BRANTLEY MANUFACTURED HOME COMMUNITY...EFFECTIVE GROSS INCOME (EGI) $ 140,880 $ 140,880 EXPENSES: Seller POH Expenses R/E TAXLand $ 4,636 $ 5,795 R/E TAXPOH $ 1,241 INSURANCE $ 1,000

BRANTLEY MANUFACTURED HOME COMMUNITY

APRIL 2018

CONFIDENTIAL EXECUTIVE OFFERING MEMORANDUM

TROY, AL 36081

MAXWELL BAKER/404-442-2807/[email protected] ESTERSON/423-483-0492/[email protected]

1288 OLD HIGHWAY 231 NORTH

MAXWELL BAKER/404-442-2807/[email protected] ESTERSON/ 423-483-0492/[email protected]

TABLE OF CONTENTSOFFERING OVERVIEW• Welcome Letter

BRANTLEY MANUFACTUREDHOME COMMUNITY• Executive Summary• Key Considerations• Rent Roll• Investment Highlights• Property Description / Infrastructure• Financial Overview• Aerial Map• Demographics• Location Map• Rent Comparables

ADVISOR BIOS

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WELCOME LETTERINVESTMENT OPPORTUNITYWe welcome the opportunity to provide you with our in depth overview of Brantley Manufactured Home Community and its position in this current market. We will give you our honest, no holds barred assessment of this 73-lot community so you have a better understanding of how this investment currently performs, its investment potential, and what it takes to get it there.

As leading specialists in the industry, our primary interest is to give you a clear understanding of the driving forces in the current marketplace. Our evaluation is based on verifiable data, market knowledge and proven experience that we feel will serve your best interest at this time.

We invite you to thoroughly review this offering memorandum, If you have further interest, please contact us to discuss any questions you may have, as well as schedule a tour of the property.

GUIDELINES

Offers must be presented in writing and include:

• Price

• Source of capital and relevant experience

• Proposed schedule of due diligence and closing

• Amount of earnest money

• List of contingencies including committee approvals, possible 1031 exchanges, etc.

NOFFERING OVERVIEW | 3MAXWELL BAKER/404-442-2807/[email protected]

GLENN ESTERSON/423-483-0492/[email protected]

PROPERTY ADDRESS: 1288 Old Highway 231 NorthTroy, AL 36081

PROPERTY TYPE: Mobile Home Park

TOTAL LOTS: 73 Lots

VACANT PADS: 13

LOT RENT ONLY TENANTS: 55 plus one single family home

LOT RENT: $190 per month

SFH RENT: $600 per month

ACRES: ±83

PRICE PER PAD: $13,700

EXECUTIVE SUMMARYINVESTMENT OPPORTUNITYTroy, AL (Troy MSA) - Well located, value-add MHP with plenty of upside in a strong market. The park has 73 lots with 55 lot rent only tenants each paying an average rent of $190 ($150-$220). There are 13 vacant lots. Park also has two nice single-family homes (SFH) and a small commercial office building rented at $300 per month. The SFH rents for $600 and the SFH is used as an office. Current occupancy is roughly 83%.

This MHP has city water that is not sub-metered and is included in rents. The park uses a shared septic system. Tenants are directly billed for the curbside trash service from the provider. There are two park owned homes and two SFH that are in good condition. The tenant owned units are in good shape with majority of them being 1980s and 1990s models. The privately maintained roads are paved and in average condition as our offering price suggests. The park is NOT in a flood zone. Situated in a excellent location near all amenities close to downtown Troy and 60 minutes from downtown Montgomery.

This park is being offered as a value-add investment with a 8.50% CAP on current lot rent only using a 41% expense ratio plus consideration for the park owned homes. There is an additional $2,500 of POH rental income that is not included in the CAP rate. We are asking investors for shell value only on the 2 POH and 2 SFH of $7,300 each, well below replacement cost. We are looking for cash offers, however recourse bank debt should be available for this deal. At full price, using bank debt (5.5% interest, 20 YR AM, 25% down) the overall leveraged Total Return for the park is 16.5%+. The price per lot is about $13,700 each and includes full infrastructure for each lot.

We are asking our investors to submit offers at or above $1.00M (8.50% CAP) for the entire park including SFH, POH and commercial buildings. The potential of this park using an 85% occupancy and only calculating the $250 Lot Rent Value and equal consideration for the POH is $1.45M.

BRANTLEY MANUFACTURED HOME COMMUNITY | 4MAXWELL BAKER/404-442-2807/[email protected] ESTERSON/423-483-0492/[email protected]

KEY INVESTMENT CONSIDERATIONSPROPERTY ADDRESS: Brantley MHP 1288 Old Hwy 231 N, Troy, AL 36081

# Pads: 73 PPP= $13,698.63 Seller BuyerBased on Purchase Price of List Price: $1,000,000 Current YEAR 1

######### $ 1,000,000 INCOME & EXPENSE REPORTBase Rent

Pad Rents 140,880$ 140,880$ Vacant Pads at Market Rents 13 Lots / 0 POH 29,640$ 29,640$

Gross Potential Rent Income (GPRI) 170,520$ 170,520$ Reimbursements

Water IncludedTotal Expense Reimbursement -$ -$ GROSS POTENTIAL INCOME (GPI) 170,520$ 170,520$

VACANCY 17.81% 29,640$ 29,640$

EFFECTIVE GROSS INCOME (EGI) 140,880$ 140,880$ EXPENSES: Seller POH Expenses

R/E TAX Land 4,636$ 5,795$ R/E TAX POH 1,241$

INSURANCE 1,000$ 1,250$ INSURANCE POH 1,574$ FLOOD INS Not in Flood Zone

MANAGEMENT PM @ 8% 11,270$ MAINTENANCE Park Only 2,878$ 3,600$ MAINTENANCE POH 2,499$

WATER Included 26,948$ 27,816$ WELL None

SEWER SepticSEPTIC PUMP 2/1 456$

SEPTIC REPAIR CAPEX 8,409$ 1,000$ TRASH Direct Bill Curbside

ELECTRICTY Street Lights Office & POH 4,137$ ELECTRICTY Direct BillLANDSCAPE Landlord 4,936$ 5,183$

OFFICE SUPPLIES 250$ LEGAL 500$

LIC / PERMITS 215$ 250$ ROADS Private, Paved avg shape 1,000$

TOTAL EXPENSES 17,860$ 40,613$ 58,370$

NOI----------------------------------------------------------------------------------------- 100,267$ 82,510$

OTHER INCOME (Not Capitalized Income)POH Rents 2,640$ 2,640$ POH Expense Buyer - 100% (2,640)$

TOTAL OTHER INCOME 2,640$ -$

OPERATING CASH FLOW BEFORE DEBT 102,907$ 82,510$ Interest Rate Amort. Years Down Payment

DEBT SERVICE #1 5.500% 20 25% 61,910$ 61,910$ DEBT SERVICE #2 Bank Debt -$ TOTAL DEBT SERVICE------------------------------------------------------------ 61,910$ 61,910$

CASH FLOW AFTER DEBT------------------------------------------------------ 40,997$ 20,600$ PRINCIPAL REDUCTION 21,189$ 21,189$

TOTAL PRE-TAX CASH FLOW 62,186$ 41,788$

CAP RATE (NOI/PP) - LOT RENT ONLY 10.03% 8.50%CASH PURCHASE RETURN - (CFBD/PP) LOT&POH 10.29% 8.25%COCR (CFAD/DP) - Debt Purchase 16.4% 8.2%EXP RATIO (EXP/EGI) 28.8% 41.4%TOTAL RETURN (CF+PRIN / DP) 24.9% 16.7%PRINCIPAL REDUCTION 21,189$ 21,189$ DCR (NOI/DS) 1.62 1.33PRICE PER PAD 13,699$ 13,699$

ADVISED PRICING Current OccupancyLOT VALUE 970,701$ 8.50% CAPPOH VALUE 29,299$ NA | $7325 GRM / Per POHTOTAL VALUE 1,000,000$

PRO-FORMA VALUE 85% OccupiedLOT VALUE 1,396,125$ 8.00% CAP $250 Lot RentPOH VALUE 29,299$ NA | $7325 GRM / Per POHTOTAL VALUE 1,425,424$ 40% Exp Ratio


RENT ROLL/INVENTORYUnit Column1 Park Name Unit Type Lot Rent Home Rent Rent Annual Rent

1 1 Brantley MHP Vacant Lot -$ -$ -$ 2 2 Brantley MHP Lot Rent 200.00$ 200.00$ 2,400$ 3 3 Brantley MHP Lot Rent 190.00$ 190.00$ 2,280$ 4 3.1 Brantley MHP Vacant Lot -$ -$ -$ 5 4 Brantley MHP Lot Rent 190.00$ 190.00$ 2,280$ 6 4.1 Brantley MHP Vacant Lot -$ -$ -$ 7 5 Brantley MHP Lot Rent 220.00$ 220.00$ 2,640$ 8 6 Brantley MHP POH 190.00$ 110.00$ 300.00$ 3,600$ 9 7.1 Brantley MHP Lot Rent 190.00$ 190.00$ 2,280$

10 8 Brantley MHP Lot Rent 190.00$ 190.00$ 2,280$ 11 9 Brantley MHP Lot Rent 190.00$ 190.00$ 2,280$ 12 10 Brantley MHP Lot Rent 170.00$ 170.00$ 2,040$ 13 10.1 Brantley MHP Lot Rent 200.00$ 200.00$ 2,400$ 14 11.1 Brantley MHP SFH 4/2 600.00$ -$ 600.00$ 7,200$ 15 12 Brantley MHP Lot Rent 190.00$ 190.00$ 2,280$ 16 14 Brantley MHP Lot Rent 190.00$ 190.00$ 2,280$ 17 18 Brantley MHP Lot Rent 190.00$ 190.00$ 2,280$ 18 19 Brantley MHP Vacant Lot -$ -$ -$ 19 20 Brantley MHP Lot Rent 190.00$ 190.00$ 2,280$ 20 21 Brantley MHP Lot Rent 190.00$ 190.00$ 2,280$ 21 22 Brantley MHP Lot Rent 190.00$ 190.00$ 2,280$ 22 23 Brantley MHP Vacant Lot -$ -$ -$ 23 24 Brantley MHP Lot Rent 190.00$ 190.00$ 2,280$ 24 25 Brantley MHP Vacant Lot -$ -$ -$ 25 26 Brantley MHP Lot Rent 190.00$ 190.00$ 2,280$ 26 27 Brantley MHP Lot Rent 190.00$ 190.00$ 2,280$ 27 28 Brantley MHP Vacant Lot -$ -$ -$ 28 28.1 Brantley MHP Lot Rent 150.00$ 150.00$ 1,800$ 29 29 Brantley MHP Lot Rent 190.00$ 190.00$ 2,280$ 30 30 Brantley MHP Lot Rent 190.00$ 190.00$ 2,280$



31 31 Brantley MHP Lot Rent 190.00$ 190.00$ 2,280$ 32 31.1 Brantley MHP Lot Rent 190.00$ 190.00$ 2,280$ 33 32 Brantley MHP Vacant Lot -$ -$ -$ 34 33 Brantley MHP Vacant Lot -$ -$ -$ 35 34 Brantley MHP Lot Rent 190.00$ 190.00$ 2,280$ 36 35 Brantley MHP Lot Rent 190.00$ 190.00$ 2,280$ 37 36 Brantley MHP Lot Rent 190.00$ 190.00$ 2,280$ 38 37 Brantley MHP Lot Rent 190.00$ 190.00$ 2,280$ 39 37.1 Brantley MHP Vacant Lot -$ -$ -$ 40 38 Brantley MHP Lot Rent 170.00$ 170.00$ 2,040$ 41 38.1 Brantley MHP Lot Rent 190.00$ 190.00$ 2,280$ 42 40 Brantley MHP Lot Rent 190.00$ 190.00$ 2,280$ 43 41 Brantley MHP POH 190.00$ 110.00$ 300.00$ 3,600$ 44 46 Brantley MHP Lot Rent 190.00$ 190.00$ 2,280$ 45 47 Brantley MHP Lot Rent 190.00$ 190.00$ 2,280$ 46 48 Brantley MHP Lot Rent 190.00$ 190.00$ 2,280$ 47 50 Brantley MHP Lot Rent 190.00$ 190.00$ 2,280$ 48 51 Brantley MHP Lot Rent 195.00$ 195.00$ 2,340$ 49 52 Brantley MHP Lot Rent 210.00$ 210.00$ 2,520$ 50 53 Brantley MHP Vacant Lot -$ -$ -$ 51 54 Brantley MHP Lot Rent 190.00$ 190.00$ 2,280$ 52 55.1 Brantley MHP Lot Rent 190.00$ 190.00$ 2,280$ 53 56 Brantley MHP Lot Rent 190.00$ 190.00$ 2,280$ 54 57 Brantley MHP Lot Rent 190.00$ 190.00$ 2,280$ 55 58 Brantley MHP Lot Rent 190.00$ 190.00$ 2,280$ 56 59 Brantley MHP Lot Rent 190.00$ 190.00$ 2,280$ 57 60 Brantley MHP Lot Rent 190.00$ 190.00$ 2,280$ 58 61 Brantley MHP Lot Rent 190.00$ 190.00$ 2,280$ 59 62 Brantley MHP Lot Rent 190.00$ 190.00$ 2,280$ 60 63 Brantley MHP Lot Rent 190.00$ 190.00$ 2,280$



61 64 Brantley MHP Vacant Lot -$ -$ -$ 62 65 Brantley MHP Lot Rent 190.00$ 190.00$ 2,280$ 63 65.1 Brantley MHP SFH - Office 3/1 -$ -$ -$ 64 66 Brantley MHP Lot Rent 190.00$ 190.00$ 2,280$ 65 68.1 Brantley MHP Lot Rent 190.00$ 190.00$ 2,280$ 66 71 Brantley MHP Lot Rent 190.00$ 190.00$ 2,280$ 67 82 Brantley MHP Lot Rent 195.00$ 195.00$ 2,340$ 68 83 Brantley MHP Lot Rent 190.00$ 190.00$ 2,280$ 69 84 Brantley MHP Commercial Bld 300.00$ 300.00$ 3,600$ 70 85 Brantley MHP Vacant Lot -$ -$ -$ 71 86 Brantley MHP Lot Rent 190.00$ 190.00$ 2,280$ 72 87 Brantley MHP Lot Rent 190.00$ 190.00$ 2,280$ 73 88 Brantley MHP Lot Rent 200.00$ 200.00$ 2,400$


INVESTMENT HIGHLIGHTS• Nice Value-Add Park with Motivated Seller• Below Market Rates and Below Market

Occupancy• 8.50% CAP on Lot Rent with 41% Expense Ratio• Nice Large SFH (4/2) Used as Office• 2 SFH & POH - $7,300 Shell Value• Price Per Lot = $13,700

• Park could use some landscaping improvements

• Shared Septic, Un-metered Water• Seller’s Books & Records (Mom & Pop)

KNOWN ISSUES


THE OFFERING

PROPERTY ADDRESS: 1288 Old Hwy. 231 N.Troy, AL 36081

COUNTY: Pike

PARCEL NUMBER: 59 09 01 12 000 008.000 55 09 06 13 000 001.000

SITE DESCRIPTION

# OF PADS: 73

TOTAL LAND AREA: ± 83

CURRENT OCCUPANCY: 83%

ZONING: RR: Reserved Residential MH: Mobile Home Park

MECHANICAL

WATER: City Water, Septic

ELECTRIC: 100 / 200 AMP

PROPERTY DESCRIPTION/INFRASTRUCTURE

Brantley Manufactured Home Community is located in Pike County which is home to the largest university in the state, Troy University. Nestled just south of Montgomery and just north of Dothan, the City of Troy, Alabama, offers visitors the charm of a small city along with a stimulating urban environment. Troy has a beautiful and vibrant downtown square filled with restaurants, antique shops and local museums. As the county seat of Pike County, Troy offers her residents and visitors beautiful parks, quaint streets, Victorian homes and historic sites. Area shopping and progressive businesses are found here as well.

INFRASTRUCTURE BRANTLEY MHCNumber of Spaces 73

Number of Park-Owned 4

Vacant Pads 13

Number of Vacant Parked-Owned 0

Single-Wide Homes N/A

Double Wide Homes N/A

Number of Lot Renters 56

Homes Used for Storage 1

Road Type Paved

Flood Plane No

Topography Flat

Parking Spaces 2/1

Mowing Responsibilities Landlord

Water/Sewer City Water/Septic


LOT RENT: $150 - $220 (Avg. Lot Rent $190 Per Month)

PARK-OWNED HOMES: 2 POH

TOTAL PRICE: $1,000,000

DOWN PAYMENT: 25% / $250,000

TOTAL PADS: 73

PRICE PER PAD:(WITHOUT LEASE-OPTION HOMES)

$13,700

PARCEL SIZE: ± 83 acres

FINANCIAL OVERVIEW


AERIAL


DEMOGRAPHICS

1 Mile

3 Miles

5 Miles

2017 SUMMARY 1 MILE 3 MILES 5 MILES 2022 SUMMARY 1 MILE 3 MILES 5 MILES

Population 353 3,064 14,049 Population 349 2,972 13,888

Households 138 1,233 5,358 Households 136 1,195 5,287

Families 86 768 2,704 Families 84 736 2,626

Average HH Size 2.56 2.47 2.31 Average HH Size 2.57 2.47 2.31

Owner Occupied Housing Units 96 698 2,263 Owner Occupied

Housing Units 95 680 2,219

Renter Occupied Housing Units 42 535 3,095 Renter Occupied

Housing Units 41 515 3,068

Median Age 41.5 35.8 26.0 Median Age 44.4 37.6 27.1

Median HH Income $36,681 $30,854 $26,971 Median HH

Income $36,552 $31,014 $27,126

Average HH Income $50,623 $45,546 $41,088 Average HH

Income $52,786 $48,004 $43,499


LOCAL RETAIL & SCHOOLS

Troy Municipal Airport

Troy University

Troy Elementary School

Charles Henderson High School

Charles Henderson Middle School

Brantley Manufactured Home Community


LOCATION & MHP SUPPLY STORES

Brantley Manufactured Home Community

J & N Mobile Home SupplyDiscount Home Sales

Hall’s Mobile Home Services


COMPETITIVE RENT COMPSPHOTO PARK NAME

# OF PADS

LOT RENT

COMP DATE

BRANTLEY MHCTROY, ALPIKE COUNTY

73 $190 2018

1MHC 1TROY, ALPIKE COUNTY

30 $190 2016

2MHC 2 TROY, ALPIKE COUNTY

230 $340 2016

3MHC 3TROY, ALPIKE COUNTY

200 $200 2017

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Maxwell R. Baker joined Lee & Associates in 2014 as a commercial real estate broker specializing in purchasing and sellingmobile home communities in the Southeast. His family has been involved with mobile home parks for more than 15 years,and he has been a part of management, rehabilitation, and disposing mobile home parks since his family purchased theirfirst park. Max is also Founder and President of The MHP Broker offering mobile home park owners and investors brokerageservices, free mobile home park analyses, in-depth market research, and mobile home park financing consultation.

In 2014 and 2015, Max completed approximately 80% of all Georgia manufactured home community transactions andhas also closed transactions in other Southeast states including Tennessee, Alabama, North Carolina, South Carolinaand Florida. Max's core competencies include structuring and negotiating complicated transactions, owner financing,research and outsourcing, and his "deal-making" capabilities.

Max, along with his expert team of researchers, compile and maintain the industry’s most comprehensive database ofmobile home community data in the Southeast. Max and The MHP Broker are recognized as a trusted advisor in this rapidlygrowing multifamily, affordable housing sector.

• Georgia State University - B.A. Real Estate• United States Marine Corps

• Atlanta Commercial Board of Realtors• Real Estate Broker - Georgia• Georgia Manufactured Housing Association (GMHA) member• Southeast Community Owners (SECO) member

Biography

Education

Memberships & Associations

3500 Lenox RoadSuite 200Atlanta, GA 30326

T [email protected]

Partial Client ListBeal BankColony CapitalMarket Street CapitalAffordable Housing Communities Inc. Capital Square Holdings LLCThe Reach GroupMidland Loan ServicesHartman Wright Group, LLC Affordable Communities Group, LLC

PrincipalMAXWELL BAKER

ADVISOR BIO // MOBILE HOME PARKS

ADVISOR BIO - MAXWELL BAKER

ADVISOR BIOS| 17MAXWELL BAKER/404-442-2807/[email protected] ESTERSON/423-483-0492/[email protected]

Glenn Esterson is a Senior Director with Lee & Associates, specializing in investment grade mobile home communities.During his fifteen years in the commercial real estate business, Mr. Esterson has successfully owned and operated mobilehome parks as well as assisting his clients in the sales, leasing and management of mobile home communities throughoutthe southeastern U.S. markets.

Early in his career, Mr. Esterson was working on apartment sales, condo-conversions and property management. Fromthere, Mr. Esterson transitioned into investment sales of multi-tenanted small business parks throughout the Southeast andmid-Atlantic. He and his team has transacted in nearly every southeastern state and holds multiple real estate licenses.

Mr. Esterson works exclusively with private investors as their primary real estate investment advisor for their acquisition anddisposition needs. Mr. Esterson provides clients with expertise in asset management, portfolio analysis, site selection, leaseadvisory and consulting. Mr. Esterson has executed over 200 sale or lease transactions over his career with a transactionalvolume in excess of $100 million.

• 2016-Present Lee & Associates, Atlanta - Senior Director Mobile Home Communities• 2013-2016 Marcus & Millichap, National Office & Industrial Properties Group• 2003-2013 Esterson Management Solutions, Inc. – Founding Member• 2001-2005 American Commercial Properties, Director of Multi-Family Investment

• Sierra Nevada CollegeBachelor of Arts

Profile

Experience

Education

3500 Lenox RoadSuite 200Atlanta, GA 30326

T 404.442.2825C [email protected]

Senior DirectorGLENN ESTERSON

ADVISOR BIO // MOBILE HOME PARKS

ADVISOR BIO - GLENN ESTERSON

ADVISOR BIOS| 18MAXWELL BAKER/404-442-2807/[email protected] ESTERSON/423-483-0492/[email protected]

The information contained in this Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Lee & Associates and should not be made available to any other person or entity without the written consent of Lee & Associates. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Lee & Associates has not made any investigation, and makes no warranty or representation, with respect 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 presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Lee & Associates has not verified, and will not verify, any of the information contained herein, nor has Lee & Associates conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

NON-ENDORSEMENT NOTICELee & Associates is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Lee & Associates, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Lee & Associates, and is solely included for the purpose of providing tenant lessee information.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE LEE & ASSOCIATES AGENT FOR MORE DETAILS.

EXCLUSIVELY LISTEDBIRMINAAL

MAXWELL BAKER / PRINCIPALPHONE: 404.442.2807 | [email protected] & ASSOCIATES | ATLANTA 3500 LENOX ROAD, SUITE 200 | ATLANTA, GA 30326

Documents

BRANTLEY MANUFACTURED HOME COMMUNITY...EFFECTIVE GROSS INCOME (EGI) $ 140,880 $ 140,880 EXPENSES: Seller POH Expenses R/E TAXLand $ 4,636 $ 5,795 R/E TAXPOH $ 1,241 INSURANCE $ 1,000