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900 Hays County Acres Rd.Dripping Springs, TX 78620

36 SITE MH COMMUNITYCOMMUNITY PRICE : $1,500,000

TERMS: ALL CASH

SITE INFORMATION

ADDRESS 900 Hays Country Acres Rd. Dripping Springs, TX 78620

COUNTY Hays

TAX PARCEL IDS11-6310-0000-00100-4 / 11-6310-0000-00300-4 / 11-6310-0000-00400-4 / 11-6310-0000-00200-4

YEAR BUILT 1995

SITES 36

COMMUNITY TYPE All Age

COMBINED LAND 21.79 Acres

DENSITY 1.65 sites/acre

INVENTORY HOMES None

AVERAGE LOT RENT $400 (includes trash, water and sewer)

NEXT RENT INCREASE $100 (Dec ‘15)

MH PHYS OCC 100% (36 sites as of Sept ‘15)

MH ECO. OCC 100% (36 sites as of Sept ‘15)

ZONING None (ETJ)

ROADS Asphalt

FLOODPLAIN Zone X

UTILITIES

WATER Private (Well)

SEWER Private (Septic)

ELECTRICITY PEC (direct billed)

GAS None

TRASH Vaquero Waste

PROPERTY DETAILS

INVESTMENT HIGHLIGHTS

• Opportunity to acquire a stable, 36-site community in an attractive market 20 minutes from Austin, TX.

• With a median home value in a one-mile radius of over $450k, Gateway II Estates is strategically positioned to offer families affordable housing in a desirable, otherwise high cost of housing area.

• All homes tenant-owned or financed through a third party.

• Historical occupancy of community nearly 100%.

• Community features spacious half-acre homesites with off-street parking and privacy off the main road.

• The parcels are permitted for conversion to 33 duplexes, and in addition one single family residence for a total of 67 dwelling units with proper upgrades to water and septic systems.

• New construction should be in high demand in this expensive, rapidly growing market.

AREA HIGHLIGHTS

• The scenic “Gateway to the Hill Country,” Dripping Springs attracts visitors with its vineyards, breweries, rolling landscape and crisp rock-bottom creeks.

• A quaint bedroom community for Austin professionals wanting more space and a family-friendly atmosphere outside of the city. Infrastructure improvements are underway at the intersection of Highway 290 and 71, a well-known trouble spot for traffic, improving the commute to Austin.

• Dripping Springs High School, rated as a Recognized High School by the Texas Education Agency, and Walnut Springs Elementary School sit five miles from Gateway Estates.

• True to its small-town feel, Dripping Springs recorded a population of 1,902 in 2013. However, the city’s extraterritorial jurisdiction is home to nearly 30,000 and has seen rapid growth in recent years, spurring the introduction of several national and regional retailers within the city limits such as HEB, Whataburger and Home Depot, located less than four miles down Highway 290 from Gateway Estates.

• Home to several breweries, wineries and distilleries, Dripping Springs is one of the most heavily concentrated centers for alcohol-related businesses in the state.

• An extremely attractive market, the civilian unemployment rate in a 5-mile radius of the community is only 2.2%, with an average household income of $160k and an expected annual population growth rate of 4.37% for 2015-2020.

• The community is a short drive from the heart of Austin, TX, the cultural, economic and transportation hub of central texas with countless festivals, museums, attractions and many prominent employers. Unemployment in Austin MSA is currently 3.2%.

36 SITE MH COMMUNITY

COMMUNITY PRICE : $1,500,000

TERMS: ALL CASH

FINANCIAL ANALYSIS

1

2 Gross Scheduled Rent

Less: Vacancy 1.00%

Less: Bad Debt 1.00%

Total Rental Income 98.00%3 Plus: Other Income 12

Total Other Income 12

Effective Gross Income

EXPENSES per site

Repairs & Maintenance $150

Payroll 300

Administrative 10

Marketing 10

Professional Fees 254 Utilities 178

Water 465

Trash 210

Total Variable Expenses $1,3485 Taxes 400

Insurance 25

Management Fee 5.00%

Total Operating Expenses $2,0686 Plus: Capital Reserves 50

Total Expenses $2,118

NET OPERATING INCOME

Expense Ratio

351

16,2406,420

010378

900

$212,100$172,855

11

7,558

0$48,526

$26,510

$74,44410,605

7,338

8,535

204

0

730173 6,233 202

63 2,251 20

5 0014 503

127

Actual Exp

0

Actual Exp

4,581

$9,440

Actuals

827

6

00

23

0

11 407

360

420208

Proforma

INCOME$216,000

2,160

9,122$63,829$1,773

16,728

0

14,413

1,800

$211,680420

360

$5,40010,800

Proforma Exp

0$76,244$1,773

0

$67,199$1,867

36.93%

$109,026

0

5.28%5.78%

$63,829

451

$442

per site

$170,377

0.00% 0 0.00%

$159,935 $169,970

2014

Financial Analysis

Sept '15 T9 Ann

$172,647

00

407

100.00%

0.00%

$169,970

$736

per site

$15,902

$159,960

per site

$262

25251

11

100.00%

1

$159,935

0.00% 0 0.00% 0

6

100.00%

0 0$172,647

208

7,2709,895

0

$54,7079,475

275

$1,520

0

0

9,847$67,199

14

263

$48,321

495 0

$1,428

8,2095.13%

1,846

203

$983

$51,402

$1,428

48013

51

$35,400

0

$51,402

39.44%

$103,179 $135,855

32.13%

$1,342

$108,558

0

$1,867

237

0

7,313

35.95%

2,160

900

2013 Actuals

0

518 18,653

1. Actual numbers based on financials provided by the client; some expenses have been prorated among two other communities the seller owns

2. Proforma GSR = $500 x 36 sites x 12 months; includes $100 rent increase effective Dec ‘15

3. Utility & Other Income grown 3% from 2014

4. Adjusted Utilities grown 3% from 2014

5. Proforma Taxes = 2015 tax bill grown 10%

6. Numbers do not reflect actual expense

UNDERWRITING ASSUMPTIONS

36 SITE MH COMMUNITY

COMMUNITY PRICE : $1,500,000

TERMS: ALL CASH

PROPERTY location and AERIAL

1 2

Park Meadow DrHays County Acres Rd

3 4

DEMOGRAPHIC INFORMATION 1 mile 5 mile 10 mile2015 Population Estimate 562 6,530 19,795

2020 Population Projection 640 7,605 24,520

Population Growth Estimate 2015 - 2020 2.63% 3.09% 4.37%

Renter Occupied Percentage 11.0% 11.4% 12.8%

Owner Occupied Percentage 82.6% 80.2% 80.0%

2015 Est. Average Family Household Income $123,951 $115,636 $114,275

2015 Est. Median Owner-Occupied Housing Value $451,111 $422,698 $389,647Source: U.S. Census Bureau

DRIPPINGSPRINGS

HWY 290

HAYES COUNTY ACRES RD.

RR 12RR 12

HWY 290

Dripping SpringsMiddle School Dripping Springs

High School

Walnut SpringsElementary School

Solaro EstatesVineyards Winery

Headwaters atBarton Creek

Approved1000 homes

starting at $400kaverage is $600k

AnareneApproved

1600 homesHarrison Hills

Under construction100 homes

starting at $420k

Founders RidgeUnder Construction

200 homes

Legacy TrailsPhase 3

Approved54 homes

Scott TractFuture

Potential

Cannon TractFuture

Potential

Blue Blazes RanchApproved30 homes

Heritage TractIn Design

ArrowheadApproved

375 homes

Carter RanchFuture

Potential

Al-Rashid TractFuture

Potential

CaliterraUnder

Construction450 homes

Counts Ranch100 homes

UnderConstruction

Saratoga HillsUnder construction

156 homesstarting at $500k

BelterraUnder Construction

2000 homesStarting at $280kAverage is $408k

The PreserveExisting

Starting at $475kAverage is $675k

N

36 SITE MH COMMUNITY

COMMUNITY PRICE : $1,500,000

TERMS: ALL CASH

Property LOCATION

AUSTINCBD

AUSTINDRIPPINGSPRINGS

Perdernales FallsState Park

Hamilton PoolPreserve

HAMILTON POOL PRESERVE

• A 232-acre park famous for its 50-foot waterfall and jade-green swimming hole.

• The preserve attracts approximately 100,000 visitors per year and visitation has more than doubled since 1992.

LAKE TRAVIS

• A reservoir Northeast of Dripping Springs popular for water activities due to its crystal-clear waters, size and convenient location. It is the largest among a network of lakes known as the Highland Lakes along the Colorado River.

• The lake draws numerous dining, shopping and recreational businesses including the Oasis on Lake Travis, a 30,000 square-foot restaurant that sits on a 450-foot bluff with sweeping views of the lake below.

PEDERNALES FALLS STATE PARK

• A 5,200-acre nature area where visitors can hike, swim, fish and enjoy the cascading falls and picturesque limestone formations. The park offers a ranger program, volunteering opportunities, horse camps and numerous other events throughout the year.

• The park attracts between 100,000 and 200,000 visitors annually.

WIMBERLEY

• The Blue Hole Regional Park, a 126-acre park located 15 miles from Dripping Springs, includes 3.5 miles of trails, an outdoor amphitheater, sport courts and picnic areas, as well as the Blue Hole natural swimming area. Wimberly is also home to Jacob’s Well Natural Area, an artesian spring surrounded by limestone cliffs.

• Home to several horseback riding cottages offering events such as birthday celebrations, family reunions, and weddings.

• The Art Squared arts market is a local, open-air art market that meets on the Hays County Courthouse lawn the second Saturday of the month

N

36 SITE MH COMMUNITY

COMMUNITY PRICE : $1,500,000

TERMS: ALL CASH

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 Property.

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

Additional information for Gateway Estates is available on our website at:http://arausa.listinglab.com/GatewayEstates

Jon Shayjshay@aranewmark.com T 303.260.4486

NATIONAL MANUFACTURED HOUSING GROUP

Andrew Shihashih@aranewmark.com T 512.637.1219

Todd Fletchertfletcher@aranewmark.com T 303.260.4470

PRIMARY CONTACTS:

For a video tour, please visit: https://youtu.be/MMyp8Wl1Zak