3387 Galway Rd MHP - LoopNet...Calendar Year CURRENT Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year...
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OFFERING MEMORANDUM 3387 Galway Rd MHP 3387 Galway Rd MHP Ballston Spa, NY 12020
Transcript of 3387 Galway Rd MHP - LoopNet...Calendar Year CURRENT Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year...
OFFERING MEMORANDUM
3387 Galway RdMHP
3387 Galway Rd MHPBallston Spa, NY 12020
3387 Galway Rd 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.
3387 Galway Rd 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.
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Executive Summary
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Investment Summary
Location Summary
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OFFERING SUMMARYADDRESS 3387 Galway Rd MHP
Ballston Spa NY 12020COUNTY SaratogaNUMBER OF UNITS 13
FINANCIAL SUMMARYOFFERING PRICE $468,000PRICE PER UNIT $36,000OCCUPANCY 100.00 %NOI (CURRENT) $41,328NOI (2020) $43,378CAP RATE (CURRENT) 8.83 %CAP RATE (2020) 9.27 %
PROPOSED FINANCINGLOAN TYPE Interest OnlyDOWN PAYMENT $140,400LOAN AMOUNT $327,600INTEREST RATE 4.75 %ANNUAL DEBT SERVICE $15,561LOAN TO VALUE 70 %
*Fully occupied
*All resident owned homes
*Great location
*Upside to rents
*Ballston Spa Schools
*Located in fastest growing county in the state!
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*Fastest growing county in state*One of the most desirable counties to live in the state*Located close to Saratoga Springs, Albany and GlensFalls*Great school district
Regional Map
Locator Map
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Property Description
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Aerial Map
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Rent Roll
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Rent Roll Details
Lot number Rent Type Rent amount
101 Lot rent $440
102 Lot rent $440
103 Lot rent $440
104 Lot rent $440
105 Lot rent $415
106 Lot rent $440
108 Lot rent $440
109 Lot rent $440
110 Lot rent $440
111 Lot rent $440
112 Lot rent $440
113 Lot rent $440
114 Lot rent $440
Galway Rd MHP
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3387 Galw
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Financial Analysis
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Income & Expense
Multiyear Cash Flow Assumptions
Multiyear Cash Flow Projections
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INCOME CURRENT 2020Effective Gross Income $68,340 $70,390
Less: Expenses $27,012 $27,012
Net Operating Income $41,328 $43,378
Annual Debt Service $15,561 $15,561
Debt Coverage Ratio 2.66 2.79
Cash Flow After Debt Service $25,767 $27,817
Income Notes: Pro-forma includes 3% YOY lot rent increases.
EXPENSES CURRENT 2020
Real Estate Taxes $573 $7,455 $573 $7,455
Insurance $65 $850 $65 $850
Management Fee $328 $4,263 $328 $4,263
Repairs & Maintenance $656 $8,526 $656 $8,526
Water / Sewer $236 $3,066 $236 $3,066
Professional services $105 $1,370 $105 $1,370
Administration $4 $50 $4 $50
Utilities $110 $1,432 $110 $1,432
Total Operating Expense $2,078 $27,012 $2,078 $27,012
% of EGI 39.53 % 38.37 %
Per Unit Per Unit
REVENUE ALLOCATION
DISTRIBUTION OF EXPENSES
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GLOBALSale Price $468,000
INCOMEGross Potential Rent 3.00 %
EXPENSESReal Estate Taxes 1.500 %Insurance 1.500 %Management Fee 1.500 %Repairs & Maintenance 1.500 %Water / Sewer 1.500 %Professional services 1.500 %Administration 1.500 %Utilities 1.500 %
PROPOSED FINANCINGLoan Type Interest OnlyDown Payment $140,400Loan Amount $327,600Interest Rate 4.75 %Annual Debt Service $15,561Loan to Value 70 %
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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 $68,340 $70,390 $72,502 $74,677 $76,917 $79,225 $81,601 $84,049 $86,571 $89,168Gross Potential Income $68,340 $70,390 $72,502 $74,677 $76,917 $79,225 $81,601 $84,049 $86,571 $89,168Effective Gross Income $68,340 $70,390 $72,502 $74,677 $76,917 $79,225 $81,601 $84,049 $86,571 $89,168Operating ExpensesReal Estate Taxes $7,455 $7,455 $7,567 $7,680 $7,796 $7,912 $8,031 $8,152 $8,274 $8,398Insurance $850 $850 $863 $876 $889 $902 $916 $929 $943 $958Management Fee $4,263 $4,263 $4,327 $4,392 $4,458 $4,525 $4,592 $4,661 $4,731 $4,802Repairs & Maintenance $8,526 $8,526 $8,654 $8,784 $8,915 $9,049 $9,185 $9,323 $9,463 $9,604Water / Sewer $3,066 $3,066 $3,112 $3,159 $3,206 $3,254 $3,303 $3,352 $3,403 $3,454Professional services $1,370 $1,370 $1,391 $1,411 $1,433 $1,454 $1,476 $1,498 $1,520 $1,543Administration $50 $50 $51 $52 $52 $53 $54 $55 $55 $56Utilities $1,432 $1,432 $1,453 $1,475 $1,497 $1,520 $1,543 $1,566 $1,589 $1,613Total Operating Expense $27,012 $27,012 $27,417 $27,828 $28,246 $28,670 $29,100 $29,536 $29,979 $30,429Net Operating Income $41,328 $43,378 $45,085 $46,848 $48,671 $50,555 $52,502 $54,513 $56,592 $58,739Annual Debt Service $15,561 $15,561 $15,561 $15,561 $15,561 $15,561 $15,561 $15,561 $15,561 $15,561Cash Flow $25,767 $27,817 $29,524 $31,287 $33,110 $34,994 $36,941 $38,952 $41,031 $43,178
Effective Gross Income vs Operating Expenses Cash Flow
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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 18.35 % 19.81 % 21.03 % 22.28 % 23.58 % 24.92 % 26.31 % 27.74 % 29.22 % 30.75 %CAP Rate 8.83 % 9.27 % 9.63 % 10.01 % 10.40 % 10.80 % 11.22 % 11.65 % 12.09 % 12.55 %Debt Coverage Ratio 2.66 2.79 2.90 3.01 3.13 3.25 3.37 3.50 3.64 3.77Operating Expense Ratio 39.52 % 38.37 % 37.81 % 37.26 % 36.72 % 36.18 % 35.66 % 35.14 % 34.62 % 34.12 %Loan to Value 69.99 % 70.01 % 69.97 % 70.00 % 70.00 % 69.98 % 70.01 % 70.01 % 69.99 % 69.99 %Breakeven Ratio 62.30 % 60.48 % 59.28 % 58.10 % 56.95 % 55.83 % 54.73 % 53.66 % 52.60 % 51.58 %Price / Unit $36,000 $36,000 $36,000 $36,000 $36,000 $36,000 $36,000 $36,000 $36,000 $36,000
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Demographics
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Demographic Details
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