w

For a video tour of Paradise Park, please visit:http://youtu.be/JNIp9U7Bef0

PARADISE PARK MANUFACTURED HOME COMMUNITY 48 HANSONVILLE RD ROCHESTER, NH 03867

SIGNIFICANT PRICE REDUCTION

146 SITE MHC / 9 APARTMENT UNITSCOMMUNITY PRICE: $4,200,000HOME LOAN PRICE: $105,895

TERMS: ALL CASH

146 SITE MHC / 9 APARTMENT UNITSCOMMUNITY PRICE: $4,200,000HOME LOAN PRICE: $105,895

TERMS: ALL CASH

SITE INFORMATION

ADDRESS 46 Hansonville Road Rochester, NH 03867

COUNTY Strafford County

TAX MAP PARCEL0259-0016-00000259-0016-0000A0259-0014-0000 (SF home parcel)

ZONING “A” Agricultural

SITES

146 MH (includes 1 SF home on separate 5 acre parcel)9 Apartments (7 occupied, 2 preleased for Feb ‘14)

COMMUNITY TYPE All Age

COMBINED LAND SIZE 70.5 acres (2.07 sites/acre)

MH PHYSICAL/ECONOMIC OCC. 86.3% (126 sites as of Sept ‘14)

AVERAGE LAND LEASE RENTS

$408 (includes trash, sewer and water)

LAST RENT INCREASE $10 (November 2013)

INVENTORY HOMES 5 occupied as of Jan ‘14 (included in park price)

LOAN INVENTORY2 with current balance of $105,895 as of Jan ‘14 (not included in park price)

ROADS Asphalt

FLOODPLAIN No

UTILITIESWATER Private Well

SEWER Private Septic (individual systems)

ELECTRICITY Public Service New Hampshire

OIL/GAS Various - Tenant Option

TRASH Waste Management

PARADISE PARK Community Price : $4,200,000 Terms: All CashHome Loan Price : $105,895

• Paradise Park is conveniently located in Rochester, NH, the 4th largest community in New Hampshire with 30,000 people.

• Rochester is an extremely desirable location due to the high cost of housing in the area (median owner occupied housing value of ~$197,000 within a 5 mile radius).

• The unemployment rate in Rochester was only 4.5% as of July 2014, well below the national average.

• The city has a central location to other major population centers, including Manchester, NH (40 miles), Portland, ME (54 miles), and Boston, MA (77 miles).

• The community is in close proximity to some of the area’s major employers including Frisbie Memorial Hospital, Hannaford Supermarkets, and Walmart Supercenter.

• Known as the Lilac City, Rochester provides convenient access to New Hampshire’s famous Lakes Region, ski resorts in the White Mountains, and superb beaches along the seacoast.

INVESTMENT HIGHLIGHTS

AREA HIGHLIGHTS

• Rare opportunity to acquire a well-maintained, sizable, all age community in a high cost of housing market positioned to continue achieving annual rent increases.

• The community features an attractive, low density layout with recently improved asphalt roads.

• Offering includes 9 recently renovated apartment units (~$300,000 in renovation work).

• Adjacent single family home on 5.2 acres included in sale.

• Local lenders still finance homes for residents. Park only holds two home notes. Vacancy upside potential for new owner.

• Soils are ideal for efficient leaching out of the private septic systems.

• Park is not aware of any below ground heating oil storage tanks.

• Third party management may be available.

• Attractive, non-recourse first mortgage at historically low interest rate should be available to a qualified Buyer.

146 SITE MHC / 9 APARTMENT UNITSCOMMUNITY PRICE: $4,200,000HOME LOAN PRICE: $105,895

TERMS: ALL CASH

PARADISE PARK FINANCIAL ANALYSIS

1. Actual 2011, 2012, 2013 and YTD 2014 numbers based on financials provided by the client.

2. Proforma GSR consistent with annualized cash collected from January to June 2014. Currently 20 vacant home sites.

3. Adjusted Utilities grown 3% from YTD 2014.

4. Paradise Park currently managed by a third party company at a cost of 10%, which includes staffing, maintenance, management fee, etc. Proforma assumes a Buyer takes management in-house and separates on-site personnel under Payroll and corporate costs under Management Fee.

5. Proforma Taxes grown 5% from 2013 Tax.

6. Numbers do not reflect actual expenses.

7. Average MH rent is $275/home. Apartments recently remodeled and re-tenanted. Historical apartment rent includes some capital improvement expenses. Apartment rents average about $675. Proforma assumes 7 of 9 apartments occupied, 5 homes and SF on Gear Road rented.

8. Historical R&M expense includes non-recurring items such as road work, tree trimming, apartment renovations, mailbox house upgrades, etc. R&M costs also include significant upgrades and replacements to many of the septic systems and the water well treatment facility.

9. Tenants receive discounts for timely rent payment (ex: $20 for MH site rent and $100 for homes and apartments). We assumed that 75% of current tenants will receive an early discount.

10. Other tax is the New Hampshire business profit tax

Valuation Summary

LESS: DEF. MAINT. Year 1 7.25% 9.68% 7.76% 11.72% 8.77% 15.77%

NET PRICE Year 2 8.20% 13.48% 8.78% 15.80% 9.93% 20.38%

Year 3 8.35% 14.09% 8.94% 16.44% 10.11% 21.11%

Acres Year 4 8.50% 14.67% 9.10% 17.06% 10.28% 21.81%

Year 5 8.64% 15.23% 9.25% 17.66% 10.45% 22.49%

Mkt Rent/Month/SF

Mkt Rent/Site Assd. Val. (est)

Tax PMT (est)

June'14 T6 NOI

Buyers UW

1

Assumptions2 Gross Scheduled Rent 0.00%

3 Less: Vacancy 13.70%

Less: Bad Debt 3.05%

Total Rental Income 83.25%

UW vs Actuals & Proforma

Plus: Other Income 04 Plus: Apartment Rent 3785 Plus: MH Rent 1316 Less: Discounted Rent -160

Total Other Income 349

Effective Gross Income

EXPENSES per site

Repairs & Maintenance $350

Payroll 400

Administrative 60

Marketing 10

Professional Fees 65

$302,710

95.00% 95.00%

2011

472

98,020

Cash-on-Cash Analysis (Unleveraged & Leveraged)

$3,966,250$108,074 $108,074

Tax Assumptions

1,3130

0

2013 Exp

$597

62

0$589,824

0

100(8,608)

1

0

$621,811100.00%100.00%

0.00%

0.00% 0 0.00%

00.00%

0.00% 0

-3.17%

$577,414

5

100.00%

20

23,266270

2,920159

0

65,569449

0

129,582Actuals

$642,983

per site

$888

$565,664

218

-5.31%

$807

per site

$72,643

785

100.00%

0.00%

$589,824

00

7.10%2011

High

6.79%

2013

8.11%

Gross Cap Rate Analysis (Taxes adjusted for calculations)

$3,450,000

GROSS PRICE

$26,539$1.27

$0

NET PRICE/LAND SF

$3,900,000

$3,900,000

$26,712

7.02%

YR 1 DSCR (List)

7.25%

$408 2012 6.70%5.87%

Phys Occ as of 9/31/13

1.50

June'14 T6

YR 1 Assmnt.

New Loan Rate*8.77%

Financial Analysis

$302,710

570.50

$293,068

NET PRICE/SITE

6.01%8.49%7.51%

89.0%

NET PRICE/OCC SITE

$0.00

New Loan LTV* 75.00%

2012

7.76%

5.61%

$577,414 $565,664

June'14 T6$302,710Buyers UW

22,564

0.00% 0 0.00%

7,43551

0 039,383 31,809

-59

$498

per site

$605,693

$595,719

0

1,460

$51,10058,400

Buyers Exp

4.20%

02,320

Low (U/L)

$715,546

21,807

High (U/L)

$108,074$3,705,000 $3,277,500

$293,068

$4,175,000$0

$1.12

$23,630$28,596$32,116 $30,000

$293,068

7.18%

48 Hansonville Rd., Rochester, NH 03867

Property Information

Submarket: Strafford County

List

INCOME

20135.00%

6.28%

$0$3,450,000

Inventory Homes

146

All Age

$4,175,000Year Built

$1.36

Private

$621,811

10/1/2014

$87,224

95.00%

Buyers UW

$646,713

9,000

50,994

0

-1.00%

14,056

15,902 19,19455,200

109

All Cash to Seller (Leveraged & Unleveraged)

List (U/L)Low

24,902

8,760

0155

Paradise Park

Sites

Community TypeNA

Utilities

96

398524

9

0

274 40,029

454 66,346$117,864Actual Exp

58,050

Actual Exp

00 046 6,723

76,524

12,32647 6,844 84

0

00

0

per site

16

(23,400)

75

171

$646,713$603,880

86

68,8928112,551

10,910 9,490

11,805

7 Utilities Electricity 82

Fuel Oil 0

Trash 105

Total Variable Expenses $1,0728 Taxes 740

Other Tax 192

Insurance 124

Management Fee 4.00%

Total Operating Expenses $2,3069 Plus: Capital Reserves 50

Total Expenses $2,356

NET OPERATING INCOME

UW vs Actuals & Proforma

1 Actual numbers based on financials provided by the client2 Based on all sites occupied at average rent of $4083 Currently 20 vacant sites4 Based on 7 of 9 apts. paying rent during year5 Assumes 5 MH rentals & Gear Road Home only6 Assumes 75% of current tenants take advantage7 Adjusted Utilities grown 3% from YTD 20148 Buyers UW Taxes = 95% of Price x 2012 Tax Rate9 Numbers do not reflect actual expense* New Strike Loan assumes 10 Year Term/30 Amort with 0 yrs of I/O

Deferred Maintenance Total

Unleveraged Per Unit $0

Leveraged Per SF

Tax ID#

$344,003

12,0270

18,1040.00%

102

$1,331

$253,492

0

$2,215

723

0

ARA ♦ 901 S. MoPac Expressway, Bld II, Suite 275 ♦ Austin, Texas 78746 ♦ T 512.342.8100 ♦ F 512.637.1740 ♦ www.arausa.com

26.17%$355

Mill Rate

$302,710

-19.42%

0.00%

$337

$4,008,100

AssumptionsAssessment

Market Rents by Site Type

#DIV/0!

#VALUE!#VALUE! #VALUE!22.10%11.43% $323

TYPE

Deferred Maintenance Per Unit

14,200

$282,351

0

#VALUE!

146

-7.21%

Sites

105,609

$0

84

0

#VALUE!10.22%

Tax Information

$2.5680

$389,491

$330

$2,668

17,658121

103

$244,966

00

187

$2,668

00.00%

14,993

682

$1,678

$389,491

99,588

124

97

125

$194,368

18,047

$223,208$1,529

816

0

0

5,318

$323,342

$204,283816

101

Assessed

$2,215

18,301

0

$380,658

-35.61%

0

0

5

$223,222

$2,607

20,025

$323,342

0

2012

Appraised

0

0259-0016-0000

$408

$1,399

0

$2,498

$2,498

$364,694

MARKETRENT

0

0

9.59%Low

#DIV/0!

0

$4,008,100

High

#DIV/0!$408

Other

0

5 YR IRR Analysis

146TOTAL/AVG

$282,019

Deferred Maintenance (N/A)

#DIV/0!

0$364,694

108,074

14,689

20.00%

0$380,658$2,607

-7.34%

List

7,3000

$408

11,677 13384 12,225 80

00 0

27,279

14,876

157 22,987

$336,70325,8690.00%

137

0

119,124$156,559

28,097

10,49919,455

15,322

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 Apartment Realty Advisors (ARA) 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, 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.

MH + SFHSF HomeHomeOther

36

72

125 18,301

12,295

119,124

UNDERWRITING ASSUMPTIONS

146 SITE MHC / 9 APARTMENT UNITSCOMMUNITY PRICE: $4,200,000HOME LOAN PRICE: $105,895

TERMS: ALL CASH

202

202

202

4

3

3

202

2

2

9

9

9

16

16

101

95

95

95

293

89

89

91

91

91

90

90

90

190

290

495

495

495

93

93

93

93

QUINCY

MEDFORDLYNN

BEVERLY

SALEM

GLOUCESTER

HAVERHILL

PORTSMOUTH

BIDDEFORD

NEWHAMPSHIREVERMONT

MASSACHUSETTS

MAINE

PORTLAND

CAMBRIDGE

BROCKTONWORCHESTER

BRATTLEBORO

MANCHESTER

HILLSBORO

KEENE

WALPOLE

CHARLESTOWN

GRANTHAMANDOVER

FRANKLIN

NASHUA

MARLBOROUGH

WODBURN

GARDNER

NORTHAMPTON

SOUTHBRIDGE

LAWRENCE

CONCORD

GREENFIELD

SPRINGFIELD

BOSTON

FARMINGTON

WHITE RIVERJUNCTION

ROCHESTER

PARADISE PARK LOCATION MAP & DEMOGRAPHICS

DEMOGRAPHIC INFORMATION 1 mile 3 mile 5 mile2,729 17,203 35,7852,701 17,362 36,464

-0.95% 0.83% 1.74%-1.03% 0.93% 1.90%12.30% 2.10% 8.47%

32.49% 36.18% 29.93% Owner Occupied Percentage 67.51% 63.82% 70.07%

$73,248 $68,595 $71,801$187,807 $194,504 $197,273

Source: 2013 Claritas, Inc.

2014 Est. Median Owner-Occupied Housing Value 2014 Est. Average Family Household Income

2014 Population Estimate 2019 Population Projection Population Growth 2010 - 2014

Population Growth 2000 - 2010

Renter Occupied Percentage

Population Growth Estimate 2014 - 2019

146 SITE MHC / 9 APARTMENT UNITSCOMMUNITY PRICE: $4,200,000HOME LOAN PRICE: $105,895

TERMS: ALL CASH

ROCHESTER

Cochec o River

Co checo River

202

202

202A

202A

108

108

FARMINGTON RD

FARMINGTON RD

MAIN STMAIN ST

WALNUT STWALNUT ST

WASH

INGTO

N ST

WASH

INGTO

N ST

GEAR RD

GEAR RD

ESTES RD

ESTES RD

OAK STOAK ST

HANSONVIL

LE R

DGraniteState College

Squanamagonic Park

RochesterCountry Club

RochesterFairgrounds Frisbie Memorial

Hospital

Lilac Mall

Rochester Crossing

GRANITE RIDGE MARKETPLACE

Proposed 300,000 SF developmentDelivery scheduled for Spring 2014Suitable for retail, medical, and residential

---

11

202

16

125

125

202

202

SpauldingHigh School

RochesterPublic Library

16

16

125

FRISBIE MEMORIAL HOSPITAL• Frisbie Memorial Hospital has served the greater Rochester area for over 80 years, providing over 20 hospital

services, primary care medical offices in five greater Rochester communities, nearly 30 specialty care services, two walk-in care centers and an occupational health center.

• Currently employs 640+ people in the area.

GRANITE RIDGE MARKETPLACE• A 57 acre, 330,000 sf shopping center development, consisting of anchor retail, junior anchor retail, small stores,

restaurants and entertainment.

• Planned to bring 500-800 jobs to the area upon completion.

OTHER NEARBY RETAIL• Rochester Crossing – 329,000 sf open-air center anchored by Lowe’s and Kohl’s

• Lilac Mall – 319,000 sf center anchored by Kmart, JC Penny and Sears

• Walmart Supercenter – employs 295 people

• Hannaford Supermarkets – employs 464 people

PARADISE PARK AREA AERIAL

Terence M. Scotttms@tmsreia.com T 617-320-9955

PRIMARY CONTACT:

Todd Fletchertfletcher@arausa.com T 303-260-4470

SECONDARY CONTACTS:Jon Shayjshay@arausa.com T 303-260-4486

901 S MoPac ExpresswayBarton Oaks Plaza IISuite 275Austin, TX 78746

RELATIONSHIPS THAT DELIVER RESULTS.

www.arausa.com© ARA. All Rights Reserved

Andrew Shihashih@arausa.com T 512-637-1219

FLAGG RD

FLAGG RD

HANSONVILL

E RD

HANSONVILL

E RD

GEAR RD

GEAR RD

5 ACREHOME SITE

PARCEL

5 ACREHOME SITE

PARCEL

wInformation for Paradise Park is available on our website at: www.arausa.com/listinglab/ParadisePark

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 Apartment Realty Advisors (ARA) 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, 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.

For a video tour of Paradise Park, please visit: http://youtu.be/JNIp9U7Bef0