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A 101-SITE COMMUNITYPRICE: CONTACT BROKER

BRIAR RIDGEmAnufActuRED homE communIty

PLEASE DO NOT SPEAK WITH TENANTS OR EMPLOYEES

8725 Wabash AvenueTerre Haute, IN 47803

SITE INFORMATION

ADDRESS 8725 Wabash Avenue, Terre Haute, IN 47803

COUNTY Vigo

TAX PARCEL IDS 84-07-15-202-008.000-008 / 84-07-15-202-007.000-008

SITES 101

COMMUNITY TYPE All Age

YEAR BUILT Phase I: 1950s / Phase II: 1990s

LAND SIZE 10.5 acres (9.6 sites/acre)

INVENTORY HOMES 17 vacant as of Aug '18

MH PHYS OCC 96.04% (97 sites as of Aug ‘18)

MH ECO OCC 79.21% (80 sites as of Aug ‘18)

HOME NOTES 53 (current balance of $1,038,886 as of Aug ‘18)

AVG LOT RENT $275 (base rent only)

RENT INCREASE $10 (Apr '19)

ZONING R-T (Mobile Home Park District)

ROADS Asphalt

FLOODPLAIN Zone C (areas of minimal flooding)

UTILITIES

WATER City of Terre Haute / Seelyville Water (sub-metered + tenant pays)

SEWER City of Terre Haute (sub-metered + tenant pays)

ELECTRICITY Duke Energy (tenant pays)

TRASH Republic Services (tenant pays)

GAS Vectren Energy (community pays)

INVESTMENT HIGHLIGHTS• Briar Ridge MHC is a 101-site, all age community, positioned on 10.5 acres of land.

At around a 79% occupancy level, the property presents a new investor with the opportunity to drive revenue growth through occupancy gains. The current Owner has focused only on offering homes for purchase. A new buyer could focus on renting homes, lease with option, etc. to drive performance gains. Seller may be willing to finance the contract homes portion of the transaction for the right buyer.

• As of August 2018, there are approximately 53 retail installment contracts (i.e., home loans) and 17 vacant homes. The notes have a principal outstanding balance of around $1,040,000 while the homes are valued around $350,000. The 17 vacant homes could provide an investor with the immediate ability to start filling homes through a home rental or LPO program.

• The property continues to grow in occupancy demonstrating the strong demand for affordable housing in the area. Occupancy has increased from 62% (63 sites) at the end of 2017 to 79% (80 sites) as of August 2018.

• The community should receive a $10-15 rent increase in 2019.• The property is serviced by public water and sewer, which are sub-metered and paid

by the tenants. The Owner pays trash at the property.• Within a three-mile radius of the community, the median household income is

$60,000 and expected to rise over $69,000 by 2022. • Although the population is just over 60k, the reality is that most of the year it could

be over 80k due to the number of students attending the various universities in the area. As the cost of attending college continues to climb, most regional universities expect to see growth in student populations as they look to stay closer to home or attend schools in markets with a more reasonable cost of living.

• Owner would like to close by year end so all offers will be immediately considered.

AREA HIGHLIGHTS• Briar Ridge MHC is located in Terre Haute, Indiana (population of over 61,100 people)

and only 70 miles southwest of Indianapolis. The community sits near major thoroughfares I-70, US-40 and US-41, providing easy access to other larger markets such as Indianapolis, St. Louis, and Louisville.

• The community is in the beautiful Wabash Valley and offers a private country feel but in an urban market with city conveniences nearby such as restaurants, malls, parks and more. The community is minutes away from the Terre Haute Regional Airport (third busiest airport in the state), Walmart Supercenter, and several public and private universities.

• The city boasts a diverse economy and has a strong presence in healthcare, manufacturing, education and retail trade industries. The city is also home to several Fortune 500 companies including GE, Sony, Pfizer, ThyssenKrupp Presta, Saint-Gobain, International Paper, Rio Tinto Alcan and more.

• Universities within close proximity to the community include Indiana State University (13,565 students enrolled), Rose-Hulman Institute of Technology (2,231 students enrolled), Saint Mary-of-the-Woods College (700 students enrolled), and Harrison College (3,000 students enrolled).

101-SITE COMMUNITY PRICE: CONTACT BROKER

PROPERTY DETAILS

2 Gross Scheduled Rent

Less: Vacancy 22.77%

Less: Bad Debt 2.00%

Total Rental Income 75.23%3 Plus: Cable Income $283 Plus: Other Income 2

Plus: LPO Income 04 Plus: Late Fee Income 48

Total Other Income 79

Effective Gross Income

EXPENSES per site5 Repairs & Maintenance $3756 Payroll 3007 Administrative 100

Marketing 10

Professional Fees 158 Utilities9 Electricity 55

10 Water / Sewer 30711 Telephone 13

Gas 412 Trash 76

Total Variable Expenses $1,25513 Taxes 77

Mobile Home Taxes 0

Insurance 25

Management Fee 5.00%

Total Operating Expenses $1,48914 Plus: Capital Reserves 50

Total Expenses $1,539

NET OPERATING INCOME

Expense Ratio

668

0 0

1,192

27,78678

0

44

9,427

0 1,515

7,895

7,725

8,400

$1,219$126,43114,319

427

93

$126,774

35,1761,985

2 198

0

1,246

48

32,690

Actuals

31,012

4,4245,365

7

65

1

per site

67

79

$219,259

324

$34,305

20 2,034

$150,37713,252

$1,322

20

5 462

0

11,541

6,000

31,958

00 0 0

13 10

0

5348

0

4,854 49 4,928

0

85

307316

109

63 6,411

Actuals

$0

7,930

10,100

4,882

182

8,542

04,882

$29,478

Proforma

$210,762

0

7,930

$202,832

2015 Actuals1 2016 Actuals1

INCOME$187,092 $204,925 $341,784

6,836$257,116

0$135,514$1,342

63.37%

5,0500

16,818

$2,866

56

31,000

6,796

0$133,556

7,825

0

1,010

$37,87530,300

$2,866

Proforma

$265,046

0

$77,206

$144,341

61.81%

$130,737

68.30%

$83,745$66,995

$1,322$1,429

0

0

$133,5560.00%

$135,514

348

$411

per site

$211,336

$28

000

62 6,230

0

$10

Financial Analysis

2017 Actuals1

$210,717

00

181$1,004

$204,925$0

$340

per site

$41,462$43,298

Actuals

$193,467

per site

$429

8510

55

6,37563

5,524

$0

0

28

$0

$187,092

00

0

9

0

$202,8320

$210,717

6,590

9480

2

$123,122

Actuals

$292

83

0

167

10,985

27,780

992

307

0

275

$1,252

69

0

0

0

$144,341

4

17

142

0

$135,4207,200

$1,294

00.00%

6,572

59

$1,219

$130,737

$1,294

1,62016

1,618

65

$123,117

16

96210

0

12

0

Jun '18 T6 Inc Ann1

1,721

$1,342

2,09321

6,990

67.58%

0.00%

0

$109,620

2,5250.00%

114

$1,341

$62,730

0

$1,429

71

58.64%

1,283

77,832

$155,427

31,0005,526

182

440

275

281 28,40212

1. Actual numbers based on financials provided by the client.

2. Proforma GSR = 101 MH sites x $282 avg lot rent x 12 months (includes a $10 rent increase).

3. Cable and Other Income annualized from Jun ’18 T6.

4. Late Fee Income annualized from Jun ’18 T6.

5. R&M adjustments (as per Owner) – Select one-time expenses removed (i.e. lift station pumping, water leaks, and new water meters for homes).

6. Payroll adjustments (as per Owner) – All corporate wage and expense allocations removed.

7. Admin adjustments (as per Owner) – Corporate fees removed.

8. Adjusted Utilities grown 3% from 2017 Actuals (except trash and water/sewer).

9. Electricity adjustments (as per Owner) – Utility expenses for individual homes removed.

10. Water/Sewer adjustments (as per Owner) – Water usage was abnormally high a few months in 2016 ($7,900), and a few months in 2017 ($7,749) due to a few large leaks (each were repaired). In 2017, $5,100 of one-time lift station repairs were coded to this account, and thus were removed. In February 2018, the community fixed a large leak and has since been repaired (cost of approximately $12,000). Proforma expense taken from Jun ’18 T6 annualized (see online Document Library for further details).

11. Telephone adjustments (as per Owner) – All corporate allocations removed.

12. Trash adjustments (as per Owner) – Portions of the trash expense related to clearing out the inventory homes. Proforma reduced to exclude these expenses.

13. Proforma Taxes = 2018 taxable value x 2017 mill rates (2.1474).

14. Numbers do not reflect actual expense.

UNDERWRITING ASSUMPTIONS

101-SITE COMMUNITY PRICE: CONTACT BROKER

FINANCIAL ANALYSIS

LARGEST EMPLOYERS IN TERRE HAUTE, IN EMPLOYEES

Union Hospital 2,118

Vigo County School Corp. 2,088

Indiana State University 1,536

Terre Haute Regional Hospital 854

Union Medical Group 831

United States Federal Correctional Complex 830

Vigo County 700

Bemis 679

City of Terre Haute 612

ADVICS 539

Sony DADC, USA 300Source: Terre Haute Chamber of Commerce

DEMOGRAPHIC INFORMATION 1 MILE 3 MILES 5 MILES

2017 Population Estimate 2,056 6,553 20,384

Population Growth 2010 - 2017 7.87% 4.28% 5.50%

2017 Renter Occupied Housing Percentage 28.70% 23.00% 27.60%

2017 Owner Occupied Housing Percentage 62.60% 69.30% 66.10%

2017 Estimated Average Household Income $71,396 $80,936 $77,522

2017 Estimated Median Owner-Occupied Housing Value $129,241 $143,400 $136,845

Source: U.S. Census Bureau

101-SITE COMMUNITY PRICE: CONTACT BROKER

AREA EMPLOYMENT & DEMOGRAPHICS

Rea Park Golf Course

Hulman Links Golf Course

TERRE HAUTE

Indiana State University

• Located just ten minutes from the community, Indiana State University is one of the larger universities in Indiana with over 13,500 students offering 80 undergraduate majors and 75 graduate programs.

• The university has been listed by Forbes and Princeton Review as one of the top schools in the Midwest and one the most environmentally responsible colleges.

Union Hospital

• A non-profit healthcare system employing over 2,000 local residents.

• The hospital is known as one of the best places to work by the Indiana Chamber of Commerce and received the Advisory Board Company’s “2017 Workplace Transformation Award”. The national award recognizes hospitals and health systems that have made a transformational change in their employee engagement. The hospital is one of five organizations nationwide honored with this award.

Bemis Manufacturing

• Located just ten minutes from the community, Bemis is a global manufacturer of flexible packaging products and the largest manufacturer employer in Terre Haute with over 650 employees.

101-SITE COMMUNITY PRICE: CONTACT BROKER

LOCATION MAP & AREA ATTRACTIONS

E OLD MAPLE AVE

N S

TOP

18 S

T

WABASH AVE

40

PLEASE DO NOT SPEAK WITH TENANTS OR EMPLOYEES

Additional information is available on our website at: http://arausa.listinglab.com/BriarRidgeMHC

For a video tour, please visit: https://vimeo.com/276279431

!

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 ARA, A Newmark Company (ARA Newmark) 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 Newmark 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.

www.aranewmark.comManufactured Housing and RV Park Group901 S. MoPac Expressway, Barton Oaks Plaza II, Suite 275, Austin, TX 78746 T 512.342.8100

Andrew Shihashih@aranewmark.com 512.637.1219

PRIMARY CONTACTS

Todd Fletchertfletcher@aranewmark.com 303.260.4470