Embed Size (px)
Citation preview
OFFERING MEMORANDUM
Antone MountainMHP
56 Antone Mountain RdCorinth, NY 12822
Antone Mountain MHPCONTENTS
Exclusively Marketed by:
Steven Tomaso
We obtained the following information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or otherconditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent the current or future performance of the property. You and your tax and legal advisors should conduct yourown investigation of the property and transaction.
01 Executive Summary Investment Summary 5 Location Summary 6
02 Property Description Aerial Map 8
03 Rent Roll Rent Roll Details 10
04 Financial Analysis Income & Expense Analysis 12 Multiyear Cash Flow Assumptions 13 Cash Flow Analysis 14
The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from IRE Investment and it shouldnot be made available to any other person or entity without the written consent of IRE Investment. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees thatrecipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property, please promptly return this offering memorandum to IRE Investment.This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest inthe subject property. The information contained herein is not a substitute for a thorough due diligence investigation. IRE Investment has not made any investigation, and makes no warranty or representation withrespect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presenceor absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or financial condition orbusiness prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe reliable; however, IRE Investment has not verified, and will not verify, any of the informationcontained herein, nor has IRE Investment conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness ofthe information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses ofinvestigating the subject property.
Antone Mountain MHP Confidentiality and Disclaimer | 03
CONFIDENTIALITY AND DISCLAIMER
PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONTACT IRE INVESTMENT FOR MORE DETAILS.Copyright © 2019 CREOP, LLC. All Rights Reserved.
Antone M
ountain MH
P | Executive Summ
ary
Executive Summary
AN
TON
E M
OU
NTA
IN M
HP
01
......
......
......
......
......
......
......
......
Investment Summary
Location Summary
Antone Mountain MHP Investment Summary | 05
OFFERING SUMMARYADDRESS 56 Antone Mountain Rd
Corinth NY 12822COUNTY SaratogaNUMBER OF UNITS 37
FINANCIAL SUMMARYOFFERING PRICE $985,000PRICE PER UNIT $26,622OCCUPANCY 84.00 %NOI (CURRENT) $86,601NOI (2020) $96,397CAP RATE (CURRENT) 8.79 %CAP RATE (2020) 9.79 %GRM (CURRENT) 5.36GRM (2020) 5.20
PROPOSED FINANCINGLOAN TYPE Fully AmortizedDOWN PAYMENT $295,500LOAN AMOUNT $689,500INTEREST RATE 5.25 %ANNUAL DEBT SERVICE $49,581LOAN TO VALUE 70 %AMORTIZATION PERIOD 25 YearsNOTES Presumable savings & loan bank
financing
*Saratoga County multi-family property (very desirable)
*Many security deposits
*Attractive looking park
*Long term residents
*Nice property lay out
*On-site management
*Has enough land to potentially expand to 45 MH sites
Antone Mountain MHP Location Summary | 06
Antone M
ountain MH
P | Property Description
Property Description
AN
TON
E M
OU
NTA
IN M
HP
02
......
......
......
......
......
......
......
......
Aerial Map
Parcel Map
Antone Mountain MHP Aerial Map | 08
Antone M
ountain MH
P | Rent R
oll
Rent Roll
AN
TON
E M
OU
NTA
IN M
HP
03
......
......
......
......
......
......
......
......
Rent Roll Details
Site number Site Type Rent Notes
1 Resident owned home $401.00 Resident has STAR reduction
2 Resident owned home $420.00
3 Resident owned home $401.00 Resident has STAR reduction
4 Resident owned home $420.00
5 Resident owned home $401.00 Resident has STAR reduction
6 Resident owned home $401.00 Resident has STAR reduction
7 Resident owned home $420.00
8 Resident owned home $420.00
9 Resident owned home $401.00 Receives rent as pay for on-site management
10 Resident owned home $420.00
11 Resident owned home $401.00 Resident has STAR reduction
12 Resident owned home $420.00
13 Resident owned home $420.00
14 Resident owned home $420.00
15 Resident owned home $420.00
16 Resident owned home $420.00
17 Resident owned home $401.00 Resident has STAR reduction
18 Resident owned home $401.00 Resident has STAR reduction
19 Vacant $0.00 Double wide lot
20 Resident owned home $420.00
21 Resident owned home $401.00 Resident has STAR reduction
22 Vacant $0.00
23 Resident owned home $420.00
24 Resident owned home $420.00
25 Vacant $0.00
26 Resident owned home $401.00 Resident has STAR reduction
27 Resident owned home $401.00 Resident has STAR reduction
28 Resident owned home $420.00
29 Vacant $0.00
30 Resident owned home $401.00 Resident has STAR reduction
31 Resident owned home $420.00
32 Resident owned home $420.00
33 Resident owned home $420.00
34 Resident owned home $420.00
35 Resident owned home $420.00
36 Vacant $0.00 Needs to be developed
37 Park owned home $0.00 vacant home-used as office currently
37B 4 bay garage $0.00
Antone Mountain MHP Rent Roll
Antone Mountain MHP Rent Roll Details | 10
Antone M
ountain MH
P | Financial Analysis
Financial Analysis
AN
TON
E M
OU
NTA
IN M
HP
04
......
......
......
......
......
......
......
......
Income & Expense
Multiyear Cash Flow Assumptions
Multiyear Cash Flow Projections
Antone Mountain MHP Income & Expense Analysis | 12
INCOME CURRENT 2020Gross Potential Income $183,744 $189,256
Less: General Vacancy $30,240 $25,956
Effective Gross Income $153,504 $163,300
Less: Expenses $66,903 $66,903
Net Operating Income $86,601 $96,397
Principal Reduction $13,382 $13,382
Total Return 17.1 % $50,402 20.4 % $60,198
Income Notes: Pro-forma includes 3% lot rent increase and 2 homes being sold (existing parkowned home sold & one new home).
EXPENSES CURRENT 2020
Water Service/Repairs $389 $14,381 $389 $14,381
Property Taxes $378 $13,971 $378 $13,971
Management Fee $143 $5,280 $143 $5,280
Garbage pick up $196 $7,239 $196 $7,239
Septic Service/Repairs $190 $7,046 $190 $7,046
Snow Removal $162 $6,000 $162 $6,000
Landscaping $139 $5,150 $139 $5,150
Insurance $69 $2,568 $69 $2,568
Electric $91 $3,372 $91 $3,372
Gas (vacant park owned home) $43 $1,602 $43 $1,602
Fees/permits $8 $294 $8 $294
Total Operating Expense $1,808 $66,903 $1,808 $66,903
Annual Debt Service $1,340 $49,581 $1,340 $49,581
% of EGI 43.58 % 40.97 %
Per Unit Per Unit
REVENUE ALLOCATION
DISTRIBUTION OF EXPENSES
Antone Mountain MHP Multiyear Cash Flow Assumptions | 13
GLOBALSale Price $985,000
INCOMEGross Potential Rent 3.00 %
EXPENSESWater Service/Repairs 1.50 %Property Taxes 1.50 %Management Fee 1.50 %Garbage pick up 1.50 %Septic Service/Repairs 1.50 %Snow Removal 1.50 %Landscaping 1.50 %Insurance 1.50 %Electric 1.50 %Gas (vacant park owned home) 1.50 %
PROPOSED FINANCINGLoan Type Fully AmortizedDown Payment $295,500Loan Amount $689,500Interest Rate 5.25 %Annual Debt Service $49,581Loan to Value 70 %Amortization Period 25 YearsNotes Presumable savings & loan bank
financing
Antone Mountain MHP Cash Flow Analysis | 14
CASH FLOWCalendar Year CURRENT Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Gross Potential RevenueGross Rental Income $183,744 $189,256 $194,934 $200,782 $206,805 $213,009 $219,400 $225,982 $232,761 $239,744Gross Potential Income $183,744 $189,256 $194,934 $200,782 $206,805 $213,009 $219,400 $225,982 $232,761 $239,744General Vacancy $30,240 $25,956 $0 $0 $0 $0 $0 $0 $0 $0Effective Gross Income $153,504 $163,300 $194,934 $200,782 $206,805 $213,009 $219,400 $225,982 $232,761 $239,744Operating ExpensesWater Service/Repairs $14,381 $14,381 $14,597 $14,816 $15,038 $15,263 $15,492 $15,725 $15,961 $16,200Property Taxes $13,971 $13,971 $14,181 $14,393 $14,609 $14,828 $15,051 $15,276 $15,506 $15,738Management Fee $5,280 $5,280 $5,280 $5,280 $5,280 $5,280 $5,280 $5,280 $5,280 $5,280Garbage pick up $7,239 $7,239 $7,348 $7,458 $7,570 $7,683 $7,798 $7,915 $8,034 $8,155Septic Service/Repairs $7,046 $7,046 $7,152 $7,259 $7,368 $7,478 $7,591 $7,704 $7,820 $7,937Snow Removal $6,000 $6,000 $6,090 $6,181 $6,274 $6,368 $6,464 $6,561 $6,659 $6,759Landscaping $5,150 $5,150 $5,227 $5,306 $5,385 $5,466 $5,548 $5,631 $5,716 $5,801Insurance $2,568 $2,568 $2,607 $2,646 $2,685 $2,726 $2,766 $2,808 $2,850 $2,893Electric $3,372 $3,372 $3,423 $3,474 $3,526 $3,579 $3,633 $3,687 $3,742 $3,799Gas (vacant park owned home) $1,602 $1,602 $1,626 $1,650 $1,675 $1,700 $1,726 $1,752 $1,778 $1,805Fees/permits $294 $294 $294 $294 $294 $294 $294 $294 $294 $294Total Operating Expense $66,903 $66,903 $67,823 $68,757 $69,704 $70,666 $71,643 $72,634 $73,640 $74,661Net Operating Income $86,601 $96,397 $127,111 $132,025 $137,101 $142,343 $147,757 $153,348 $159,121 $165,083Annual Debt Service $49,581 $49,581 $49,581 $49,581 $49,581 $49,581 $49,581 $49,581 $49,581 $49,581Cash Flow $37,020 $46,816 $77,530 $82,444 $87,520 $92,762 $98,176 $103,767 $109,541 $115,503
Effective Gross Income vs Operating Expenses Cash Flow
Antone Mountain MHP Cash Flow Analysis | 15
Calendar Year CURRENT Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Financial MetricsCash on Cash Return b/t 12.53 % 15.84 % 26.24 % 27.90 % 29.62 % 31.39 % 33.22 % 35.12 % 37.07 % 39.09 %CAP Rate 8.79 % 9.79 % 12.90 % 13.40 % 13.92 % 14.45 % 15.00 % 15.57 % 16.15 % 16.76 %Debt Coverage Ratio 1.75 1.94 2.56 2.66 2.77 2.87 2.98 3.09 3.21 3.33Operating Expense Ratio 43.58 % 40.96 % 34.79 % 34.24 % 33.70 % 33.17 % 32.65 % 32.14 % 31.63 % 31.14 %Gross Multiplier (GRM) 5.36 5.20 5.05 4.91 4.76 4.62 4.49 4.36 4.23 4.11Loan to Value 69.98 % 68.64 % 67.13 % 65.60 % 64.00 % 62.28 % 60.47 % 58.58 % 56.56 % 54.46 %Breakeven Ratio 75.88 % 71.33 % 60.23 % 58.94 % 57.68 % 56.45 % 55.25 % 54.08 % 52.94 % 51.82 %Price / Unit $26,622 $26,622 $26,622 $26,622 $26,622 $26,622 $26,622 $26,622 $26,622 $26,622
Antone M
ountain MH
P | Dem
ographics
Demographics
AN
TON
E M
OU
NTA
IN M
HP
05
......
......
......
......
......
......
......
......
Demographic Details
Demographic Charts
![MHP ]GURZR QLH MHP ]GURZR](https://img.pdfslide.net/doc/110x75/618fb170cc14fe2d15138ae3/mhp-gurzr-qlh-mhp-gurzr.jpg)
![Mhp Gold The Automated Mhp Mgr[1].Revised](https://img.pdfslide.net/doc/110x75/55c343e3bb61ebe9438b45a3/mhp-gold-the-automated-mhp-mgr1revised-55c4568e3551f.jpg)
