Wilderness mhc

108 Wilderness Park DriveClarendon, PA 16313

AN 88-SITE VALUE ADD COMMUNITYCOMMUNITY PRICE: $600,000TERMS: ALL CASH OR NEW FINANCINGBRING ALL OFFERS

RECEIVERSHIP SALE

SITE INFORMATION

ADDRESS 108 Wilderness Park DriveClarendon, PA 16313

COUNTY Warren

TAX PARCEL ID WN-008-178800-000

SITES 88

COMMUNITY TYPE All Age

LAND SIZE 95.22 acres

DENSITY 0.92 sites/acre

INVENTORY HOMES None*

AVERAGE LOT RENT $244 (base rent only)

MH PHYS OCC 64% (56 sites as of Dec ‘16)

MH ECO OCC 55% (48 sites as of Dec ‘16)

ROADS Asphalt

FLOODPLAIN Zone X

ZONING R-1 Residential

*Lender is currently exploring options for taking control of 28 homes that are controlled by the former borrower; however, delivery of these homes at closing is not guaranteed at this time

PROPERTY DETAILS

INVESTMENT HIGHLIGHTS• Opportunity to acquire an 88-site value add property currently in

receivership. The receiver was put in place mid-October of 2016.• This was one of the smallest assets in a portfolio of non-performing

loans purchased by the seller, a large private equity group, thus they are looking to quickly dispose of it.

• Offered well below replacement cost at $6,818 per site.• At 55% economic occupancy, there is tremendous potential to add

value by filling vacant sites.• The permit for the park’s wastewater treatment plant does not expire

until 2021.• There are approximately 20 natural gas wells that service the homes

in the community. In past years, when the wells were more productive, there was excess gas and oil that could be sold outside of the park.

• In the past few years, there have been multiple oil spills from a crude oil tank at the property requiring remedial action and the park is currently in the process of cleaning up the most recent spill. The receiver reports that the city has been patient and easy to work with as they work on the issue. Further remediation may still be required after the property is sold. Detailed environmental reports are available in the property package.

• There are currently no park-owned homes.• Average income of $60,200 and average home value of $114,650 in a

one-mile radius of the property.

AREA HIGHLIGHTS

• Wilderness MHC is located in northwest Pennsylvania two hours south of Buffalo, three hours east of Cleveland and less than three hours north of Pittsburgh.

• Warren County has a population of 41,815 according to the U.S. Census Bureau.

• The property sits by the border of the Allegheny National Forest providing numerous outdoor recreation activities. Allegheny spans over 500,000 acres and is the only national forest in the state of Pennsylvania.

• The Allegheny Reservoir features an extensive trail system with breathtaking views and several campgrounds and boat ramps.

• Minutes from the community, Warren is the county seat and home to numerous national retailers including Wal-Mart, CVS, McDonald’s, Subway and Wendy’s.

• Several of the county’s top employers operate in Warren including Blair Payroll LLC, Northwest Bank, United Refining Company, Warren General Hospital, Whirley Industries, Wal-Mart and Targeted Pet Treats LLC, all of which are within 15 minutes of Wilderness MHC.

• Warren General Hospital, the sixth-largest employer in the county, is an 89-bed facility sitting less than ten minutes from the property. The hospital has 2,950 admissions annually.

• Warren Area High School is minutes from the community and earned a bronze medal ranking from U.S. News & World Report.

UTILITIES

WATER Private Wells (Submetered)

SEWER Private Treatment Plant (flat rate fee)

ELECTRICITY Pen-Elec (direct billed)

GAS Private Wells (Submetered)

CURBSIDE TRASH Fletcher/Advance Disposal (direct billed)

88 SITE MHC COMMUNITYCOMMUNITY PRICE: $600,000

TERMS: ALL CASH OR NEW FINANCINGBRING ALL OFFERS Wilderness mhc

FINANCIAL ANALYSIS

1

2 Gross Scheduled Rent

Less: Vacancy 38.46%3 Less: Vacant Borrower Homes 4.40%

Less: Bad Debt 1.00%

Total Rental Income 56.14%4 Plus: Utility Income 4494 Plus: Other Income 1

Plus: Oil Sales 0

Total Other Income 450

Effective Gross Income

EXPENSES per site5 Repairs & Maintenance $550

Payroll 200

Administrative 75

Marketing 56 Professional Fees 507 Utilities 0

Electricity 105

Trash 89

Total Variable Expenses $1,0748 Taxes 939 Other Tax 0

Insurance 59

Management Fee 6.00%

Total Operating Expenses $1,35210 Plus: Capital Reserves 50

Total Expenses $1,402

NET OPERATING INCOME

Expense Ratio

Jan '16 T12 Actuals

245

66.89%

102,563

5,36914.41%

43

$1,099

$49,909

0

$1,498

0

0

$63,117

80.80%

16.20%

3,916

$65,563

67.53%

1,5250

0

$210,097$2,309

9,933109

86

$152,992

$2,309

37,02214.24%

7,819

112

$1,681

$210,097

10,1500

63

43

17

$100,018

5,698

$100,018$1,099

0

0

29,097$136,338

6,775

0

0

0$139,813

600

0.00%

1

100.00%

0.00%

0.00% 00.00% 00.00% 0 0.00%

0

$234,136

0

100.00%

0

0

25,8690

284

25,869284

$71,328

Actuals

$260,006

per site

$784

$201,9010

$605

per site

$55,030

0

100.00%

39,691

0.00%

$139,813

00

00

Dec '16 T2 Inc Ann

Financial Analysis

Aug '16 T8 Ann

$234,136 $201,901

0.00% 0 0.00%

436

00 0

$136,338

$605

per site

$201,901

$1,498

0

17

75.93%

$43,226

$1,498

5,698

$136,338 $127,5390

$149,712

62

455

$50,05018,200

40,882

Proforma Exp

8,489

9,557

29,097$136,338$1,498

$266,662

2,66711,721

INCOME

Proforma11

40,94439,7510

6,825

0

11,705

437

194194

74

0

0 0

9,279

$55,030

Aug '16 T8 Exp

17,634

Actual Exp

00 0289

1020

26,313

0 102

129

17,634

7,3850 0 0

81 7,385 81

0

0

3,916

4,550$122,989

11,439

63

0$97,691

9,279

$190,656$179,564

148

8,054

22,3397413,488

4,5500

6,775

01,525

1. Jan ’16 T12 and Aug ’16 T8 financials are from the borrower and no representations or warranties are made as to the accuracy of those numbers; Receiver went in place in mid-October 2016

2. Proforma GSR = $244 x 91 sites x 12 months

3. The borrower is currently liable for, but not required to immediately pay, the lot rents on 8 (as of Dec ’16) vacant homes owned by the borrower; The Proforma assumes that half of these homes will be revenue-producing after a sale

4. Utility and Other Income grown 3% from the Dec ’16 T2 Inc Ann; Dec ’16 T2 Ann Utility income consists of $23,710 of Water & Sewer income and $15,981 of Gas income

5. Historical R&M includes expenses related to environmental issues at the park

6. $12,240 of legal fees related to the receivership have been removed in the Aug ’16 T8 Ann

7. Electricity expense grown 3% from Aug ‘16 T8 Ann; Trash expense grown 3% from Jan ’16 T12

8. Proforma Taxes = $108,190 assessed value x 7.84658% mill rate

9. Other Tax removed in Proforma since the borrower currently owns the homes

10. Historical Capital Reserves are unknown and do not represent actual amounts

11. Proforma is first year projection put together by ARA Newmark and may not represent actual future performance

UNDERWRITING ASSUMPTIONS

88 SITE MHC COMMUNITYCOMMUNITY PRICE: $600,000

TERMS: ALL CASH OR NEW FINANCINGBRING ALL OFFERS Wilderness mhc

PROPERTY location

WILDERNESS MHC

New YorkPennsylvania

Penn

sylv

ania

Ohi

o

PITTSBURGH

CLEVELAND

BUFFALO

HARRISBURG

WARREN COUNTY TOP TEN EMPLOYERSBlair Payroll LLC

Warren County School District

Northwest Bank

State Government

United Refining Company

Warren General Hospital

Whirley Industries

Wal-Mart Associates Inc

Rouse Estate

Targeted Pet Treats LLC

N

88 SITE MHC COMMUNITYCOMMUNITY PRICE: $600,000

TERMS: ALL CASH OR NEW FINANCINGBRING ALL OFFERS Wilderness mhc

Property aerial

WILDERNESS MHC

WHIRLEY INDUSTRIES

• Food and drink container manufacturer located in Warren, PA.

• Operate 17 sales offices in the US and eight abroad.

• Seventh-largest employer in Warren County.

BLAIR CORPORATION

• One of the largest direct marketing mail order retailers in the US headquartered in Warren, PA.

• Has been in business for over 100 years.

• Largest employer in Warren County.

UNITED REFINING COMPANY

• Independent refiner and marketer of petroleum products headquartered in Warren, PA.

• Have over 350 retail outlets in PA, OH and NY.

• Employs over 4,000 across all of its facilities.

N

88 SITE MHC COMMUNITYCOMMUNITY PRICE: $600,000

TERMS: ALL CASH OR NEW FINANCINGBRING ALL OFFERS Wilderness mhc

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 Wilderness MHC is available on our website at:http://arausa.listinglab.com/WildernessMHC

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:

ZIMMERMAN HILL RD

MO

HAWK AVE

WILDERNESS MHC

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