desert wren mobile home park keller williams …€¦ · 04 financial analysis income & expense...
TRANSCRIPT
DESERT WREN MOBILE HOME PARK
OFFER
ING
MEM
OR
AND
UM
KELLER WILLIAMS SOUTHERN ARIZONA100 W 25TH ST, YUMA AZ 85364
Desert Wren Mobile Home ParkCONTENTS
Marketed By
Stratton Group Hunter PetersonMulti-Family Specialist
855.596.7976 (520) 425-6415License # AZ: SA674158000
[email protected] [email protected]
We obtained the following information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or otherconditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent the current or future performance of the property. You and your tax and legal advisors should conduct yourown investigation of the property and transaction.
01 Executive Summary Investment Summary 5 Location Summary 6
02 Property Description Property Features 8 Aerial Map 9 Parcel Map 10
03 Rent Roll Rent Roll Details 12
04 Financial Analysis Income & Expense Analysis 14 Cash Flow Analysis 15
05 Demographics Demographics 18 Demographic Charts 20
The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Stratton Group and it shouldnot be made available to any other person or entity without the written consent of Stratton Group. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees thatrecipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property, please promptly return this offering memorandum to Stratton Group.This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest inthe subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Stratton Group has not made any investigation, and makes no warranty or representation withrespect 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 presenceor absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or financial condition orbusiness prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe reliable; however, Stratton Group has not verified, and will not verify, any of the informationcontained herein, nor has Stratton Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of theinformation provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses ofinvestigating the subject property.
Desert Wren Mobile Home Park Confidentiality and Disclaimer | 03
CONFIDENTIALITY AND DISCLAIMER
PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONTACT STRATTON GROUP FOR MORE DETAILS.Copyright © 2020 CREOP, LLC. All Rights Reserved.
Desert W
ren Mobile H
ome Park | Executive Sum
mary
Executive Summary
DES
ERT
WR
EN M
OB
ILE
HO
ME
PAR
K
01
......
......
......
......
......
......
......
......
Investment Summary
Location Summary
Desert Wren Mobile Home Park Investment Summary | 05
OFFERING SUMMARYADDRESS 100 W 25th St
Yuma AZ 85364COUNTY Yuma CountyBUILDING SF 3,800LAND SF 80,244NUMBER OF UNITS 24YEAR BUILT 1955# OF PARCELS 1APN 695-03-024
FINANCIAL SUMMARYOFFERING PRICE $675,000PRICE PSF $177.63PRICE PER UNIT $28,125OCCUPANCY 100.00 %NOI (CURRENT) $39,350NOI (Pro Forma) $45,225CAP RATE (CURRENT) 5.83 %CAP RATE (Pro Forma) 6.70 %
DEMOGRAPHICS 2 MILE 4 MILE 6 MILE2019 Population 40,216 94,355 107,4772019 Median HH Income $45,519 $46,526 $48,2592019 Average HH Income $57,925 $59,363 $61,004
24 Spaces - 1 Vacant
96% Occupied
All City Utilities
24 mobile home spaces in Yuma, Arizona - all tenant owned with onevacancy. Zoned B-2, the parcel is set over 1.8 acres and the park wasoriginally built in 1955. Lot rents range from $270-320 and average ~$282.
All utilities are serviced by the City of Yuma; Water/Sewer is Master-Metered and included in the lot rent; Electric is Sub-Metered & directlybilled to the tenants; there is no gas service.
Desert Wren Mobile Home Park Location Summary | 06
Desert Wren Mobile Home Park is located in Yuma, Arizona15 minutes north of Yuma International Airport and 5minutes east of Yuma Regional Medical Center. Theintersection of Interstate-8 & US-95 only 5 minutes away.The Arizona-California border is 13 minutes west and headsdown to the Mexico borer at Los Algodones.
The parks is centrally located within the city and surroundedby several business centers on all fronts. There are threeWalmart Supercenters nearby, one only 7 minutes west, thesecond is just 10 minutes in the opposite direction, east, andthe third is 18 minutes further east. Home Depot & Sam'sClub are both less than 10 minutes away and there are 2auto dealerships (Chevrolet & Toyota) just 5 minutes south.
Several mobile home parks in the vicinity, as Yuma is ahigh-demand travel area between Tucson/Phoenix and SanDiego. Linda Mesa & Gill's Mobile Home Park are across thestreet, next to Yuma Home Park and Torch Lite Lodge,which is across the street from Orange Trailer Park. Othernearby parks also include Tumbleweed Trailer Park, DesertPalms Mobile Estates, Country Club Mobile Home Park,Melody Mobile Court, Town & Country Mobile Home Park,Westward Village, Mesa Terrace, Wagon Wheel Estates andmany, many others. Competition may be high, but so isoccupancy (only 1 vacancy for Desert Wren).
Regional Map
Locator Map
Desert W
ren Mobile H
ome Park | Property D
escription
Property Description
DES
ERT
WR
EN M
OB
ILE
HO
ME
PAR
K
02
......
......
......
......
......
......
......
......
Property Features
Aerial Map
Parcel Map
Additional Maps
Desert Wren Mobile Home Park Property Features | 08
PROPERTY FEATURESNUMBER OF UNITS 24BUILDING SF 3,800LAND SF 80,244LAND ACRES 1.84YEAR BUILT 1955# OF PARCELS 1PARCEL NUMBER 695-03-024ZONING TYPE B-2NO. VACANCIES 1OCCUPANCY 96%
LOT RENTCURRENT SINGLE-WIDE RENT $282.00MARKET SINGLE-WIDE RENT $290.00
UTILITIESCITY WATER MASTER-METERED Included in RentCITY SEWER MASTER-METERED Included in RentCITY ELECTRIC SUB-METERED Direct-BilledNO GAS Not Hooked UpTRASH (PRIVATE SERVICE) Included in Rent
Desert Wren Mobile Home Park Aerial Map | 09
Desert Wren Mobile Home Park Parcel Map | 10
Desert W
ren Mobile H
ome Park | R
ent Roll
Rent Roll
DES
ERT
WR
EN M
OB
ILE
HO
ME
PAR
K
03
......
......
......
......
......
......
......
......
Rent Roll Details
Desert Wren Mobile Home Park
Rent Roll
Unit Unit Mix Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Total '19
1 Single-Wide 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 3,240$ 2 Single-Wide 300$ 300$ 300$ 300$ 300$ 300$ 300$ 300$ 300$ 300$ 300$ 300$ 3,600$ 3 Single-Wide 300$ 300$ 300$ 300$ 300$ 300$ 300$ 300$ 300$ 300$ 300$ 300$ 3,600$ 4 Single-Wide 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 3,240$ 5 Single-Wide 300$ 300$ 300$ 300$ 300$ 300$ 300$ 300$ 300$ 300$ 300$ 300$ 3,600$ 6 Single-Wide 280$ 280$ 280$ 280$ 280$ 280$ 280$ 280$ 280$ 280$ 280$ 280$ 3,360$ 7 Single-Wide 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 3,240$ 8 Single-Wide 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 3,240$ 9 Single-Wide 300$ 300$ 300$ 300$ 300$ 300$ 300$ 300$ 300$ 300$ 300$ 300$ 3,600$
10 Single-Wide 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 3,240$ 11 Single-Wide 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 3,240$ 12 Single-Wide 280$ 280$ 280$ 280$ 280$ 280$ 280$ 280$ 280$ 280$ 280$ 280$ 3,360$ 13 Single-Wide 290$ 280$ 280$ 280$ 290$ 290$ 290$ 290$ 290$ 290$ 290$ 290$ 3,450$ 14 Single-Wide 320$ 320$ 320$ 320$ 320$ 320$ 320$ 320$ 320$ 320$ 320$ 320$ 3,840$ 15 Single-Wide 280$ 280$ 280$ 280$ 280$ 280$ 280$ 280$ 280$ 280$ 280$ 280$ 3,360$ 16 Single-Wide 280$ 280$ 280$ 280$ 280$ 280$ 280$ 280$ 280$ 280$ 280$ 280$ 3,360$ 17 Single-Wide 300$ 300$ 290$ 290$ 290$ 290$ 290$ 290$ 290$ 290$ 290$ 290$ 3,500$ 18 Single-Wide 300$ 300$ 300$ 300$ 300$ 300$ 300$ 300$ 300$ 300$ 300$ 300$ 3,600$ 19 Single-Wide 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 3,240$ 20 Single-Wide 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 3,240$ 21 Single-Wide 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 3,240$ 22 Single-Wide 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 3,240$ 23 Single-Wide 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 3,240$ 24 Single-Wide 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 270$ 3,240$ 24 6,770$ 6,760$ 6,750$ 6,750$ 6,760$ 6,760$ 6,760$ 6,760$ 6,760$ 6,760$ 6,760$ 6,760$ 81,110$
Desert Wren Mobile Home Park Rent Roll Details | 12
Desert W
ren Mobile H
ome Park | Financial A
nalysis
Financial Analysis
DES
ERT
WR
EN M
OB
ILE
HO
ME
PAR
K
04
......
......
......
......
......
......
......
......
Income & Expense
Multiyear Cash Flow Projections
Desert Wren Mobile Home Park Income & Expense Analysis | 14
INCOME CURRENT PRO FORMA
Gross Potential Rent $81,110 $83,520
Past Due Rents $21,180 $23,708
Gross Potential Income $102,290 $107,228
Less: Concessions $27,675 $25,000
Effective Gross Income $74,615 $82,228
Less: Expenses $35,265 $37,003
Net Operating Income $39,350 $45,225
EXPENSES CURRENT PRO FORMA
Real Estate Taxes $164 $3,935 $172 $4,121
Insurance $104 $2,500 $115 $2,755
Management Fee $311 $7,461 $343 $8,223
Repairs & Maintenance $6 $140 $6 $154
City of Yuma $622 $14,930 $625 $15,000
Trash $251 $6,032 $260 $6,250
Other Expenses $11 $267 $21 $500
Total Operating Expense $1,469 $35,265 $1,542 $37,003
Expense / SF $9.28 $9.73
% of EGI 47.26 % 45.00 %
Per Unit Per Unit
REVENUE ALLOCATION
DISTRIBUTION OF EXPENSES
Desert Wren Mobile Home Park Cash Flow Analysis | 15
CASH FLOWCalendar Year CURRENT Pro Forma Year 3 Year 4Gross Potential RevenueGross Rental Income $81,110 $83,520 $85,190 $86,894Past Due Rents $21,180 $23,708 $24,182 $24,666Gross Potential Income $102,290 $107,228 $109,373 $111,560Concessions $27,675 $25,000 $0 $0Effective Gross Income $74,615 $82,228 $109,373 $111,560Operating ExpensesReal Estate Taxes $3,935 $4,121 $4,203 $4,287Insurance $2,500 $2,755 $2,810 $2,866Management Fee $7,461 $8,223 $8,223 $8,223Repairs & Maintenance $140 $154 $157 $160City of Yuma $14,930 $15,000 $15,300 $15,606Trash $6,032 $6,250 $6,375 $6,503Other Expenses $267 $500 $510 $520Total Operating Expense $35,265 $37,003 $37,579 $38,166Net Operating Income $39,350 $45,225 $71,794 $73,394
Effective Gross Income vs Operating Expenses Cash Flow
Desert Wren Mobile Home Park Cash Flow Analysis | 16
Calendar Year CURRENT Pro Forma Year 3 Year 4Financial MetricsCash on Cash Return b/t 5.83 % 6.70 % 10.64 % 10.87 %CAP Rate 5.83 % 6.70 % 10.64 % 10.87 %Operating Expense Ratio 47.26 % 45.00 % 34.35 % 34.21 %Breakeven Ratio 47.26 % 45.00 % 34.36 % 34.21 %Price / SF $177.63 $177.63 $177.63 $177.63Price / Unit $28,125 $28,125 $28,125 $28,125Income / SF $19.63 $21.63 $28.78 $29.35Expense / SF $9.28 $9.73 $9.88 $10.04
Desert W
ren Mobile H
ome Park | D
emographics
Demographics
DES
ERT
WR
EN M
OB
ILE
HO
ME
PAR
K
05
......
......
......
......
......
......
......
......
Demographic Details
Demographic Charts
Desert Wren Mobile Home Park Demographics | 18
POPULATION 2 MILE 4 MILE 6 MILE
2000 Population 41,797 88,640 98,647
2010 Population 39,219 90,276 102,915
2019 Population 40,216 94,355 107,477
2024 Population 41,032 96,766 110,502
2019 African American 1,227 2,990 3,211
2019 American Indian 765 1,933 2,886
2019 Asian 693 1,787 1,931
2019 Hispanic 25,159 62,403 69,322
2019 Other Race 8,663 22,676 25,039
2019 White 26,834 60,230 69,056
2019 Multiracial 1,938 4,523 5,106
2019-2024: Population: Growth Rate 2.00 % 2.55 % 2.80 %
2019 HOUSEHOLD INCOME 2 MILE 4 MILE 6 MILE
less than $15,000 1,927 4,257 4,699
$15,000-$24,999 2,226 4,441 4,916
$25,000-$34,999 1,595 3,374 3,748
$35,000-$49,999 2,143 4,267 4,800
$50,000-$74,999 3,411 7,007 7,904
$75,000-$99,999 1,280 2,869 3,414
$100,000-$149,999 1,599 3,529 4,245
$150,000-$199,999 362 820 1,084
$200,000 or greater 221 561 664
Median HH Income $45,519 $46,526 $48,259
Average HH Income $57,925 $59,363 $61,004
HOUSEHOLDS 2 MILE 4 MILE 6 MILE
2000 Total Housing 19,025 37,719 43,114
2010 Total Households 14,565 30,251 34,539
2019 Total Households 14,764 31,125 35,474
2024 Total Households 15,068 31,936 36,451
2019 Average Household Size 2.63 2.90 2.91
2000 Owner Occupied Housing 9,855 18,624 21,588
2000 Renter Occupied Housing 5,624 11,012 11,598
2019 Owner Occupied Housing 7,680 16,298 19,731
2019 Renter Occupied Housing 7,084 14,827 15,743
2019 Vacant Housing 3,080 7,011 9,111
2019 Total Housing 17,844 38,136 44,585
2024 Owner Occupied Housing 7,998 17,094 20,696
2024 Renter Occupied Housing 7,070 14,842 15,755
2024 Vacant Housing 3,294 7,493 9,710
2024 Total Housing 18,362 39,429 46,161
2019-2024: Households: Growth Rate 2.05 % 2.60 % 2.70 %
Source: esri
Desert Wren Mobile Home Park Demographics | 19
2019 POPULATION BY AGE 2 MILE 4 MILE 6 MILE
2019 Population Age 30-34 2,931 6,863 7,598
2019 Population Age 35-39 2,459 5,662 6,395
2019 Population Age 40-44 1,963 4,696 5,410
2019 Population Age 45-49 2,070 4,855 5,574
2019 Population Age 50-54 2,143 4,864 5,581
2019 Population Age 55-59 2,310 5,082 5,899
2019 Population Age 60-64 2,368 4,935 5,735
2019 Population Age 65-69 2,107 4,248 5,010
2019 Population Age 70-74 1,785 3,445 4,164
2019 Population Age 75-79 1,423 2,578 3,139
2019 Population Age 80-84 1,009 1,669 2,073
2019 Population Age 85+ 998 1,557 1,897
2019 Population Age 18+ 30,946 70,259 80,267
2019 Median Age 36 32 33
2019 INCOME BY AGE 2 MILE 4 MILE 6 MILE
Median Household Income 25-34 $47,150 $47,629 $48,943
Average Household Income 25-34 $57,556 $58,434 $59,408
Median Household Income 35-44 $53,875 $54,762 $56,309
Average Household Income 35-44 $66,476 $69,652 $71,783
Median Household Income 45-54 $56,018 $57,381 $58,774
Average Household Income 45-54 $68,805 $71,692 $73,801
Median Household Income 55-64 $52,769 $52,972 $53,649
Average Household Income 55-64 $63,798 $64,504 $66,160
Median Household Income 65-74 $41,256 $40,338 $42,044
Average Household Income 65-74 $55,125 $53,828 $55,461
Average Household Income 75+ $41,348 $38,855 $41,325
2024 POPULATION BY AGE 2 MILE 4 MILE 6 MILE
2024 Population Age 30-34 3,257 8,180 9,122
2024 Population Age 35-39 2,817 6,615 7,431
2024 Population Age 40-44 2,391 5,412 6,149
2024 Population Age 45-49 1,946 4,470 5,177
2024 Population Age 50-54 2,006 4,522 5,244
2024 Population Age 55-59 2,092 4,605 5,370
2024 Population Age 60-64 2,292 4,850 5,706
2024 Population Age 65-69 2,331 4,723 5,661
2024 Population Age 70-74 1,918 3,839 4,622
2024 Population Age 75-79 1,547 2,964 3,654
2024 Population Age 80-84 1,088 1,888 2,372
2024 Population Age 85+ 997 1,602 1,999
2024 Population Age 18+ 31,394 71,910 82,522
2024 Median Age 37 33 34
2024 INCOME BY AGE 2 MILE 4 MILE 6 MILE
Median Household Income 25-34 $52,332 $52,818 $53,549
Average Household Income 25-34 $65,350 $67,031 $68,058
Median Household Income 35-44 $59,019 $60,229 $62,068
Average Household Income 35-44 $75,683 $79,157 $81,253
Median Household Income 45-54 $61,648 $63,389 $65,468
Average Household Income 45-54 $78,542 $82,163 $84,899
Median Household Income 55-64 $57,152 $57,385 $58,590
Average Household Income 55-64 $73,276 $74,400 $76,562
Median Household Income 65-74 $48,864 $47,778 $50,145
Average Household Income 65-74 $63,667 $62,334 $64,339
Average Household Income 75+ $48,165 $45,233 $48,226
Desert Wren Mobile Home Park Demographic Charts | 20
2 Mile Radius 4 Mile Radius 6 Mile Radius
2019 Household Income
2 Mile Radius 4 Mile Radius 6 Mile Radius
2019 Population by Race
Desert Wren Mobile Home Park Demographic Charts | 21
2019 Household Occupancy - 2 Mile Radius
Average Income Median Income
2019 Household Income Average and Median
Desert Wren Mobile Home Park
Marketed By
Stratton Group Hunter PetersonMulti-Family Specialist
855.596.7976 (520) 425-6415License # AZ: SA674158000
[email protected] [email protected]
powered by CREOP