OWENBY MANUFACTURED HOME COMMUNITY...Owenby Manufactured Home Community in Marietta (Cobb County), Georgia. This park, excellently situated in a rare, Atlanta MSA location, is in close

OWENBYMANUFACTURED HOME COMMUNITY

AUGUST 2017

CONFIDENTIAL EXECUTIVE OFFERING MEMORANDUM

MARIETTA, GA 30008

MAXWELL BAKER/404-442-2807/[email protected]

3641 REED DRIVE

MAXWELL BAKER/404-442-2807/[email protected]

TABLE OF CONTENTSOFFERING OVERVIEW• Welcome Letter

OWENBYMANUFACTURED HOME COMMUNITY • Executive Summary• Key Considerations• Rent Roll• Investment Highlights• Property Description• Financial Overview• Aerial Map• Rent Comps• Demographics• Location Map

ADVISOR BIOS

01

03

02

WELCOME LETTERINVESTMENT OPPORTUNITYWe welcome the opportunity to provide you with our in depth overview of Owenby Manufactured Home Community and its position in this current market. We will give you our honest, no holds barred assessment of this 25-unit community with one single family home so you have a better understanding of how this investment currently performs, its investment potential, and what it takes to get it there.

As leading specialists in the industry, our primary interest is to give you a clear understanding of the driving forces in the current marketplace. Our evaluation is based on 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, If you have further interest, please contact us to discuss any questions you may have, as well as schedule a tour of the property.

GUIDELINES

Offers must be presented in writing and include:

• Price

• Source of capital and relevant experience

• Proposed schedule of due diligence and closing

• Amount of earnest money

• List of contingencies including committee approvals, possible 1031 exchanges, etc.

OFFERING OVERVIEW | 3MAXWELL BAKER/404-442-2807/[email protected]

PROPERTY ADDRESS: 3641 Reed DriveMarietta, GA 30008

PROPERTY TYPE: Manufactured Home Community

TOTAL LOTS:20 lots, 5 additional lots that need improvement,1 single family home

VACANT PADS: 1

TOTAL POH: 0

LOT RENT: $310 per month

ACRES: ± 2.45

PRICE PER PAD: $18,461

EXECUTIVE SUMMARY

INVESTMENT OPPORTUNITY

Lee & Associates and The MHP Broker are pleased to offer the sale of Owenby Manufactured Home Community in Marietta (Cobb County), Georgia.

This park, excellently situated in a rare, Atlanta MSA location, is in close proximity to all amenities along a main artery into the Atlanta city limits. Owneby MHP boosts a stabilized performance with up-side in well below market rents. The park has 20 lots with 19 lot rent only tenants each paying $310 a month and one vacant lot. There are also five additional lots that need full infrastructure. In addition, the property has a single family home (SFH) that is consistently rented and in good condition.

The park has city sewer and city water that is not sub-metered and is included in the rent, offering a great opportunity to sub-meter the units.

The market lot rent in the area is slightly above $350 plus water. The SFH is separately metered. The tenant-owned units are in fair shape with the majority of them being 1980s and 1990s models. The park is NOT in a flood zone. The roads are paved and in fair condition, but may need some work as our offering price suggests.

Owenby MHP is being offered at a 9.11% CAP on current lot rent only using a 41% expense ratio. At full price using a conventional loan (6%, 20 AM, 25% down), the overall Total Return for the park is ±24%.

OWENBY MANUFACTURED HOME COMMUNITY | 4MAXWELL BAKER/404-442-2807/[email protected]

KEY INVESTMENT CONSIDERATIONSPROPERTY ADDRE

# Pads: 26 PPP= $18,461.54 OWNERS BUYERSBased on Purchase Price of List Price: $480,000 Current YEAR 1

$ 480,000 $ 480,000

Base RentPad Rents 74,955$ 74,955$ Vacant Pads at Market Rents 6 Lots 22,320$ 22,320$

Gross Potential Rent Income (GPRI) 97,275$ 97,275$ GROSS POTENTIAL INCOME (GPI) 97,275$ 97,275$

VACANCY 24.00% 22,320$ 22,320$

EFFECTIVE GROSS INCOME (EGI) 74,955$ 74,955$ EXPENSES:

R/E TAX 113.46$ 2,950$ 3,250$ INSURANCE 90.35$ 2,349$ 1,500$

PAYROLL -$ MANAGEMENT 225.00$ 5,850$ 5,622$ MAINTENANCE 37.92$ 986$ 1,500$

WATER Included, City 334.88$ 8,707$ 8,750$ SEWER -$ TRASH -$ -$

ELECTRICTY 31.73$ 825$ 850$ LANDSCAPE 241.62$ 6,282$ 6,500$

SECURITY -$ ADVERTISING -$

LEGAL 28.85$ 750$ 500$ LIC / PERMITS 5.77$ 150$ 250$

TRAVEL -$ -$ OTHER House Repairs 96.15$ 2,500$ 2,500$

Per PadTOTAL EXPENSES $1,205.73 31,349$ 31,222$

NOI------------------------------------------------------------------------- 43,606$ 43,733$

INCOME & EXPENSE REPORT

Owenby MHP - 3641 Reed Dr., Marietta GAOPERATING CASH FLOW BEFORE DEBT 43,606$ 43,733$

Interest Rate Amort. Years Down PaymentDEBT SERVICE #1 6.000% 20 25% 30,950$ 30,950$ DEBT SERVICE #2 -$ TOTAL DEBT SERVICE------------------------------------------------------------ 30,950$ 30,950$

ADDITIONAL INCOME - Water 6,530$ 6,530$ ADDITIONAL INCOME - POH -$ CASH FLOW------------------------------------------------------------------- 19,186$ 19,314$

PRINCIPAL REDUCTION 9,611$ 9,611$ 28,798$ 28,925$

CAP RATE (NOI/PP) 9.08% 9.11%COCR (CF/DP) 16.0% 16.1%EXP RATIO (EXP/EGI) 41.8% 41.7%TOTAL RETURN (CF+PRIN / DP) 24.0% 24.1%PRINCIPAL REDUCTION 9,611$ 9,611$ DCR (NOI/DS) 1.41 1.41PRICE PER PAD 18,461.54$ 18,461.54$

TOTAL PRE-TAX CASH FLOW


RENT ROLL

26 6,575$ 6,575$ 78,900$ 93,000.00$ Unit Park Unit Address Income TypeLot Rent Rent Annual Rent Market Rent

1 Owenby MHP Lot Rent 310$ 310.00$ 3,720$ 4,200$ 2 Owenby MHP Lot Rent 310$ 310.00$ 3,720$ 4,200$ 3 Owenby MHP Lot Rent 310$ 310.00$ 3,720$ 4,200$ 4 Owenby MHP No Infrastucture Vacant Lot -$ -$ 5 Owenby MHP No Infrastucture Vacant Lot -$ -$ 6 Owenby MHP No Infrastucture Vacant Lot -$ -$ 7 Owenby MHP Lot Rent 310$ 310.00$ 3,720$ 4,200$ 8 Owenby MHP Lot Rent 310$ 310.00$ 3,720$ 4,200$ 9 Owenby MHP Lot Rent 310$ 310.00$ 3,720$ 4,200$

10 Owenby MHP Lot Rent 310$ 310.00$ 3,720$ 4,200$ 11 Owenby MHP Lot Rent 310$ 310.00$ 3,720$ 4,200$ 12 Owenby MHP Lot Rent 245$ 245.00$ 2,940$ 4,200$ 13 Owenby MHP Lot Rent 310$ 310.00$ 3,720$ 4,200$ 14 Owenby MHP Lot Rent 310$ 310.00$ 3,720$ 4,200$ 15 Owenby MHP Lot Rent 310$ 310.00$ 3,720$ 4,200$ 16 Owenby MHP Lot Rent 310$ 310.00$ 3,720$ 4,200$ 17 Owenby MHP Lot Rent 310$ 310.00$ 3,720$ 4,200$ 18 Owenby MHP Lot Rent 310$ 310.00$ 3,720$ 4,200$ 19 Owenby MHP Lot Rent 310$ 310.00$ 3,720$ 4,200$ 20 Owenby MHP Lot Rent 310$ 310.00$ 3,720$ 4,200$ 21 Owenby MHP Lot Rent 310$ 310.00$ 3,720$ 4,200$ 22 Owenby MHP No Infrastucture Vacant Lot -$ -$ -$ 23 Owenby MHP No Infrastucture Vacant Lot -$ -$ 24 Owenby MHP Vacant Lot -$ -$ 4,200$ 25 Owenby MHP Lot Rent 310$ 310.00$ 3,720$ 4,200$ 26 Owenby MHP 3641 House House 750$ 750.00$ 9,000$ 9,000$


INVESTMENT HIGHLIGHTS

• Stabilized MHP with Upside!• Strong Market Demographics• Below Market Rents! Current $310 / Market ±$350• 9.11% CAP on Lot Rent with 41% Expense Ratio• 24% Total Return• City Water and Sewer Included in Rent• Price Per Lot = $18,461

• Roads: Potholes and black top• Landscaping: Needs to be cleaned up• Five lots with no infrastructure

KNOWN ISSUES


THE OFFERING

PROPERTY ADDRESS: 3641 Reed DriveMarietta, GA 30008

COUNTY: Cobb

PARCEL NUMBER: 19084800040

SITE DESCRIPTION

# OF PADS: 25 lots and 1 single family home

TOTAL LAND AREA: ± 2.45 acres

ZONING: NS

LEASE OPTION HOMES: 0

MECHANICAL

WATER: CITY WATER

ELECTRIC: 100-200 AMP

PROPERTY DESCRIPTION


LOT RENT: $310 PER MONTH

POH (NOT INCLUDING LOT RENT): N/A

TOTAL PRICE: $480,000

DOWN PAYMENT: 25% / $120,000

TOTAL PADS: 25 lots and 1 single family home

PRICE PER PAD: $18,461

PARCEL SIZE: ± 2.45 ACRES

FINANCIAL OVERVIEW


AERIAL


COMPETITIVE RENT COMPSPHOTO PARK NAME # OF PADS LOT RENT COMP DATE

OWENBY MHPMARIETTA, GA

25 $310 2017

1EDEN GATE MHPMARIETTA, GA

24 $350 2017

2ORANGE ACRES MHPMARIETTA, GA

44 $350 2017


COMPETITIVE RENT COMPSPHOTO PARK NAME # OF PADS LOT RENT COMP DATE

3GADDIS PROPERTIES TRAILERRENTAL SERVICEMARIETTA, GA

30 $350 2017

4FAIR OAKS MHPMARIETTA, GA

47 $360 2017


DEMOGRAPHICS1 MILE 3 MILES 5 MILES

POPULATION

2022 PROJECTION 10,774 72,903 199,635

2017 ESTIMATE 10,071 67,304 184,827

2010 CENSUS POPULATION 9,103 61,305 168,315

HOUSEHOLDS

2022 HH PROJECTION 4,119 26,149 71,301

2017 HH ESTIMATE 3,877 24,351 66,584

2010 HH CENSUS 3,465 21,983 59,697

2017 ESTIMATED POPULATION BY RACE

WHITE 35.3% 40.3% 45.2%

BLACK OR AFRICAN AMERICAN 52.3% 43.4% 39.3%

OTHER 12.4% 16.3% 15.5%

INCOME

2017 ESTIMATED AVERAGE HH INCOME $71,350 $77,911 $76,611

2017 ESTIMATED MEDIAN HH INCOME $58,242 $65,738 $65,550

2017 ESTIMATED PER CAPITA INCOME $27,615 $28,243 $27,717

AGE

MEDIAN AGE 36.7 36.4 35.9


LOCATION, SCHOOLS, WALMART & MHP SUPPLY


Maxwell R. Baker is a commercial real estate broker that specializes in purchasing and selling mobile home communitiesin the Southeast. His family has been involved with mobile home parks for more than 15 years, and he has been a part ofmanagement, rehabilitation, and disposing mobile home parks since his family purchased their first park.

Last Year he completed approximately 80% of all the Georgia transactions and is currently expanding into other statesin the Southeast. Max's core competencies include structuring complicated transactions, owner financing, research andoutsourcing, and his "deal-making" capabilities.

A team of Virtual Assistants in Guatemala, Philippines, and India do all of MaxÕs rent comparables, sales comparables.With his team of brokers, Max has accomplished deals in Georgia, Tennessee, Alabama, North Carolina, South Carolina,and Florida. He has been through many transactions and understands complicated deal structures, owner financing,research, and outsourcing.

¥ Georgia State University - B.A. Real Estate¥ United States Marine Corps

¥ Atlanta Commercial Board of Realtors¥ Real Estate Broker - Georgia¥ Georgia Manufactured Housing Association (GMHA) member¥ Southeast Community Owners (SECO) member

Biography

Education

Memberships & Associations

3500 Lenox RoadSuite 200Atlanta, GA 30326

T [email protected]

Partial Client ListAffordable Communities Group, LLCBeal BankColony CapitalHartman Wright Group, LLCMarket Street CapitalAffordable Housing Communities Inc. Capital Square Holdings LLCThe Reach GroupMidland Loan Services

PrincipalMAXWELL BAKER

ADVISOR BIO // MOBILE HOME PARKS

ADVISOR BIO - MAXWELL BAKER

ADVISOR BIOS| 15MAXWELL BAKER/404-442-2807/[email protected]

Glenn Esterson is a Senior Director with Lee & Associates, specializing in investment grade mobile home communities.During his fifteen years in the commercial real estate business, Mr. Esterson has successfully owned and operated mobilehome parks as well as assisting his clients in the sales, leasing and management of mobile home communities throughoutthe southeastern U.S. markets.

Early in his career, Mr. Esterson was working on apartment sales, condo-conversions and property management. Fromthere, Mr. Esterson transitioned into investment sales of multi-tenanted small business parks throughout the Southeast andmid-Atlantic. He and his team has transacted in nearly every southeastern state and holds multiple real estate licenses.

Mr. Esterson works exclusively with private investors as their primary real estate investment advisor for their acquisition anddisposition needs. Mr. Esterson provides clients with expertise in asset management, portfolio analysis, site selection, leaseadvisory and consulting. Mr. Esterson has executed over 200 sale or lease transactions over his career with a transactionalvolume in excess of $100 million.

¥ 2016-Present Lee & Associates, Atlanta - Senior Director Mobile Home Communities¥ 2013-2016 Marcus & Millichap, National Office & Industrial Properties Group¥ 2003-2013 Esterson Management Solutions, Inc. Ð Founding Member¥ 2001-2005 American Commercial Properties, Director of Multi-Family Investment

¥ Sierra Nevada CollegeBachelor of Arts

Profile

Experience

Education

3500 Lenox RoadSuite 200Atlanta, GA 30326

T 404.442.2825C [email protected]

Senior DirectorGLENN ESTERSON

ADVISOR BIO // MOBILE HOME PARKS

ADVISOR BIO - GLENN ESTERSON

ADVISOR BIOS| 16MAXWELL BAKER/404-442-2807/[email protected]

The information contained in this Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Lee & Associates and should not be made available to any other person or entity without the written consent of Lee & Associates. 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. Lee & Associates 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 we believe to be reliable; however, Lee & Associates has not verified, and will not verify, any of the information contained herein, nor has Lee & Associates 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.

NON-ENDORSEMENT NOTICELee & Associates 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 Lee & Associates, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Lee & Associates, and is solely included for the purpose of providing tenant lessee information.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE LEE & ASSOCIATES AGENT FOR MORE DETAILS.

EXCLUSIVELY LISTEDBIRMINAAL

MAXWELL BAKER / PRINCIPALPHONE: 404.442.2807 | [email protected] & ASSOCIATES | ATLANTA 3500 LENOX ROAD, SUITE 200 | ATLANTA, GA 30326

OWENBY MANUFACTURED HOME COMMUNITY...Owenby Manufactured Home Community in Marietta (Cobb County), Georgia. This park, excellently situated in a rare, Atlanta MSA location, is in close

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