N O N - E N D O R S E M E NT & D I S C L A I M ER N O T I C E
C ONFIDENTI ALITY & DISCLAIMER
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 webelieve 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.
© 2018 Marcus&Millichap. All rights reserved.
N O N-ENDO RSEMENT N O TICE
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 ERT 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 ON L Y .
P L E A S E CO N S U L T YO U R M A R C U S & M I L L I C H A P AG E N T F O R M O RE DE T A I L S .
OFFICES THROUGHOUT THE U.S. AND CANADA
www.marcusmillichap.com
BUD’S PLACE RV PARKCARLSBAD, NM
EXCLUSIVELY LISTED BY
MATTHEW REEVESBroker of Records – NEW MEXICO
Office: (505) 445-6333License: 19583
As the leading specialists in the MHP/RV industry, our primary interest is in
giving you a clear understanding of the driving forces in the current
marketplace. Our evaluation is based of off verifiable data, market knowledge
and proven experience that we feel will serve your best interest at this time.
We invite you to thoroughly review this offering memorandum, schedule a
tour of the property and discuss any questions you may have. We promise to
provide you clear and accurate answers and together we will maximize this
opportunity to make the transition from where you are today to where you
want to be in the future in the most effective way.
GUIDELINES
The offering is being distributed exclusively by Marcus & Millichap REIS
to the investment community. Following the initial bids, the owner will select
an investor to purchase the property or request from a group of investors to
submit a best and final offer, from which one will be selected. The selection
will be based on a variety of factors including purchase price, contract terms,
financial strength, ability to close, timing and experience in closing similar
transactions.
Offers must be presented in writing and include:
• Price
• Source of capital
• Proof of funds
• Relevant experience
• Proposed schedule of due diligence and closing
• Amount of earnest money
• List of contingencies including committee approvals, possible 1031
exchanges, etc.
All interested investors are encouraged to schedule a property tour to visit the
community and the surrounding market with an approved representative to
fully appreciate its market position, quality and strong fundamentals.
W E L C O M E
05
MARKET OVERVIEW
04
03EXECUTIVE SUMMARY
01 PROPERTY DESCRIPTION
02
FINANCIAL ANALYSIS
BROKERAGE TEAM
TABLE OF CONTENTS
Executive Summary
Offering Summary
Investment Overview
Investment Highlights
S e c t io n 1
BUD’S PLACE RV PARKCARLSBAD, NM
Property Description
Property Details
Amenities
Photos
S e c t i o n 2
BUD’S PLACE RV PARKCARLSBAD, NM
PROPERTY DESCRIPTION
Bud’s Place RV Park was constructed between 2017 and 2019 and
consists of 91 RV pads, 16 cabins, and 20 mobile home pads. The
owner completed construction and leased up 91 RV pads at the end
of 2018. The 16 cabins construction is projected to be completed and
occupied by October of 2019.
There are 20 mobile home pads that are currently under construction
and will be completed prior to a new owner taking over. The owner
currently has a waiting list of customers who would be willing to
rent, or purchase park model homes and the current advertised lot
rent is $1000.
Bud’s RV park is one of the few parks in Carlsbad that has public
utilities. In addition, Bud’s place is in a favorable location regarding
electricity billing and enjoys some of the lowest utility costs in
Carlsbad.
The park is conveniently located close to area employment, retail, and
attractions and is regarded locally as having the best location for an
RV park in Carlsbad. The park is located 15 minutes from Carlsbad
Caverns and has luxury-style bathrooms, laundry room, and stocked
fishing pond for its customers to enjoy.
RENTAL UNITS & INVESTMENT SUMMARY
Seller Normalized Pro Forma
Actuals Year 1 Year 2
Lot Rent Revenue $0 $0 $120,000
RV Revenue $977,180 $977,180 $1,008,449
Cabins Revenue $5,554 $352,800 $416,102
Annual Rent Revenue $982,733 $1,329,980 $1,544,552
Vacancy / Collections Loss $0 $66,499 $77,228
Total Revenue $982,733 $1,263,481 $1,467,324
Operating Expenses (Next Page) $284,876 $338,261 $430,238
Net Operating Income $697,858 $925,220 $1,037,086
Capitalization Rate 8.73% 11.57% 12.97%
Total POH / RTO Revenue $0 $0 $0
POH / RTO Exepenses $0 $0 $0
POH / RTO Net Income NO POH NO POH NO POH
Capitalized Revenues & Investment Summary
Comments
Park Owned Home Revenues - Not Capitalized
The RV revenue is based on 2019 average collected income for January through August then
annualized. Also, the owner has recently brought online 16 cabins. August was the only month for
total income collected for cabins which were $5,554. Year 1 cabin income displays 14 out of 16
cabins rented at $2100 per month. Based on the seller's disclosed financial documents, we feel
confident that the RV component boasts an annual occupancy of 89.5%. At this stage of the
underwriting, we are displaying these as 89.5% occupied due to the market demand for housing and
underwriting with a 10% vacancy and 5% collections loss.
Based on current seller disclosures, we feel that the normal operating expense ratio sits around 28.6%.
The owner owns three other RV parks in the area and can show a buyer the typical performance of
similar assets during a downturn. His average occupancy during 2010-2012 was reported to be 80%-
90%.
Finally, the Pro Forma models a new owner infilling and occupying 10 of the 20 mobile home lots
with a lot rent of $800 per month.
OPERATING EXPENSES
Seller Normalized Pro Forma
Actuals Year 1 Year 2
Total Revenue $982,733 $1,263,481 $1,467,324
Expense Category Notes on Expense Item
Real Estate Taxes $7,249 $7,249 $81,128
Insurance $17,769 $17,769 $18,160
Repairs & Maintenance $37,019 $40,650 $41,544
Water, Sewer, & Trash $27,720 $27,720 $29,245
Electricity $61,045 $61,045 $63,487
Cable & Internet $23,265 $23,265 $23,777
Security System $594 $594 $607
On-Site Manager Salary (Full Time) $54,859 $54,859 $56,066
Payroll Taxes & Expenses $5,497 $5,497 $5,618
3rd Party Management $0 $63,174 $73,366
Office Expenses $12,504 $12,504 $12,779
Legal & Accounting $3,463 $5,000 $5,110
Licenses / Permits / Dues $17,542 $200 $204
Advertising $9,615 $12,000 $12,264
Bank Fees $6,735 $6,735 $6,883
Total Expenses $284,876 $338,261 $430,238
Expense Ratio 29.0% 26.8% 29.3%
Net Operating Income $697,858 $925,220 $1,037,086
Capitalization Rate 11.57% 12.97%
Verified through seller provided documentation
Verified through taxing authority at purchase price
Verified through seller provided documentation
Normalized ($150 per lot & $1500 per Cabin / Per Year)
Verified through seller provided documentation
Verified through seller provided documentation
Verified through seller provided documentation
Verified through seller provided documentation
Verified through seller provided documentation
Verified through seller provided documentation
Verified through seller provided documentation
Verified through seller provided documentation
Verified through seller provided documentation
Normalized to industry averages (5%)
Verified through seller provided documentation
PRO FORMA
Year 0 $5,996,250
Down Payment on Loans $1,998,750 5.00%
Allowance For Cap Ex $63,500 25
Normalized Pro Forma
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Mobile Homes added in Period - 10 10 0 0 0 0
Mobile Home Lots Occupied (20 Total Lots) 0 10 20 20 20 20 20
Lot Rent in Period $1,000 $1,000 $1,032 $1,065 $1,099 $1,134 $1,170
Lot Rent Revenue $0 $120,000 $247,680 $255,600 $263,760 $272,160 $280,800
Other Property Revenue $1,329,980 $1,424,552 $1,470,137 $1,517,182 $1,565,732 $1,615,835 $1,667,542
Collections Loss (5%) $66,499 $77,228 $85,891 $88,639 $91,475 $94,400 $97,417
Total Revenue $1,263,481 $1,467,324 $1,631,926 $1,684,143 $1,738,017 $1,793,595 $1,850,925
Operating Expenses (29.3% Expense Ratio) $338,261 $430,238 $478,502 $493,812 $509,609 $525,905 $542,715
Net Operating Income $925,220 $1,037,086 $1,153,425 $1,190,330 $1,228,408 $1,267,690 $1,308,210
Annual Debt Service $420,642 $420,642 $420,642 $420,642 $420,642 $420,642 $420,642
POH Income $0 $0 $0 $0 $0 $0 $0
POH Expenses & Collections Loss (50%) $0 $0 $0 $0 $0 $0 $0
Net Income $504,578 $616,444 $732,783 $769,688 $807,766 $847,048 $887,568
Cash-on-Cash Return 24.5% 29.9% 35.5% 37.3% 39.2% 41.1% 43.0%
Total Return (Includes Principal Paydown) 30.5% 36.2% 42.2% 44.3% 46.5% 48.8% 51.1%
Real Estate Value Per Year (10% Cap Rate) $9,252,197 $10,370,857 $11,534,245 $11,903,303 $12,284,079 $12,676,899 $13,082,096
Loan Balance Remaining $4,986,030
Net Proceed from Sale (with 6% Selling Costs) $7,311,140
Internal Rate of Return 41.9%
Equity Multiple 6.05
Favorable recourse financing should be available
for this property. Non-recourse financing may be
available for qualified buyer. Reach out to our
team if you need assistance finding quality
debt.
Uses of Capital 1st Position Loan
Loan Amount
Interest Rate
Amortization
Financing Notes
Allowance For Cap Ex is based on $500 per
unit
Market Overview
Location Overview
Market Research
Demographics
S e c t io n 4
BUD’S PLACE RV PARKCARLSBAD, NM
LOCAL MARKET INFORMATION
Located in the southeastern part of New Mexico, Carlsbad straddles
the Pecos River and sits at the eastern edge of the Guadalupe
Mountains
Carlsbad is a hub for Potash mining, petroleum production, and
tourism. Carlsbad Caverns National Park is located 20 miles
southwest of the city, and Guadalupe Mountains National Park lies
54 miles southwest across the Texas border. The Lincoln National
Forest is to the northwest of town.
As of recent, Carlsbad has experienced a “boom”. The city is
leading in the production of and natural gases across the entire area,
causing an increase in the employment rate. Due to this increase,
families and individuals have begun to migrate to Carlsbad.
DEMOGRAPHICS // BUD’S PLACE RV PARK
32,202Total population within a 5-mile radius
GENDER
49.90%
50.10%
$ 74,112Average household income within a
5-mile radius
$ 56,121Median Property Value
13,724Total households within 5-mile radius
1,878From 2010
SALES AGENT
TEAM LEADERIn the 18 years, Glenn has been in commercial real estate, He has successfully transacted more than 235 properties forhis clients. In 2018 alone, Glenn sold 36 mobile home communities as a solo broker. In addition to his work as a broker,Glenn has owned and operated mobile home parks, operated several small businesses, and owned other commercialreal estate assets.
Glenn joined Marcus and Millichap in 2019 with the vision of assisting buyers and sellers Nationwide with theirmanufactured housing transaction needs. His team is quickly gaining a reputation as one of the top brokerage teams inthe industry.
Glenn is married to his lovely wife, Cassidy, and has three children. Glenn resides in Wilmington, NC.
Glenn EstersonVice President
Michael Escobedo began his professional career in real estate brokerage in 2018 by joining the Phoenix Marcus &Millichap team. Thus far, Michael has received mentorship from some of the top-performing professionals in thecompany and was awarded the distinguished “Pace Setter Award” in early 2019, an award is given only to agents whomeet the highest company standards during their first four months with the firm.
In June of 2019, Michael joined Glenn Esterson and now focuses on manufactured home park sales nationwide andthroughout Canada. Michael brings an unparalleled level of professionalism and service to his clients and his work ethicand dedication are routinely mentioned and admired by both his co-workers and clients.
Before joining the Marcus & Millichap family, Michael was a distinguished collegiate wrestler at Michigan StateUniversity and was a 2x individual Indiana state champion while in High School. Michael received his bachelors degree insocial science in 2007.
Michael EscobedoAssociate
Sallie WhitehurstLicensed Assistant
Glenn EstersonVice President
Charles DeHartAssociate
Michael EscobedoAssociate
Brokerage Team
NON-ENDORSEMENT & DISCALAIMER NOTICE
CONFIDENTIALITY & DISCLAIMER
The information contained in this marketing brochure is proprietary and strictly confidential. It is intended to be reviewed by the party receiving itfrom Marcus & Millichap. This marketing brochure has been prepared to provide summarized, unverified information to prospective purchasers, andto establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough duediligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income orexpenses for the subject property, the future projected financial performance of the property, the size and square footage of the property andimprovements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with state and Federal regulations, thephysical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions tocontinue its occupancy of the subject property. The information contained in this marketing brochure has been obtained from sources we believe tobe reliable, however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichapconducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness ofthe information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is aservice mark of Marcus & Millichap Investment Services, Inc.@2018 Marcus & Millichap, All rights reserved.
NON-ENDORSERMENT NOTICE
Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. Thepresence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said occupation ofMarcus & Millichap, its affiliates or subsidiaries, and any agent, product, service, or commercial listing of Marcus & Millichap, and is solely intended forthe purpose of providing tenant lease information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLYPLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS
OFFICES THROUGHOUT THE U.S. AND CANADA
www.marcusmillichap.com