KEITH WILSON CO.
MOBILE HOME PARK REAL ESTATE BROKERAGE
______
2608 RISING STAR
EDMOND. OK 73034 CELLULAR: (405) 414-9803
E-MAIL:
FOR SALE
OKLAHOMA CITY, OK AREA
3 MOBILE HOME PARK PORTFOLIO
ALL 3 PARKS WITHIN 10 MILES OF OKC
326 LOTS
$4,625,000
$11,0000/LOT + $1,023,000 FOR 79 MHS & 15 RVS
12.18%/14.77% CAP RATE
14.23%/22.43% CASH RETURN
4.2x/3.70x COLLECTED INCOME
70% BANK FINANCING ASSUMABLE?
OWNER WILL ALLOW SALE OF 2 EL RENO PARKS (221) SEPERATELY FOR $3,500,000 AND THEN SELL SUNNYLANE (105) FOR $1,125,000
The information contained herein, while gathered from sources deemed reliable, cannot be guaranteed
GENERAL INFORMATION
EL RENO SKYVIEW SUNNYLANE TOTALS
Park Address: 1501 S. Rock Island 1644 E. Hwy 66 17200 S. Sunnylane 3
El Reno, OK 73036 El Reno, OK 73036 Norman, OK
Lots/Pads: 133 88 105 (+12 acres) 326
Rent Mh/Rv: $230/$325 $230/$325 $240/$325 $233/$325
Occupancy: 89%(15) 95%(5) 77% (25) 89% (36)
RV’s: 48 27 9 86 (26%)
Utilities: City-park pays City-park pays Lagoon/well-park pays
Notes: 18 5 14 37
Note payments/yr.: $50,782 $13,391 $55,401 $119,665
Rentals: 22(MH) 7(MH) 8 (MH), 19 (RV) 56
(24 of these moving on now)
2010 Income
(excluding notes): $347,853 $244,911 $187,084 $779,848
2011 Income (6mo) $431,986 $258,942 $209,216 $900,144
(excluding notes)
6/1/2011 rent roll:
Mh lot rent $14,605/mo $13,666/mo $13,490/mo $41,761/mo
Rv lot rent 14,950 8,450 2,978 26,378
Rental (includes lot) 8,735 1,505 3,127 13,367
Total $38,290/mo. $23,621/mo. $19,595/mo. $81,506/mo.
Annualized $459,480 $283,452 $235,140 $978,072 (1)
19 RV ($425) & 5 MH ($550) x 90% occupancy moving on to Sunnylane…………………..$129,900
Total Income……………………………………………………………………………………$1,107,972
2010 Expenses: $246,151 (62%) $74,468 (30%) $134,673 (67%) $455,292 (58%)
2011 Expenses (6mo) $283,162 $71,032 $142,228 $496,422(55%)
Additional electricity & R/M for 19 RV & 5 MH at Sunnylane……………………………….$20,000
Total 2011 expenses…………………………………………………………………………… $516,422(47%)
NOI (2): $176,318 $212,589 $222,812 $591,950
Debt Service (mo): $8,210 $3,848 $7,845 $356,152/yr.
Cash Flow: $235,798
Balances of notes (37): $194,087 $26,591 $219,580 $440,258
Value of rental homes (37): $449,861 $157,710 $140,822 $798,393
19 RVS and 5 MHS moving to Sunnylane……………………………………………………..$125,000
Total value of park-owned 19 RV’S & 79 homes……………………………………………$1,363,651
25% discount…………………………………………………………………………………..($340,912)
Value of park-owned homes/RVS…………………………………………………………….$1,023,000
(1)June rent roll income of $978,072/yr vs. $900,144 collections for 6 mo 2011 reflects the increased occupancy, particularly RV Income
(2)NOI shown does not include the note income of $119,665/yr.
(3)Sales price of $4,625,000 INCLUDES the 79 homes & 19 RV’S.
(4)El Reno Estates and Skyview Estates are located within 1/2 mile, with BOTH parks managed out of El Reno. This explains the expense ratio differential at the 2 parks, 62% vs 30%.
EL RENO ESTATES
2010 INCOME/EXPENSE
INCOME………………………………….$347,853
1/2011 Rent roll…………………….....$396,664 (1)
1st qrt. 2011 annualized……………….$408,554
EXPENSES
Advertising……………$496
Auto…………………...4,415
Bank charges…………….70
Casual labor………….6,021
Insurance……………10,251 (2)
Mgt fees……………..17,384
Office…………………1,048
Payroll……………….59,525
Payroll taxes………….5,602
Professional fees……..4,226
Property taxes………13,465
R/M………………….20,202 (3)
Taxes/licenses………….463
Utilities…………….103,185 (4)
Total……………………………………$246,353 (60%)
NOI………………………………………...$162,201
(1)Income does NOT include the note income of $65,984 on 19 homes
(2)Workmens comp-$3,704, prop/liability-$5,533, umbrella-$1,040
(3)22 park-owned homes at El Reno. R/M was $40,404, cut in half for home refurbish
(4)Includes water/sewer-$34,004, gas/el-$31,830, trash-$31,974, telephone-$5,375
(5) Note: High expenses of 62% reflect management of both El Reno & Skyview
SKYVIEW ESTATES
2010 INCOME/EXPENSE
INCOME……………………………………..$244,911
12/2011 Rent roll………………………....$254,940 (1)
1st qrt 2011 annualized…………………...$237,532
EXPENSES
Advertising…………….$466
Auto……………………2,666
Bank charges……………..52
Casual labor…………..2,848
Insurance……………...8,283 (2)
Mgt. fees……………..12,264
Office……………………863
Professional fees……...2,689
Property taxes………..3,267
R/M…………………..10,953
Taxes/licenses…………..337
Utilities………………29,780 (3)
Total………………………………………$74,468 (31%) (4)
NOI……………………………………….....$163,064
(1)Income does not include the $15,388/yr. note income on 6 park-owned homes
(2)Includes workmens comp-$4,583, prop/liab-$3,121, $umbrella-$573
(3)Includes water/sewer-$2,008, gas/el-$20,106, trash-$6,866 and telephone-$798
(4)Lower expenses of 31% reflect managed out of El Reno, no payroll.
SUNNYLANE ESTATES
2010 INCOME/EXPENSE
INCOME…………………………………..$187,084
1/2011 Rent roll………………………..$202,260 (1)
1st qrt. Income annualized…………….$206,084
EXPENSES
Advertising…………….$1,183
Auto……………………...1,531
Bank charges……………….98
Casual labor………………802
Commissions……………...680
Insurance………………10,814 (2)
Mgt fees…………………9,379
Office……………………3,360
Payroll…………………32,014
Payroll expense………...2,937
Professional fees………..3,771
Property taxes…………13,540
R/M…………………….17,784
Taxes/licenses…………….957
Utilities……………… 35,823 (3)
Total……………………………………$134,673 (67%)
NOI………………………………………….$71,411
(1)Income does NOT include the $65,968/yr. note income on 14 park-owned homes
(2)Prop/liability-$6,226, workmens comp-$4,588
(3)Gas/el-$19,307, trash-$14,380, telephone-$2,135. No water/sewer, on lagoon/well
SALES INFORMATION
Sales price……………………………$4,625,000
Assumable financing………………$3,042,000 (66%) or new loan
Down payment………………………$1,583,000 (34%)
El Reno: Key bank, $1,187,175 balance, 7.28% interest,
P&I of $8,210.55/mo. + $1,226.01/mo. escrows, started
12/1/2007 (1st 24 mo’s were interest only), P&I started
12/1/2009, due date of 11/1/2017, 2% pre-pay till 11/12011, then none
Skyview: One West Bank, $544,216 balance, 6.75%(floor)
Interest, $3,848.13/mo. P&I +$640.57/mo. escrow, loan
Originated 12/1/2007, 1st 36 mo’s were interest-only, P&I started 12/1/2010, 11th District COF, adjusts every 6 mo’s, due date of 11/1/2037. 0.8% pre-pay till 12/1/2011, then none. 10.25% ceiling
Sunnylane: Bank of America, $1,311,200 balance, 7.18%
Interest, originated 11/1/2007, 4 yrs interest only until 11/1/2011, amortized at 7.18% till 11/1/2012, then LIBOR + 2 ½%, adjusts every 6 mo. Mo payment of $7,845.35 + $3,391.25/mo. escrow, due date of 10/1/2037. Pre=pay of 2% till 11/1/2011.
Total debt service………………..$238,848/yr.
Price/pad…………………………$11,000plus $1,023,000 for 79 homes
and 19 RVS
Cap rate……………………………12.8%
15.4% (with note income)
Cash return ($1,458,000 down)…..16.17%
24.38% w/note income
Gross multiplier………………...... 4.17x
3.76x (with note income)
NOTE: OWNER WILL ALLOW THE SALE OF THE 2 EL RENO PARKS (221 LOTS) FOR $3,500,000 AND THEN HE WILL SELL SUNNYLANE (105) SEPERATELY FOR $1,125,000