RUSSELL MHC - LoopNet · TEN LARGEST EMPLOYERS IN SOUTHWEST INDIANA PRODUCT/SERVICE EMPLOYEES Deaconess Hospital Medical Services 5,900 ... HARMONIE STATE PARK HARMONIE STATE PARK

RUSSELL MHC

40 Lee DrMount Vernon, IN 47620

62-SITE COMMUNITYCOMMUNITY PRICE: $2,250,000 / 9.0% CAP RATESTABILIZED HIGH CAP RATE ASSET

For a video tour, please visit: https://vimeo.com/365348363

SITE INFORMATION

ADDRESS 40 Lee DrMount Vernon, IN 47620

COUNTY Posey

TAX PARCEL ID 65-27-07-100-039.001-018

SITES 62 (58 MH + 4 RV)

COMMUNITY TYPE All Age

LAND SIZE/DENSITY 11.63 acres (5.33 sites/acre)

MH PHYS OCC* 100%

MH ECO OCC*100% (all sites are leased and pending completion of home rehabs)

INVENTORY HOMES 39

AVERAGE LOT RENT $252 (base rent only)**

ROADS Asphalt

FLOODPLAIN Zone X

ZONING RM (Residential Multifamily)

INVESTMENT HIGHLIGHTS

• Russell Mobile Home Community has gone through a tremendous turnaround and the current owner has done the heavy lifting, including cleaning up the tenant base, changing out the management staff, and rehabbing homes.

• Future opportunity for a buyer to focus on property-stabilizing operations such as moving rents up and converting rental homes to home ownership.

• This low-density park is an all-age community with 39 park owned homes that have an average monthly payment of approximately $290. The park owned homes are included in the sales price.

• Property is on municipal utilities. Homes are metered for electricity, sewer, and water, for which tenants are direct billed.

• The Midwest Fertilizer Company is in the process of locating a $2.8 billion state-of-the-art manufacturing plant in Mount Vernon that should bring up to 2,500 construction jobs and 185 permanent, high-paying jobs.

• The median household income is near $50,000 within a five-mile radius of the property.

AREA HIGHLIGHTS

• Russell MHC is located in Mount Vernon, Indiana, putting it within range of multiple major markets including St. Louis, Indianapolis, Louisville, and Nashville. The community sits right next to Indiana State Road 69 and only a half-mile away from the Ohio River, which provides easy transportation to these larger markets.

• The community is connected to the Brittlebank Park, which contains 40 acres of land and features a pool, ballfields, playgrounds, four lighted tennis courts, two shelter houses, and a pond. The community is also right next to West Elementary School and a half mile from the highly-rated Western Hills Country Club.

• Posey County has a total population of 25,883 people and a median household income is $57,680, which is within the top ten counties in the state and top 250 counties nationwide. The County also ranks third highest in the state for average wage per job.

• Posey County is quickly becoming a center for advanced manufacturing, including plastics, bio and life sciences, as well as advanced logistics and energy.

– Aventine Renewable Energy has the largest ethanol plant east of the Mississippi River and produces more than 110 million gallons of ethanol per year.

– The Mount Vernon Port is the seventh largest inland port and the largest port for coal shipments in the nation.

• Several major employers have facilities in Posey County, including SABIC Innovative Plastics (with more than 1,200 local employees), CountryMark, Bristol-Myers Squibb, The Babcock & Wilcox Company, and A.B. Brown Generating Station.

• Universities within close proximity to the community include Ivy Tech Community College (8,000 enrolled), University of Evansville (2,934 enrolled), and University of Southern Indiana (10,820 enrolled).

UTILITIES

WATER/SEWER Village of Mount Vernon (direct billed to tenants)

ELECTRICITY Vectren (direct billed to tenants)

GAS Not Available On-Site

CURBSIDE TRASH Village of Mount Vernon (direct billed to tenants)

*Physical occupancy refers to the number of occupied/vacant homes in the community. Economic occupancy refers to the number of occupied sites paying rent**Includes the 4 RV sites that pay $475 total per month

PROPERTY DETAILS

62-SITE MANUFACTURED HOUSING COMMUNITYCOMMUNITY PRICE: $2,250,000 / 9.0% CAP RATE

STABILIZED HIGH CAP RATE ASSET RUSSELL MHC

INCOME2 Gross Scheduled Rent

Less: VacancyLess: Employee/ModelLess: Bad Debt

3 Total Rental Income4 Plus: Other Income

Total Other IncomeEffective Gross Income

EXPENSES5 Repairs and Maintenance

Payroll AdministrativeMarketingProfessional Fees

6 UtilitiesElectricityWater/SewerTrash

Total Variable Expenses7 Taxes

InsuranceManagement FeeTotal Operating Expenses

8 Plus: Capital Reserves9 Total Expenses

Net Operating Income

Expense Ratio

Totals % GSR

$318,432

1,742

9,500

0

Financial Analysis1

741

0 0

$313,356

131

Sep '19 Inc Ann and Apr '19 T10 Exp Ann

2,400 0.77%

$100,602 $1,623

8,117

12

1,200

$5,054

19

0 0

10,400 168

5,122 83

143

16,143 5.00%

$117,496 $1,895

3,100 50

$120,596 $1,945

$322,856 $5,207

Buyers Exp Per Site

$35,677 $575

14,396 232

10,437 168

741

3,257 53

0 0.00%

0 0.00%

$81,230 $1,310

Actual Exp Per Site

$35,677 $575

14,396 232

10,437 168

3,257 53

$313,356 100.00%

0

0 0.00%

0

Totals % GSR

$313,356

Proforma

153

0.55%

1,742 0.55%

1,592 0.50%

$81,230

5,122 83

$1,310

153

8,855

$313,356 98.41%

9,500

37.35%

$202,260 $3,262

8,855 143

$100,602 $1,623

$212,754 $3,432

32.10%

0 0

0

10,400 168

11,268 182

1,200 19

12

Todd Fletcher303‐260‐[email protected]

Andrew Shih512‐637‐1219

[email protected]

1. Historical financials provided by the client. The client provided adjusted expenses within the historical financials.

2. Proforma GSR = 62 sites x $428 avg rent x 12 months. Average rent of $428 includes lot and home rent amounts.

3. Total Rental Income on both the proforma and the second column of historicals annualized from the projected rent roll provided by the client. Total rental income on the projected rent roll is $26,093 ($313,116 annualized) (assumes 62 tenants paying rent).

4. Other Income provided by client and includes other income, late fees, prepaid income, other rental income, new tenant credit check income, and pet fees.

5. Proforma R&M taken from Apr ’19 T10 annualized expenses (excludes non-recurring or one-time items in the Apr ‘19 T10 numbers).

6. Adjusted Utilities taken from Apr ’19 T10 annualized expenses.

7. Proforma Taxes = 2018 tax bill grown 30%.

8. Numbers do not reflect actual expenses.

9. All proforma expenses (other than taxes, management fee, and capital reserves) were taken from Apr ’19 T10 annualized expenses.

UNDERWRITING ASSUMPTIONS

FINANCIAL ANALYSIS



DEMOGRAPHIC INFORMATION 1 MILE 3 MILES 5 MILES2018 Population Estimate 3,769 7,880 9,017

Renter Occupied Housing Units 28.9% 27.8% 25.4%

Owner Occupied Housing Units 60.8% 61.2% 63.6%

2018 Est. Median Household Income $48,588 $49,137 $51,405

2023 Est. Median Household Income $56,485 $57,286 $60,241

2018 Est. Average Owner-Occupied Housing Value $114,634 $107,837 $118,599

2023 Est. Average Owner-Occupied Housing Value $134,700 $126,348 $138,774

Source: U.S. Census Bureau

ST. LOUIS

INDIANAPOLIS

LOUISVILLE

CINCINNATI

ILLI

NOIS

ILLINOISMISSOURI

INDI

ANA

INDI

ANA

OHI

O

INDIANA

KENTUCKY

RUSSELL MHC

TEN LARGEST EMPLOYERS IN SOUTHWEST INDIANA PRODUCT/SERVICE EMPLOYEES

Deaconess Hospital Medical Services 5,900

Toyota Motor Manufacturing Manufacturing 5,100

St. Vincent Health System Medical Services 3,529

Evansville Vanderburgh School Corporation Education 3,269

University of Southern Indiana Education 2,792

Berry Plastics Manufacturing 2,669

T.J. Maxx Distribution Center 1,500

Koch Enterprises, Inc Manufacturing 1,409

SABIC Engineering Thermoplastics 1,200

SWANSKA Constuction 1,200

PROPERTY LOCATION



EVANSVILLE

RUSSELL MHC69

69 66 65

9005

69

62

66

57

141

7

60

60

41

41

OHIO RIVER

OHIO RIVER

OHIO RIVER

HOVEE FISH AND WILDLIFE AREA

HARMONIESTATE PARK

HARMONIE STATE PARK • Located on the bank of the Wabash River • Features a beautiful swimming pool, picnic areas, ravines, and pristine landscapes• Miles of hiking trails and campsites available

HOVEY LAKE FISH AND WILDLIFE AREA • 7,404 acres of land located near the Ohio River and Wabash River floodplains• Features a 1,400 acre oxbow lake and other smaller sloughs, marshes, and extensive bottomland hardwood forests• Visitors can enjoy a multitude of outdoor activities including hunting, fishing, kayaking, canoeing, and wildlife watching

WESTERN HILLS COUNTRY CLUB• Private facility featuring a 9-hole golf course, club house, Olympic-sized swimming pool, tennis courts, banquet facilities, restaurant, and fitness center• Popular destination for Southwest Indiana residents• Club hosts numerous events for members throughout the year

N

PROPERTY AERIAL



PROPERTY PHOTOS



RUSSELL MHC LEE DR

WO

LFLIN STW

OLFLIN ST

W 8TH ST

PLEASE DO NOT SPEAK WITH TENANTS OR EMPLOYEES

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

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PRIMARY CONTACTS

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 Newmark Knight Frank (NKF) 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 NKF 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.ngkf.comManufactured Housing 2530 Walsh Tarlton Ln, Suite 200, Austin, TX 78746 | T 512.342.8100

Todd [email protected] 303.260.4470

Andrew [email protected]

Joe [email protected] 512.637.1228

For a video tour, please visit: https://vimeo.com/365348363

Documents

RUSSELL MHC - LoopNet · TEN LARGEST EMPLOYERS IN SOUTHWEST INDIANA PRODUCT/SERVICE EMPLOYEES Deaconess Hospital Medical Services 5,900 ... HARMONIE STATE PARK HARMONIE STATE PARK