MAPLE KNOLL A 50-SITE COMMUNITY · 2019. 7. 3. · SITE INFORMATION ADDRESS 1716 E Lansing Rd,...

PLEASE DO NOT SPEAK WITH TENANTS OR EMPLOYEES 1716 E Lansing RoadCharlotte, MI 48813

MAPLE KNOLLManufactured hoMe coMMunity PRICE: $1,400,000

A 50-SITE COMMUNITY

For a video tour, please visit: https://vimeo.com/337541627

SITE INFORMATION

ADDRESS 1716 E Lansing Rd, Charlotte, MI 48813

COUNTY Eaton (Charlotte City Township)

TAX PARCEL ID 200-005-400-110-00

YEAR BUILT / IMPROVED 1960

SITES 50

COMMUNITY TYPE All Age

LAND SIZE / DENSITY 16.08 acres (3.11 sites/acre)

MH PHYSICAL OCCUPANCY 90.0% (45 sites as of Jun ‘19)

MH ECONOMIC OCCUPANCY 74.0 % (37 sites as of Jun ‘19)

VACANT INVENTORY HOMES 8 (as of Jun ‘19)

LEASE TO OWN HOMES 24 (current balance of $121,793 as of Jun ‘19)

AVERAGE LOT RENT $334 (base rent only)

ROADS Asphalt with concrete curbing

FLOODPLAIN Not in a designated flood zone

ZONING R1

WEBSITE https://www.kodiakpm.com/property/maple-knoll

UTILITIES

WATER Private Well (owner pays)

SEWER City of Charlotte (direct billed to tenants)

ELECTRICITY Consumers Energy (direct billed to tenants)

GAS Consumers Energy (direct billed to tenants)

TRASH Republic Waste (owner pays)

CABLE WOW (direct billed to tenants)

INVESTMENT HIGHLIGHTS

AREA HIGHLIGHTS• Maple Knoll is in the highly rated Charlotte School District. The location allows

convenient access to the elementary, middle, and high schools just over three miles away.

• The property’s location allows residents to access multiple retail options within walking distance including Walmart Supercenter, Applebee’s, Tractor Supply Company, Great Clips, Payless Shoes, and Verizon. Within a short drive, residents can also access Target, Meijer, Marshalls, Macy’s, and T.J. Maxx.

• The property is situated less than two miles from the Fitch H. Beach Airport, Hayes Green Beach Hospital, and the Charlotte Country Club. AL!VE, an experience-based destination health park provides local residents with personal training, spa services, nutrition and cooking classes, integrated health services, and other activities such as rock climbing, basketball, volleyball.

• Located only 15 minutes from GM’s Delta Township Facility which employs over 3,000 workers and is the only LEED certified automotive manufacturing facility in the world. GM plans to invest $36 million at the facility, where it produces the next-generation Chevrolet Traverse and Buick Enclave crossovers.

• The property’s proximity to the Michigan State University and Lansing Community College campuses alone makes the area a thriving location. Michigan State University has more than 50,000 students and employs over 10,000 people. Lansing Community College has more than 22,000 students and employs over 3,000 people.

• Sparrow Hospital, located in central Lansing, is the regional center for cancer, heart and vascular service, trauma, pediatrics, orthopedics, and neuroscience. It employs over 7,600 associates.

• As Michigan’s state capital, Lansing’s largest employer is the State of Michigan with over 14,300 employees. The Lansing unemployment rate of 3.3 percent as of 2019 is lower than the national rate of 3.6 percent, both rates not seasonally adjusted.

• Maple Knoll is an all-age, 50-site manufactured home community positioned on approximately 16 acres of land located just off Interstate 69 in Charlotte, Michigan. The community sits only 20 minutes from Lansing (117,000 population), 35 minutes from Battle Creek (51,300 population), and less than an hour from Kalamazoo (75,900 population).

• Opportunity to purchase a stabilized, cash flowing asset serviced by public sewer and private well water. There is the opportunity to connect to city water, however, the two wells are reportedly working just fine with no DEQ violations.

• There is some room for rent growth and approximately 5 vacant lots that can be filled. The two other parks in Charlotte are at $400 lot rent and tenants pay all utilities. Mobile home parks in the area are all highly occupied demonstrating the tremendous demand for affordable housing in this market.

• The offering includes 32 park-owned homes, of which 24 are occupied as lease to own homes averaging $200 for the home rent portion. Current owner has had no problems finding qualified tenants once they have a home available.

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

• The community features off-street parking, on-site management, spacious lots, picnic area with a playground, and a basketball hoop. Property infrastructure (roads and utilities) appears to be in good shape.

• Within a five-mile radius of the community, the 2018 average household income is $66,900 and average home values are $173,400. The 2018 population is 19,480 within the same five-mile radius.

A 50-SITE COMMUNITY PRICE: $1,400,000

MAPLE KNOLLManufactured hoMe coMMunity

PROPERTY DETAILS

INCOME2 Gross Scheduled Rent3 Less: Vacancy

Less: Bad DebtLess: ConcessionsTotal Rental Income

4 Plus: Sewer Income5 Plus: Other Income6 Plus: LTO Rent (Net)

Total Other IncomeEffective Gross Income

EXPENSES7 Repairs and Maintenance

Payroll AdministrativeMarketing

8 Professional Fees9 Utilities

10 ElectricityWater/Sewer

11 TrashTotal Variable Expenses

12 Taxes13 Other Tax

InsuranceManagement FeeTotal Operating Expenses

14 Plus: Capital ReservesTotal ExpensesNet Operating Income

Expense Ratio

Totals % GSR

$200,400

40,080

50,196

0

Financial Analysis1

662

66.25%

180

56,173$158,701

56,386 1,128

$185,110

528

0 0

$20,7252,8785,092

3709,884

0

May '19 T4 Inc Ann

$105,1450

$105,145$53,556

12,5468,987

$68,08419,702

800

251

2018 Actuals

2,51714,041 17,941 9.69%

$122,972 $2,459

26,425$1,362

Actuals

7,602

102

7

198

0

152

13

8,305

$3,702

394

16

166

0 0

9,032 181

4,276 86

44,600 892

55

12,390 6.00%

$88,747 $1,775

2,500 50

$91,247 $1,825

$206,508 $4,130

Proforma Per Site

$15,000 $300

7,500 150

5,000 100

250

6,720 134

Totals % GSR

0.00%

0.00%

2.56%

97.44%

106

125

$105,224

00

2,697$102,528

5,3066,268

1,123

$3,174

Per Site

$414

58

$2,103

$1,071

50

8.85%

$2,103

0

32,837 657

0 0.00%

0 0.00%

0 0.00%

$75,786 $1,516

May '19 T12 Act Exp Per Site

$24,909 $498

6,185 124

5,574 111

16,844 337

$128,724 100.00%

8,945 179

14,604 292

Totals % GSR

$128,724

Proforma

20.00%

2,004 1.00%

2,004 1.00%

0 0

$59,223

12,923 258

$1,184

1,004

2,750

$156,312 78.00%

11,040 221

14,604 292

24,552 491

44.19%

$115,261 $2,305

2,820 56

$122,972 $2,459

$62,138 $1,243

66.43%

0 0

0

7,830 157

14,384 288

4,000 80

5

Todd Fletcher303‐260‐[email protected]

Andrew Shih512‐637‐1219

[email protected]

1. Actual numbers based on financials provided by the client. The May ’19 T4 column annualizes the Feb-May 2019 income numbers with the May ’19 T12 expenses.

2. Proforma GSR = 50 units x $334 average lot rent x 12 months.

3. Proforma assumes a vacancy factor of 20% (10 economically vacant sites).

4. Proforma Sewer Income = 40 occupied sites x $23 per month sewer charge x 12 months.

5. Other Income taken from May ’19 T4 annualized amounts. Other income includes late fees, extra person fees, legal fee reimbursements, NSF fees, site tax fees, application fees, and tax passthrough amounts.

6. Proforma LTO Rent (Net) based on current roll income of $4,092 (monthly income) x 12 months with a 50% expense ratio. 2018 Actuals LTO Rent (Net) equals the total yearly income of $85,354 less $40,754 in expenses (47.75% expense ratio) (income and expense amounts taken from the full 2018 P&L statement). May ’19 T4 LTO Rent (Net) equals the total income of $73,275 (annualized from May ’19 T4) less $40,438 in expenses (May ’19 T12 expenses for homes) (55.19% expense ratio).

7. Proforma R&M reduced to exclude non-recurring items such as road repairs (concrete work), removing a shed at the property, sewer well construction/upgrades, and extra landscaping expenses. The community uses the same landscape employee for multiple properties and most of these expenses have been lumped into Maple Knoll MHC’s P&L.

8. Proforma professional fees estimated to be $4,000 per year for evictions and accounting. Historical professional fees included around $6,000 of non-operational expenses.

9. Adjusted Utilities grown 3% from 2018 Actuals (except trash).

10. Historical Electricity expense incurred by the park is for running the office, keeping park-owned homes heated, maintaining the tool shed/pump house.

11. Adjusted trash expense assumes $14 per occupied tenant per month ($14 x 40 occupied tenants x 12 months).

12. Proforma Taxes = 2018 tax bill amounts grown 30% (see tax bills in property package for more details). Historical tax expense amounts are higher because this line item includes tax amounts for the park-owned homes. Michigan requires property owners to renew their park license every three years and if not completed, tax authority charges tax expenses for these homes. The community went through this issue and thus explains the higher tax expense. Please note that this will not be a recurring expense going forward.

13. Corporate taxes paid to CA tax board.

14. Numbers do not reflect actual expenses.

UNDERWRITING ASSUMPTIONS



FINANCIAL ANALYSIS

LANSING

CHARLOTTE

LESLIE

DANSVILLE

MASON

WEBBERVILLE

OLIVET

16

7

5 2

3

4

MAPLE KNOLLM A N U FA C T U R E D H O M E C O M M U N I T Y

SUMMARY

PROPERTY ADDRESS # OF SITES

PHYSOCC

AVG RENT

RENT INCLUDES

AVG ADJUSTED RENT

1 Hi-Way Mobile Haven MHC 2600 Lansing Rd # 67, Charlotte, MI 48813 67 96% $340 W/S/T - $56 $284

2 Stonegate MHC 2700 Eaton Rapids Rd, Lansing, MI 48911 308 88% $441 T - $13 $428

3 Country Manor MHC 4400 Edgar Rd, Leslie, MI 49251 39 79% $375 W/T - $31 $344

4 Valley Brook Estates MHC 1560 Eifert Rd, Holt, MI 48842 51 76% $395 W/T - $31 $364

5 Valley Springs MHC 4723 N Hartel Rd, Potterville, MI 48876 90 94% $380 W/T - $31 $349

6 The Meadows MHC 1563 Lansing Rd, Charlotte, MI 48813 128 99% $410 T - $13 $397

7 Butternut Creek MHC 801 Packard Hwy, Charlotte, MI 48813 30 55% $400 None $400

Totals/Averages 555 84% $392 $367

Maple Knoll MHC 1716 E Lansing Rd, Charlotte, MI 48813 50 90% $334 None $334

T – Trash ($13); W – Water ($18); S – Sewer ($25) *Source: Newmark Knight Frank called these communities and verified the lot rent amounts.



RENT COMPARABLES



AREA EMPLOYMENT & DEMOGRAPHICS

LANSING TOP EMPLOYERS INDUSTRY EMPLOYEES

State of Michigan Government 14,390

Michigan State University Education 10,253

Sparrow Health System Healthcare 7,600

General Motors Manufacturing 4,549

Lansing Community College Education 3,144

McLaren Health Healthcare 3,000

Auto-Owners Insurance Group Insurance 2,578

Peckham Manufacturing 2,510

Jackson National Life Ins Co Insurance 2,500

Dart Container Corp Manufacturing 2,500 Source: Lansing Economic Area Partnership & http://www.purelansing.com/Demographics/Largest-Employers

DEMOGRAPHIC INFORMATION 1 MILE 5 MILES 10 MILES

2018 Population Estimate 1,485 19,481 44,535

Population Growth 2010 - 2018 1.37% 2.82% 2.09%

2018 Renter Occupied Housing Percentage 19.9% 27.3% 21.9%

2018 Owner Occupied Housing Percentage 76.7% 65.7% 71.1%

2018 Estimated Average Household Income $75,096 $66,944 $71,008

2018 Estimated Average Owner-Occupied Housing Value $295,000 $280,000 $304,303

Source: U.S. Census Bureau

Michigan State University

• Located just 25 minutes from the community, Michigan State University is one of the top research universities in the world with over 50,000 students enrolled.

• The University has more than 200 programs of undergraduate, graduate, and professional study.

• The University employs over 10,000 people in the area.

General Motors Delta Township Facility

• Located just 15 minutes from the community, GM’s Delta Township Facility is the newest plant in North America and employs approximately 3,000 employees.

• The facility is the only LEED certified automotive manufacturing facility in the world.

• GM recently invested $36 million at the facility to produce the next-generation Chevrolet Traverse and Buick Enclave crossovers.

Sparrow Health System

• Sparrow Health System has become the region’s largest health system in Michigan and employs over 7,600 people throughout the 12 locations.

• Sparrow has two Lansing campuses and several community hospitals: Sparrow Clinton Memorial Hospital in St Johns, Sparrow Ionia Hospital in Ionia, and Carson City Hospital.

• Sparrow also helps with the Michigan-Athletic Club, a 276,000 square foot facility voted one of the country’s top health clubs.

BALDWINPARK

POTTERPARK ZOO

CHARLOTTEHIGH SCHOOL

COMBS PARK(BUSINESS PARK)

SPARROWHOSPITAL

HAYES GREEN BEACHMEMORIAL HOSPITAL

FITCH HBEACH AIRPORT

CAPITAL REGION INTERNATIONAL AIRPORT

MAPLE BROOKGOLF COURSE

MAPLE KNOLL MANUFACTURED HOME COMMUNITY

ONONDAGA

LANSING

STOCKBRIDGE

PERRY

CHARLOTTE

MAPLE KNOLL MANUFACTURED HOME COMMUNITY

LAFAYETTE

FORT WAYNE

CLEVELAND

CHICAGO

LANSING

COLUMBUS

General Motors Delta Township Facility

Sparrow Health System

Michigan State University



LOCATION MAP & AREA ATTRACTIONS

PLEASE DO NOT SPEAK WITH TENANTS OR EMPLOYEES

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

!

E LANSING RD

E LANSING RD

KIMBERLY DR

OTTO

RD

PRIMARY CONTACTS

MAPLE KNOLLMANUFACTURED HOME COMMUNITY

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 not contact the Property.

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/337541627

MAPLE KNOLL A 50-SITE COMMUNITY · 2019. 7. 3. · SITE INFORMATION ADDRESS 1716 E Lansing Rd,...

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