District in compliance with all applicable fair housing and equal opportunity laws.
DISCLAIMER & CONFIDENTIALITY
CONTENTS
For more information, contact:
STEVEN J. TOMASO Associate Broker
518.879.2268
Keller Williams Capital District
353 Broadway, Floor 5
Saratoga Springs, NY 12866
stomaso.kw.com
Executive Summary 4
Location 5
Portfolio Overview 6
Property Details 7
Income & Expenses 16
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THE OFFERING Keller Williams Capital District is pleased to offer the Saratoga Springs MHC
Portfolio (“Portfolio”) for sale. The Portfolio consists of 8 manufactured
housing communities, totaling 599 sites, located in and around Saratoga
Springs in Saratoga County and Albany County, New York.
INVESTMENT HIGHLIGHTS
General proximity of Properties to one another allows for management to
be split up into two districts, resulting in operating efficiencies.
Recommended District 1: Whispering Pines and Loughberry Park.
Recommended District 2: Saratoga West, Saratoga Acres, Shady Acres,
Country Manor, Saratoga Village, Latham Park.
Tenants are on Net Lease contracts in which they are responsible for
property taxes for their sites.
The Portfolio is a large source of workforce housing in the Saratoga Springs
area, a market whose housing costs are among some of the highest in the
nation. Median apartment rents are $1,533 for a one bedroom apartment
and median single family home price is $314,625 in Saratoga Springs,
making the economics of manufactured housing very attractive.
Well-located within 10 miles of downtown Saratoga Springs and the
GlobalFoundries semiconductor fabrication plant in the nearby Luther
Forest Technology Campus, a large source of employment in the area.
PORTFOLIO SUMMARY
Asking Price Open Bid
Property Type Manufactured Housing Communities
Portfolio Size 8 communities
Total Home Sites 599 sites
Total Park-Owned Homes 25 homes
Occupancy 94%
Average Site Base Rent $459
2016 NOI (est.) $2,010,053
EXECUTIVE SUMMARY
Saratoga Springs MHC Portfolio | Executive Summary
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LOCATION OF PORTFOLIO
DETAIL
DETAIL
Saratoga Springs MHC Portfolio | Location
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PORTFOLIO OVERVIEW
Property Address Sites Occupancy Avg. Site
Base Rent
1 Whispering Pines 120 Ballard Road Gansevoort, NY 12831
38 97% $484
2 Loughberry Park 17 Jones Road Saratoga Springs, NY 12866
74 97% 470
3 Saratoga West 331 Rowland Street Ballston Spa, NY 12020
92 95% 448
4 Saratoga Acres 309 Greenfield Avenue Ballston Spa, NY 12020
50 96% 439
5 Shady Acres 800 Arnold Street Ballston Spa, NY 12020
41 95% 455
6 Country Manor 3683 Galway Road Ballston Spa, NY 12020
39 97% 476
7 Saratoga Village 900 Rock City Road Ballston Spa, NY 12020
200 90% 452
8 Latham Park 303 McArthur Road Latham, NY 12110
65 94% 471
Total / Average 599 94% $459
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Saratoga Springs MHC Portfolio | Portfolio Overview
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PROPERTY OVERVIEW
Land Area 15.14 Acres
Community Type All-Age
Zoning R-M
Expense Reimbursement
Net Lease – Tenants responsible for property taxes
Jurisdiction Saratoga County, New York
Parcel ID 115.-2-25.2 115.-2-12.11
RENT SUMMARY
Occupied Total % Occ. Avg. Monthly Annual
Sites 37 38 97% $484 $214,728
Base Rent 524 232,488
Concessions (40) (17,760)
Effective Rent 484 214,728
Home Rentals 1 1 100% 170 2,040
Home Lease Options — — — — —
Total / Average 37 38 97% $488 $216,768
WHISPERING PINES 120 Ballard Road, Gansevoort, NY 12831
38 HOME SITES
1 PARK-OWNED
HOME
97% OCCUPANCY
1
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PROPERTY OVERVIEW
Land Area 15.59 Acres
Community Type All-Age
Zoning R-M
Expense Reimbursement
Net Lease – Tenants responsible for property taxes
Jurisdiction Saratoga County, New York
Parcel ID 153.18-1-36
RENT SUMMARY
Occupied Total % Occ. Avg. Monthly Annual
Sites 72 74 97% $470 $405,924
Base Rent 470 405,924
Concessions — —
Effective Rent 470 405,924
Home Rentals — — — — —
Home Lease Options — — — — —
Total / Average 72 74 97% $470 $405,924
LOUGHBERRY PARK 117 Jones Road, Saratoga Springs, NY 12866
74 HOME SITES
0 PARK-OWNED
HOMES
97% OCCUPANCY
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9 Saratoga Springs MHC Portfolio | Investment Overview Saratoga Springs MHC Portfolio | Investment Overview
PROPERTY OVERVIEW
Land Area 15.92 Acres
Community Type All-Age
Zoning TC
Expense Reimbursement
Net Lease – Tenants responsible for property taxes
Jurisdiction Saratoga County, New York
Parcel ID 190.-7-6
RENT SUMMARY
Occupied Total % Occ. Avg. Monthly Annual
Sites 87 92 95% $448 $468,132
Base Rent 489 510,252
Concessions (40) (42,120)
Effective Rent 448 468,132
Home Rentals 1 1 100% 200 2,400
Home Lease Options 3 3 100% 220 7,920
Total / Average 87 92 95% $470 $405,924
SARATOGA WEST 331 Rowland Street, Ballston Spa, NY 12020
92 HOME SITES
4 PARK-OWNED
HOMES
95% OCCUPANCY
3
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SARATOGA ACRES 309 Greenfield Ave, Ballston Spa, NY 12020
Saratoga Springs MHC Portfolio | Investment Overview Saratoga Springs MHC Portfolio | Investment Overview Saratoga Springs MHC Portfolio | Investment Overview
PROPERTY OVERVIEW
Land Area 14.01 Acres
Community Type All-Age
Zoning R1
Expense Reimbursement
Net Lease – Tenants responsible for property taxes
Jurisdiction Saratoga County, New York
Parcel ID 190.-1-3
RENT SUMMARY
50 HOME SITES
2 PARK-OWNED
HOMES
96% OCCUPANCY
Occupied Total % Occ. Avg. Monthly Annual
Sites 48 50 96% $439 $252,624
Base Rent 479 275,664
Concessions (40) (23,040)
Effective Rent 439 252,624
Home Rentals 1 1 100% 456 5,472
Home Lease Options 1 1 100% 300 3,600
Total / Average 48 50 96% $454 $261,696
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11 Saratoga Springs MHC Portfolio | Investment Overview Saratoga Springs MHC Portfolio | Investment Overview Saratoga Springs MHC Portfolio | Investment Overview
PROPERTY OVERVIEW
Land Area 9.05 Acres
Community Type All-Age
Zoning R1
Expense Reimbursement
Net Lease – Tenants responsible for property taxes
Jurisdiction Saratoga County, New York
Parcel ID 203.10-1-28
RENT SUMMARY
41 HOME SITES
2 PARK-OWNED
HOMES
95% OCCUPANCY
Occupied Total % Occ. Avg. Monthly Annual
Sites 39 41 95% $455 $213,036
Base Rent 495 231,756
Concessions (40) (18,720)
Effective Rent 455 213,036
Home Rentals 1 1 100% 215 5,160
Home Lease Options 1 1 100% 292 6,996
Total / Average 39 41 95% $481 $225,192
SHADY ACRES 800 Arnold Street, Ballston Spa, NY 12020
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PROPERTY OVERVIEW
Land Area 21.34 Acres
Community Type All-Age
Zoning R2
Expense Reimbursement
Net Lease – Tenants responsible for property taxes
Jurisdiction Saratoga County, New York
Parcel ID 203.-1-2.12
RENT SUMMARY
39 HOME SITES
0 PARK-OWNED
HOMES
97% OCCUPANCY
Occupied Total % Occ. Avg. Monthly Annual
Sites 38 39 97% $476 $217,164
Base Rent 516 235,404
Concessions (40) (18,240)
Effective Rent 476 217,164
Home Rentals — — — — —
Home Lease Options — — — — —
Total / Average 38 39 97% $476 $217,164
COUNTRY MANOR 3683 Galway Road, Ballston Spa, NY 12020
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PROPERTY OVERVIEW
Land Area 15.14 Acres
Community Type All-Age
Zoning R2
Expense Reimbursement
Net Lease – Tenants responsible for property taxes
Jurisdiction Saratoga County, New York
Parcel ID 189.-1-43
RENT SUMMARY
200 HOME SITES
11 PARK-OWNED
HOMES
90% OCCUPANCY
Occupied Total % Occ. Avg. Monthly Annual
Sites 180 200 90% $452 $975,120
Base Rent 492 1,062,000
Concessions (40) (86,880)
Effective Rent 452 975,120
Home Rentals 5 5 100% 482 28,920
Home Lease Options 6 6 100% 292 21,024
Total / Average 180 200 90% $475 $1,025,064
SARATOGA VILLAGE 900 Rock City Road, Ballston Spa, NY 12020
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PROPERTY OVERVIEW
Land Area 4.65 Acres
Community Type Age Restricted – 55+
Expense Reimbursement
Net Lease – Tenants responsible for property taxes
Jurisdiction Albany County, New York
Parcel ID 31.6-1-20 31.6-1-23
RENT SUMMARY
65 HOME SITES
3 PARK-OWNED
HOMES
94% OCCUPANCY
Occupied Total % Occ. Avg. Monthly Annual
Sites 61 65 94% $471 $344,940
Base Rent 511 374,220
Concessions (40) (29,280)
Effective Rent 471 344,940
Home Rentals 2 2 100% 195 4,680
Home Lease Options 1 1 100% 400 4,800
Total / Average 61 65 94% $484 $354,420
LATHAM PARK 303 McArthur Road, Latham NY 12110
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INCOME & EXPENSE SUMMARY
2014 2015 2016 (Estimated)
Total) $ / Site) % of Income Total) $ / Site) % of Income Total) $ / Site) % of Income
INCOME
Potential Rental Income $ 3,106,189) $ 5,186) $ 3,147,978) $ 5,255) $ 3,241,978) $ 5,412)
Concessions (165,620) (276) (157,250) (263) (162,800) (272)
Collection Loss (51,577) (86) (74,606) (125) (58,128) (97)
Effective Rental Income 2,888,991) 4,823) 2,916,123) 4,868) 3,020,846) 5,043)
Home Rental Income 62,448) 104) 73,259) 122) 95,340) 159)
Tax Reimbursement 103,219) 172) 120,116) 201) 139,468) 233)
Misc. Income 14,734) 25) 16,995) 28) 14,440) 24)
Late Fees 36,618) 61) 37,195) 62) 35,371) 59)
Effective Gross Income (EGI) 3,106,010) 5,185) 100.0% 3,163,689) 5,282) 100.0% 3,305,465) 5,518) 100.0%
OPERATING EXPENSES
Real Estate Taxes 404,857) 676) 13.0% 404,852) 676) 12.8% 421,046) 703) 12.7%
Insurance 48,639) 81) 1.6% 46,781) 78) 1.5% 48,652) 81) 1.5%
Utilities 269,035) 449) 8.7% 284,070) 474) 9.0% 295,432) 493) 8.9%
Management Fees 261,300) 436) 8.4% 260,800) 435) 8.2% 271,232) 453) 8.2%
Maintenance & Grounds 179,132) 299) 5.8% 187,232) 313) 5.9% 194,721) 325) 5.9%
General & Administrative 23,072) 39) 0.7% 22,843) 38) 0.7% 34,266) 57) 1.0%
Professional Fees 19,300) 32) 0.6% 16,159) 27) 0.5% 17,715) 30) 0.5%
Lease Option Payments 13,761) 23) 0.4% 13,779) 23) 0.4% 12,348) 21) 0.4%
Total Operating Expenses 1,219,094) 2,035 39.2% 1,236,514) 2,064 39.1% 1,295,412) 2,163 39.2%
Net Operating Income $ 1,886,916) $ 3,150) 60.8% $ 1,927,175) $ 3,217) 60.9% $ 2,010,053) $ 3,356) 60.8%
HISTORICAL INCOME & EXPENSES FOR PORTFOLIO
Saratoga Springs MHC Portfolio | Income & Expenses