OFFERING MEMORANDUM New Orchard

N e w O r c h a r d

M o b i l e H o m e P a r k

P R O P E R T YL O G O

O F F E R I N G M E M O R A N D U M

L o s M o l i n o s C a l i f o r n i a

N O N - E N D O R S E M E N T & D I S C L A I M E R N O T I C E

C O N F I D E N T I A L I T Y & D I S C L A I M E RThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus

& Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared

to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained

herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect

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 presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon,

or the financial condition or business prospects of any tenant, or any tenant's plans or intentions to continue its occupancy of the subject property. The information contained

in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information

contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy

or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service

mark of Marcus & Millichap Real Estate Investment Services, Inc.

© 2018 Marcus & Millichap. All rights reserved.

N O N - E N D O R S E M E N T N O T I C EMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's

logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or

any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to

prospective customers. Activity ID: ZAC0020006

P L E A S E D O N O T S P E A K T O A N Y O N E A T T H E P A R K , O R WA L K A R O U N D .

OFFICES THROUGHOUT THE U.S. AND CANADAwww.marcusmillichap.com

N e w O r c h a r dM o b i l e

H o m e P a r k

Jef f Mishk inMarcus & Millichap San Francisco

Direct: (415)[email protected]

CA License 00816534

E X C L U S I V E L Y L I S T E D B Y

N O N -

TABLE OF CONTENTS

F i n a n c i a l A n a l y s i s

01P r o p e r t y D e s c r i p t i o n

02R e n t a n d S a l e s C o m p a r a b l e s

03

N e w O r c h a r dM o b i l e

H o m e P a r k

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap

Property Description

T h e P r o p e r t y D e s c r i p t i o n

P r o p e r t y D e t a i l s

S i t e P l a n

M a p

s e c t i o n 1

PROPERT Y DESCRIPTION// New Orchard Mobile Home Park

New Orchard Mobile Home Park is a Senior Community in Los Molinos, California. The Park consists of Forty Three spaces and a House, divided into a Manufactured Home section, and an RV section. Seventeen spaces are occupied by Double Wide homes, Twelve are Single Wides and Twelve spaces have long term occupancy RVs and Fifth Wheels.

The park is on a flat 10 acre parcel. It was built in 1975 and was formerly a prune and walnut or-chard with the RV section. There are over four hundred feet of Highway 99 frontage and an attrac-tive single family home at the front entrance.

The Park has over four acres of open space. The asphalt streets in the Manufactured Home section were just re-surfaced, and they have rolled concrete curb and gutter. Almost every Manufactured Home space has large mature shade trees, neat and well-maintained yards, and the homes attractively angled towards the street. All Manufactured Homes have off street parking on concrete driveways with awning style carports, and decks.

The Park operates on chlorinated well water and a trouble free private sewer system. It appears that City Water will be coming to the Park in 2021.Electricity is sub-metered to each space, including the RV spaces. Propane is submetered to the Mobile Home spaces. There are two vacant Manufactured Home spaces, well located within the Park, and no homes were observed to be for sale. Residents pay $395-$445 space rent, which includes water, sewer and gar-bage. Rents were raised $20 as of January 1, 2021.

Los Molinos is a rural agricultural community between Corning and Red Bluff in the Northern Sacramento Valley. Highway 99 in this area is dotted with ranches, walnut orchards, pastures and farm stands.

F I N A N C I A L A N A L Y S I S6

PROPERT Y DETAILS / / New Orchard Mobile Home Park Number of spaces 43 Spaces and a HouseYear Built 1975Water & Sewer Well and SepticHUD Family Status 55 and overAcreage 10 AcresElectric Amperage 100 amp MH and 30 amp RVStreets New asphalt in MH section with rolled curb and gutter, Gravel in RV & Shop areaFlood/ Earthquake zoneDam Inundation area

NoYes

Off Street Parking Yes Park Owned Homes Only Manager’s SW Home Park Buildings Small Laundry/ Bathroom and a Large Shop Plans Yes, Available HCD Permit to Operate 36 MH Spaces and 7 RV Spaces RENT INCREASE HIST.2018 $02019 $20 2020 $202021 $20

UTILITIES

UTILITY SERVICE PROVIDER PAID BY

Electricity PG & E Residents (submetered) (except House)

Water / Sewer Well / Septic Property

Trash Waste Management Property

Propane Amerigas MH Residents (submetered) Not RV or House

Cable no Cable in Park

P R O P E R T Y D E S C R I P T I O N7

PROPERT Y DETAILS / / New Orchard Mobile Home Park

Water System:

The Park is currently served by three wells and the water system has been run by a State Certified Treatment (T2) and Testing Operator (D2) for the last five years.

The Park’s water, like most of the County, has naturally occurring Arsenic, as a result of volcanic activity in the Mt. Lassen area. In 2001 the EPA lowered the maximum allowable limit from 50 PPB to 10 PPB. New Orchard’s water has always tested at around 9-12 PPB. There are no observable health or taste effects, or discoloration, or resident complaints, and the Park’s water is tested quarterly by the Operator. The test results are shared by the testing Lab with Tehama County Environmental Health Division who is monitoring the levels, and like every-one, waiting for the City water to come in. The County also states that there are no other issues with the Park’s water.

With Funding from the State of California, the Los Molinos Water District is bringing City Water to the Park (see standpipe photo at left). The Water District, the Contractor doing the work, and the County Environmental Health Department state that it is highly probable that this will be completed soon in 2021. The cost to the Park/Residents is going to be $204 per month for the first 275,000 gallons, and that cost will be pro rated between the Residents, who have already been notified.

Septic System:

The Park system consists of 6-7 septic tanks and two large leach fields. All tanks were pumpedin February of 2018, and the system has been trouble free during and before the current Ownership.


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N e w O r c h a r dS i t e P l a n

R e g i o n a l A r e aM a p


When visiting the Park please do not speak to anyone, or walk around.



Financial Analysis

r e n t r o l l

p r i c i n g d e t a i l s

e x p e n s e d e t a i l s

s e c t i o n 2

Rent Rol l / / New Orchard Mobile Home Park

RV Section MH Section 1 SW $395 14 DW $445 29 DW $400 2 RV $445 15 DW $445 30 SW $445 3 RV $445 16 SW $445 31 DW $400 4 RV $445 17 V $445 32 DW $445 5 RV $445 18 SW $445 33 DW $400 6 SW $420 19 DW $400 34 DW $445 7 RV $420 20 SW $395 35 DW $400 8 RV $420 21 DW $445 36 DW $400 9 RV $420 22 SW $395 37 SW $445 10 RV $420 23 SW $395 38 SW $395 11 RV $420 24 DW $445 39 SW $395 12 RV $420 25 V $445 40 SW $395 13 RV $420 26 DW $445 41 DW $400

27 DW $400 42 RV $445 28 DW $400 43 DW $445

House $1,000 To t a l $ 1 9 , 2 3 0


Pric ing and Financia l Operat ing Informat ion // New Orchard Mobile Home Park

PRICING

Price $2,000,000Down Payment $700,000

Cap Rate 6.5%Price Per Space $45,455Cash on Cash Return 7.3%

INCOME

# of Spaces Total Monthly43 MH & RV $18,230

1 Stick Built House $1,00044 $19,230

Gross Scheduled Rent $230,760Less actual vacancy 4.6% $10,680

Effective Gross Rent $220,080

Plus Utility Income (2020 actual) $58,135$58,135Laundry & misc (2019 actual) $633

Gross Effective Income $278,848

Less Expenses $133,593

Net Operating Income $130,143

Less Debt Service $79,043

Cash Flow $51,100

Property Tax 1% plus $271 $20,271

Insurance $2,303

Water $3,263Payroll $21,496

Manager space $5,340Miscellaneous see next page $7,517Repairs, Maintenance, Landscape $19,271

Legal and Professional $2,500

Supplies $1449

Worker’s Comp $1457

Electric and Propane $56,330

Garbage $7,506

Total Expenses 53% $3,380/sp $148,705

EXPENSES EXPENSES See Notes on next pageSee Notes on next page

New 1st Loan $1,300,000Interest Rate 4.5% Amortization 30 yearsDue Date 10 years

FINANCING

FINANCIAL OPERATING INFORMATION


Expense Detai l / / New Orchard Mobile Home Park

Licenses & Permits $881Postage $320Property Tax $20,271 new at 1% plus $271Insurance $2,303Payroll $21,496 estimatedWorker’s Comp $1,457 estimated @6.78 per $100Manager’s Space $5,340Maintenance & Repairs $15,000 estimatedLandscaping $4,271Office Supplies $1,449Electricity $42,479Propane $13,851Garbage $7,506Water Tests $1,673Water Treatment $1,590Legal $2,500Miscellaneous (previous page):Phone/Internet $3,111Advertising $750Association Fee $251Bank Charges $197Dues $807Travel $1,200



Rent Comparables

Te h a m a C o u n t y

R e n t c o m p a r a b l e s

s e c t i o n 3

Jeff MishkinJeff Mishkin415 963 3050415 963 3050

[email protected]@marcusmillichap.comOR # 201224383OR # 201224383CA # 00816534CA # 00816534

Jeff MishkinJeff Mishkin415 963 3050415 963 3050

[email protected]@marcusmillichap.comOR # 201224383OR # 201224383CA # 00816534CA # 00816534

Tehama County

$239.32 $300.00 $345 $346.50 $310.00 $370 $400 $400 $400 $390 $405 $425 $420 $400 $424 $425 $430 $437 $442 $395 $410 $475 $500 $525 $525 $475.00

$570 0

0

0 0 500

0 0 0 22 00 0 20 0 0 0 0 0 60

6720 0

0 2575

48

Tehama County Space Rents and Utility Costs

Average Rent $421


Sales Comparables

l o c a t i o n m a p

c o m p a r a b l e s

s e c t i o n 5

SALES COMPARABLES // New Orchard Mobile Home Park

Oakwood,Redding

Bend,Redding

O'Nite,Red Bluff

NewOrchard,

LosMolinos

Flamingo,BethelIsland

Ponderosa,Colfax

$34,224 $36,363 $39,706 $45,455 $49,596 $65,167

Recent Sale Prices per Space

7.53% 6.50% 6.48% 6.40% 6.39% 5.25%

Recent Sales Cap Rates

N e w O r c h a r d , L o s M o l i n o s8255 hwy 99 East

Sale Price $2,000,000

Sale Date Subject Property

Cap Rate 6.5%

Price per Space $45,455

Number of Units 44 36 MH and 7 RV and House

S 1


Sale Date 4/2020

Cap Rate 6.4%


Number of Units 68 22 MH and 46 RV spaces

2


Sale Date 7/2020

Cap Rate 7.53%


Number of Spaces 58

O a k w o o d , R e d d i n g1 1 7 8 L a k e B l v d

O ’ N i t e R V & M H , R e d B l u f f1 3 0 G i l m o r e R d

S A L E S C O M P A R A B L E S22

N e w O r c h a r d M o b i l e H o m e P a r k

B e n d M H & R V, R e d d i n g21795 Bend Ferry Rd


Sale Date 4/2020

Cap Rate 6.4%


Number of Units 44 spaces 32 MH and 12 RV

3 4 P o n d e r o s a , We i m a r ( C o l f a x )135 Ponderosa Way


Sale Date 10/2020

Cap Rate 6.4%


Number of Units 30 spaces


Sale Date 11/2020

Cap Rate 5.25%


Number of Units 62 spaces

F l a m i n g o , B e t h e l I s l a n d4400 Gateway Rd

5

S A L E S C O M P A R A B L E S23

N e w O r c h a r d M o b i l e H o m e P a r k

N e w O r c h a r d M o b i l e H o m e

P a r k

Jef f Mishk in

Marcus & Millichap San FranciscoDirect: (415) 963 -3050

[email protected] License 00816534

E X C L U S I V E L Y L I S T E D B Y

O f f e r i n g M e m o r a n d u m24

OFFERING MEMORANDUM New Orchard

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