SUNRISE MOBILE HOME PARK€¦ · SUNRISE MHP 7025 Eastside Rd Anderson, CA 96007 16 $1,050,000...

S U N R I S E M O B I L E H O M E P A R KA 1 6 - U N I T M A N U FAC T U R E D H O U S I N G CO M M U N I T Y I N A N D E R S O N , C A

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

C O N F I D E N T I A L I T Y & D I S C L A I M E R

The 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 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. © 2020 Marcus & Millichap. All rights reserved.

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

Marcus & 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.

A L L P R O P E R T Y S H O W I N G S A R E B Y A P P O I N T M E N T O N LY.P L E A S E C O N S U LT L I S T I N G A G E N T F O R M O R E D E TA I L S .

T A B L E O F C O N T E N T S

5F I N A N C I A L O V E R V I E W

1E X E C U T I V E S U M M A R Y

2P R O P E R T Y D E S C R I P T I O N

3M A R K E T O V E R V I E W

4M A R K E T C O M P A R A B L E S

1E X E C U T I V E S U M M A R Y

I N V E S T M E N T O V E R V I E W

I N V E S T M E N T H I G H L I G H T S

O F F E R I N G S U M M A R Y

6

I N V E S T M E N T O V E R V I E W

Marcus & Millichap is pleased to present the opportunity to acquire Sunrise Mobile Home Park, a permitted 16-unit mobile home park located at 7025 Eastside Road in Anderson, California. The community consists of all tenant owned spaces, which are predominantly single-wides and a few RVs. The property is on private utilities.

The deal offers value-add potential for a potential acquirer in the following areas:

• Passing through garbage & water related expenses along to tenants.

• Upgrading current (non-functional) laundry building.

• Expansion potential on the back side of property.

Based on the financial summary, an investor could expect to operate the property during their first year of acquisition at a 7.01% cap rate. This is based on current rents, not accounting for potential increases. This offering will appeal to an investor looking for a mobile home park with strong day one cash flow, and a value-add opportunity to expand to additional spaces. Home values in Anderson, California, have increased by 5.1% in the past year and are expected to increase by an additional 4.6% in the year ahead.

S U N R I S EM O B I L E

H O M E P A R K

7

I N V E S T M E N T H I G H L I G H T S

STRONG DAY-1 CASH FLOW +

VALUE ADD OPPORTUNITY

• 7.01% Expected Year 1 Cap Rate

• Opportunity to pass-through

utility & garbage expenses,

which are currently paid by the

owner.

• Expansion opportunity on back

side of property

MARKET GROWTH

• Anderson has seen a 5.1%

increase in housing prices over

the last year and expected

to increase 4.6% in the year

ahead.

• Average home value in

Anderson is $249,139.

• Restaurants, grocery stores,

entertainment venues and

schools within 5 miles of

property

8


H O M E P A R K

9

O F F E R I N G S U M M A R Y

$ $1 ,050,000 16 UNITS

COST PER UNIT $65,625

CAP RATE—CURRENT 8.00%

CAP RATE—YEAR 1 PROJECTED 7.01%

2P R O P E R T Y O V E R V I E W

P R O P E R T Y D E S C R I P T I O N

P R O P E R T Y P H O T O S

12

P R O P E R T Y D E S C R I P T I O N

Address7025 Eastside Rd

Anderson, CA 96007

Units 16

Unit Breakdown

12 Mobile Home Spaces (Tenant Owned) 2 RVs

2 Fifth Wheels

Util it ies

Water Well, paid by owner

Sewer Septic, paid by owner

Trash & Dump Fees

City services, paid by owner

Electricity & Gas

PG&E (directly paid by tenants)

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P R O P E R T Y P H O T O S

3M A R K E T O V E R V I E W

L O C A T I O N O V E R V I E W

D E M O G R A P H I C S

18

L O C AT I O N O V E R V I E W

Located 10 miles south of Redding, Anderson offers charm to the residents of this small city. With several parks within city limits, residents can take advantage of athletic fields, picnic areas, fishing, playgrounds, jogging trails, skate parks, a disc golf course, and more. There are many schools in the area, convenient for those with children.

With access to I-5, living in Anderson offers easy transportation to the Redding metro area and beyond.

A N D E R S O N , C A

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D E M O G R A P H I C S

49.01%

50.99%

52,630TOTA L P O P U L AT I O N W I T H I N

5 - M I L E R A D I U S

19,770TOTA L H O U S E H O L D S I N

5 - M I L E R A D I U S

16.23%F R O M 2 0 0 0

$47,516AV E R A G E H O U S E H O L D I N C O M E

W I T H I N 5 - M I L E R A D I U S

$249,139AV E R A G E H O U S I N G VA L U E

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POPULATION 1 MILE 3 MILE 5 MILE

2000 Population

Total Population1,118 11,394 45,484

2010 Population


2018 Estimate


2023 Projection


Daytime Population

2018 Estimate931 10,626 44,608

HOUSEHOLDS BY INCOME 1 MILE 3 MILE 5 MILE

2018 Estimate

Under $14,999 22.1% 12.2% 14.1%

$15,000 - $24,999 15.0% 11.3% 11.6%

$25,000 - $34,999 14.1% 11.6% 11.8%

$35,000 - $49,999 12.7% 13.6% 14.7%

$50,000 - $74,999 16.8% 21.1% 19.1%

$75,000 - $99,999 6.8% 12.9% 12.1%

$100,000 - $124,999 1.6% 5.1% 5.6%

$125,000 - $149,999 3.5% 3.5% 3.3%

$150,000 - $199,999 6.6% 5.5% 4.9%

$200,000 - $249,999 0.1% 1.5% 1.2%

$250,000 + 0.7% 1.7% 1.7%

Median Household Income $33,960 $51,575 $47,516

Per Capita Income $21,514 $26,161 $25,343

Average Household Income $52,188 $68,745 $66,814

HOUSEHOLDS 1 MILE 3 MILE 5 MILE

2000 Households

Total Population477 4,347 17,009

2010 Households


2018 Estimate


2023 Projection


HOUSING UNITS 1 MILE 3 MILE 5 MILE

Occupied Units

2018 Estimate

Owner Occupied 68.5% 74.9% 62.4%

Renter Occupied 31.5% 25.2% 37.7%

Vacant 5.8% 5.9% 5.9%

4M A R K E T C O M P A R A B L E S

R E N T C O M P A R A B L E S

S A L E S C O M P A R A B L E S

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R E N T C O M PA R A B L E S

PROPERTY RENTUTILITIES INCLUDED

ALL AGES OR 55+

PRIMARILY SINGLE- OR

DOUBLE-WIDE

1RIVIERA MOBILE ESTATES

3880 Rupert RdAnderson, CA 96007

$440 Trash & Water 55+ Single

2BALLS FERRY FISHING RESORT

23012 Ash Creek RdAnderson, CA 96007

$440 No All Ages Double

3ZUFALLS MOBILE PARK

7252 White House DrAnderson, CA 96007

$350Water & Sewage

55+ Single

4RIVER PARK MOBILE ESTATES

3555 Rupert RdAnderson, CA 96007

$400 No 55+ Double

5EL RIO ESTATES

19964 Riverside AveAnderson, CA 96007

$462 No All Ages Double

$ 4 1 8 AV E R A G E S PA C E R E N T

25

2

3

415

26

S A L E S C O M PA R A B L E S

$ 4 4 , 2 9 9 AV E R A G E P R I C E P E R U N I T

PROPERTY UNITSSALES PRICE

PRICE/UNIT CAP RATE SALE DATE

SUNRISE MHP7025 Eastside Rd

Anderson, CA 9600716 $1,050,000 $65,625 8.00%

1CHICO TRAILER HAVEN

1412 Nord Ave Chico, CA 95926

41 $1,800,000 $43,902 7.46% 6/11/18

2 21795 Bend Ferry Rd Red Bluff, CA 96080

44 $1,600,000 $36,364 — —

3GOLDEN ACRES MHP 3732 State Highway 20

Marysville, CA 9590119 $1,000,000 $52,631 5.40%

Currently Listed On

Market

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1

2

3

5F I N A N C I A L S U M M A R Y

R E N T R O L L

P R I C I N G A N A LY S I S

O P E R A T I N G D A T A

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R E N T R O L L

UNIT # UNIT TYPE CURRENT

1 MH Space $550

2 MH Space - 5th Wheel $850

3 MH Space $700

4 MH Space $550

5 MH Space $550

6 MH Space $550

7 MH Space - RV $550

8 MH Space $550

9 MH Space $550

10 MH Space $550

11 MH Space - 5th Wheel $550

12 MH Space $550

13 MH Space $550

14 MH Space $550

15 MH Space - RV $650

16 MH Space $550

16 TOTAL $9,350

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P R I C I N G A N A LY S I S & O P E R AT I N G D ATA

INCOME CURRENT YEAR 1 PROJECTION

Gross Scheduled Rent $112,200 $112,200

Loss/Gain to Lease — —

Vacancy (3%) $3,366 $3,366

EFFECTIVE RENTAL INCOME $108,834 $108,834

Laundry — —

Other Income — —

EFFECTIVE GROSS INCOME $108,834 $108,834

EXPENSES CURRENT YEAR 1 PROJECTION

Real Estate Taxes (1.071%) $11,242 $11,242

PG&E Electric Expense $492 $492

Waste Management $4,001 $4,001

Water Testing & Treatment $2,872 $2,872

Insurance $949 $949

Permits $953 $953

Roto Rooter Expense $340 $340

Legal $1,269 $1,000

Lanscaping ($150/unit) — $2,400

Repair & Maintenance Allowance ($175/unit)

— $2,800

Offsite Management Fee (5%) — $5,442

Onsite Management $2,700 $2,700

TOTAL EXPENSES $24,818 $35,191

Per Unit $1,551 $2,199

Percent of EGI 22.80% 32.33%

NET OPERATING INCOME $84,016 $73,643

PRICE $1,050,000

UNITS 16

PRICE/UNIT $65,625

CAP RATE—CURRENT 8.00%

CAP RATE—YEAR 1 PROJECTION

7.01%

TYPE OF OWNERSHIP Fee Simple

FINANCIAL NOTES & ASSUMPTIONS

1) “Current” expenses are based on

actuals provided by owner with addition

of 3% vacancy factor and recalculating

tax rate based on purchase price.

2) Year 1 Projections are based on

additional expenses M&M expects new

owner to incur upon acquisit ion.

JEFFREY BENSON

Senior Vice President Investments

Director, National Multi Housing Group

Direct | 310.909.5420

[email protected]

License: CA 01327285

SAM NEUMARK

Investment Sales Associate

Direct | 310.909.5433

[email protected]

License: CA 02090800


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SUNRISE MOBILE HOME PARK€¦ · SUNRISE MHP 7025 Eastside Rd Anderson, CA 96007 16 $1,050,000...

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