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Wilderness mhc
108 Wilderness Park DriveClarendon, PA 16313
AN 88-SITE VALUE ADD COMMUNITYCOMMUNITY PRICE: $600,000TERMS: ALL CASH OR NEW FINANCINGBRING ALL OFFERS
RECEIVERSHIP SALE
SITE INFORMATION
ADDRESS 108 Wilderness Park DriveClarendon, PA 16313
COUNTY Warren
TAX PARCEL ID WN-008-178800-000
SITES 88
COMMUNITY TYPE All Age
LAND SIZE 95.22 acres
DENSITY 0.92 sites/acre
INVENTORY HOMES None*
AVERAGE LOT RENT $244 (base rent only)
MH PHYS OCC 64% (56 sites as of Dec ‘16)
MH ECO OCC 55% (48 sites as of Dec ‘16)
ROADS Asphalt
FLOODPLAIN Zone X
ZONING R-1 Residential
*Lender is currently exploring options for taking control of 28 homes that are controlled by the former borrower; however, delivery of these homes at closing is not guaranteed at this time
PROPERTY DETAILS
INVESTMENT HIGHLIGHTS• Opportunity to acquire an 88-site value add property currently in
receivership. The receiver was put in place mid-October of 2016.• This was one of the smallest assets in a portfolio of non-performing
loans purchased by the seller, a large private equity group, thus they are looking to quickly dispose of it.
• Offered well below replacement cost at $6,818 per site.• At 55% economic occupancy, there is tremendous potential to add
value by filling vacant sites.• The permit for the park’s wastewater treatment plant does not expire
until 2021.• There are approximately 20 natural gas wells that service the homes
in the community. In past years, when the wells were more productive, there was excess gas and oil that could be sold outside of the park.
• In the past few years, there have been multiple oil spills from a crude oil tank at the property requiring remedial action and the park is currently in the process of cleaning up the most recent spill. The receiver reports that the city has been patient and easy to work with as they work on the issue. Further remediation may still be required after the property is sold. Detailed environmental reports are available in the property package.
• There are currently no park-owned homes.• Average income of $60,200 and average home value of $114,650 in a
one-mile radius of the property.
AREA HIGHLIGHTS
• Wilderness MHC is located in northwest Pennsylvania two hours south of Buffalo, three hours east of Cleveland and less than three hours north of Pittsburgh.
• Warren County has a population of 41,815 according to the U.S. Census Bureau.
• The property sits by the border of the Allegheny National Forest providing numerous outdoor recreation activities. Allegheny spans over 500,000 acres and is the only national forest in the state of Pennsylvania.
• The Allegheny Reservoir features an extensive trail system with breathtaking views and several campgrounds and boat ramps.
• Minutes from the community, Warren is the county seat and home to numerous national retailers including Wal-Mart, CVS, McDonald’s, Subway and Wendy’s.
• Several of the county’s top employers operate in Warren including Blair Payroll LLC, Northwest Bank, United Refining Company, Warren General Hospital, Whirley Industries, Wal-Mart and Targeted Pet Treats LLC, all of which are within 15 minutes of Wilderness MHC.
• Warren General Hospital, the sixth-largest employer in the county, is an 89-bed facility sitting less than ten minutes from the property. The hospital has 2,950 admissions annually.
• Warren Area High School is minutes from the community and earned a bronze medal ranking from U.S. News & World Report.
UTILITIES
WATER Private Wells (Submetered)
SEWER Private Treatment Plant (flat rate fee)
ELECTRICITY Pen-Elec (direct billed)
GAS Private Wells (Submetered)
CURBSIDE TRASH Fletcher/Advance Disposal (direct billed)
88 SITE MHC COMMUNITYCOMMUNITY PRICE: $600,000
TERMS: ALL CASH OR NEW FINANCINGBRING ALL OFFERS Wilderness mhc
FINANCIAL ANALYSIS
1
2 Gross Scheduled Rent
Less: Vacancy 38.46%3 Less: Vacant Borrower Homes 4.40%
Less: Bad Debt 1.00%
Total Rental Income 56.14%4 Plus: Utility Income 4494 Plus: Other Income 1
Plus: Oil Sales 0
Total Other Income 450
Effective Gross Income
EXPENSES per site5 Repairs & Maintenance $550
Payroll 200
Administrative 75
Marketing 56 Professional Fees 507 Utilities 0
Electricity 105
Trash 89
Total Variable Expenses $1,0748 Taxes 939 Other Tax 0
Insurance 59
Management Fee 6.00%
Total Operating Expenses $1,35210 Plus: Capital Reserves 50
Total Expenses $1,402
NET OPERATING INCOME
Expense Ratio
Jan '16 T12 Actuals
245
66.89%
102,563
5,36914.41%
43
$1,099
$49,909
0
$1,498
0
0
$63,117
80.80%
16.20%
3,916
$65,563
67.53%
1,5250
0
$210,097$2,309
9,933109
86
$152,992
$2,309
37,02214.24%
7,819
112
$1,681
$210,097
10,1500
63
43
17
$100,018
5,698
$100,018$1,099
0
0
29,097$136,338
6,775
0
0
0$139,813
600
0.00%
1
100.00%
0.00%
0.00% 00.00% 00.00% 0 0.00%
0
$234,136
0
100.00%
0
0
25,8690
284
25,869284
$71,328
Actuals
$260,006
per site
$784
$201,9010
$605
per site
$55,030
0
100.00%
39,691
0.00%
$139,813
00
00
Dec '16 T2 Inc Ann
Financial Analysis
Aug '16 T8 Ann
$234,136 $201,901
0.00% 0 0.00%
436
00 0
$136,338
$605
per site
$201,901
$1,498
0
17
75.93%
$43,226
$1,498
5,698
$136,338 $127,5390
$149,712
62
455
$50,05018,200
40,882
Proforma Exp
8,489
9,557
29,097$136,338$1,498
$266,662
2,66711,721
INCOME
Proforma11
40,94439,7510
6,825
0
11,705
437
194194
74
0
0 0
9,279
$55,030
Aug '16 T8 Exp
17,634
Actual Exp
00 0289
1020
26,313
0 102
129
17,634
7,3850 0 0
81 7,385 81
0
0
3,916
4,550$122,989
11,439
63
0$97,691
9,279
$190,656$179,564
148
8,054
22,3397413,488
4,5500
6,775
01,525
1. Jan ’16 T12 and Aug ’16 T8 financials are from the borrower and no representations or warranties are made as to the accuracy of those numbers; Receiver went in place in mid-October 2016
2. Proforma GSR = $244 x 91 sites x 12 months
3. The borrower is currently liable for, but not required to immediately pay, the lot rents on 8 (as of Dec ’16) vacant homes owned by the borrower; The Proforma assumes that half of these homes will be revenue-producing after a sale
4. Utility and Other Income grown 3% from the Dec ’16 T2 Inc Ann; Dec ’16 T2 Ann Utility income consists of $23,710 of Water & Sewer income and $15,981 of Gas income
5. Historical R&M includes expenses related to environmental issues at the park
6. $12,240 of legal fees related to the receivership have been removed in the Aug ’16 T8 Ann
7. Electricity expense grown 3% from Aug ‘16 T8 Ann; Trash expense grown 3% from Jan ’16 T12
8. Proforma Taxes = $108,190 assessed value x 7.84658% mill rate
9. Other Tax removed in Proforma since the borrower currently owns the homes
10. Historical Capital Reserves are unknown and do not represent actual amounts
11. Proforma is first year projection put together by ARA Newmark and may not represent actual future performance
UNDERWRITING ASSUMPTIONS
88 SITE MHC COMMUNITYCOMMUNITY PRICE: $600,000
TERMS: ALL CASH OR NEW FINANCINGBRING ALL OFFERS Wilderness mhc
PROPERTY location
WILDERNESS MHC
New YorkPennsylvania
Penn
sylv
ania
Ohi
o
PITTSBURGH
CLEVELAND
BUFFALO
HARRISBURG
WARREN COUNTY TOP TEN EMPLOYERSBlair Payroll LLC
Warren County School District
Northwest Bank
State Government
United Refining Company
Warren General Hospital
Whirley Industries
Wal-Mart Associates Inc
Rouse Estate
Targeted Pet Treats LLC
N
88 SITE MHC COMMUNITYCOMMUNITY PRICE: $600,000
TERMS: ALL CASH OR NEW FINANCINGBRING ALL OFFERS Wilderness mhc
Property aerial
WILDERNESS MHC
WHIRLEY INDUSTRIES
• Food and drink container manufacturer located in Warren, PA.
• Operate 17 sales offices in the US and eight abroad.
• Seventh-largest employer in Warren County.
BLAIR CORPORATION
• One of the largest direct marketing mail order retailers in the US headquartered in Warren, PA.
• Has been in business for over 100 years.
• Largest employer in Warren County.
UNITED REFINING COMPANY
• Independent refiner and marketer of petroleum products headquartered in Warren, PA.
• Have over 350 retail outlets in PA, OH and NY.
• Employs over 4,000 across all of its facilities.
N
88 SITE MHC COMMUNITYCOMMUNITY PRICE: $600,000
TERMS: ALL CASH OR NEW FINANCINGBRING ALL OFFERS Wilderness mhc
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 Group: 901 S. MoPac Expressway, Barton Oaks Plaza II, Suite 275, Austin, TX 78746 T 512.342.8100
Additional information for Wilderness MHC is available on our website at:http://arausa.listinglab.com/WildernessMHC
Jon [email protected] T 303.260.4486
NATIONAL MANUFACTURED HOUSING GROUP
Andrew [email protected] T 512.637.1219
Todd [email protected] T 303.260.4470
PRIMARY CONTACTS:
ZIMMERMAN HILL RD
MO
HAWK AVE
WILDERNESS MHC
N