TRAILS END MOBILE HOME PARK

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1 KEITH WILSON CO. 4/23/2015 MOBILE HOME PARK REAL ESTATE BROKERAGE 2608 RISING STAR CELLULAR: (405) EDMOND, OK EXCLUSIVELY FOR SALE TRAILS END MOBILE HOME PARK E. Admiral Place Catoosa, OK (E. Tulsa suburb) $1,000,000 (seller carry) $850,000 (cash) 75 pads $9,200-11,200/pad / 10.5%-12.4% cap rate The information contained herein, while gathered from sources deemed reliable, cannot be guaranteed 1

2 GENERAL INFORMATION 75 pads $245-MH rent, $325 RV rent (7 RV) 60% occupancy (44 occupied - 39 MH, 5 RV, 1 office) Current rent roll - $174,120 /mo. - 19% home income, 81% pad income Lease to own (3): 1) Lot 16-$550/mo.-55 payments remain-$30,00 balance 2) Lot 29-$500/mo.-26 payments remain-$15,000 balance 3) Lot 61-$550/mo.-35 payments remain-$18,000 balance $63,000 total Pad rent rose from $220 to $245 in May 2014, previous rent increase was 4 years ago. RV rent was $275 and rose to $325 in August Owner pays all utilities, including water, sewer and trash. Owner also pays electric on the RV S. City water. Sewer is a sand sewer/lagoon system, owner in process of installing a new $55K chlorination/dechlorination system. This system, will be completed by closing, is state of the art and will replace the current lagoon. 16 acres pads/acre 10 park owned homes, rental payments from $ /mo (includes pad). 1 double wide, 9 single wide s, s, s. 3- LTO s with $75,000 remaining balances, 6 rentals, 1 office (double wide). LTO S were originally 8 year terms with 4 yrs remaining, no interest, payments of $550 (2) & $485. Higher quality park owned homes than most OK parks. Total value of $160,000 for the park owned homes ($75K-notes, $75k-7 rentals & office and $10k-outbuildings). 30 x 40 wood/sheetrock maintenance bldg & a 20 x 30 metal maintenance bldg. Located adjacent to the manager s office/home. Asphalt entry with gravel streets spoking off/heavily wooded Past owner is current mgr. He moved off park but will manage for $2,000/mo. His 25,000 double wide home can now be rented for $750/mo. The 2 outbuildings are adjacent to this double wide but one can be used as a new office for this manager. 2

3 2014 FINANCIALS 3/2015 rent roll INCOME...$139,960 Add 5 mo 2014 new rents 5,750 Total $145,710. $174,120 EXPENSES Auto.$75 Bank fees...78 Landscaping 295 Insurance..1,818 Mgt. fees 5,767 Office 411 Payroll.14,932 Payroll tax.1,925 Postage/delivery Professional fees 2,186 R/M 6,490 Supplies 192 Taxes/licenses 4,261 Utilities/telephone.$29,663 Total.. $68,690.$68,690 (40%) NOI.$77,020 $105,430 3

4 CATOOSA OKLAHOMA Trails End Mobile Home is located in the eastern part of Catoosa, OK, a city that is a fastgrowing eastern suburb of Tulsa, OK (pop. 1,000,000), 14 miles/14 minutes from Tulsa. Catoosa is a city of 7,500, located in both Wagoner and Rogers County. This park is located in Wagoner County. The population of Catoosa increased 31.2% from The port of Catoosa is the 2 nd farthest inland seaport in the U.S., as the terminus of the Kerr-McClellan Arkansas River Navigational System. The specific location of the park is between S. 273 rd E. Ave. and S. 289 th E. Ave., 1 block S. of Hwy 412 on E. Admiral Place. Along the historic Route 66. I-44 (Creek/Will Rogers Turnpike) lies 3 miles east. The 454 room Hard Rock Hotel/Casino lies 3 miles west of the Trails End Mobile Home Park. The complex includes the Cherokee Hills Golf Club, designed by renowned architect Perry Maxwell, in On Sept. 11, 2014, The Ft. Worth, TX based Woodmont Company, announced that the Woodmont Outlets, it s subsidiary, will build an $80M upscale shopping/dining/entertainment addition to the Hard Rock Hotel. It will bring 1,000 new PERMANENT jobs to Catoosa, a city of 7,500. This addition is part of a $170M Hard rock development project that will relocate the tribe s Tahlequah, OK Casino and create a resort hotel, convention center, retail area and a new golf course clubhouse, totaling 1.3M sq. ft. This development will be on 154 acres adjacent to the Cherokee Springs Golf Club, which the tribe bought in This will be a 3 phase, 5 year plan of infrastructure, relocation of the casino, creation of the upscale retail strip and mixed use space, including office. In June 2014, a new 155,000 Wal-Mart Supercenter opened just east of the Hard Rock. This represents tremendous commercial activity for a city of 7,500. The 31.2% growth the city experienced from may actually be eclipsed in the next 10 years. Good news for the Trails End Mobile home Park!!!!! 4

5 Cherokee Nation, The Woodmont Co. plan $80M shopping center at Hard Rock Hotel & Casino in Catoosa Cherokee Nation Businesses has agreed to lease property west of the casino to Woodmont Outlets, an affiliate of The Woodmont Co. The company plans to develop an outlet mall with 300,000-square-feet of leasable space called Cherokee Outlets in Catoosa. by Brianna Bailey Published: September 11, 2014 CATOOSA The business arm of the Cherokee Nation has partnered with the commercial real estate developer The Woodmont Co. in hopes of bringing an $80 million upscale outlet shop development to the Hard Rock Hotel & Casino Tulsa. Cherokee Nation Businesses has agreed to lease property west of the casino to Woodmont Outlets, an affiliate of The Woodmont Co. The company plans to develop an outlet mall with 300,000- square-feet of leasable space called Cherokee Outlets. The proposed development is projected to create 1,000 permanent jobs, and hundreds of jobs during the construction phase. Once complete, it is expected to generate $120 million in sales annually and attract 2 million additional visitors per year. The Cherokee Outlets mall promenade is seen in this drawing. The Cherokee Nation hopes to build the outlet near the Hard Rock Casino in Catoosa. Drawing provided Cherokee Nation Businesses has plans to create a unique entertainment and dining zone called The District to compliment the new outlet mall. The District would connect the upscale shops directly to Hard Rock Hotel & Casino Tulsa. Economic hopes The project will give an economic boost to all of northeast Oklahoma, Cherokee Nation Principal Chief Bill John Baker said in a statement. When the Cherokee Nation does well, the entire region does well, he said. These collaborative projects with private industry are what help us create more jobs, maximize our investment dollars and help us make a greater impact on the economy of our state. Cherokee Outlets will feature about 100 mostly high-end retailers, Woodmont Outlets said. Attracting retailers We approached CNB because of the world-class amenities of the casino and resort, proximity to key markets and the 2 million people that already visit Hard Rock Hotel & Casino Tulsa every year, Stephen Coslik, chairman of Woodmont Outlets said in a statement. The Cherokee Outlets mall promenade is seen in this drawing. In addition to the Tulsa metro and surrounding areas, it s an easy drive from key markets like northwest Arkansas and Joplin, Mo. I m confident we can attract the premium retailers to make this development the best in the region. No other outlet and casino resort in the United States will resemble this development, which will be a real gem to the greater Tulsa market. While the proposed Cherokee Outlets will be located on Cherokee Nation-owned land, all retail sales will be subject to state and local sales tax. The project is expected to be complete in late SOURCE: 5

6 SALES INFORMATION Sales price $1,000,000/$850,000 (1) Value of 10 park-owned homes $160,000 Park price $840,000/$690,000 (1) Sales price is $1,000,000 with seller carrying $650,000, 5 yrs at 7%. OR $850,00 cash with no seller carry Existing debt is private, 2/1/2014 inception, 3% interest, $1,185.53/mo. Payments, due on 2/1/2024, with a balloon payment of $171, non-recourse, secured solely by the park and the parkowned homes. Price/pad $11,200/$9,200 Cap rate % / 12.4% XGross x / 4.8x 6

7 2014 FINANCIALS 7

8 MARCH 2015 RENT ROLL 8

9 MARCH 2015 RENT ROLL (continued) 9

10 EXPANDED MAP 10

11 LOCAL MAP 11

12 AERIAL MAP 12

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