SHADYLANE ESTATES MHC PROPERTY DETAILS...ADDRESS 2709 Capitol Ave, Warren, MI 48091 COUNTY Macomb...
Transcript of SHADYLANE ESTATES MHC PROPERTY DETAILS...ADDRESS 2709 Capitol Ave, Warren, MI 48091 COUNTY Macomb...
SITE INFORMATION
ADDRESS 2709 Capitol Ave, Warren, MI 48091
COUNTY Macomb
YEAR BUILT 1959/1965/1969 (3 phases)
TAX PARCEL IDS 12-13-30-376-004/12-13-30-380-003*
SITES 244
COMMUNITY TYPE All Ages
LAND SIZE 13.8
DENSITY 17.68 sites/acre
MH PHYSICAL OCCUPANCY 94.26% (230 sites as of Jan 2020)
MH ECONOMIC OCCUPANCY 71.31% (174 sites as of Jan 2020)
INVENTORY HOMES 168 (112 occ as of Jan 2020)
AVERAGE LOT RENT $367 (includes trash)
LAST RENT INCREASE** May-19
ROADS Asphalt
FLOODPLAIN Zone X
ZONING R-4 (Mobile Home Park)
UTILITIES
WATER City of Warren (Billed back to tenants)
SEWER City of Warren (Billed back to tenants)
ELECTRICITY DTE (Direct billed to tenants)
GAS Consumer Energy (Direct billed to tenants)
TRASH Waste Management (Included in rent)
CABLE Comcast and WOW (Direct billed to tenants)
DEMOGRAPHIC INFORMATION 1 MILE 5 MILES 10 MILES
2019 Population Estimate 13,952 358,801 1,399,349
Population Growth 2010 - 2019 1.94% -1.26% -1.79%
2019 Renter Occupied Housing Percentage 32.8% 33.4% 34.0%
2019 Owner Occupied Housing Percentage 56.5% 51.8% 49.6%
2019 Estimated Average Household Income $58,247 $63,030 $67,703
2019 Estimated Average Owner-Occupied Housing Value $104,912 $151,596 $175,548
Source: U.S. Census Bureau
• Shadylane Estates MHC is a 3-star all-age community positioned on approximately 14 acres of land and serviced by public utilities. The community is conveniently located minutes away from I-75 and I-696, providing easy access to other larger markets such as Detroit (10-miles) and Novi (22-miles).
• park owned homes. The average adjusted monthly lot rent is $476 according to the JLT report, while Shadylane’s adjusted monthly lot rent is $353. Increasing rents to the market level would add over $256,000 in additional annual revenue for a new owner.
• The offering includes 168 park-owned homes, of which 112 are currently occupied mostly as pure rentals with a few lease-to-own averaging $243 for the home payment.
• The population within a 10-mile radius of the community is 1,400,000 with a strong average household income of $67,700. Macomb County is Michigan’s third most populated county, home to three of the top ten most populated communities in the state (Warren, Sterling Heights, and Clinton Township).
• Macomb County is home to a robust transportation and warehousing sector that support the County’s bedrock industry of manufacturing. With a large network of manufacturers producing more than $34 billion of goods each year, the county’s economy depends on industries providing cargo transportation, warehousing/storage of goods, and support activities related to modes of transportation. In fact, the transportation and logistics warehousing industry include more than 500 businesses with total employment of 8,500 workers.
• Amazon recently opened a distribution center in Shelby Township and are currently employing 200 people in the area. The company anticipates reaching 1,000 employees at this location within the next couple of years.
• Macomb County had the largest manufacturing job increase in the nation from 2016 to 2018. According the US Bureau of Labor Statistics, Macomb County added approximately 9,118 manufacturing jobs from the fourth quarter of 2016, to the second quarter of 2018. The report indicates total employment went from 65,137 to 74,255 within that time frame.
INVESTMENT HIGHLIGHTS
*Excludes 5 small parcels (see Online Document Library)**No formal process for raising or assessing “market rent” and renewals are max of $25 increase upon maturity
A 3-COMMUNITY, 534-SITE MHC PORTFOLIONOW PRICED: $20,500,000 (HOMES INCLUDED)
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SHADYLANE ESTATES MHC PROPERTY DETAILS
A 3-COMMUNITY, 534-SITE MHC PORTFOLIONOW PRICED: $20,500,000 (HOMES INCLUDED)
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SHADYLANE ESTATES MHC PROPERTY DETAILS
INCOME2 Gross Scheduled Rent
Less: VacancyLess: Bad DebtTotal Rental Income
3 Plus: Utility Income4 Plus: Other Income
Plus: POH Income
Effective Gross IncomeEXPENSES
Repairs and Maintenance5 Payroll
AdministrativeMarketingProfessional Fees
6 UtilitiesElectricityWater/SewerGas
7 TrashTotal Variable Expenses
8 Taxes9 Other Tax
10 POH ExpenseInsuranceManagement FeeTotal Operating Expenses
11 Plus: Capital ReservesTotal ExpensesNet Operating Income
23.77%
14,292 1.00%
$1,872
13,420 55
36,104
70.31%
72,424 297
$456,719
4.00%
$3,699
0
35,393 14535,393
0
1
14,6400
23
21
32,444 133
0
145
13
56
$2,048
$1,033,562
$69,3970
28,573154
12,9860
58
324
5,215
$293,926
2019 Actuals
$469,0190
$469,019$564,543
74,1073,097
13,674$206,759
66,7977,762
135,60712,314
304
$243,329
$499,830
78,985
2018 Actuals
13,97738,117
$847
Actuals
4,770
117
1
53
274
32
556
176
31
621
7,500 31
0 0
$997
61,155271,213 1,112
55
48,913 4.00%
$457,328 $1,874
12,200 50
$469,528 $1,924
0 0
$1,222,825 $5,012
Per Site
$48,800 $200
79,300 325
18,300 75
4,880
5,371 22
303,118
Totals % GSR
0.00%
0.00%
100.00%
278
251
$633,370
00
$633,37067,824 70,314 288
299
50
42,144 3.68%
$499,8300 0
57
3.69%
$1,922
0
151,559
$1,145,994
73,029
$4,236
Per Site
$284
0
$1,922
$2,314
$4,697
Per Site
$302
0
135
0
$73,7470
33,05670
14,0960
5,716
7,50542,979
0
20
$699,532
Totals % GSR
$699,532
0 0.00%
0 0.00%
$444,519
100.00%
$445,879
1,242
$902,598Per Site
$48,800 $200
79,300 325
18,300 75
4,880 20
0 0
$1,822
Totals % GSR
$1,073,727
308,036 28.69%
75,220 308
Totals % GSR
$1,429,201
339,728
12,200 50
5,887 24
333
5,371
7,500 31
$293,927
10,737 1.00%
Proforma (In-Place) Proforma (Mkt Rent/Inc Occ)
$754,954
13,420
383
$1,827
$1,205
$1,075,181 75.23%
72,424 297
75,220 308
0 0
81,355 333
$646,164
$1,205
20
$2,048
$2,648
0
5,887 24
93,569 38393,569
14,640
22
60
$753,296 $3,087
81,355
60
FINANCIAL ANALYSIS
UNDERWRITING ASSUMPTIONS
1.
2. Proforma GSR = 244 sites x $366.71 avg lot rent x 12 months. There are 62 tenants just renting a lot paying an average rent of $367.06 and 112 home/lot renters paying an average lot rent of $366.52.
3. Utility Income grown 3% from 2019 Actuals. Utility Income includes water recapture and minimal elec/gas recapture.
4. Other Income grown 3% from 2019 Actuals. Other Income includes admin fees, pet fees, miscellaneous income, interest income, late fees, NSF Fees, maint/repairs income, additional vehicle fees, collection fee income, application fees,
5. Historical Payroll expenses are buried within the R&M, Admin, and POH Expense line items.
6. Adjusted Utilities grown 3% from 2019 Actuals (except Trash).
7. Adjusted Trash expense annualized from the Dec ’19 T11 total (trash expense excluded in the Jan ’19 expense).
8. Proforma Taxes = 2019 assessed values ($984,060) x 2019 mill rates (.073142) grown 30%.
9. Other Taxes includes school ($3 per site for park-owned homes) and license fee
10. In 2018, the seller started a home renovation program for existing park owned homes, mostly at Shadylane. Seller accounts for home-related expenses in a couple of line items so it is not easy to segregate non-recurring capital expenditures to the homes versus recurring maintenance. As a result, the 2018 and 2019 POH expenses contain non-recurring capital items. Given the historical expenses to operate the homes and from what we see as an industry average, we are using a 50% expense ratio for the POH Expense assumption in 2018 and 2019.
11. Numbers do not reflect actual expenses.
Proforma Vacancy (Mkt Rent/Inc Occ) assumes
(approximately 5% increase in occupancy).
Proforma GSR (Market Rent) =(241 tenant owned or vacant sites x $489.71 avg lot rent x 12 months) + (3 lease options sites x $360 avg lot rent x 12 months). The 3 lease option homes are on a contract where
excludes rent increases for these sites. Currently, lot rents at the community are $123 below market according to adjusted rents in the rent comp table on page 13 (base rent only – excludes utilities included in rent). The $489.71 avg lot rent number consists of Shadylane’s current unadjusted rents plus the under-market amount ($366.71 + $123).
A 3-COMMUNITY, 534-SITE MHC PORTFOLIONOW PRICED: $20,500,000 (HOMES INCLUDED)
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SHADYLANE ESTATES MHC PROPERTY DETAILS
RENT COMPARABLES
SUMMARY
PROPERTY ADDRESS # OF SITES
PHYSOCC
AVG RENT
RENT INCLUDES
AVG ADJUSTED RENT
1 Continental Community 20785 Schultes Ave, Warren, MI 48091 265 60% $425 T-$14 $411
2 Glennwood Village 2526 Morrissey Rd, Warren, MI 48091 147 100% $549 None $549
3 Lafayette Place 21155 Warner, Warren, MI 48091 254 98% $530 T-$14 $516
4 Park Lane Mobile Home Court 3193 East Ten Mile Rd, Warren, MI 48091 164 65%* $440 T-$14 $426
TOTALS/AVERAGES 830 81% $486 $476
Shadylane Estates MHC 2709 Capitol Ave, Warren, MI 48091 244 94% $367 T-$14 $353
Source: JLT Market Report, Macomb County, Michigan February 2019W=Water / S=Sewer / T=Trash
*Property has expansion lots and is in the process of bringing in new homes thus explaining the low occupancy percentage.
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2SHADYLANE ESTATES
M A N U FA C T U R E D H O M E C O M M U N I T Y
A 3-COMMUNITY, 534-SITE MHC PORTFOLIONOW PRICED: $20,500,000 (HOMES INCLUDED)
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SHADYLANE ESTATES MHC PROPERTY DETAILS
PROPERTY AERIAL
WALTZ AVE
BART AVE
BART AVE
STOLZENFELD AVE
WOODROW
WILSON AVE
METHUEN AVE
WARNER AVE
LOS ANGELES AVE
LOS ANGELES AVE
CAPITOL AVE CAPITOL AVE
SHADYLANE ESTATESM A N U FA C T U R E D H O M E C O M M U N I T Y
A 3-COMMUNITY, 534-SITE MHC PORTFOLIONOW PRICED: $20,500,000 (HOMES INCLUDED)
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SHADYLANE ESTATES MHC PROPERTY DETAILS
COMMUNITY ATTRACTIONS
E ELEVEN MILE RD
E 10 MILE RD
E 9 MILE RD
E 8 MILE RD
FRAZHO RD
RYAN RD
RYAN RD
SHERWOOD AVE
DEQUINDRE RD
JOHN R RD
MOUND RD
VAN DYKE AVE
E LINCOLN AVE
STEPHENS RDE WOODWARD HEIGHTS BLVD
696
696
75
75
102102
53
GENERAL MOTORS WARREN TRANSMISSION OPERATIONS
FCA WARREN TRUCK ASSEMBLY PLANT
SH
ANN ARBOR, MI36 MILES
DETROIT, MI9 MILES
OUND RD
STESTESTESTESTESTESTESTESTEPHEPHEPHEPHEPHEPHEPHEPHEPHENSNSNSNSNSNSNSNSNS RDRDRDRDRDRDRDRDRDSHADYLANE ESTATES MHC
SHADYLANE ESTATES MHC
ANN ARBORDETROIT
FLINT
LANSING
A 3-COMMUNITY, 534-SITE MHC PORTFOLIONOW PRICED: $20,500,000 (HOMES INCLUDED)
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SHADYLANE ESTATES MHC PROPERTY DETAILS
SITE INFORMATION
ADDRESS 451 S Telegraph Rd, Pontiac, MI 48341
COUNTY Oakland
YEAR BUILT 14-31-303-006/14-31-303-005/14-31-303-004/14-31-303-009
TAX PARCEL IDS 80
SITES 80
COMMUNITY TYPE All Ages
LAND SIZE 7.28
DENSITY 10.99 sites/acre
MH PHYSICAL OCCUPANCY 96.25% (77 sites as of Jan 2020)
MH ECONOMIC OCCUPANCY 90.00% (72 sites as of Jan 2020)
INVENTORY HOMES 47 (42 occ as of Jan 2020)
AVERAGE LOT RENT $372 (includes trash)
LAST RENT INCREASE* May-19
ROADS Asphalt
FLOODPLAIN Zone X / Zone A / Zone AE
ZONING R-5 (Trailer Coach Park)
UTILITIES
WATER City of Pontiac (Billed back to tenants)
SEWER City of Pontiac (Billed back to tenants)
ELECTRICITY DTE (Direct billed to tenants)
GAS Consumer Energy (Direct billed to tenants)
TRASH Waste Management (Included in rent)
CABLE Comcast and WOW (Direct billed to tenants)
DEMOGRAPHIC INFORMATION 1 MILE 5 MILES 10 MILES
2019 Population Estimate 8,134 161,167 597,098
Population Growth 2010 - 2019 2.28% 2.08% 3.52%
2019 Renter Occupied Housing Percentage 26.0% 28.9% 24.6%
2019 Owner Occupied Housing Percentage 62.5% 59.1% 67.0%
2019 Estimated Average Household Income $84,957 $98,785 $120,964
2019 Estimated Average Owner-Occupied Housing Value $262,591 $315,491 $338,825
Source: U.S. Census Bureau
• Sylvan Lake Estates MHC is a 2.5-star all-age community, but in a 5-star location, positioned on over 7 acres of land serviced by public utilities. The community sits right next to State Highway 24 on Sylvan Lake, providing easy access to downtown Pontiac and other large retail stores including Walmart, TJ Maxx, Marshalls, HomeGoods, and more.
• park owned homes. The average adjusted monthly lot rent is $469 according to the JLT report, while Sylvan Lake’s adjusted monthly lot rent is $353. Increasing rents to the market level would add over $48,000 in additional annual revenue for a new owner.
• The offering includes 47 park-owned homes, of which 42 are occupied mostly as lease options and a couple of pure rentals with an average home payment of $236.
• Within a 10-mile radius of the community, the 2019 total population was just under 600,000 with an average household income of approximately $120,964. Average home values were $338,825 and expected to rise to $363,408 by 2024.
• The City of Pontiac sits just 30 miles from Detroit and 40 miles from University of Michigan in Ann Arbor and is next to Sylvan Lake, which is six miles long and covers 532 acres. The lake is the keystone year-round recreational pleasure of choice and sits right next to Pontiac’s Downtown retail district which includes a variety of restaurants, shops, and local businesses.
• The Oakland County unemployment rate is at 3.3% as of 2018 compared to the US rate of 3.7%. Local researchers project the unemployment rate to be at 2.6% by 2020/2021.
• Oakland County has now completed nine consecutive years of job growth since the recession’s low point in 2009.
• During 2018, more than 728,000 people were employed in Oakland County, a sum larger than 13 states. Exports for Oakland County in 2017 exceeded $14.4 billion, surpassing the export totals of 25 states. In fact, a quarter of all exports from Michigan come from Oakland County.
• Among a select few counties nationally to have a AAA bond rating, saving taxpayers millions of dollars.
INVESTMENT HIGHLIGHTS
*No formal process for raising or assessing “market rent” and renewals are max of $25 increase upon maturity
A 3-COMMUNITY, 534-SITE MHC PORTFOLIONOW PRICED: $20,500,000 (HOMES INCLUDED)
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SYLVAN LAKE ESTATES MHC PROPERTY DETAILS
A 3-COMMUNITY, 534-SITE MHC PORTFOLIONOW PRICED: $20,500,000 (HOMES INCLUDED)
18
SYLVAN LAKE ESTATES MHC PROPERTY DETAILS
INCOME2 Gross Scheduled Rent
Less: VacancyLess: Bad DebtTotal Rental Income
3 Plus: Utility Income4 Plus: Other Income
Plus: POH Income
Effective Gross IncomeEXPENSES
Repairs and Maintenance5 Payroll
AdministrativeMarketingProfessional Fees
6 UtilitiesElectricityWater/SewerGasTrash
Total Variable Expenses7 Taxes8 Other Tax9 POH Expense
InsuranceManagement FeeTotal Operating Expenses
10 Plus: Capital ReservesTotal ExpensesNet Operating Income
5.00%
4,165 1.00%
$2,235
4,400 55
19,091
89.00%
37,496 469
$178,806
5.00%
$4,773
0
6,309 796,309
70
1
6,80000
37
43
6,126 77
0
79
27
0
36
18,320 3.80%
$231,6440 0
54
3.83%
$2,750
$5,835Per Site
$340
0
$6,020
Totals % GSR
54,4084,297
518
$123,338
$231,644
38,575
36
$2,896
54
31,114154
6,9160
86
482
3,453
314
45
680
2019 Actuals
$466,777
$27,1850
$219,9790
$219,979$246,798
2018 Actuals
4,31317,898
108,817 1,360
55
22,786 5.00%
$178,501 $2,231
4,000
$455,726 $5,697Per Site
$20,000 $250
26,000 325
5,600 70
1,600
3,557 44
85
$1,433
Actuals
2,882
389
2
86
41,4172,1562,852
$114,67525,0943,591
0.00%
0.00%
100.00%461
265
$299,910
00
$299,91036,85121,199
0
57,608
$2,750$3,085
308
43
720
$1,542
6,878
100.00%
$381,825
$304,018
Per Site
36,404
1,440
5,6001,600
$440
0
376
0
$35,2360
30,1020
455
32525,986115,216
Totals % GSR
$304,018
0 0.00%
0 0.00%
$481,624
$249,980$2,896$3,125
02,969
3,41424,666
0
$2,185
Totals % GSR
3,414 43
0 0
$112,657
35,681 10.00%
26,765
20,823
35,244
20
335
0
$356,813
4,000 50
3,058 38
497
3,557
3,414 43
$112,657
3,568 1.00%
Proforma (In-Place) Proforma (Mkt Rent/Inc Occ)
$317,564
4,400
441
$2,538
$1,408 $1,408
$391,464 94.00%
37,496 469
26,765 335
0 0
0
3,058 38
35,244 441
6,800
39,733 497
$203,019
50
$182,501 $2,281
0 0
$273,225 $3,415
39,733
85
Totals % GSR
$416,451
44
20
Per Site
$20,000 $250
26,000 325
$174,806
FINANCIAL ANALYSIS
UNDERWRITING ASSUMPTIONS
1.
2. Proforma GSR = 80 sites x $371.68 avg lot rent x 12 months.
3. Utility Income grown 3% from 2019 Actuals. Utility Income includes water recapture only.
4. Other Income grown 3% from 2019 Actuals. Other Income includes admin fees, pet fees, miscellaneous income, interest income, late fees, NSF Fees, maint/repairs income, additional vehicle fees, collection fee income, application fees,
5. Historical Payroll expenses are buried within the R&M, Admin, and POH Expense line items.
6. Adjusted Utilities grown 3% from 2019 Actuals.
7. Proforma Taxes = 2019 assessed values ($448,320) x 2019 mill rates (.0561524) grown 40%.
8. Other Taxes includes school ($3 per site for park-owned homes) and license fee taxes.
9. In 2018, the seller started a home renovation program for existing park owned homes. Seller accounts for home-related expenses in a couple of line items so it is not easy to segregate non-recurring capital expenditures to the homes versus recurring maintenance. As a result, the 2018 and 2019 POH expenses contain non-recurring capital items. Given the historical expenses to operate the homes and from what we see as an industry average, we are using a 50% expense ratio for the POH Expense assumption in 2018 and 2019.
10. Numbers do not reflect actual expenses.
Proforma Vacancy (Mkt Rent/Inc Occ) assumes
(approximately 5% increase in occupancy).
Proforma GSR (Market Rent) = 43 tenant owned or vacant sites x $487.68 avg lot rent x 12 months) + (37 lease option sites x $371.19 avg lot rent x 12 months).
a certain term which is why the proforma excludes rent increases for these sites. Currently, lot rents at the community are $116 below market according to adjusted rents in the rent comp table on page 20 (base rent only – excludes utilities included in rent). The $487.68 avg lot rent number consists of Sylvan Lake’s current unadjusted rents plus the under-market amount ($371.68 + $116).
A 3-COMMUNITY, 534-SITE MHC PORTFOLIONOW PRICED: $20,500,000 (HOMES INCLUDED)
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SYLVAN LAKE ESTATES MHC PROPERTY DETAILS
RENT COMPARABLES
SUMMARY
PROPERTY ADDRESS # OF SITES
PHYSOCC
AVG RENT
RENT INCLUDES
AVG ADJUSTED RENT
1 Ackels MHC 25151 Dequindre Rd, Madison Heights, MI 48071 116 98% $394 T-$19 $375
2 College Heights 3501 Auburn Rd, Auburn Hills, MI 48326 161 97% $530 W-$46, S-$44 T-$19 $421
3 Groveland Manor 13318 South Dixie Hwy, Holly, MI 48442 186 88% $482 T-$19 $463
4 Lake in the Hills 2700 Shimmons Rd, Auburn Hills, MI 48326 238 92% $619 T-$19 $600
5 Red Run Community 1066 Linda Ln, Madison Heights, MI 48071 122 98% $449 W-$46, S-$44 T-$19 $340
6 165 South Opdyke Rd, Auburn Hills, MI 48326 228 100% $631 T-$19 $612
TOTALS/AVERAGES 1,051 96% $518 $469
Sylvan Lake Estates MHC 451 S Telegraph Rd, Pontiac MI 48341 80 96% $372 T-$19 $353
Source: JLT Market Report, Oakland County, Michigan February 2019W=Water / S=Sewer / T=Trash
PONTIAC
WARREN
ROMEOFENTON
DETROIT
BRIGHTON
TROY
NOVI
4
3
6
1
5
2SYLVAN LAKE ESTATESM A N U FA C T U R E D H O M E C O M M U N I T Y
A 3-COMMUNITY, 534-SITE MHC PORTFOLIONOW PRICED: $20,500,000 (HOMES INCLUDED)
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SYLVAN LAKE ESTATES MHC PROPERTY DETAILS
PROPERTY AERIAL
S TELEGRAPH RD
JAMES K BLVD
EDNA AVE
GARLAND ST
SYLVAN LAKE ESTATESM A N U FA C T U R E D H O M E C O M M U N I T Y
A 3-COMMUNITY, 534-SITE MHC PORTFOLIONOW PRICED: $20,500,000 (HOMES INCLUDED)
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SYLVAN LAKE ESTATES MHC PROPERTY DETAILS
COMMUNITY ATTRACTIONS
SYLVAN LAKE ESTATES MHC PROPERTY DETAILS
ORCHARD LAKE RD
ORCHARD LAKE RDBAGLEY ST
W SQUARE LAKE RD
FRANKLIN RD
S TELEGRAPH RD
MID
DLEB
ELT
RD
24
24
SYLVANLAKE
D
Roosevelt Elementary School
SYLVAN LAKE ESTATES MHC
Jefferson Jr High School
Michigan School for the Arts
The Links at Crystal Lake
Forest Lake Country ClubPine Lake Country Club
ANN ARBOR, MI32 MILES
FLINT, MI32 MILES
DETROIT, MI25 MILES
SYLVAN LAKE ESTATES MHC
ANN ARBORDETROIT
FLINT
LANSING
A 3-COMMUNITY, 534-SITE MHC PORTFOLIONOW PRICED: $20,500,000 (HOMES INCLUDED)
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