opportunity zone portfolio - loopnet · 2020. 7. 16. · opportunity zone tax benefits by...

Buck Island MHC

Pine Terrace MHC

Green Acres MHC

KANSAS CITY

AUSTIN

SHREVEPORT JACKSON

NEW ORLEANS

MONTGOMERYSAVANNAH

TAMPA

LOUISVILLE

HOUSTON

ATLANTA

CHARLOTTE

ORLANDO

TALLAHASSEEJACKSONVILLE

WASHINGTON

NASHVILLE

MEMPHIS

ST LOUIS

DALLAS

OKLAHOMA CITY

PLEASE DO NOT SPEAK WITH TENANTS OR EMPLOYEES

Pine Terrace MHC | 4164 Highway 84 E | Cairo, GA, 39828Green Acres MHC | 811 W Reelfoot Ave | Union City, TN 38261Buck Island MHC | 2466 Kirby Rd | Robinsonville, MS 38664

A 3-COMMUNITY, 418-SITE MHC OPPORTUNITY ZONE PORTFOLIO

MAJOR PRICE REDUCTIONPortfolio Price: $6,775,000 $5,450,000

Pine Terrace MHC: $1,775,000 $1,550,000Green Acres MHC: $1,500,000 $1,400,000Buck Island MHC: $3,500,000 $2,500,000

Buck Island MHC

For a video tour, please visit: https://vimeo.com/374767257

Green Acres MHC

Pine Terrace MHC

(includes all park owned homes)

Name Pine Terrace MHC Green Acres MHC Buck Island MHC Totals/Average

Address 4164 Hwy 84 E Cairo, GA 39828811 W Reelfoot Ave

Union City, TN 382612466 Kirby Rd

Robinsonville, MS 38664 -

County Grady Obion Tunica -

Year Built Estimated 1997 / 1998 1970 1994 -

Tax Parcel IDs 94-44-1/944-44-2 059-012.03 3108280000000401/ 3108280000000402/3108280000000403 -

Sites 75 114 (97 MH / 17 RV) 229 (192 MH / 37 RV) (plus 104 undeveloped lots) 418 (364 MH/54 RV)

Community Type All Ages All Ages All Ages

Land Size (acres) 53.63 16.41 61.60 131.64

Density (site/acre) 1.40 6.95 3.72 4.02

MH Physical Occupancy 85.33% (64 sites as of Jul '20) 76.29% (74 sites as of Jul '20) 77.08% (148 sites as of Jul '20) 78.57% (286 sites as of Jul '20)

MH Economic Occupancy 60.00% (45 sites as of Jul '20) 53.61% (52 sites as of Jul '20 33.85% (65 sites as of Jul '20) 44.51% (162 sites as of Jul '20)

Inventory Homes 49 (30 occupied as of Jul '20) 48 (26 occupied as of Jul '20) 138 (55 occupied as of Jul '20) 235 (111 occupied as of Jul '20)

Average Lot Rent (base rent only) $238 $204 $220 $220

Last Rent Increase $25 - $50 (Jan ‘19) $25 (at lease renewal starting approx. June 2018) At lease renewal

Roads Asphalt Asphalt Asphalt -

Floodplain Zone X Zone AE Zone X -

Zoning C-4 Commercial R-3 (high density residential) M-H Mobile Home Residential -

Utilities

Water Private Well (included in rent)Union City

(master metered paid by the park)*Tunica County

(direct billed to tenant) -

Sewer Private Septic (included in rent)Union City

(master metered paid by the park)*Tunica County


Electricity Grady County (direct billed to tenant)Union City

(direct billed to tenant)Coahoma


Gas Multiple Providers (direct billed to tenant)Multiple Providers

(direct billed to tenant) N/A -

Trash Taylor Waste (billed back to tenant)**Union City

(included in rent)Waste Management

(included in rent) -

Cable Multiple Providers (direct billed to tenant)Charter Communications

(direct billed to tenant)Multiple Providers


PORTFOLIO INVESTMENT HIGHLIGHTS • Rare opportunity to acquire a sizable opportunity zone portfolio consisting of 418 total sites (364 MH / 54 RV) mostly on public utilities located in the

southeastern part of the United States near major cities such as Memphis, Nashville, and Tallahassee.

• The communities are all located in opportunity zones, providing strong future tax benefits for a new owner. Opportunity funds allow investors to defer federal taxes on any recent capital gains until December 2026 and pay zero taxes on future gains if the investment is held for 10 years.

• The offering includes 235 community-owned homes, of which 47% are currently occupied averaging $319 for the home rent portion. The existing community-owned home inventory will allow a new owner to rapidly grow occupancy through the sale or leasing of homes.

• There is strong demand for affordable housing in these housing markets. Within a ten-mile radius of the properties, the average household income across the portfolio is $54,300 and average household values are approximately $165,000.

• Properties may be purchased together or individually.

* $50 flat rate billed back to tenants monthly** $20 flat rate billed back to tenants monthly

A 3-COMMUNITY, 418-SITE MHC PORTFOLIO

2

PORTFOLIO DETAILS

OPPORTUNITY ZONE TAX BENEFITS BY

INVESTMENT TERM LENGTH

1. Actual numbers based on financials provided by the client. The 2019/May ‘20 T5 columns separate out the park-owned home rental income (2018 Actuals includes all home/lot income in the “GSR” line item).

2. See Buck Island proforma assumptions for further explanation on the higher RV Income.

3. Numbers do not reflect actual expense.

UNDERWRITING ASSUMPTIONS

ROLL-UP FINANCIAL ANALYSIS

INCOMEGross Scheduled Rent

Less: VacancyLess: Bad DebtTotal Rental IncomePlus: Utility IncomePlus: Other Income

2 Plus: RV IncomePlus: RTO IncomePlus: Home Rental IncomeTotal Other IncomeEffective Gross Income

EXPENSESRepairs and MaintenancePayroll AdministrativeMarketingProfessional FeesUtilities

ElectricityWater/SewerGasTrashPhone/Internet

Total Variable ExpensesTaxesOther TaxInsuranceManagement FeeTotal Operating Expenses

3 Plus: Capital ReservesTotal ExpensesNet Operating Income

Expense Ratio

Totals % GSR Totals % GSR Totals

1 2018 Actuals 2019 Actuals May '20 T5 Inc Ann Proforma

Financial Analysis

$924,216$900,011 $410,211 $393,564% GSR Totals % GSR

0.00% 495,672 53.63%0 0.00% 0 0.00% 00.00% 9,242 1.00%0 0.00% 0 0.00% 0

100.00% $419,302 45.37%$900,011 100.00% $410,211 100.00% $393,564

40,713 97 45,414 109 31,264152 61,779 14858,944 141 59,979 143 63,621

1,000 2 1,400 3 1,20067 29,174 704,300 10 18,743 45 28,08075 46,776 112

877 422,280 1,0100 0 367,495 879 366,7693 1,442 3

$1,004,968 $2,404 $903,241 $2,161 $884,4991,174 561,451 1,343104,957 251 493,031 1,179 490,935

$149,120 $357 $156,544 $375 $124,874Per Site Proforma Per SiteActuals Per Site Actuals Per Site Actuals

$2,116 $980,752 $2,346

13,281 32 10,230 24 $13,393238 123,500 295153,746 368 123,697 296 $99,444

$299 $142,575 $341

10,192 24 8,811 21 $7,2980 1,174 3420 1 29 0 $0

32 11,400 27

56,773 136 52,096 125 52,7850 0 00 0 0 0 0

17 7,020 17

0 0 1,047 3 2,704123 56,050 13455,299 132 54,417 130 51,416126 53,658 128

5,539 13 5,322 13 8,15988 39,345 9432,687 78 38,199 91 36,9316 1,078 3

31,741 76 28,422 68 94,461$950 $441,283 $1,056$477,057 $1,141 $450,393 $1,077 $397,003

20 5,482 13

45 15,759 3813,511 32 14,994 36 18,819226 31,750 76

49,056 117 46,939 112 38,394

$606,538 $1,451 $572,388 $1,369 $579,6353.50% 39,230 4.00%35,174 3.50% 31,641 3.50% 30,957

92 39,600 95

$606,538 $1,451 $572,388 $1,369 $579,6350 20,900 500 0 0 0 0

$1,387 $567,622 $1,358

$729 $392,231 $938$398,429 $953 $330,853 $792 $304,864$1,387 $588,522 $1,408

60.01%60.35% 63.37% 65.53%

Todd Fletcher303‐260‐[email protected]

Andrew Shih512‐637‐1219

[email protected]


4

PORTFOLIO DETAILS

SITE INFORMATION

ADDRESS 4164 Hwy 84 E, Cairo GA 39828

COUNTY Grady

YEAR BUILT Estimated 1997/1998

TAX PARCEL ID 94-44-1/944-44-2

SITES 75

COMMUNITY TYPE All Ages

LAND SIZE 53.63 acres

DENSITY 1.40 sites/acre

MH PHYSICAL OCCUPANCY 85.33% (64 sites as of Jul '20)

MH ECONOMIC OCCUPANCY 60.00% (45 sites as of Jul '20)

INVENTORY HOMES 49 (30 occupied as of Jul '20)

AVERAGE LOT RENT $238 (base rent only)

LAST RENT INCREASE $25 - $50 (Jan ‘19)

ROADS Asphalt

FLOODPLAIN Zone X

ZONING C-4 Commercial

UTILITIES

WATER Private Well (included in rent)

SEWER Private Septic (included in rent)

ELECTRICITY Grady County (direct billed to tenant)

GAS Multiple providers (direct billed to tenant)

TRASH Taylor Waste (billed back to tenants)**

CABLE Multiple providers (direct billed to tenant)

DEMOGRAPHIC INFORMATION 1 MILE 5 MILES 10 MILES

2019 Population Estimate 854 7,225 43,141

2019 Renter Occupied Housing Percentage 33.40% 36.30% 34.60%

2019 Owner Occupied Housing Percentage 57.10% 53.40% 52.60%

2019 Estimated Average Household Income $49,926 $48,174 $51,105

2019 Estimated Average Owner-Occupied Housing Value $186,834 $166,275 $178,925

Source: U.S. Census Bureau

• Pine Terrace MHC is an all-age 75-site community set on nearly 54 acres of land and located in an opportunity zone. The community features a clean and spacious layout with off-street parking and mature trees throughout.

• The community is ideally situated just off Highway 84 on the Georgia-Florida state line, providing easy access to other larger markets such as Thomasville, GA (10 miles) and Tallahassee, FL (37 miles). The property is also within a highly rated school district comprised of six elementary/middle schools within Grady County.

• Offering includes 49 park-owned homes, of which 30 are currently occupied averaging $317 for the home rent portion. Reportedly the remaining vacant homes are salvageable but would require around $5-7K per home to remodel and get rent ready. Current owner has had no problems finding qualified tenants once they have a home available.

• Value-add opportunity to continue filling sites to increase occupancy as the property is only 60% economically occupied. There is tremendous demand for affordable housing in the area. The average household income is $51,105 with average home values of approximately $179,000 within a ten-mile radius of the community.

• The site has several acres of vacant land that a new owner may be able to develop additional sites on.

• Within a ten-mile radius of the community, the total population is approximately 43,150 and expected to rise to 46,400 by 2024.

• Pine Terrace MHC is located just 45 minutes north of Tallahassee on Highway 84 in Grady County between the towns of Cairo, GA (population 9,410) and Thomasville, GA (population 18,537).

• There are two Walmart Supercenters, Goody’s, TJ Maxx, and Belk within a 15-minute drive from the community.

• Grady County is home to the Grady General Hospital and Archbold Memorial Hospital, both with the distinction of being one of the nation’s top 100 small hospitals.

• The community is an easy drive to Tallahassee, which is the 7th largest city in Florida and home to Florida State University (FSU). The Tallahassee International Airport offers service to major airline carriers such as American Airlines and Delta.

• Tallahassee houses a 70,000 college student population and is one of the most stable employment markets in the entire state of Florida with a current unemployment rate of 3.6%. The city is also the main center for trade and agriculture in the Florida Big Ben and Southwest Georgia regions.

• Universities within close proximity to the community include Thomas University (1,100 student enrolled), Florida State University (32,800 students enrolled), Florida A&M University (9,600 students enrolled), Tallahassee Community College (18,500 students enrolled), and Valdosta State University (11,220 students enrolled).

INVESTMENT HIGHLIGHTS

AREA HIGHLIGHTS

** $20 flat rate billed back to tenants monthly


5

PINE TERRACE MHC PROPERTY DETAILS


6


INCOME2 Gross Scheduled Rent

Less: VacancyLess: Bad DebtTotal Rental Income

3 Plus: Utility Income3 Plus: Other Income4 Plus: Home Rental Income

Total Other IncomeEffective Gross Income

EXPENSESRepairs and MaintenancePayroll AdministrativeMarketingProfessional Fees

5 UtilitiesElectricityTrash

Total Variable Expenses6 Taxes7 Other Tax

InsuranceManagement FeeTotal Operating Expenses


Expense Ratio

$118,688 $1,583$141,713 $1,890

45.58%

2,142 1.00%

4,608 61

40.00%

5

9,711 129

0 0

0

11,367 152

16,219 21643,488

1,875 25

$144,190 $1,923

$1,079

1,944

47.03%

$1,969

0

$126,378 59.00%28,325 3787,089 95

110,400 1,472

0

145,814

15,000

580

16

$80,922

0 0.00%

May '20 T5 Inc Ann Proforma

2118,220 110

16

1,415

$123,595

1,223

141,797

27

0 011,036 147

$1,570

Totals % GSR

$123,595

0 0.00%

$117,733

106,122

0

% GSR

$147,658

93,287 1,244

27,500 3676,882 92

0 0.00%0

$132,733Totals

0.00%

$132,733 100.00%

416

$1,805$1,613

305

3.50%

$1,8050

Totals % GSR

0.00%

0.00%

100.00%382

98

$220,400

480

$3,419Per Site

$291

00

$220,40028,6397,381

0 0

200

222

5

50

$128,002 $1,707

$272,192 $3,629Proforma Per Site

$22,500 $30026,250 3502,250 30

375

16,305 217

1,223

$3,472Per Site

$10,520 $14011,616 1551,942 26

0 0

0

$48,632 $648$82,424 $1,099

6

15,830

Actuals Per Site

$27,782 $37024,275 3241,505 20

$265,391Actuals

15,912

2018 Actuals

22,8548,975 9,114 3.50%

$118,688 $1,583

17,009

50

0

175

2019 Actuals

$1,155

13,107

31

02,328

03,767

0422

0

Actuals

9,289$135,408

0$135,408$121,012

14,381$86,59716,614

368

0

1,9960

212

Financial Analysis1

52.81%

192

36,020$256,420

127,669 1,702$260,401

227

430 6

$21,84131,173

$117,733

3.50%

44.36%

Totals % GSR

$214,200

85,680

$1,570

15,102 20110,888 4.00%

$124,252 $1,6573,750

100.00%

31,066 414

1,891

$3,539



[email protected]

FINANCIAL ANALYSIS

1. Actual numbers based on financials provided by the client. The 2019/May ’20 T5 columns separate out the lot rental income from the park-owned home rental income.

2. Proforma GSR = 75 MH Units x $238 avg lot rent x 12 months.

3. Utility and Other Income grown 3% from 2019 Actuals. Other Income includes application fees, late fees, and violation fees.

4. Home Rental Income annualized from the most recent rent roll ($9,200 in most recent rent roll).

5. Adjusted Utilities grown 3% from 2019 Actuals.

6. Proforma Taxes = 2018 tax bill grown 0%. See document library for the specific tax bills.

7. Other Taxes includes taxes on the park-owned homes.




7


PROPERTY AERIAL

MILL CREEK LN

NEVA DR

PIER

CE C

HAPE

L RD

116

PINE TERRACEM A N U FA C T U R E D H O M E C O M M U N I T Y

8484


8


Pine Terrace MHC

Grady General Hospital

John D. Archbold Memorial Hospital

Tallahassee International Airport

Cairo-Grady County Airport

Wolf Creek Trout Lily Preserve

Ochlockonee River Water Trail

CAIRO

TALLAHASSEE

COMMUNITY ATTRACTIONS

Buck Island MHC

Pine Terrace MHC

Green Acres MHC

KANSAS CITY

AUSTIN

SHREVEPORT JACKSON

NEW ORLEANS

MONTGOMERYSAVANNAH

TAMPA

LOUISVILLE

HOUSTON

ATLANTA

CHARLOTTE

ORLANDO


WASHINGTON

NASHVILLE

MEMPHIS

ST LOUIS

DALLAS

OKLAHOMA CITY


9


SITE INFORMATION

ADDRESS 811 W Reelfoot Ave, Union City, TN 38261

COUNTY Obion

YEAR BUILT 1970

TAX PARCEL IDS 059-012.03

SITES 114 (97 MH / 17 RV)








LAST RENT INCREASE $25 (at lease renewal starting approx. June 2018)

ROADS Asphalt

FLOODPLAIN Zone AE

ZONING R-3 (high density residential)

UTILITIES

WATER Union City (master metered paid by the park)*

SEWER Union City (master metered paid by the park)*

ELECTRICITY Union City (direct billed to tenant)

GAS Multiple providers (direct billed to tenant)

TRASH Union City (included in rent)

CABLE Charter Communications (direct billed to tenant)


2019 Population Estimate 1,409 13,785 21,720




2019 Estimated Average Owner-Occupied Housing Value $102,872 $143,303 $152,457 Source: U.S. Census Bureau

• Green Acres MHC is a 114-site (97 MH/17 RV) all-age community positioned on approximately 16.5 acres serviced by public utilities and located in an opportunity zone. The community sits across the street from Lowe’s Home Improvement and countless other retail and dining destinations.

• The community sits in a flood plain but the municipality has provided directive on how to set the homes to meet the city code requirements. Please see the flood plain documentation in the war room for more detail.

• The community features a spacious grid-type layout with off-street parking and paved roads throughout. Property infrastructure (roads and utilities) appears to be in good shape.

• Offering includes 48 park-owned homes, of which 26 are currently occupied averaging $211 for the home rent portion. Value-add opportunity for a new buyer to fill the remaining vacant homes to increase occupancy.

• There is a strong demand for affordable housing in this market. The average household income is approximately $55,700 within a ten-mile radius around the property while home values average in the $153,000 range.

• Tyson Foods, the largest employer in Union City, recently invested $80 million to expand operations in the city and will create more than 300 new jobs. Excel Boats Co. will be investing $7.5 million to open a manufacturing plant in Union City and will employ roughly 175 people over the next five years.

• Within a ten-mile radius of the community, the total population is 21,720 with an average home value of $152,457.

• Green Acres MHC is conveniently located right off US-51 and near other major transportation corridors (TN-22 and TN-184), providing easy access to larger markets including Memphis (110 miles), Nashville (170 miles), and St Louis (200 miles).

• Discovery Park of America, located minutes away from the community, is an extremely popular word-class 100,000 SF museum featuring earthquake simulations, aquarium, prehistoric artifacts, military equipment, and other interactive displays focused on technology, science, and engineering. The museum also offers a sate-of-the-art meeting space for corporate events and meetings.

• The community sits near several major retail shops including Walmart Supercenter, Lowe’s, Walgreens, and more. There is also an abundance of restaurants in the area such as Taco Bell, Arby’s, Applebee’s, McDonald’s, Sonic, and Wendy’s.

• Obion County boasts a diverse economy and has a strong presence in manufacturing, food processing, agriculture, healthcare, and retail trade industries. The county has a strong public-school system consisting of six elementary schools, two middle schools, and three high schools.

• Obion County has an impressive transportation system, specifically for the logistics industry. Union City is directly served by the Canadian National (CN) Railroad, the only rail carrier in the U.S. that provides coast to coast service (Atlantic to Pacific and Canada to Gulf Coast). The Port of Cates Landing provides easy transport of goods down the Mississippi river to the gulf coast. The Everett Stewart Regional Airport, located just south of Union City, has the capability to serve 67% of the nation’s most popular corporate aircrafts and one of the few airports with an instrument landing system.


AREA HIGHLIGHTS

* $50 flat rate billed back to tenants monthly


10

GREEN ACRES MHC PROPERTY DETAILS


11


FINANCIAL ANALYSIS



2. Proforma GSR = 97 MH Units x $204 avg lot rent x 12 months

3. Proforma assumes 1 additional site occupied.

4. Utility, Other, RV, and RTO Income grown 3% from 2019 Actuals. There are 17 RV units at the community. Other Income includes application fees, late fees, security deposit forfeitures, violation fees, and tax reimbursements.

5. Home Rental Income annualized from the most recent rent roll ($5,275 in most recent rent roll).


7. Proforma Taxes = 2018 taxable value ($111,320) x 2018 mill rates (.036987) grown 0%.

8. Other Taxes includes taxes on the park-owned homes.


INCOME2 Gross Scheduled Rent3 Less: Vacancy

Less: Bad DebtTotal Rental Income

4 Plus: Utility Income4 Plus: Other Income4 Plus: RV Income4 Plus: RTO Income5 Plus: Home Rental Income



6 UtilitiesElectricityWater/SewerTrashPhone/Internet




Expense Ratio

5

894 8

$137,290 $1,204$72,618 $637

65.40%

0 0

0

8,961 79

4,117 3613,975

1,710 15

$79,609 $698

$127,369 53.64%29,758 2615,085 457,478 661,442

66.04%

40,973 359

$1,087

939

3,990

123

13

63,300

45.36%

2,375 1.00%

11,221 98

$603

10,668

0 0

7,943 70313

7,765 68

1,322 12$123,874

15

0 0.00%

52,835 463


$121,796

55551,087 448

Totals

960

% GSR

$116,332

8

1,200 11

$1,311

Totals % GSR

$121,796

0 0.00%

16,269 1431,284 11

35,628

9

$68,734

$116,332 100.00%28,892 2534,937 43

$218,151Actuals

1,400 12

0.00%

$121,250 $1,064

$149,417

Actuals Per Site

$29,943 $26321,378 1881,825 16

7,260 64

0 0.00%0

0

381

$1,989Per Site

$382

161

$1,347$642

48

3.50%

$1,3470

Totals % GSR

0.00%

0.00%

100.00%262

72

$183,346

00

$183,34629,9208,2274,3001,000

38

9

35

9,377 4.00%$149,124 $1,308

5,700 50$154,824 $1,358

$234,433 $2,056Proforma Per Site

$34,200 $30017,100 1502,280 20

570

16,757 147

0

36

52 0 0

96,355

18

0 08,700 76

39,780 349

0

2,042

$1,841Per Site

$33,181 $29134,019 2984,085 36

0 0

0

845

$1,914

2018 Actuals

5,4767,938 7,354 3.50%

$137,290 $1,204

0$1,142

Actuals

7,676

29

3

27

0

67

2019 Actuals

$153,6140

$153,614$73,180

39,66412,6281,670

$130,2034,1175,880

348

67.73%

111

15

43,448$226,794

93,576 821$209,907

0

7,792 68

$43,55318,3063,264

3443,098

0

$128,169 $1,124

0

94

1,675

Financial Analysis1

97029

0

68.49%

Totals % GSR

$237,456

107,712

$1,311

(362) -37,635

107,063

100.00%

30,139 264

$149,417

3.50%



[email protected]


12


PROPERTY AERIAL

W REELFOOT AVE

W REELFOOT AVE

W JACKSON ST

JERE

B F

ORD

MEM

ORIA

L HW

Y

W BRANSFORD ST

E FLORIDA AVE

51

184

GREEN ACRESM A N U FA C T U R E D H O M E C O M M U N I T Y


13


Pine Terrace MHC

Green Acres MHC

KANSAS CITY

AUSTIN

HOUSTON

ATLANTA

CHARLOTTE

ORLANDO

JACKSONVILLE

WASHINGTON

NASHVILLE

MEMPHIS

ST LOUISLOUISVILLE

SPRINGFIELD

DALLAS

OKLAHOMA CITY


Graham ParkGreen Acres MHC

Union City Middle/High School

Ridgemont Elementary School

Everett-Stewart Regional Airport

Baptist Memorial Hospital

UNION CITY


14


SITE INFORMATION

ADDRESS 2466 Kirby Rd, Robinsonville, MS 38664

COUNTY Tunica

YEAR BUILT 1994

TAX PARCEL IDS 3108280000000401/3108280000000402/3108280000000403

SITES 229 (192 MH / 37 RV)

UNDEVELOPED LOTS 104








LAST RENT INCREASE* At Lease Renewal

ROADS Asphalt

FLOODPLAIN Zone X

ZONING M-H Mobile Home Residential

UTILITIES

WATER Tunica County (direct billed to tenants)

SEWER Tunica County (direct billed to tenants)

ELECTRICITY Coahoma (direct billed to tenants)

TRASH Waste Management (included in rent)

CABLE Multiple providers (direct billed to tenant)


2019 Population Estimate 458 3,721 13,778




2019 Estimated Average Owner-Occupied Housing Value $151,923 $152,527 $160,826

Source: U.S. Census Bureau

• Buck Island MHC is a 229-site (192 MH/37 RV) all-age community positioned on approximately 62 acres of land and located in an opportunity zone. The property sits near the Memphis MSA which has a current population of approximately 1,350,000 people. In 2018, the Memphis metro area’s population grew at its fastest pace in five years.

• The community features a spacious layout with off-street parking, on-site office, laundry facility and work shed.

• The offering includes 138 community-owned homes, of which 55 are currently occupied with an average home payment of $357. Opportunity to fill vacant homes to increase occupancy but will require some capital investments to get many of the homes rent ready.

• Hillwood Investment Properties recently announced plans to construct a one-million-square-foot fulfillment center for Amazon located within Hillwood’s Legacy Park in Olive Branch, MS. The project will create approximately 500 new full-time jobs in the area.

• The FEUER powertrain plant, just five-minutes from the community, is a state-of-the-art manufacturing facility. The plant was opened in 2016 with a $68 million investment and plans to expand further with another $140 million investment that will increase the workforce to 300 employees.

• Within a ten-mile radius of the community, the average household income is approximately $56,150 with an approximate average home value of $160,830.

• Buck Island MHC is conveniently located near Memphis, providing residents easy access to dependable healthcare, job opportunities, and other recreational activities.

• There are several casinos within a short drive from the community. The booming casino industry has directly impacted the area, transforming it from a quaint, quiet town into a more vibrant place to live. The Gold Strike Casino Resort and 1st Jackpot Tunica Casino are within a ten-minute drive of the community.

• The city of Memphis has the second highest share of transportation/warehousing jobs in the nation and is home to the busiest cargo airport in North America, the Memphis International Airport.

• Memphis is also home to the highly rated St. Jude Children’s Research Hospital. The hospital is expanding in Memphis with a commitment of $1 billion capital investment that will create nearly 2,000 jobs by 2023.


AREA HIGHLIGHTS


15

BUCK ISLAND MHC PROPERTY DETAILS


16


FINANCIAL ANALYSIS



2. Proforma GSR = 179 MH Units x $220 avg lot rent x 12 months (2 duplex sites counted as 1 MH site for averaging purposes).

3. Proforma assumes 1 additional site occupied.

4. Utility and Other Income grown 3% from 2019 Actuals. Other Income includes application fees, late fees, pet deposits (non-refundable), violation fees, and move in fees.

5. RV Income annualized from the most recent rent roll with a 20% vacancy factor.

6. Home rent payments annualized from the most recent rent roll ($20,715 collected on rent roll).


8. Proforma Taxes = 2019 taxable value ($105,046) x 2019 mill rates (.10865) grown 0%.

9. Other Taxes includes taxes on the park-owned homes. Proforma expense taken from the 2019 Actuals column.

10. 10. Numbers do not reflect actual expense.

INCOME2 Gross Scheduled Rent3 Less: Vacancy

Less: Bad DebtTotal Rental Income

4 Plus: Utility Income4 Plus: Other Income5 Plus: RV Income6 Plus: Home Rent



7 UtilitiesElectricityWater/SewerGasTrashPhone/Internet




Expense Ratio

1

36,334 159

$316,410 $1,382

3,435 15

73.09%

0 0

0

33,330 146

11,413 5036,998

$168,432 $736

1,047 56,100 274,038 18

$88,472

$1,033

1,347

$165,554 35.03%3,695 16

34,603 15121,696

64.48%

15,076 66

20,610

162

95

248,580

63.97%

4,726 1.00%

15,436 67

$386

12

10,351

0 0

36,622 16069

2,704

6,772 30

4,160 18$236,486

28

0 0.00%

207,812 907


$148,173

1,086

302,280

Totals % GSR

$148,173

0 0.00%

26

Per Site

$354

235

32

0

Totals % GSR

$161,146

$81,17353,8097,366

0

223,121

0.00%

0

$161,146 100.00%

$312,484

15,788

17,597 77

252,783

64

3.50%

16

33,595 147

$400,956Actuals

11,483

0

$1,891

1,104

0

11

27,120 118

$1,365

0

6,484$220,202 $962

Actuals Per Site

$98,819 $43278,044 3416,899 30

974

$116,522

21

0

141

$246,718 $1,077

$509

30

0.00%

$1,387

$892

4,774150

157

91

3.50%

Per Site

$366

455

6,772

3,588

032,36014,637

0

0 0

0

0

111

$2,278

0

00

$496,265384

25,105

Per Site

$85,875 $37580,150 3506,870 30

229

1,078 56,283 27

Totals % GSR

0.00%

0.00%

100.00%

2

110

$83,726

$496,265

50

2018 Actuals

20,72618,261 15,173 3.50%

$316,410 $1,382

11,413$1,136

Actuals

35,989

34

$317,5170

$317,517

Proforma

$204,237

15,6350

5,6783,869

$260,25711,0097,263

68

48

32

$1,387

0

Financial Analysis

60.86%

0

25

17

25,489$521,753

271,786 1,187$432,933

50

0

45

Totals

2019 Actuals

3,3270

$312,484

1

5,906

100.00%

2,416

77.93%

% GSR

$472,560

$1,751 $2,070

0

104,2677,689

77

$1,365

23,654 10314,033

308,574

90

18,965 4.00%$294,246 $1,285

11,450 50$305,696 $1,335

$474,128



[email protected]


17


PROPERTY AERIAL

KIRBY RD

HAMBRICK RD

POWELL RD

HAMBRICK RD

BUCK ISLANDM A N U FA C T U R E D H O M E C O M M U N I T Y


18



Buck Island MHC

Memphis International Airport

St. Francis National Forest

Tunica Museum

Baptist Memorial Hospital

St. Jude Children Hospital

Methodist Le Bonheur Healthcare

MEMPHIS

ROBINSONVILLE

Buck Island MHC

Pine Terrace MHC

KANSAS CITY

AUSTIN

HOUSTON

ATLANTA

CHARLOTTE

ORLANDO

JACKSONVILLE

WASHINGTON

NASHVILLE

BIRMINGHAM

MEMPHIS

ST LOUIS

DALLAS SHREVEPORT

OKLAHOMA CITY



19

PLEASE DO NOT SPEAK WITH TENANTS OR EMPLOYEES

Additional information is available on our website at: http://arausa.listinglab.com/SEOZ3

!

Buck Island MHC

Pine Terrace MHC

Green Acres MHC

KANSAS CITY

AUSTIN

SHREVEPORT JACKSON

NEW ORLEANS

MONTGOMERYSAVANNAH

TAMPA

LOUISVILLE

HOUSTON

ATLANTA

CHARLOTTE

ORLANDO


WASHINGTON

NASHVILLE

MEMPHIS

ST LOUIS

DALLAS

OKLAHOMA CITY

A 3-COMMUNITY, 418-SITE MHC OPPORTUNITY ZONE PORTFOLIO

PRIMARY CONTACTS

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 Newmark Knight Frank (NKF) 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 NKF 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 Do not contact the Properties.not contact the Properties.

www.ngkf.comManufactured Housing 2530 Walsh Tarlton Ln, Suite 200, Austin, TX 78746 | T 512.342.8100

Joe [email protected] 512.637.1228

Andrew [email protected]

Todd [email protected] 303.260.4470

For a video tour, please visit: https://vimeo.com/374767257

opportunity zone portfolio - loopnet · 2020. 7. 16. · opportunity zone tax benefits by...

Documents