offering memorandum - loopnet...estate investment services of florida, inc. ("marcus &...

Offering Memorandum

1

N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Confidentiality and DisclaimerThe 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 Real

Estate Investment Services of Florida, Inc. ("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 we believe 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.

Non-Endorsement NoticeMarcus & 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.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.

PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

HAPPY HOLLOW MOBILE HOME & RV PARK

Lakeland, FL

ACT ID ZAA0250137

TABLE OF CONTENTS

SECTION

INVESTMENT OVERVIEW 01Offering Summary

Regional Map

Local Map

Aerial Photo

Site Plan

FINANCIAL ANALYSIS 02

Rent Roll Summary

Rent Roll Detail

Operating Statement

Notes

Pricing Detail

Acquisition Financing

Growth Rate Projections

Cash Flow

MARKET OVERVIEW 03

Market Analysis

Demographic Analysis



INVESTMENT

OVERVIEW

PROPERTY SUMMARY

PROPERTY SUMMARY

Property Happy Hollow MH & RV Park

Property Address 2620 Reynolds Road,

Lakeland, FL 33801

Zoning PD

SITE DESCRIPTION

Number of Spaces 20 Spaces

Year Built/Rehabbed 1972/2018

Rental Type 50% Park Owned / 50% Lot Rents

Lot Size (Acres) 2.54 Acre(s)

Density 7.87

Landscaping Mature

Topography Relatively Flat

UTILITIES

Potable Water City

Sewer Septic

OVERVIEW

Happy Hollow is a 20-space, all-age, mobile home and RV Park with 8

mobile homes in the front and 12 RV spaces in the back. The park

contains ten (10) park owned homes which are mostly sold on 5-year

rent to own contracts. Water and electric are provided by the City of

Lakeland and the septic sewer systems were all replaced in 2018. In

2017 the park received repaved roads, new fencing and signage,

cleaned up yard debris, updated landscaping, new electrical pedestals

in the RV section (various Lots), and 4 new RV's were purchased and

placed in the park. There is currently one mobile home under rehab (Lot

6) and a vacant lot (Lot 7) awaiting a brand new home. The Lot 6 rehab

is expected to be completed in March and the park is being sold with

the 1 vacant lot on Lot 7.


#

OFFERING SUMMARY

PROPERTY OVERVIEW

Happy Hollow is a 20-space, all-age, mobile home and RV

Park with 8 mobile homes in the front and 12 RV spaces in

the back. The park contains ten (10) park owned homes of

which six (6) are sold on 5-year rent to own contract. Water

and electric are provided by the City of Lakeland and the

septic sewer systems were all replaced in 2018. In 2017 the

park received repaved roads, new fencing and signage,

cleaned up yard debris, updated landscaping, new electrical

pedestals in the RV section (various Lots), and 4 new RV's

were purchased and placed in the park. There is currently

one mobile home under rehab (Lot 6) and a vacant lot (Lot 7)

awaiting a brand new home. The Lot 6 rehab is expected to

be completed in March and the park is being sold with the 1

vacant lot on Lot 7.

▪ On-Site Laundry Facilities

Property Amenities▪ Fully-Stabilized Mobile Home & RV Park

▪ Mix of Park Owned Homes (50%) and Resident Owned

Homes with Lot Rents

▪ Public Water and Septic Sewer Systems which were 100%

Replaced in 2018

▪ Paved Roads, New Fencing, Signage, Landscaping all

Rehabbed in 2017

INVESTMENT HIGHLIGHTS

PROPERTY OVERVIEW

PROPERTY OVERVIEW

▪ Fully-stabilized MH & RV Park

▪ Clean, well-kept park with and new paved roads, new

septic systems, new fencing, landscaping and signage

▪ City water service / Septic sewer service

▪ Located in South Lakeland within a major industrial /

warehouse employment center

▪ Very close to both the Polk Parkway and US 98

REGIONAL MAP


PROPERTY PHOTOS

LOCAL MAP


AERIAL PHOTO


Happy Hollow is a turn-key,

value-added investment

opportunity with high cash-flow

in-place

12


PROPERTY PHOTO

SITE PLAN



FINANCIAL

ANALYSIS

FINANCIAL ANALYSIS


RENT ROLL SUMMARY

# of Rental Average Monthly Average Monthly

Space Type Spaces Range Rent Income Rent Income

Single Wide - SW 7 $375 - $800 $375 $2,625 $564 $3,950

Double Wide - DW 1 $775 - $775 $375 $375 $800 $800

Totals/Weighted Averages 20 $350 $7,000 $500 $10,000

Gross Annualized Rents $84,000 $120,000

Current Potential

FINANCIAL ANALYSIS


RENT ROLL DETAIL

Current Site Current Home Total Current Scheduled Potential

Rent / Rent / Rent / Rent / Rent /

Space Space Type Month Month Month Month Month

1 Single Wide - SW $375 $200 $575 $575 $600

2 Single Wide - SW $375 $200 $575 $575 $600

3 Double Wide - DW $375 $400 $775 $775 $800

4 Single Wide - SW $375 N/A $375 $375 $400

5 Single Wide - SW $375 N/A $375 $375 $400

6 Single Wide - SW $375 $325 $700 $700 $725

7 Single Wide - SW $375 $425 $800 $800 $825

8 Single Wide - SW $375 N/A $375 $375 $400

9 RV - RV $375 N/A $375 $375 $375

10 RV - RV $300 N/A $300 $300 $375

11 RV - RV $300 $200 $500 $500 $375

12 RV - RV $375 N/A $375 $375 $375

13 RV - RV $350 $150 $500 $500 $550

14 RV - RV $350 $150 $500 $500 $550

15 RV - RV $350 N/A $350 $350 $375

16 RV - RV $300 N/A $300 $300 $375

17 RV - RV $300 N/A $300 $300 $375

18 RV - RV $350 $200 $550 $550 $575

19 RV - RV $350 $200 $550 $550 $575

20 RV - RV $300 N/A $300 $300 $375

Total $ 7,000 $ 2,4 50 $ 9 ,4 50 $ 9 ,4 50 $ 10,000

FINANCIAL ANALYSIS


PRICING DETAIL / OPERATING SUMMARY

Price $615,000

Down Payment $153,750 25%

Number of Spaces 20

Price Per Space $30,750

Spaces/Acre 8

Lot Size 2.54 Acres

Approx. Year Built 1972/2017

Occupancy 95%

Returns Takeover Year 1

CAP Rate 11.98% 12.48%

GRM 5.13 4.98

Cash-on-Cash 26.87% 28.88%

Debt Coverage Ratio 2.28 2.37

Financing 1st Loan

Loan Amount $461,250

Loan Type New

Interest Rate 5.00%

Amortization 25 Years

Year Due 2030

Loan information is subject to change. Contact your Marcus & Millichap Capital Corporation representative.

# of Spaces Space Type Current Rents Market Rents

7 $539 $564

1 $775 $800

12 $408 $438

0 $0 $0

IRR Year IRR Unlevered IRR Levered

5 22.95% 53.59%

7 20.46% 45.33%

10 18.39% 41.23%

Summary

Single Wide

Double Wide

RV

Operating Data

Income Takeover Year 1

Gross Scheduled Rent $120,000 $123,600

Less: Vacancy/Deductions (GPR) 5.0% $6,000 5.0% $6,180

Total Effective Rental Income $114,000 $117,420

Other Income $1,000 $1,000

Effective Gross Income $115,000 $118,420

Less: Expenses 35.9% $41,328 35.2% $41,657

Net Operating Income $73,672 $76,763

Cash Flow $73,672 $76,763

Debt Service $32,357 $32,357

Net Cash Flow After Debt Service 26.87% $41,315 28.88% $44,406

Principal Reduction $9,550 $10,039

Total Return 33.08% $50,865 35.41% $54,445

Expenses Takeover Year 1

Real Estate Taxes $6,166 $6,289

Insurance $716 $716

Utilities - Electric, Water & Sewer $13,539 $13,539

Trash Removal (T12) $1,507 $1,507

Repairs & Maintenance $6,000 $6,000

Landscaping $4,800 $4,800

Marketing & Advertising $500 $500

General & Administrative $1,200 $1,200

Total Expenses 29.94% $34,428 29.18% $34,551

Expenses/Space $1,721 $1,728

FINANCIAL ANALYSIS


NOTES

[1]Effective Gross budgets for a 5% vacancy factor; Park currently has two vacant lots including 1 mobile under rehab which will be completed and rented by

November 1st and another vacant lot which is awaiting a brand new home to be delivered

[2] Other income is for late fees and forfeited security deposits

[3] Real Estate Taxes are based on actuals

[4] Insurance is for a General / Liability Policy only and is based on actuals

[5] Utilities are based on actuals and account for City water, septic sewer maintenance and common park electric and individual lot electric for 4 RV lots

[6] Trash Removal is based on actuals

[7] Repairs & Maintenance is a budget projection based on actuals

[8] Landscaping Maintenance is based on actuals at $400/mo

[9] Marketing & Advertising budgets for 3 newspaper ads per year in the Lakeland Ledger

[10] General & Administrative budgets for an annual tax-return, operating permits/licenses and legal and is based on actuals

[11] Management Fee is currently $500/mo flat fee as the owner assists in the property management. 6% is what would be considered a market management fee.

Notes to Operating Statement

FINANCIAL ANALYSIS


GROWTH RATE PROJECTIONS

FINANCIAL ANALYSIS


CASH FLOW

Income Takeover 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Gross Potential Site Rent 120,000 123,600 127,308 131,127 135,061 139,113 143,286 147,585 152,012 156,573 161,270

Home Rent 0 0 0 0 0 0 0 0 0 0 0

Gross Scheduled Rent 120,000 123,600 127,308 131,127 135,061 139,113 143,286 147,585 152,012 156,573 161,270

Physical Vacancy (6,000) (6,180) (6,365) (6,556) (6,753) (6,956) (7,164) (7,379) (7,601) (7,829) (8,063)

Total Vacancy (6,000) (6,180) (6,365) (6,556) (6,753) (6,956) (7,164) (7,379) (7,601) (7,829) (8,063)

Effective Rental Income 114,000 117,420 120,943 124,571 128,308 132,157 136,122 140,206 144,412 148,744 153,206

Other Income

All Other Income 1,000 1,000 1,020 1,040 1,061 1,082 1,104 1,126 1,149 1,172 1,195

Total Other Income 1,000 1,000 1,020 1,040 1,061 1,082 1,104 1,126 1,149 1,172 1,195

Effective Gross Income 115,000 118,420 121,963 125,611 129,369 133,240 137,226 141,332 145,560 149,916 154,402

Operating Expenses (14,007) (14,007) (14,147) (14,289) (14,431) (14,576) (14,721) (14,869) (15,017) (15,168) (15,319)

Real Estate Taxes (6,166) (6,289) (6,415) (6,543) (6,674) (6,808) (6,944) (7,083) (7,224) (7,369) (7,516)

Insurance (716) (716) (723) (730) (738) (745) (753) (760) (768) (775) (783)

Utilities (13,539) (13,539) (13,674) (13,811) (13,949) (14,089) (14,230) (14,372) (14,516) (14,661) (14,807)

Total Expenses (41,328) (41,657) (42,277) (42,910) (43,555) (44,212) (44,881) (45,563) (46,259) (46,968) (47,690)

Operating Reserves 0 0 0 0 0 0 0 0 0 0 0

Net Operating Income 73,672 76,763 79,685 82,701 85,814 89,028 92,345 95,768 99,302 102,948 106,711

0 0 0 0 0 0 0 0 0 0

Purchase Price/Net Residual Value (615,000) 1,333,893

Cash Flow Before Debt Financing 76,763 79,685 82,701 85,814 89,028 92,345 95,768 99,302 102,948 1,440,604

Loan Amount 461,250 0 0 0 0 0 0 0 0 0 0

Remaining Balance 0 0 0 0 0 0 0 0 0 0

Loan Origination Fees (4,613) 0 0 0 0 0 0 0 0 0 0

Prepayment Penalty 0 0 0 0 0 0 0 0 0 0

Closing Costs 0 0 0 0 0 0 0 0 0 (80,034)

Debt Service - Interest (22,807) (22,318) (21,805) (21,265) (20,697) (20,101) (19,474) (18,815) (18,122) (15,973)

Debt Service - Principal (9,550) (10,039) (10,552) (11,092) (11,660) (12,256) (12,883) (13,542) (14,235) (13,688)

Cash Flow After Debt Financing (158,363) 44,406 47,328 50,344 53,457 56,671 59,988 63,411 66,945 70,591 1,330,910

Debt Coverage Ratio 2.37 2.46 2.56 2.65 2.75 2.85 2.96 3.07 3.18 3.60

IRR-Unleveraged 0.00% 25.20% 22.95% 21.49% 20.46% 19.71% 19.13% 18.39%

Capitalization Rate 12.48% 12.96% 13.45% 13.95% 14.48% 15.02% 15.57% 16.15% 16.74% 17.35%

Expenses

Purchase Price / Net Residual Value

Debt Financing

Investor Return


MARKET

OVERVIEW

MARKET OVERVIEW

OVERVIEW

LAKELAND

DEMOGRAPHICS

ECONOMY

METRO HIGHLIGHTS

* Forecast

Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau


The Lakeland economy, once dominated by agriculture and mining,

continues to diversify. Large companies such as Publix and Walmart

employ thousands of workers across the county and tourism is

becoming a greater contributor to jobs. Located roughly 35 miles from

Tampa and 55 miles from Orlando, the Lakeland metro, which

encompasses all of Polk county, is uniquely situated to grow as a

transportation hub, especially along the Interstate 4 corridor.

CITRUS INDUSTRY

Citrus plays a large part in the local economy and was previously one of the

largest industries in the county. Florida’s Natural is headquartered here.

STRATEGIC LOCATION

Its location between Tampa and Orlando with Interstate 4 traversing the county is

expanding the logistics sector. Amazon and FedEx have facilities in the metro.

TOURISM

The tourism industry continues to expand as visitors flock to the area every

year to experience the Detroit Tigers’ spring training games, LEGOLAND

Florida, and many other activities.

▪ Although the median income in the county falls well below the U.S. median, a relatively lower cost

of living allows for a strong homeownership rate of 69 percent, above the national rate.

▪ One of the largest tourism draws is LEGOLAND Florida Resort in Winter Haven. The facility

employs roughly 1,500 workers and draws hundreds of thousands of visitors annually.

▪ Regional grocery chain Publix is headquartered in Lakeland and employs roughly 11,000 workers

locally, including corporate and warehouse employees.

▪ Population growth nearly twice the national rate provides local employers with an expanding pool

of workers. More than 50,000 additional residents are expected through 2023.

664K

2018POPULATION:

250K

2018HOUSEHOLDS:

40.5

2018MEDIAN AGE:

$47,100

2018 MEDIAN HOUSEHOLD INCOME:

U.S. Median:

38.0U.S. Median:

$58,8009.7%

Growth2018-2023*:

8.2%

Growth2018-2023*:

PROPERTY NAME

MARKETING TEAM


DEMOGRAPHICS

Source: © 2018 Experian

Created on April 2019

POPULATION 1 Miles 3 Miles 5 Miles

▪ 2023 Projection

Total Population 4,797 30,576 106,650

▪ 2018 Estimate


▪ 2010 Census


▪ 2000 Census


▪ Daytime Population

2018 Estimate 6,075 36,086 122,814

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

▪ 2023 Projection

Total Households 1,888 11,812 41,289

▪ 2018 Estimate


Average (Mean) Household Size 2.58 2.51 2.50

▪ 2010 Census


▪ 2000 Census


HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

▪ 2018 Estimate

$250,000 or More 0.24% 1.26% 1.80%

$200,000 - $249,999 0.53% 1.23% 1.48%

$150,000 - $199,999 0.71% 2.28% 3.67%

$125,000 - $149,999 1.36% 2.58% 3.73%

$100,000 - $124,999 5.04% 5.92% 7.28%

$75,000 - $99,999 6.40% 10.59% 12.34%

$50,000 - $74,999 15.81% 19.89% 19.97%

$35,000 - $49,999 19.55% 16.91% 15.39%

$25,000 - $34,999 15.58% 13.52% 10.87%

$15,000 - $24,999 17.30% 13.17% 11.80%

Under $15,000 17.48% 12.65% 11.68%

Average Household Income $44,785 $59,600 $68,511

Median Household Income $34,754 $43,777 $50,282

Per Capita Income $17,287 $23,430 $26,771

PROPERTY NAME

MARKETING TEAM


DEMOGRAPHICS


Created on April 2019

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

▪ Population by Age

0 to 4 Years 7.57% 6.24% 5.63%

5 to 14 Years 13.08% 12.39% 12.18%

15 to 17 Years 2.93% 3.73% 3.81%

18 to 19 Years 1.79% 4.13% 3.50%

20 to 24 Years 5.60% 8.80% 7.45%

25 to 29 Years 7.88% 7.69% 6.97%

30 to 34 Years 7.15% 6.89% 6.12%

35 to 39 Years 5.42% 5.87% 5.70%

40 to 49 Years 11.03% 11.18% 12.27%

50 to 59 Years 11.09% 12.12% 13.57%

60 to 64 Years 5.06% 5.37% 5.96%

65 to 69 Years 5.93% 4.73% 5.36%

70 to 74 Years 5.34% 3.90% 4.14%

75 to 79 Years 4.46% 3.01% 3.05%

80 to 84 Years 3.02% 2.04% 2.14%

Age 85+ 2.63% 1.91% 2.14%

Median Age 38.60 35.09 38.81

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

▪ Population 25+ by Education Level

2018 Estimate Population Age 25+ 3,221 19,551 68,468

Elementary (0-8) 7.50% 4.54% 3.25%

Some High School (9-11) 13.50% 9.78% 8.29%

High School Graduate (12) 44.87% 37.85% 33.87%

Some College (13-15) 16.03% 18.88% 19.40%

Associate Degree Only 3.94% 6.68% 8.33%

Bachelors Degree Only 8.70% 13.59% 16.82%

Graduate Degree 3.77% 7.22% 8.97%

Income

In 2018, the median household income for your selected geography is

$34,754, compare this to the US average which is currently $58,754.

The median household income for your area has changed by 21.01%

since 2000. It is estimated that the median household income in your

area will be $39,543 five years from now, which represents a change

of 13.78% from the current year.

The current year per capita income in your area is $17,287, compare

this to the US average, which is $32,356. The current year average

household income in your area is $44,785, compare this to the US

average which is $84,609.

Population

In 2018, the population in your selected geography is 4,666. The

population has changed by 11.60% since 2000. It is estimated that

the population in your area will be 4,797.00 five years from now,

which represents a change of 2.81% from the current year. The

current population is 49.85% male and 50.15% female. The median

age of the population in your area is 38.60, compare this to the US

average which is 37.95. The population density in your area is

1,486.91 people per square mile.

Households

There are currently 1,801 households in your selected geography. The

number of households has changed by 5.75% since 2000. It is

estimated that the number of households in your area will be 1,888

five years from now, which represents a change of 4.83% from the

current year. The average household size in your area is 2.58 persons.

Employment

In 2018, there are 2,693 employees in your selected area, this is also

known as the daytime population. The 2000 Census revealed that

48.67% of employees are employed in white-collar occupations in

this geography, and 51.75% are employed in blue-collar occupations.

In 2018, unemployment in this area is 3.64%. In 2000, the average

time traveled to work was 24.00 minutes.

Race and Ethnicity

The current year racial makeup of your selected area is as follows:

70.06% White, 12.95% Black, 0.08% Native American and 1.46%

Asian/Pacific Islander. Compare these to US averages which are:

70.20% White, 12.89% Black, 0.19% Native American and 5.59%

Asian/Pacific Islander. People of Hispanic origin are counted

independently of race.

People of Hispanic origin make up 24.08% of the current year

population in your selected area. Compare this to the US average of

18.01%.

PROPERTY NAME

MARKETING TEAM


Housing

The median housing value in your area was $73,370 in 2018, compare

this to the US average of $201,842. In 2000, there were 1,157 owner

occupied housing units in your area and there were 546 renter

occupied housing units in your area. The median rent at the time was

$418.


DEMOGRAPHICS

8


DEMOGRAPHICS

offering memorandum - loopnet...estate investment services of florida, inc. ("marcus &...

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