For a video tour, please visit: https://vimeo.com/251882909

TWO MH/RV COMMUNITIES266 MH SITES / 74 RV SITESNOW AVAILABLE FREE AND CLEAR

PRICE: $5,200,000 (LOAN ASSUMPTION) OR

$5,700,000 (NEW LOAN)

PLEASE DO NOT SPEAK WITH TENANTS OR EMPLOYEESDonna, TX

78537

INVESTMENT HIGHLIGHTS• Located in the beautiful Texas Rio Grande Valley, this offering includes

Shady Acres Resort, Shady Acres Family Community, and Magnolia Village. Only a few minutes apart, they are operated together. Shady Acres Resort and Magnolia Village are 55+ properties while Shady Acres Family Community is all age.

• The parks are cross collateralized with an attractive CMBS loan with a 5.1% interest rate. The current debt has a prepay lockout until August 2018.

• Combined, the communities contain 266 manufactured housing and 74 RV sites. Economic occupancy at the communities is at a healthy 71% for the manufactured housing sites and includes only nine park-owned homes, of which three are currently occupied. There is an opportunity for a buyer to continue to bring in homes and sell them to drive occupancy.

• The current owner has done a tremendous job improving the properties. For example, they eliminated gas income and expense at all the properties by moving Shady Acres to propane and getting Texas Gas to direct bill tenants at Magnolia Village. Capital Expenditures at all communities include repaving, tree removal and trimming, new signage, and replacement of outdoor lights. At Magnolia Village, the owner updated fencing around the property, installed a new HVAC system in the dance hall (where the tenants are paying utilities for this), placed new oleander hedge throughout the community, put in a new lift pump, and upgraded the office.

• Shady Acres Resort and Magnolia Village offers its residents plenty of amenities and services including a heated swimming pool, shuffleboard courts, game room, air-conditioned clubhouse, shower and laundry facilities, live music area, and church services.

• Utilities are public and the area has excellent demographics with a population of over 375,000 within a 10-mile radius from the communities.

SITE INFORMATION

ADDRESSESShady Acres Resort: 310 Hester AveShady Acres Family Community: 310 Scobey Ave Magnolia Village: 3707 West Business 83

COUNTY Hidalgo

YEAR BUILT 1967

TAX PARCEL IDS 208252/ 206100/ 206184

TOTAL MH SITES 266

TOTAL RV SITES 74

COMMUNITY TYPEAll Age (Shady Acres Family Community) & 55+

(Magnolia Village and Shady Acres Resort)

LAND SIZE 33.11 acres

DENSITY 10.24 sites/acre

INVENTORY HOMES 11 (4 occupied as of May ‘18)

AVERAGE LOT RENT $284 for MH units / $210 for Park Model units (base rent only)

LAST RENT INCREASE $16 (Nov ‘17)

MH PHYS OCC 74.06% (197 sites as of Jun ‘18)

MH ECO. OCC 71.43% (190 sites as of Jun ‘18)

ROADS Asphalt

FLOODPLAIN No

ZONING R2 (Multifamily residential)

WEBSITES shadyacresrvresort.com; magnoliarvresort.com

UTILITIES

WATER/SEWER City of Donna (RUBS)

GAS Texas Gas (Magnolia Village only; direct billed)

ELECTRICITY AmeriPower (direct billed)

TRASH Republic Services (owner pays)

PARK NAME 55+ ALL AGE MH SITES RV SITES

SHADY ACRES RESORT X 91* 22

SHADY ACRES FAMILY COMMUNITY

X 21 -

MAGNOLIA VILLAGE X 154 52

*Includes 1 tenanted site-built rental

266 MH SITES / 74 RV SITES | DONNA, TXPRICE: $5,200,000 (Loan Assumption) OR $5,700,000 (New Loan)

PROPERTY DETAILS

EXISTING LOAN INFORMATIONORIGINAL LOAN AMOUNT $3,120,000CURRENT BALANCE $3,035,424INTEREST RATE 5.10%MATURITY DATE 7/1/26TERM (YRS) 10AMORTIZATION (YRS) 30I/O (YRS) 0MONTHLY PAYMENT $16,940PREPAYMENT LOCKOUT Until August 2018LENDER Conduit

AREA HIGHLIGHTS

• The communities are conveniently located in the Rio Grande Valley, midway between Harlingen and McAllen, and within a 30-minute drive to the Mexico border. The Valley encompasses numerous towns clustered at the southern tip of Texas and the area is home to an estimated 1.4 million residents.

• The McAllen MSA, which encompasses all of Hidalgo County, has experienced rapid population growth resulting in an estimated 2022 population of approximately 943,620, making it the fifth largest MSA in Texas. Moderate incomes in the area coupled with rapid population growth drive demand for affordable housing.

• Hidalgo County’s economy is currently experiencing a surge in development due primarily to growth in international trade, retail trade, tourism and manufacturing industries. 80 of Fortune 500’s global manufacturers have operations in the region, including AT&T, Bissel, Black & Decker, BMW, Delco, Drexel Meyers, Sony and more. The top four employment sectors in the Hidalgo County MSA are educational services, retail trade, healthcare and construction, which account for 52% of the employed residents in the county.

• Access to the United States-Mexico border is also a critical component to the economic stability of the region. It is estimated that cross-border commerce creates nearly 9,650 jobs and contributes about $800 million annually in total economic impact. Around 3,600 people cross the border daily to work in Mexico; the majority tend to be plant managers or engineers that have manufacturing facilities in Mexico.

• Located deep within South Texas, the Rio Grande Valley is a hot spot for snowbirds, tourists and retirees. The region’s mild climate and beautiful scenery attract visitors from across the nation. 51,000 Winter Texan households visited the Valley during the 2015-2016 season. The average Winter Texan is 72.3 years of age, owns an RV or mobile home, and has plans to return next season, creating large demand for 55+ MH/RV housing.

• The communities are near large retailers such as Home Depot, HEB, and Walmart as well as the highly rated medical centers, Mission Regional Medical Center and McAllen Medical Center. The communities are also served by two major international airports, McAllen International Airport and Rio Grande Valley International Airport, both within a 30 minute drive of the properties.

3707 E US Business 83 | Donna, TX 78537 | 956.464.2421

E Business Hw

y 83

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ings Ln

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Maintenance

Shop

Ole Blue Hall

Laundry

Allen Hall

Shuffleboard

Mailboxes

Pool

Bath House

BathHouse

Office

Game Room

Dumpster

Future DogPark Area

RV Storage

Cart Path

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488

310 Hester Avenue | Donna, TX 78537 | 956.464.2241

266 MH SITES / 74 RV SITES | DONNA, TXPRICE: $5,200,000 (Loan Assumption) OR $5,700,000 (New Loan)

AREA HIGHLIGHTS

2 Gross Scheduled RentGross Potential Income

3 Less: VacancyLess: Bad DebtLess: ConcessionsTotal Rental Income

4 Plus: Site Built Rent5 Plus: Other Income6 Plus: Utility Income7 Plus: RV Lot Rent8 Plus: Home Rent

Total Other Income

Effective Gross Income

EXPENSES9 Repairs & Maintenance

PayrollAdministrativeMarketingProfessional Fees

10 Utilities Electricity Water & Sewer

11 Gas TrashTotal Variable Expenses

12 TaxesInsuranceManagement FeeTotal Operating Expenses

13 Plus: Capital ReservesTotal Expenses

NET OPERATING INCOME

Expense Ratio

75,3129,680

1,325

37

14,540

23,253

$221,848

$351,87929,610

15 3,9030

124

124

32,772

9,275

32,28570,200

143,041

Proforma

$615,039

May '18 T12 Actuals1

INCOME$839,002

1,259

13,250

77,897

$597,203

8,279

2,650

$37,10075,525

$9,024

Proforma

$740,244

31,345

0

Financial Analysis

$41,729

Actuals

$700,495

per site

$157

8,038177

88

109,516413

23,253

$0

46,881118

$615,039

30

$0

$590,97824,060

0

89,559

$1,397

28,0204.00%

14,116

338

$867

$370,270

$1,397

22,90686

53

$229,786

10,71440

$370,270

52.86%

0

$375,115$330,224

0

12,585

49.33%

$839,002

227,955

$365,129

42,67833,755

22,525

5,000

284

156 41,434

1. Actual numbers based on financials provided by the client.

2. Proforma GSR = 265 MH Sites x $264 avg in-place lot rent x 12 months (excludes RV and site-built home at Shady Acres).

3. Assumes 3 homes get filled.

4. One site-built rental home at Shady Acres paying $752/ month. The unit is currently being used as temporary housing for an employee during the summer months. Historically, the site gets leased for $752/month which is reflected on the proforma. The unit will be available for lease in August 2018.

5. Other Income grown 3% from May ’18 T12 Actuals.

6. Proforma only includes water/sewer reimbursements. Tenants now pay a flat rate of $30/ month for water/sewer.

7. RV income grown 3% from May ’18 T12 Actuals.

8. Home rent take from May ’18 T12 Actuals.

9. Proforma excludes non-recurring expenses at the end of 2017 (installed new sewer lines and pool pump).

10. Adjusted utilities grown 3% from May ’18 T12 Actuals (excluding gas).

11. Shut down resident gas lines; Proforma projects estimated portion for pool and laundry facility.

12. Proforma taxes = 2018 assessed values x 2017 mill rates. The community was awarded a reduction in taxes in 2018 (see property package for further details).

13. Numbers do not reflect actual expense.

UNDERWRITING ASSUMPTIONS

266 MH SITES / 74 RV SITES | DONNA, TXPRICE: $5,200,000 (Loan Assumption) OR $5,700,000 (New Loan)

FINANCIAL ANALYSIS

1

2

3 45

266 MH SITES / 74 RV SITES | DONNA, TXPRICE: $5,200,000 (Loan Assumption) OR $5,700,000 (New Loan)

rent comparables

SUMMARY

PROPERTY ADDRESS # OF MH SITES

# OF RV SITES

PHYSICAL OCCUPANCY

AVG RENT

RENT INCLUDES

ADJUSTED RENT

1 Alamo Palms* 1341 West Business 83 Alamo, TX 78516 291 344 88% $411 T $396

2 Casa Del Sol* 400 N. Val Verde Rd Donna, TX 78537 375 100 97% $290 T $261

3 Casa Del Valle* 1048 N. Alamo Rd Alamo, TX 78516 139 233 93% $350 W/S/T $288

4 Trophy Gardens 800 SH 495 Alamo, TX 78516 284 400 93% $370 W/S/T/L $288

5 Winter Ranch 600 SH 495 Alamo, TX 78516 269 0 98% $370 W $346

TOTALS 1,358 1,077 94% $358 $316

Shady Acres / Magnolia Village MH/RV Resorts

310 Hester Ave / 3707 W. Business 83 Donna, TX 78537

266 74 83.7% $284 None $284

*55+ communities | Source: Hidalgo County, TX JLT Market Report - September 2017 T – Trash; W – Water; S – Sewer; L – Lawn

266 MH SITES / 74 RV SITES | DONNA, TXPRICE: $5,200,000 (Loan Assumption) OR $5,700,000 (New Loan)

DEMOGRAPHIC INFORMATION 3 MILES 5 MILES 10 MILES

2017 Population Estimate 44,443 116,963 377,900

2022 Population Estimate 48,175 126,111 408,429

2017 Renter Occupied Housing Percentage 21.0% 23.8% 26.1%

2017 Owner Occupied Housing Percentage 57.3% 58.7% 59.0%

2017 Estimated Average Family Household Income $41,518 $47,933 $49,363

Source: U.S. Census Bureau

TOP 10 HIDALGO COUNTY EMPLOYERS EMPLOYEES

Edinburg Regional Medical Center 3,000

University of Texas-Pan American 2,850

McAllen Medical Center 2,800

Hidalgo County 2,200

South Texas College 2,200

City of McAllen 2,000

Doctors Hospital at Renaissance 2,000

Rio Grande Regional Hospital 2,000

U.S. Customs and Border Protection 1,600

BBVA Compass Bancshares Inc. 1,500

Source: McAllen Economic Development CorporationNote: Excludes local school districts

area employment and demographics

MCALLENHARLINGEN

MEXICO

Red Gate Power Plant

EDINBURG

LA PLAZA MALL

RIO GRANDE VALLEY PREMIUM OUTLETS

SUPERCENTER

N

University of Texas Rio Grande Valley• The University of Texas Rio Grande Valley, with campuses in

Brownsville, Edinburg, McAllen, Harlingen and Rio Grande City, is a public research university that currently enrolls approximately 28,500 students per year.

• Offers more than 120 undergraduate and graduate degree programs.

• Recently opened the School of Medicine that offers students the most technologically advanced resources, including a 15,000-square foot Smart Hospital complex.

• The second largest Hispanic-serving institution in the nation.

South Texas College• Offers more than 119 degree and certificate program options

including degrees in a variety of art, science, technology and allied health fields of study.

• A public community college located throughout Hidalgo and Starr counties, which currently enrolls approximately 34,000 students per year.

Red Gate Power Plant• Uses 12 of the largest natural gas-powered reciprocating engines in

the world which produces enough energy to power approximately 50,000 homes

• Owned and operated by the South Texas Electric Cooperative, which is made up of eight member cooperatives, including the Hidalgo County based Magic Valley Electric Cooperative.

La Plaza Mall• One of the highest-grossing and largest malls in south Texas

totaling 1,500,000 square-feet of space.

• Features more than 150 specialty stores and attracts 18 million plus visitors annually.

• Draws from a consumer base of more than ten million people within a 200-mile radius in south Texas and northern Mexico.

Rio Grande Valley Premium Outlets• A 604,000 square-foot premium shopping destination 12 miles east

of Donna on Expressway 83.

• Home to 140 stores including Saks Fifth Avenue, Adidas, American Eagle, Ann Taylor, and Banana Republic.

• Attracts six million visitors per year.

266 MH SITES / 74 RV SITES | DONNA, TXPRICE: $5,200,000 (Loan Assumption) OR $5,700,000 (New Loan)

location and attractions

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 Properties.

www.aranewmark.comManufactured Housing and RV Park Group: 901 S. MoPac Expressway, Barton Oaks Plaza II, Suite 275, Austin, TX 78746 T 512.342.8100

PRIMARY CONTACTS

Todd Fletchertfletcher@aranewmark.com T 303.260.4470

Andrew Shihashih@aranewmark.com T 512.637.1219

PLEASE DO NOT SPEAK WITH TENANTS OR EMPLOYEES

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

For a video tour, please visit: https://vimeo.com/251882909

!

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