saratoga springs mhc portfolio - mh...

Portfolio of 8 Manufactured Housing Communities

OFFERING MEMORANDUM

Saratoga Springs MHC Portfolio SARATOGA SPRINGS, NEW YORK

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This is a confidential memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Saratoga Springs MHC Portfolio (“Portfolio”).

The information contained within this offering is gathered from sources deemed to be reliable. However, it is subject to errors, omissions, price change and/or withdrawal, and no warranty is made as to the accuracy. All materials and information received or derived from Keller Williams Capital District, its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, suitability for development, financial performance of the property, projected financial performance of the property for any party’s intended use or any and all other matters.

Neither Keller Williams Capital District, its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due diligence to determine these and other matters of significance to such party. Keller Williams Capital District will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing.

EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE.

Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. Keller Williams Capital District makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. Keller Williams Capital District does not serve as a financial advisor to any party regarding any proposed transaction.

All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions, vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by Keller Williams Capital District in compliance with all applicable fair housing and equal opportunity laws.

DISCLAIMER & CONFIDENTIALITY

CONTENTS

For more information, contact:

STEVEN J. TOMASO Associate Broker

518.879.2268

[email protected]

Keller Williams Capital District

353 Broadway, Floor 5

Saratoga Springs, NY 12866

stomaso.kw.com

Executive Summary 4

Location 5

Portfolio Overview 6

Property Details 7

Income & Expenses 16

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THE OFFERING Keller Williams Capital District is pleased to offer the Saratoga Springs MHC

Portfolio (“Portfolio”) for sale. The Portfolio consists of 8 manufactured

housing communities, totaling 599 sites, located in and around Saratoga

Springs in Saratoga County and Albany County, New York.

INVESTMENT HIGHLIGHTS

General proximity of Properties to one another allows for management to

be split up into two districts, resulting in operating efficiencies.

Recommended District 1: Whispering Pines and Loughberry Park.

Recommended District 2: Saratoga West, Saratoga Acres, Shady Acres,

Country Manor, Saratoga Village, Latham Park.

Tenants are on Net Lease contracts in which they are responsible for

property taxes for their sites.

The Portfolio is a large source of workforce housing in the Saratoga Springs

area, a market whose housing costs are among some of the highest in the

nation. Median apartment rents are $1,533 for a one bedroom apartment

and median single family home price is $314,625 in Saratoga Springs,

making the economics of manufactured housing very attractive.

Well-located within 10 miles of downtown Saratoga Springs and the

GlobalFoundries semiconductor fabrication plant in the nearby Luther

Forest Technology Campus, a large source of employment in the area.

PORTFOLIO SUMMARY

Asking Price Open Bid

Property Type Manufactured Housing Communities

Portfolio Size 8 communities

Total Home Sites 599 sites

Total Park-Owned Homes 25 homes

Occupancy 94%

Average Site Base Rent $459

2016 NOI (est.) $2,010,053

EXECUTIVE SUMMARY

Saratoga Springs MHC Portfolio | Executive Summary

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LOCATION OF PORTFOLIO

DETAIL

DETAIL

Saratoga Springs MHC Portfolio | Location

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PORTFOLIO OVERVIEW

Property Address Sites Occupancy Avg. Site

Base Rent

1 Whispering Pines 120 Ballard Road Gansevoort, NY 12831

38 97% $484

2 Loughberry Park 17 Jones Road Saratoga Springs, NY 12866

74 97% 470

3 Saratoga West 331 Rowland Street Ballston Spa, NY 12020

92 95% 448

4 Saratoga Acres 309 Greenfield Avenue Ballston Spa, NY 12020

50 96% 439

5 Shady Acres 800 Arnold Street Ballston Spa, NY 12020

41 95% 455

6 Country Manor 3683 Galway Road Ballston Spa, NY 12020

39 97% 476

7 Saratoga Village 900 Rock City Road Ballston Spa, NY 12020

200 90% 452

8 Latham Park 303 McArthur Road Latham, NY 12110

65 94% 471

Total / Average 599 94% $459

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Saratoga Springs MHC Portfolio | Portfolio Overview

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PROPERTY OVERVIEW

Land Area 15.14 Acres

Community Type All-Age

Zoning R-M

Expense Reimbursement

Net Lease – Tenants responsible for property taxes

Jurisdiction Saratoga County, New York

Parcel ID 115.-2-25.2 115.-2-12.11

RENT SUMMARY

Occupied Total % Occ. Avg. Monthly Annual

Sites 37 38 97% $484 $214,728

Base Rent 524 232,488

Concessions (40) (17,760)

Effective Rent 484 214,728

Home Rentals 1 1 100% 170 2,040

Home Lease Options — — — — —

Total / Average 37 38 97% $488 $216,768

WHISPERING PINES 120 Ballard Road, Gansevoort, NY 12831

38 HOME SITES

1 PARK-OWNED

HOME

97% OCCUPANCY

1

8

PROPERTY OVERVIEW



Zoning R-M




Parcel ID 153.18-1-36

RENT SUMMARY


Sites 72 74 97% $470 $405,924

Base Rent 470 405,924

Concessions — —


Home Rentals — — — — —


Total / Average 72 74 97% $470 $405,924

LOUGHBERRY PARK 117 Jones Road, Saratoga Springs, NY 12866

74 HOME SITES

0 PARK-OWNED

HOMES

97% OCCUPANCY

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9 Saratoga Springs MHC Portfolio | Investment Overview Saratoga Springs MHC Portfolio | Investment Overview

PROPERTY OVERVIEW



Zoning TC




Parcel ID 190.-7-6

RENT SUMMARY


Sites 87 92 95% $448 $468,132

Base Rent 489 510,252



Home Rentals 1 1 100% 200 2,400

Home Lease Options 3 3 100% 220 7,920

Total / Average 87 92 95% $470 $405,924

SARATOGA WEST 331 Rowland Street, Ballston Spa, NY 12020

92 HOME SITES

4 PARK-OWNED

HOMES

95% OCCUPANCY

3

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SARATOGA ACRES 309 Greenfield Ave, Ballston Spa, NY 12020

Saratoga Springs MHC Portfolio | Investment Overview Saratoga Springs MHC Portfolio | Investment Overview Saratoga Springs MHC Portfolio | Investment Overview

PROPERTY OVERVIEW



Zoning R1




Parcel ID 190.-1-3

RENT SUMMARY

50 HOME SITES

2 PARK-OWNED

HOMES

96% OCCUPANCY


Sites 48 50 96% $439 $252,624

Base Rent 479 275,664



Home Rentals 1 1 100% 456 5,472


Total / Average 48 50 96% $454 $261,696

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11 Saratoga Springs MHC Portfolio | Investment Overview Saratoga Springs MHC Portfolio | Investment Overview Saratoga Springs MHC Portfolio | Investment Overview

PROPERTY OVERVIEW



Zoning R1




Parcel ID 203.10-1-28

RENT SUMMARY

41 HOME SITES

2 PARK-OWNED

HOMES

95% OCCUPANCY


Sites 39 41 95% $455 $213,036

Base Rent 495 231,756



Home Rentals 1 1 100% 215 5,160


Total / Average 39 41 95% $481 $225,192

SHADY ACRES 800 Arnold Street, Ballston Spa, NY 12020

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12

PROPERTY OVERVIEW



Zoning R2




Parcel ID 203.-1-2.12

RENT SUMMARY

39 HOME SITES

0 PARK-OWNED

HOMES

97% OCCUPANCY


Sites 38 39 97% $476 $217,164

Base Rent 516 235,404



Home Rentals — — — — —


Total / Average 38 39 97% $476 $217,164

COUNTRY MANOR 3683 Galway Road, Ballston Spa, NY 12020

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13

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PROPERTY OVERVIEW



Zoning R2




Parcel ID 189.-1-43

RENT SUMMARY

200 HOME SITES

11 PARK-OWNED

HOMES

90% OCCUPANCY


Sites 180 200 90% $452 $975,120

Base Rent 492 1,062,000



Home Rentals 5 5 100% 482 28,920


Total / Average 180 200 90% $475 $1,025,064

SARATOGA VILLAGE 900 Rock City Road, Ballston Spa, NY 12020

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PROPERTY OVERVIEW


Community Type Age Restricted – 55+



Jurisdiction Albany County, New York

Parcel ID 31.6-1-20 31.6-1-23

RENT SUMMARY

65 HOME SITES

3 PARK-OWNED

HOMES

94% OCCUPANCY


Sites 61 65 94% $471 $344,940

Base Rent 511 374,220



Home Rentals 2 2 100% 195 4,680


Total / Average 61 65 94% $484 $354,420

LATHAM PARK 303 McArthur Road, Latham NY 12110

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INCOME & EXPENSE SUMMARY

2014 2015 2016 (Estimated)

Total) $ / Site) % of Income Total) $ / Site) % of Income Total) $ / Site) % of Income

INCOME

Potential Rental Income $ 3,106,189) $ 5,186) $ 3,147,978) $ 5,255) $ 3,241,978) $ 5,412)

Concessions (165,620) (276) (157,250) (263) (162,800) (272)

Collection Loss (51,577) (86) (74,606) (125) (58,128) (97)

Effective Rental Income 2,888,991) 4,823) 2,916,123) 4,868) 3,020,846) 5,043)

Home Rental Income 62,448) 104) 73,259) 122) 95,340) 159)

Tax Reimbursement 103,219) 172) 120,116) 201) 139,468) 233)

Misc. Income 14,734) 25) 16,995) 28) 14,440) 24)

Late Fees 36,618) 61) 37,195) 62) 35,371) 59)

Effective Gross Income (EGI) 3,106,010) 5,185) 100.0% 3,163,689) 5,282) 100.0% 3,305,465) 5,518) 100.0%

OPERATING EXPENSES

Real Estate Taxes 404,857) 676) 13.0% 404,852) 676) 12.8% 421,046) 703) 12.7%

Insurance 48,639) 81) 1.6% 46,781) 78) 1.5% 48,652) 81) 1.5%

Utilities 269,035) 449) 8.7% 284,070) 474) 9.0% 295,432) 493) 8.9%

Management Fees 261,300) 436) 8.4% 260,800) 435) 8.2% 271,232) 453) 8.2%

Maintenance & Grounds 179,132) 299) 5.8% 187,232) 313) 5.9% 194,721) 325) 5.9%

General & Administrative 23,072) 39) 0.7% 22,843) 38) 0.7% 34,266) 57) 1.0%

Professional Fees 19,300) 32) 0.6% 16,159) 27) 0.5% 17,715) 30) 0.5%

Lease Option Payments 13,761) 23) 0.4% 13,779) 23) 0.4% 12,348) 21) 0.4%

Total Operating Expenses 1,219,094) 2,035 39.2% 1,236,514) 2,064 39.1% 1,295,412) 2,163 39.2%

Net Operating Income $ 1,886,916) $ 3,150) 60.8% $ 1,927,175) $ 3,217) 60.9% $ 2,010,053) $ 3,356) 60.8%

HISTORICAL INCOME & EXPENSES FOR PORTFOLIO

Saratoga Springs MHC Portfolio | Income & Expenses

saratoga springs mhc portfolio - mh...

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