SHERMAN OAKS MHC 1144 SHERMAN BLVD. JACKSON, MI 49201

TOTAL PRICE: TBD BY MARKETTERMS: ALL CASH

For a video tour of Sherman Oaks, please visit: http://youtu.be/RNKNwRHJw70

SHERMAN OAKS Community/Homes/Notes Price : TBD by Market Terms: All Cash

SHERMAN OAKS SITE INFORMATION

ADDRESS 1144 Sherman Blvd.Jackson, MI 49201

COUNTY Jackson

TAX PARCEL ID 000-03-33-476-001-01

SITES 366

COMMUNITY TYPE All Age

YEAR BUILT 1973-1991 in phases

COMBINED LAND SIZE & DENSITY 107.96 Acres (3.39 sites/acre)

INVENTORY HOMES76 as of Nov ’14 with a cost of $2,524,367 (72 Occ lease with option to buy Homes & 4 vacant)

HOME NOTES 4 as of Nov ’14 (Current balance of $20,489.27)

MH PHYS OCC 74.3% (272 as of Nov ’14)

MH ECO. OCC 72.4% (265 as of Nov ’14)

MKT MH RENT $459 (Includes Water, Sewer & Trash)

AVG IN-PLACE MH RENT

$456 (Includes Water, Sewer & Trash)

LAST RENT INCREASE $10 (April 2014)

ROADS Asphalt

SCHOOL DISTRICT Jackson ISD

ZONING Commercial

FLOODPLAIN No

UTILITIES

WATER 3 Private Wells

SEWER 2 Waste Water Disposal Lagoons

ELECTRICITY Consumers Energy (direct billed to tenants)

GAS Consumers Energy

TRASH Allied Waste

366 SITE MH COMMUNITYTOTAL PRICE: TBD BY MARKET

TERMS: ALL CASH

• Sherman Oaks is conveniently located just 15 minutes from downtown Jackson, MI and 30 minutes from the Waterloo State Recreation Area, which boasts four campgrounds, 11 fishing lakes, horseback riding trails and nearly 50 miles of hiking trails.

• The property lies less than 40 minutes away from the Michigan International Speedway - the fastest NASCAR track and venue of the NASCAR Sprint Cup.

• Lansing, the state capital of Michigan, is a short 30 minute drive away, and features a multitude of museums, theaters, parades and a zoo.

• Ann Arbor is just 40 miles to the East, home of the University of Michigan’s main campus.

• The local elementary and middle schools are within 5 miles of the property.

• Entertainment and shopping are nearby with the Airport Lanes bowling alley, the Michigan Theatre of Jackson, and two major shopping malls including Jackson Crossing, home to Sears, Target, Kohl’s, Toys “R” Us, Best Buy, TJ Maxx and Bed Bath & Beyond.

• Several major employers in Jackson include CMS Energy, which provides electricity to most of Michigan, Allegiance Health, which employs 3,700, Consumers Energy, which employs 2,400 and Cooper Street Correctional Facility.

INVESTMENT HIGHLIGHTS

AREA HIGHLIGHTS

• Great opportunity to purchase a stable 3 star community with upside within an attractive low density layout located in Jackson, MI.

• Community should qualify for a very attractive non-recourse loan at historically low rates.

• Tremendous upside potential to fill vacant sites. Park currently has strong demand from potential tenants but few homes to accommodate them.

• Recourse agreement in place with 21st Mortgage that must be assumed by new buyer (22 Occupied 21st homes currently in place).

• Outstanding amenity package that includes a clubhouse with a fitness center, a pool and a basketball court.

• Offering includes 76 inventory homes offered at cost and 4 home notes offered at the current balance.

SHERMAN OAKS PHOTOS

366 SITE MH COMMUNITYTOTAL PRICE: TBD BY MARKET

TERMS: ALL CASH

SHERMAN OAKS FINANCIAL ANALYSIS

1

Assumptions2 Gross Scheduled Rent 0.00%

Less: (Gain)/Loss-to-Lease 0.00%

Gross Potential Income

Less: Vacancy 25.68%

Less: Vacant Inventory 1.09%

Less: Bad Debt 3.00%

Less: Concessions 4.25%

Less: Other 0.82%

Total Rental Income 65.15%

UW vs Actuals & Proforma3 Plus: Utility Income 03 Plus: Other Income 153

Total Other Income 153

Effective Gross Income

EXPENSES per site

Repairs & Maintenance $164

Payroll 320

Administrative 75

Marketing 15

Professional Fees 504 Utilities

Electricity 74

Water 30

Sewer 60

Gas 16

Trash 113

Total Variable Expenses $918

2012

6,005

353

28 10,36458

0

85,677

$2,015,928

21,983

517,752

105

$926

40,189

19,560

100

$312,794

53

6,58218

36,486$855

110

$338,827 $321,320

23

$878

26,446

8,594

203

60,1144.37%

18,727$1,292,979

54,353

1.81%

149

65.20%

3.03%

$1,983,097

24.64% 488,66424.86%

87,486

474,1502.00% 38,090 3.05%

10,145

-3.96%

0

$1,263,429

$1,951,460$1,907,578

142

66.23%

130

0.00% 0.00%

0

0.53%

4.59%

47,62547,625130

54,722

Actuals

$1,311,053

per site

$150

$1,287,710-2.00%

0

$174

per site

$54,734

0

51,895

65.99%

0.00%

0.94%

0

0.89% 17,341

23.85%

4.24%

$1,983,0970

35,858

86,754

465,485

38,75982,665

59,499

Sept'14 T12

Financial Analysis

2013

$1,907,578 $1,951,460

1.80% 34,279 1.99%

0

0

33

$150

per site

$1,339,605

$1,313,465

55,983

5,490

$60,024117,120

0

Buyers Exp

10,98027,235

16,524

$2,015,928

60,47822,032

INCOME

Buyers UW

55,983

-1.58%

54,353

27,450

0

149

295338

72

15

142 51,895

22,666

$63,789

Actual Exp

107,885

Actual Exp

117 6,06216

7255

5,703

20,300 62

16

123,779

20,60070 25,457 56

5,354

11,99321,16458

19 6,92338,338

5,830

$335,982

21,343

26,442

$1,369,448$1,347,332

65

41,395

129,1367823,880

18,300

28,418

p $5 Taxes 330

Other Tax 27

Insurance 40

Management Fee 3.00%

Total Operating Expenses $1,4276 Plus: Capital Reserves 35

Total Expenses $1,462

NET OPERATING INCOME

UW vs Actuals & Proforma

14,7130.00%

$879,935

0

$1,292

299

0

$834,204

5.20%

0.00%

$866,701

3.75%

109,294

0

$431,118$1,178

13,30836

$ ,

27

$1,178

00.00%

260

$431,118

95,086

40

27

$ ,

14,712

$ ,300

0

0

10,071

$472,904

$455,714$1,292

9,936

0

6.44%

$891,618

$1,245

14,712

$472,904 $535,2450

120,720

0$455,714$1,245

9,930

12,810$522,435

41,083

40

109,746$ ,

9,93628

1. Actual 2012, 2013, and Sept ’14 T12 numbers provided by the client and include land lease operations only.

2. Proforma UW GSR based off the Nov ’14 Rent Roll.

3. Other Income grown 3% from Sept ’14 T12. There is no utility income.

4. Adjusted Utilities grown 3% from Sept ’14 T12.

5. Proforma Taxes = 2014 Taxable value of $2,337,497 X 2014 tax rate (4.695%) grown by 10%.

6. Capital Reserves numbers do not reflect actual expense.

7. Other rent deductions includes Repossessed Homes and In Lieu of Inventory.

8. Payroll includes salary, wages, payroll taxes, workers comp and health benefits for 1 community manager with full benefits, 1 office coordinator with dental, 1 maintenance with no benefits and seasonal employees. Health benefits costs allocation averaged ~ $11,660 for 2012, 2013 and Sept’ 14 T-12.

UNDERWRITING ASSUMPTIONS

366 SITE MH COMMUNITYTOTAL PRICE: TBD BY MARKET

TERMS: ALL CASH

SHERMAN OAKS RENT COMPS

12

3

1 English Meadows 3977 Sherwood Lakes Blvd., Jackson, MI 49201 304 84% $405 W/S/T $375

2 Walnut Ridge 3201 Hawthorn Dr., Jackson, MI 49201 248 53% $445 W/S/T $400

3 Windham Hills 4020 County Farm Rd., Jackson, MI 49201 365 96% $438 W/S/T $398

193$924$%08603egarevA seitinummoC ybraeN

Rent IncludesAddress

Sherman Oaks

RENT COMPARABLES

$459 W/S/T $398

Subject Property#

Note: Information from Market Survey - Water, Sewer, and Trash (W/S/T) amounts vary by community

Nearby Communities

1144 Sherman Blvd., Jackson, MI 49201

PhysicalOccupancy

366 74%

Adjusted RentSites Av. Mkt Rent

366 SITE MH COMMUNITYTOTAL PRICE: TBD BY MARKET

TERMS: ALL CASH

SHERMAN OAKS AREA AERIAL

VAN HORN RD

W PARNALL RD

W PARNALL RDSPRINGPORT RD

BRILLS LAKE RD

W MICHIGAN AVE

PAGE AVE

BUNKERHILL RD

COO

PER

ST

LAN

SING

AVE

RIVES JUN

CTION

RD

CLINTO

N RD

W MICHIGAN AVE

E MICHIGAN AVEJACKSON

Baker College

SPRINGPORT RD

JACKSON COUNTYAIRPORT

NorthwestElementary School

ParnallElementary School

RW KidderMiddleSchool

Duane WatersHospitalJackson Crossing/Westwood Mall

BT h e B e s t S e a t I n T o w n

Taking Care of Business

94

94

127

127

127

127

60

WATERLOO STATERECREATION AREA

COOPER STREETCORRECTIONAL FACILITY

Consumers Energy• The principal subsidiary of CMS Energy, Consumers Energy provides natural gas and electricity to 68% of Michigan’s

population.

• The company recently partnered with the city’s governor in the Anchor Initiative to renew the downtown economy and plans to open an R&D center in the Woolworth building downtown.

Allegiance Health System• Allegiance Health, a community owned company, offers quality health care to individuals throughout South Central

Michigan. In 2013, Healthgrades awarded them the Patient Safety Excellence Award, denoting it among the top 5% of all hospitals with regards to patient safety.

• With 3,620 employees, or over 18% of the cities labor force, Allegiance is the largest employer in the area.

Eaton Corporation• Eaton aids businesses and individuals in the sustainable and safe management of electric, mechanical and hydraulic

power.

• The company has joined other large businesses in supporting the Anchor Initiative – an effort to revitalize the downtown area.

Westwood Mall• Anchored by a Walmart Supercenter, JCPenney and Younkers, and home to over 50 stores, Westwood mall offers

numerous shopping and employment opportunities.

• The mall spans 510,000 square feet and is managed by Rouse Properties.

366 SITE MH COMMUNITYTOTAL PRICE: TBD BY MARKET

TERMS: ALL CASH

SHERMAN OAKS LOCATION MAP & DEMOGRAPHICS

WISCONSINILLINOIS

MIC

HIG

AN

WISC

ON

SIN

CANADA

USA

OH

IOIN

DIA

NA

IND

IAN

AILLIN

OIS

MICHIGAN88

90

43

43

96

94

94

69

69

75

94

94

5565

90

90

7175

80

8057

89

2

25MANISTEENATIONAL

FOREST

LAKEMICHIGAN LAKE

ST. CLAIR

LAKEHURON

LAKE ERIE

31

41

131

23

12

127

127

224

10

FLINTGRAND RAPIDS

ANN ARBOR

SOUTH BEND

FORT WAYNE

TOLEDO

LANSING

DETROIT

CHICAGO

MILWAUKEE

CLEVELAND

366 SITE MH COMMUNITYTOTAL PRICE: TBD BY MARKET

TERMS: ALL CASHOFFERED INDIVIDUALLY OR AS A PACKAGE

SHERMAN OAKS DEMOGRAPHIC INFORMATION 1 mile 3 mile 5 mile

2014 Population Estimate 905 7,010 28,382

2014 Est. Average Family Household Income $66,697 $63,283 $52,389

2014 Est. Median Owner-Occupied Housing Value $113,151 $121,747 $106,720

Renter Occupied Percentage 18.71% 14.55 % 34.07%

Owner Occupied Percentage 80.99% 85.49% 65.92%

Source: 2014 Claritas, Inc.

SHERMAN OAKS SITE PLAN

LANSING AVE

366 SITE MH COMMUNITYTOTAL PRICE: TBD BY MARKET

TERMS: ALL CASHOFFERED INDIVIDUALLY OR AS A PACKAGE

RELATIONSHIPS THAT DELIVER RESULTS.

www.arausa.com

© ARA. All Rights Reserved

ARA NATIONAL MANUFACTURED HOUSING901 S MoPac ExpresswayBarton Oaks Plaza IISuite 275Austin, TX 78746

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

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

Jon Shayjshay@arausa.com T 303-260-4486

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.

wInformation for Sherman Oaks is available on our website at: www.arausa.com/listinglab/ShermanOaksFor a video tour of Sherman Oaks, please visit: http://youtu.be/RNKNwRHJw70