SUNRISE MOBILE HOME PARK€¦ · SUNRISE MHP 7025 Eastside Rd Anderson, CA 96007 16 $1,050,000...
Transcript of SUNRISE MOBILE HOME PARK€¦ · SUNRISE MHP 7025 Eastside Rd Anderson, CA 96007 16 $1,050,000...
S U N R I S E M O B I L E H O M E P A R KA 1 6 - U N I T M A N U FAC T U R E D H O U S I N G CO M M U N I T Y I N A N D E R S O N , C 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 R
The 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. © 2020 Marcus & Millichap. All rights reserved.
N O N - E N D O R S E M E N T N O T I C E
Marcus & 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.
A L L P R O P E R T Y S H O W I N G S A R E B Y A P P O I N T M E N T O N LY.P L E A S E C O N S U LT L I S T I N G A G E N T F O R M O R E D E TA I L S .
T A B L E O F C O N T E N T S
5F I N A N C I A L O V E R V I E W
1E X E C U T I V E S U M M A R Y
2P R O P E R T Y D E S C R I P T I O N
3M A R K E T O V E R V I E W
4M A R K E T C O M P A R A B L E S
1E X E C U T I V E S U M M A R Y
I N V E S T M E N T O V E R V I E W
I N V E S T M E N T H I G H L I G H T S
O F F E R I N G S U M M A R Y
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I N V E S T M E N T O V E R V I E W
Marcus & Millichap is pleased to present the opportunity to acquire Sunrise Mobile Home Park, a permitted 16-unit mobile home park located at 7025 Eastside Road in Anderson, California. The community consists of all tenant owned spaces, which are predominantly single-wides and a few RVs. The property is on private utilities.
The deal offers value-add potential for a potential acquirer in the following areas:
• Passing through garbage & water related expenses along to tenants.
• Upgrading current (non-functional) laundry building.
• Expansion potential on the back side of property.
Based on the financial summary, an investor could expect to operate the property during their first year of acquisition at a 7.01% cap rate. This is based on current rents, not accounting for potential increases. This offering will appeal to an investor looking for a mobile home park with strong day one cash flow, and a value-add opportunity to expand to additional spaces. Home values in Anderson, California, have increased by 5.1% in the past year and are expected to increase by an additional 4.6% in the year ahead.
S U N R I S EM O B I L E
H O M E P A R K
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I N V E S T M E N T H I G H L I G H T S
STRONG DAY-1 CASH FLOW +
VALUE ADD OPPORTUNITY
• 7.01% Expected Year 1 Cap Rate
• Opportunity to pass-through
utility & garbage expenses,
which are currently paid by the
owner.
• Expansion opportunity on back
side of property
MARKET GROWTH
• Anderson has seen a 5.1%
increase in housing prices over
the last year and expected
to increase 4.6% in the year
ahead.
• Average home value in
Anderson is $249,139.
• Restaurants, grocery stores,
entertainment venues and
schools within 5 miles of
property
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S U N R I S EM O B I L E
H O M E P A R K
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O F F E R I N G S U M M A R Y
$ $1 ,050,000 16 UNITS
COST PER UNIT $65,625
CAP RATE—CURRENT 8.00%
CAP RATE—YEAR 1 PROJECTED 7.01%
2P R O P E R T Y O V E R V I E W
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 P H O T O S
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P R O P E R T Y D E S C R I P T I O N
Address7025 Eastside Rd
Anderson, CA 96007
Units 16
Unit Breakdown
12 Mobile Home Spaces (Tenant Owned) 2 RVs
2 Fifth Wheels
Util it ies
Water Well, paid by owner
Sewer Septic, paid by owner
Trash & Dump Fees
City services, paid by owner
Electricity & Gas
PG&E (directly paid by tenants)
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P R O P E R T Y P H O T O S
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3M A R K E T O V E R V I E W
L O C A T I O N O V E R V I E W
D E M O G R A P H I C S
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L O C AT I O N O V E R V I E W
Located 10 miles south of Redding, Anderson offers charm to the residents of this small city. With several parks within city limits, residents can take advantage of athletic fields, picnic areas, fishing, playgrounds, jogging trails, skate parks, a disc golf course, and more. There are many schools in the area, convenient for those with children.
With access to I-5, living in Anderson offers easy transportation to the Redding metro area and beyond.
A N D E R S O N , C A
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D E M O G R A P H I C S
49.01%
50.99%
52,630TOTA L P O P U L AT I O N W I T H I N
5 - M I L E R A D I U S
19,770TOTA L H O U S E H O L D S I N
5 - M I L E R A D I U S
16.23%F R O M 2 0 0 0
$47,516AV E R A G E H O U S E H O L D I N C O M E
W I T H I N 5 - M I L E R A D I U S
$249,139AV E R A G E H O U S I N G VA L U E
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POPULATION 1 MILE 3 MILE 5 MILE
2000 Population
Total Population1,118 11,394 45,484
2010 Population
Total Population1,155 13,088 50,986
2018 Estimate
Total Population1,186 13,509 52,630
2023 Projection
Total Population1,192 13,628 52,879
Daytime Population
2018 Estimate931 10,626 44,608
HOUSEHOLDS BY INCOME 1 MILE 3 MILE 5 MILE
2018 Estimate
Under $14,999 22.1% 12.2% 14.1%
$15,000 - $24,999 15.0% 11.3% 11.6%
$25,000 - $34,999 14.1% 11.6% 11.8%
$35,000 - $49,999 12.7% 13.6% 14.7%
$50,000 - $74,999 16.8% 21.1% 19.1%
$75,000 - $99,999 6.8% 12.9% 12.1%
$100,000 - $124,999 1.6% 5.1% 5.6%
$125,000 - $149,999 3.5% 3.5% 3.3%
$150,000 - $199,999 6.6% 5.5% 4.9%
$200,000 - $249,999 0.1% 1.5% 1.2%
$250,000 + 0.7% 1.7% 1.7%
Median Household Income $33,960 $51,575 $47,516
Per Capita Income $21,514 $26,161 $25,343
Average Household Income $52,188 $68,745 $66,814
HOUSEHOLDS 1 MILE 3 MILE 5 MILE
2000 Households
Total Population477 4,347 17,009
2010 Households
Total Population479 5,029 19,405
2018 Estimate
Total Population483 5,126 19,770
2023 Projection
Total Population486 5,196 20,003
HOUSING UNITS 1 MILE 3 MILE 5 MILE
Occupied Units
2018 Estimate
Owner Occupied 68.5% 74.9% 62.4%
Renter Occupied 31.5% 25.2% 37.7%
Vacant 5.8% 5.9% 5.9%
4M A R K E T C O M P A R A B L E S
R E N T C O M P A R A B L E S
S A L E S C O M P A R A B L E S
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R E N T C O M PA R A B L E S
PROPERTY RENTUTILITIES INCLUDED
ALL AGES OR 55+
PRIMARILY SINGLE- OR
DOUBLE-WIDE
1RIVIERA MOBILE ESTATES
3880 Rupert RdAnderson, CA 96007
$440 Trash & Water 55+ Single
2BALLS FERRY FISHING RESORT
23012 Ash Creek RdAnderson, CA 96007
$440 No All Ages Double
3ZUFALLS MOBILE PARK
7252 White House DrAnderson, CA 96007
$350Water & Sewage
55+ Single
4RIVER PARK MOBILE ESTATES
3555 Rupert RdAnderson, CA 96007
$400 No 55+ Double
5EL RIO ESTATES
19964 Riverside AveAnderson, CA 96007
$462 No All Ages Double
$ 4 1 8 AV E R A G E S PA C E R E N T
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2
3
415
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S A L E S C O M PA R A B L E S
$ 4 4 , 2 9 9 AV E R A G E P R I C E P E R U N I T
PROPERTY UNITSSALES PRICE
PRICE/UNIT CAP RATE SALE DATE
SUNRISE MHP7025 Eastside Rd
Anderson, CA 9600716 $1,050,000 $65,625 8.00%
1CHICO TRAILER HAVEN
1412 Nord Ave Chico, CA 95926
41 $1,800,000 $43,902 7.46% 6/11/18
2 21795 Bend Ferry Rd Red Bluff, CA 96080
44 $1,600,000 $36,364 — —
3GOLDEN ACRES MHP 3732 State Highway 20
Marysville, CA 9590119 $1,000,000 $52,631 5.40%
Currently Listed On
Market
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2
3
5F I N A N C I A L S U M M A R Y
R E N T R O L L
P R I C I N G A N A LY S I S
O P E R A T I N G D A T A
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R E N T R O L L
UNIT # UNIT TYPE CURRENT
1 MH Space $550
2 MH Space - 5th Wheel $850
3 MH Space $700
4 MH Space $550
5 MH Space $550
6 MH Space $550
7 MH Space - RV $550
8 MH Space $550
9 MH Space $550
10 MH Space $550
11 MH Space - 5th Wheel $550
12 MH Space $550
13 MH Space $550
14 MH Space $550
15 MH Space - RV $650
16 MH Space $550
16 TOTAL $9,350
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P R I C I N G A N A LY S I S & O P E R AT I N G D ATA
INCOME CURRENT YEAR 1 PROJECTION
Gross Scheduled Rent $112,200 $112,200
Loss/Gain to Lease — —
Vacancy (3%) $3,366 $3,366
EFFECTIVE RENTAL INCOME $108,834 $108,834
Laundry — —
Other Income — —
EFFECTIVE GROSS INCOME $108,834 $108,834
EXPENSES CURRENT YEAR 1 PROJECTION
Real Estate Taxes (1.071%) $11,242 $11,242
PG&E Electric Expense $492 $492
Waste Management $4,001 $4,001
Water Testing & Treatment $2,872 $2,872
Insurance $949 $949
Permits $953 $953
Roto Rooter Expense $340 $340
Legal $1,269 $1,000
Lanscaping ($150/unit) — $2,400
Repair & Maintenance Allowance ($175/unit)
— $2,800
Offsite Management Fee (5%) — $5,442
Onsite Management $2,700 $2,700
TOTAL EXPENSES $24,818 $35,191
Per Unit $1,551 $2,199
Percent of EGI 22.80% 32.33%
NET OPERATING INCOME $84,016 $73,643
PRICE $1,050,000
UNITS 16
PRICE/UNIT $65,625
CAP RATE—CURRENT 8.00%
CAP RATE—YEAR 1 PROJECTION
7.01%
TYPE OF OWNERSHIP Fee Simple
FINANCIAL NOTES & ASSUMPTIONS
1) “Current” expenses are based on
actuals provided by owner with addition
of 3% vacancy factor and recalculating
tax rate based on purchase price.
2) Year 1 Projections are based on
additional expenses M&M expects new
owner to incur upon acquisit ion.
JEFFREY BENSON
Senior Vice President Investments
Director, National Multi Housing Group
Direct | 310.909.5420
License: CA 01327285
SAM NEUMARK
Investment Sales Associate
Direct | 310.909.5433
License: CA 02090800
S U N R I S EM O B I L E
H O M EP A R K