a 75-site manufactured home community investment … ri… · (inventory homes/notes included) 46...
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A 7 5 - S I T E M A N U F A C T U R E D H O M E C O M M U N I T Y I N V E S T M E N T O F F E R I N G
B O U L D E R R I D G E M H C4 3 7 0 P I N G R E E S T .A L L E N D A L E , M I 4 9 4 0 1
F o r a v i d e o t o u r o f t h e p r o p e r t y , g o t o : h t t p : / / y o u t u . b e / J B A k V X s I K R 0
Location 4370 Pingree St.
Allendale, MI 49401
County Ottawa County
Price $1,550,000
29 Occupied Developed Sites $1,154,760
(Inventory homes/notes included)
46 Vacant Developed Sites $230,000
Undeveloped Land $165,240
Year Completed 2000
Sites 75 sites
Land Size 50.58 acres
Developed Land 23.04 acres
Undeveloped Land 27.54 acres
Occupancy 52% (September 2011)
Avg Land Lease Rents $367 (Trash included)
Roads Asphalt
Home Inventory 15 (2 additional new homes being installed)
Home Notes 1
Utility System
Sewer Allendale Township
(Master metered to HOA)
Water Allendale Township
(Submetered to Tenants)
Electricity Consumers Energy
(Tenants billed directly)
Trash Republic Services (Included in rent)
Gas DTE Energy (Tenant billed directly)
75 Sites • 50.58 Acres Price $1,550,000 Terms All Cash
SITE INFORMATION
Attractive opportunity to acquire a recently developed, •low density, all age manufactured home community with possibility for expansion.21 of the 96 developed sites have been sold to residents •who pay HOA fees. The HOA fees are $75/site monthly.Expansion land totaling 27.54 acres is being offered along •with the developed sites.All sites contain new, high quality homes with some •stick built garages, giving the property a single family community feel.Amenities include a spacious clubhouse, an indoor •swimming pool, and a children’s playground.Located within the Allendale School District, one of the top •rated districts in the Grand Rapids area.
Boulder Ridge is conveniently located in Allendale, MI in •close proximity to HWY 45 (Lake Michigan Dr.) which leads to Grand Rapids 13 miles to the east.Just minutes from beautiful Lake Michigan, which lies 17 •miles to the west, and provides residents with easy access to beaches,fishing,campingandhiking.The Grand Rapids MSA has a population of nearly 775,000, •and boasted an unemployment rate of 8.6%, compared to the national average of 9.1% (August, 2011).Grand Rapids is home to nearly 90 international companies, •including 4 Fortune 100 companies and 4 additional firmson the Forbes magazine list of the Country’s largest private companies.Western Michigan has a regional network of over 20 public •universities and 6 regional community colleges. There are over 72,000 students enrolled in Grand Rapids alone.Allendale is home to Grand Valley State University with •an enrollment of over 24,500 students, and nearly 2,000 employees.
INVESTMENT HIGHLIGHTS
AREA HIGHLIGHTS
1 2
3
RENT COMPARABLES
1 Allendale Meadows 11400 Boyne Blvd., Allendale, MI 49401 352 73% $432 Trash $419
2 Knollwood Estates 4595 Knollwood Dr., Allendale, MI 49401 161 78% $393 Trash $380
3 Timberline Estates 260 Pin Oak Dr., Coopersville, MI 49404 296 78% $417 Trash $404
Submarket Average 270 76% $419 $406
Rent Rent IncludesAddress Sites Occupancy
52%Boulder Ridge 754370 Pingree St., Allendale, MI 49401
RENT COMPARABLES
$367 Trash $354
Subject Property Adjusted Rent#
INCOME SEPT ‘11 T-9 ACTUALS CURRENT PROFORMA PER SITE STABILIZED PROFORMA PER SITE
GROSS SCHEDULED RENT1 $125,141 $330,300 $4,404 $330,300 $4,404Less: Vacancy 0 $190,748 $2,543 $33,030 $440
Less: Bad Debt 0 $3,303 $44 0 0
TOTAL RENTAL INCOME $125,141 $136,249 $1,817 $297,270 $3,964Plus: Other Income2 $8,180 $8,426 $112 $10,953 $146
Plus: Lease Operations $65,931 $78,709 $1,049 $102,322 $1,364
Plus: HOA Operations3 ($49,517) ($51,003) ($680) ($66,304) ($884)
TOTAL OTHER INCOME $24,594 $36,132 $482 $46,972 $626EFFECTIVE GROSS INCOME $149,736 $172,381 $2,298 $344,242 $4,590OPERATING EXPENSES SEPT ‘11 T-9 ACTUALS CURRENT PROFORMA PER SITE STABILIZED PROFORMA PER SITE
Payroll 21,193 22,500 300 26,250 350
Administrative 8,939 7,500 100 9,375 125
Marketing 1,493 750 10 750 10
TOTAL VARIABLE EXPENSES $31,625 $30,750 $410 $36,375 $485 Taxes4 31,253 54,227 723 54,227 723
TOTAL OPERATING $62,879 $84,977 $1,133 $90,602 $1,208NET OPERATING INCOME $86,857 $87,403 $1,165 $253,639 $3,382
PROFORMA
1 Current proforma GSR grown 0% from the site mix2 Other Income grown 3% from Sept ‘11 T-93 HOA operations include property expenses such as insurance and utilities4 Proforma Taxes = 100% of price x 2010 tax rate
Local Allendale Housing Cost Comparison
Type Price Int. Rate* Amort.*Montly
P&IMonthly
Taxes
Monthly Home Rent
Monthly Site Rent
Monthly Total
Down Payment
DW Lease to Own in Boulder Ridge - - - - - $545 $354 $899 $899
SW Lease to Own in Boulder Ridge - - - - - $345 $354 $699 $699
DW condo sale in Boulder Ridge $100,000 7.00% 30 $665 $114 - $0 $780 $5,000
2011 Median Single Family Home Price $160,546 7.00% 30 $1,015 $201 - - $1,215 $8,027
Notes:
2. PMI insurance, homeowner’s insurance, closing costs were disregarded for purposes of simplicity
3. Home Taxes are assumed to be 1.5% of the home value
4. Average home price in subject is estimate based on age and quality of park
5. Lease to Own Prices based on current rates in subject
6. 2011 Estimated Median All Owner Occupied Housing Value w/ in 5-mile radius
* Estimates based on current market
1. Down payment assumption is 5%
We believe that Boulder Ridge is properly positioned to be filled using two strategies. One is that the community owner can retain ownership of homes they put in the community and offer homes to residents on a lease to own basis ($899 for DW/$699 for SW per month). The other strategy is for the community owner to sell homes with the land so that home owners can originate a more attractive loan ($665 per month). Both scenarios are presented below and compare favorably to what it would cost to buy a stick built single family home in the area ($1,215 per month).
LOCAL ALLENDALE HOUSING COST COMPARISON
GOODING ST
COOLIDGE ST
WILSON ST
CLEVELAND ST
ARTHUR ST
13 MILE RD
LAKE MICHIGAN DR
WERNER ST
FILLMORE ST
TAYLOR STBAUER RD
PORT SHELDON ST
NEW HOLLAND ST CHICAGO DR
44TH ST
32ND ST
S MO
ORLA
ND
RD
BLACKM
ER RD
55TH AVE
48TH AVE
24TH AVE
8TH AVE
10 MILE RD
FULTON ST
BELDING RD
CANNONSBURG RD
LEONARD ST
196
196
96
96
96
37
37
37
44
44
44
11
6 6
121
45
131
131
AMANPARK
GRAND VALLEYSTATE UNIVERSITY
MILLENNIUMPARK
GERALD R FORDINTERNATIONAL
AIRPORT
CANNONSBURGSTATE GAME AREA
WELLSAIRPORT
AIRPORTSPARTA
GRAND RAPIDS
WALKER
ALLENDALECHARTER
TOWNSHIP
WYOMING
KENTWOOD
COOPERSVILLE
SPARTA
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 Apartment Realty Advisors (ARA) 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, 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.
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PRESENTED BY
ARA National Manufactured Housing Group
FOR MORE INFORMATIONON THIS PROPERTY
PLEASE CONTACT
NATIONAL MANUFACTURED HOUSING GROUP:
Todd Fletcher 512.637.1236
Andrew Shih 512.637.1219
901 S. MoPac Expressway Barton Oaks Plaza II, Suite 275
Austin, Texas 78746 Tel: 512.637.1237
Fax: 512.637.1740
F o r a v i d e o t o u r o f t h e p r o p e r t y , g o t o : h t t p : / / y o u t u . b e / J B A k V X s I K R 0