For Further Information Contact:John Grant

Park Brokerage Inc.11580 Petenwell RoadSan Diego, CA 92131

(800) 987-3363, fax (858) 530-2368Email: john.grant@earthlink.net

Information contained herein has been obtained from the owner of the property or from other sources that we deem reliable. We have no reason to doubt its accuracy but we do not guarantee it.

BLUE SPRUCE MOBILE HOME LODGE8800 Green Valley Road, Sebastopol, CA

$2,700,000 Sales Price 55+ Senior MH Community 54 MH RV Sites, 3BR/2BA House Beautiful Wine Country Location Clubhouse, Swimming Pool, 8.2 Acres Direct Bill Gas + Electric, City Sewer 6.5% Cap Rate, 8.9% Total Return

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MANUFACTURED HOUSING COMMUNITY Price

$2,700,000

Blue Spruce Mobile Home Lodge 54 MH Sites + 3BR/2BA House, 55+ Senior Community

Down Payment

Cash to New Loan

$675,000

Address/City 8800 Green Valley Road, Sebastopol

County Sonoma

State California

Est. Vac. & Expense % See Spread Sheet Attached

Age 1960’s

Loan Buyer to obtain

Capitalization Rate 6.5%

Est. Spendable Return 4.8%

Total Return 8.9%

Parcel Size 8.22 Acres

No. Spaces 55

Water Well

Sewer City

Listing Salesman John Grant (800) 987-3363 Price per Space: $49,091

DESCRIPTION AND RESIDENT INFORMATION: Very nice, 55+ senior manufactured housing community located in the beautiful wine country 50 miles north of San Francisco in the unincorporated area of Sebastopol. Sebastopol is between Santa Rosa and Bodega Bay about a 20 minute drive to the Pacific Ocean. 54 manufactured home sites with mostly doublewide homes on mostly doublewide sites plus a 3 bedroom/2bath house with a mobile home park office. Contiguous to the house is a garage/shop. The clubhouse features a large social area with a fireplace, a small kitchen, and two restrooms. The community also has a swimming pool and small RV storage area. Site rents are $416-$702 with a $576 average with direct billed gas and electric, well water, and sewer and trash are charged to the residents. Site rents are subject to the County of Sonoma rent control ordinance which allows an annual rent increase of 100% of the cpi with a maximum increase of 6% and a passthru of increases in operating expenses like property taxes. Excellent new bank financing available for this high quality property and location.

TOTAL ESTIMATED NET INCOME BEFORE DEBT SERVICE $176,072

LOAN INFORMATION TOTAL ANNUAL PRIN. $143,417 & INTEREST PAYMENT

Buyer to obtain new bank financing. Broker estimates a new loan at a 75% loan to value or $2,025,000 at a 5.63% ten year fixed interest rate, then rolling to an adjustable rate for another 20 years, monthly payment $11,951.42

EST. ANNUAL PRE-TAX $32,655 CASH FLOW (SPENDABLE)

PLUS PRINCIPAL REDUCTION YEAR ONE $27,216

TOTAL RETURN $59,871 The information contained herein has either been given to us by the owner or the property or obtained from sources that we deem reliable. We have no reason to doubt its accuracy but we do not guarantee it. Vacancy factors used herein are an arbitrary percentage used only as an example. It does not necessarily relate to actual vacancy, if any. The value of this investment is dependent upon these estimates and assumptions made above, as well as the investment income, the tax bracket and other factors which your tax advisor and/or legal counsel should evaluate. THE PROSPECTIVE BUYER SHOULD CAREFULLY VERIFY EACH ITEM OF INCOME, EXPENSE, AND ALL OTHER INFORMATION CONTAINED HEREIN.

Blue Spruce Mobile Home Lodge

ACTUAL Year End

2008

ACTUAL Year End

2009Broker's Proforma

REVENUE

Rent 348,930 352,362 360,051

Utilities 37,766 36,579 43,960

TOTAL REVENUE 386,696 388,941 404,011

EXPENSES

Utilities 29,441 27,568 30,000

Accounting 3,150 3,275 3,275

Bank Charges 35 60 60

Computer Billing 303 300 300

Contract Labor 556 0 0

Contributions 1,080 270 270

Credit Reports 35 46 46

Dues + Subscriptions 770 609 609

Education/Seminars 149 637 637

Employee Benefits 600 400 400

Equipment Rental 0 150 150

Equipment R&M 123 353 353

Insurance 19,967 9,123 8,000

Legal 3,032 2,583 2,583

Licenses & Permits 2,754 1,369 1,369

Management Fee 18,002 18,085 19,000

Office 101 843 843

Payroll 45,597 55,294 55,294

Postage 780 835 835

Property Taxes 67,091 69,608 69,608 ←

Insurance-Workman's Comp 7,152 5,792 5,792

Telephone 1,460 3,091 2,000

Vehicle Expense 766 1,171 1,171

Maintenance 20,220 64,980 17,200 ←

Water System Maintenance 19,369 8,144 8,144

TOTAL EXPENSES 242,533 274,586 227,939

NET INCOME 144,163 114,355 176,072

Net income used for valuation

Maintenance at industry average of $300/space/year plus $1,000 for single famiily house

Broker anticipates Buyer getting increase in property taxes passed thru

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(t) "Rent stabilization administration fee" means the fee established from time to time by resolution of the board of supervisors in accordance with the provisions of Section 2-204 herein.

(u) "Space rent" means the total consideration, including any bonus, benefit or gratuity, demanded or received by a mobilehome park owner for or in connection with the use or occupancy of a mobilehome space or any housing services provided with the mobilehome space. Space rent shall not include any amount paid for the use or occupancy of a mobilehome dwelling unit, unless the amount paid for the use or occupancy of a mobilehome is or includes consideration paid to a mobilehome park owner under a rental agreement or other document evidencing tenancy of the mobilehome.

(v) "Substantial rehabilitation" means that work done by an owner to a mobilehome space or to the common areas of the mobilehome park, exclusive of a capital improvement as that term is defined herein, the value of which exceeds two hundred dollars ($200.00) and which is performed whether to secure compliance with any state or local law or to repair damage resulting from fire, earthquake, or other casualty or natural disaster, to the extent such work is not reimbursed by insurance.

(w) "Tenant" means mobilehome space tenant.

(x) "Tenant-to-be" means a person who is not currently a tenant in a mobilehome park but is a prospective mobilehome space tenant who desires the use of a mobilehome space as defined in this chapter and has presented himself/herself to the parkowner as such.

(Ord. No. 5101 § 1, 1998: Ord. No. 4919 § 1 (part), 1996: Ord. No. 4733 § 1, 1993: Ord. No. 4567 § 1, 1992: Ord. No. 4307 § 1, 1989: Ord. No. 3910, 1988; Ord. No. 3823, 1988.)

Sec. 2-192. Base rent--Initial calculation.

Except as hereinafter provided, an owner shall not demand, accept or retain rent for a mobilehome space exceeding the rent in effect for such space on the effective date of the ordinance codified in this chapter. If a previously rented mobilehome space was not rented on the effective date of the ordinance codified in this chapter, the owner shall not, except as hereinafter provided, demand, accept or retain rent for such space exceeding the rent in effect during the last month the space was rented prior to the effective date of the ordinance codified in this chapter.

(Ord. No. 5101 § 1, 1998: Ord. No. 4919 § 1 (part), 1996: Ord. No. 4733 § 1, 1993: Ord. No. 4567 § 1, 1992: Ord. No. 4307 § 1, 1989: Ord. No. 3910, 1988; Ord. No. 3823, 1988.)

Sec. 2-193. Residential rent increase limitations.

(a) Except as provided in subsections (b) and (c) of this section, from and after August 22, 1992 or the effective date of the ordinance codified in this chapter, which ever should be earlier, the space rent payable for use or occupancy of any mobilehome space shall not be increased, in any twelve (12) month period, more than once. Such increase shall not exceed:

(i) One hundred percent (100%) of the percent change in the Consumer Price Index; or

(ii) Six (6) percent, whichever may be less.

(b) If a park owner wishes to apportion to each space on a pro rata basis the allowable percentage of any current rent stabilization administration fee, in addition to any increase of

Page 6 of 19Article XIX. Mobilehome Park Space Rent Stabilization.

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(e) The physical condition of the mobilehome space or park of which it is a part, including the quantity and quality of maintenance and repairs performed during the preceding twelve (12) months;

(f) Any increase or reduction of housing services since the last rent increase;

(g) Existing space rents for comparable spaces in comparable parks;

(h) A decrease in "net operating income" as defined in Section 2-200(a);

(i) A fair return on the property prorated among the spaces of the park;

(j) Other financial information which the owner is willing to provide;

(k) Any costs incurred as a result of a natural disaster and only to the extent such costs have not been reimbursed to the owner by insurance or other sources.

(Ord. No. 5101 § 1, 1998: Ord. No. 4919 § 1 (part), 1996: Ord. No. 4733 § 1, 1993: Ord. No. 4567 § 1, 1992: Ord. No. 4307 § 1, 1989: Ord. No. 3910, 1988.)

Sec. 2-200. Net operating income.

In evaluating a space rent increase imposed by an owner to maintain the owner's net operating income from the park, the following definitions and provisions shall apply:

(a) "Net operating income" of a mobilehome park means the gross income of the park less the operating expenses of the park.

(b) "Gross income" means the sum of the following:

(1) Gross space rents, computed as gross space rental income at one hundred percent (100%) occupancy; plus

(2) Other income generated as a result of the operation of the park, including, but not limited to, fees for services actually rendered; plus

(3) Revenue received by the park owner from the sale of gas and electricity to park residents where such utilities are billed individually to the park residents by the park owner. This revenue shall equal the total cost of the utilities to the residents minus the amount paid by the park owner for such utilities to the utility provider; minus

(4) Uncollected space rents due to vacancy and bad debts to the extent that the same are beyond the park owner's control. Uncollected space rents in excess of three percent (3%) of gross space rent shall be presumed to be unreasonable unless established otherwise and shall not be included in computing gross income. Where uncollected space rents must be estimated, the average of the preceding three (3) years experience shall be used.

(c) "Operating expenses" means:

(1) Real property taxes and assessments;

(2) Utility costs to the extent that they are included in space rent;

(3) Management expenses including the compensation of administrative personnel, including the value of any mobilehome space offered as part of compensation for such services, reasonable and necessary advertising to ensure occupancy only, legal and accounting services as permitted herein, and other managerial expenses. Management expenses are presumed to be

Page 13 of 19Article XIX. Mobilehome Park Space Rent Stabilization.

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