Lamplighter Offering

Lamplighter
Tucson, AZ
CONFIDENTIAL+
NOT+TO+BE+REPRODUCED+OR+DISTRIBUTED++++
Lamplighter MHC, LLC
a Limited Liability Company
which will own a
67-space manufactured home community
Located in Tucson, Arizona
June 1, 2016
NO OFFERING LITERATURE OR ADVERTISING IN WHATEVER FORM SHALL BE EMPLOYED IN CONNECTION
WITH THIS INVESTMENT EXCEPT FOR THIS MEMORANDUM OR STATEMENTS CONTAINED HEREIN. NO
PERSON HAS BEEN AUTHORIZED TO MAKE REPRESENTATIONS WITH RESPECT TO THE INVESTMENT,
EXCEPT THE REPRESENTATIONS CONTAINED HEREIN. ANY DISTRIBUTION OR REPRODUCTION OF THIS
MEMORANDUM IN WHOLE OR IN PART OR THE DIVULGENCE OF ANY OF ITS CONTENTS IS PROHIBITED.
THE INFORMATION CONTAINED HEREIN HAS BEEN OBTAINED FROM THE SELLER AND FROM OTHER
SOURCES DEEMED RELIABLE. ALTHOUGH SUCH INFORMATION NECESSARILY INCORPORATES
SIGNIFICANT ASSUMPTIONS AS WELL AS FACTUAL MATTER, NO REPRESENTATIONS OR WARRANTY CAN
BE MADE THAT ANY ASSUMPTIONS ARE VALID. ANY REPRESENTATIONS OTHER THAN THOSE SET FORTH
IN THIS MEMORANDUM AND ANY INFORMATION OTHER THAN THAT CONTAINED IN DOCUMENTS AND
RECORDS FURNISHED BY THE SELLER, UPON REQUEST, MUST NOT BE RELIED UPON.
!
June!1,!2016!
RE: Lamplighter Manufactured Home Community
Dear Investor,
We have entered into an agreement to purchase the Lamplighter Manufactured Home Community in the city of Tucson, Arizona. The
park is located in the northern part of Tucson at the base of the Catalina foothills. This community is an attractive all age 67-space
community centrally located a few miles east of the U.S. 10 Freeway. Tucson and the other surrounding suburb cities close by provide
ample employment opportunities that are easily accessed by the local freeways.
We believe this to be an excellent investment opportunity for the following reasons:
GREAT LOCATION: The property is located in a very nice residential area with easy access to freeways and employment centers. The
shopping opportunities are close to the property with major choices such as the Tucson Mall, Starbucks, Home Depot, Walgreens, Sprouts
Farmers Market, P.F. Chang’s and many other main retail stores and restaurant chains within a couple miles. South of Phoenix about 100
miles, the beautiful Sonora Desert and multiple mountain ranges surround Tucson. The City itself covers 277 square miles, is the second
largest city in Arizona and the 33rd largest city in the nation. The Tucson metro area is home to 1,020,000 people as of 2014. Tucson
provides the advantages of a thriving metropolis while maintaining the feel of the great outdoors. With dynamic recreational, educational
and business opportunities, Tucson enjoys the best in a variety of amenities including multiple national parks and forests, a variety of
world class architecture and museums, highly rated golf courses, a diversity of special events and community festivals, and an energetic
vibe brought from the University of Arizona.
PROPERTY CONDITION: Lamplighter Manufactured Home Community was originally built in the 1970’s and has great curb appeal
with a landmark sign and double entryway. The property has a relatively low density with approximately 12 homes per acre. It is a very
clean and upscale all age community with many amenities including an office, pool, picnic area, laundry facility on site, and wide streets.
All of the homes in Lamplighter are in good condition. This community is in a good location and is of the quality that meets all of the
criteria we look for in a property.
UPSIDE OPPORTUNITIES: The current rents of this property are under market, as well as the community being under utilized with
seven vacant Manufactured Homes and one vacant space that we plan to fill with manufactured homes. By getting the rents up to the
current market rate along with improving the amenity package and filling all vacant spaces with permanent tenants, the property will
experience an increase in revenue and value.
RENTAL MARKET CONDITIONS: The demand for housing in this area is strong. We currently own and manage 4 parks totaling 262
units in the Phoenix and Tucson Metros and these communities are strong performers from an operations standpoint. These communities
have been strong performers from an operations standpoint, and with Lamplighter being in an excellent location we feel it will be a great
addition to our portfolio of properties in the region. With the university so close along with Tucson being named by Forbes magazine as a
top 26-retirement location, the rental market continues to be strong. We are optimistic about the long-term prospects of the overall Tucson
market as we are experiencing stable occupancy and steady rent increases with a continued demand for our specific type of housing. We
typically hold the properties for five to seven years and then assess the current market conditions to decide how to best proceed with the
property.
Capital required for this investment is as follows:
Purchase Price:
Loan Amount:
Down Payment:
Loan Fees, acquisition fees & reserves:
$2,400,000
(1,680,000)
720,000
447,000
Total Capital:
$1,167,000
The ownership format will be a Limited Liability Company formed in California. We have 88% occupancy with stable rents and
approximately 38% for expenses and replacement reserves.
Based on the above assumptions, we believe we can generate a distribution to the partners in the 7% range within six (6) months of
closing the transaction. We believe these projections are reasonable based on our investigations but they are not guaranteed. This
memorandum is not a complete description of this investment. Operating agreements and subscription agreements will be sent to the
partners who participate and will fully explain the conditions of this investment. If you are interested, let us know as soon as possible on a
first come, first serve basis as these offerings have gone very quickly in the past.
If you have any questions, or would like more information, please call us.
Sincerely,
Wayne Comfort
(619) 977-8702
Jennifer Purcell
(619) 884-8702
Blake Comfort
(619) 672-3880
LAMPLIGHTER MANUFACTURED HOME COMMUNITY
EXECUTIVE SUMMARY
Property Description:
Location:
Price:
Projected Down Payment (30%):
Projected Financing (70%):
67 Manufactued Home Spaces
3431 N. Flowing Wells Road
Tucson, AZ 85705
$2,400,000
$720,000
$1,680,000
Cap Rate on Stabilized Proforma:
Price Per Space:
8.70%
$35,821
Space Mix:
67
Manuafactured Home Spaces
67
Total Spaces
5.66
11.84
1970
Acres
Parcel Size:
Spaces per Acre:
Year Built:
Community Features:
Pool
Laundry/Shower Facility
Two Horse Shoe Pits
Clubhouse
Scenic Mountain Views
Managers Office/Mail Box Area
Phoenix,
Flowing,Wells,High,School,
Amphitheater,High,School,
Lamplighter,
Mobile,Home,Community,
Prince,,
Mobile,Home,Community,
Amphitheater,Middle,School,
Amphitheater,High,School,
Tucson,Community,Park,
Lamplighter Mobile Home Community
3431 N. Flowing Wells Road, Tucson, AZ 85705
,
FINANCIAL PROFORMA
PROJECT NAME: Lamplighter
YEAR 1
YEAR 2
YEAR 3
OPERATING ASSUMPTIONS
YEAR 4
YEAR 5
YEAR 6
YEAR 7
YEAR 8
CASH FROM OPERATIONS
NUMBER OF UNITS
67
SCHEDULED RENTS (Annual)
Scheduled Rent $
$374,664
Vacancy & Bad debts
374,664
$
389,651
$
405,237
$
421,446
$
438,304
$
455,836
$
474,069
493,032
-37,991
-26,340
-13,697
-14,245
-14,815
-15,407
-16,024
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---------------------
---------------------
---------------------
---------------------
---------------------
---------------------
---------------------
AVERAGE RENT PER UNIT (Monthly)
$466
VACANCY FACTOR
13.0%
Effective Gross
325,958
351,660
378,896
407,749
424,059
441,021
458,662
RENT INCREASE FACTOR
4.0%
Other Income
39,340
36,822
29,785
22,126
11,505
11,966
12,444
OTHER INCOME (% of Annual Scheduled)
10.5%
--------------------Total Income
ANNUAL EXPENSES PER UNIT
$
-48,706
---------------------
---------------------
---------------------
---------------------
---------------------
---------------------
477,009
12,942
---------------------
365,297
388,482
408,681
429,875
435,564
452,987
471,107
489,951
(149,946)
(152,945)
(156,004)
(159,124)
(162,306)
(165,553)
(168,864)
(172,241)
---------------------
---------------------
---------------------
---------------------
---------------------
---------------------
---------------------
---------------------
Operating Expense
Operating Expense
35%
$1,951
Property Tax
5%
$287
Net Operating Income
Total Expense
40%
$2,238
Replacement Reserve
(3,747)
(3,897)
(4,052)
(4,214)
(4,383)
(4,558)
(4,741)
(4,930)
Debt Service
($94,647.14)
($94,647.14)
($94,647.14)
($94,647.14)
($94,647.14)
($94,647.14)
($94,647.14)
($94,647.14)
---------------------
---------------------
---------------------
---------------------
---------------------
---------------------
---------------------
---------------------
EXPENSE INFLATION FACTOR
2.0%
REPLACEMENT RESERVE
1.0%
215,351
Cash Avail. for Distr. $
116,958
235,537
$
136,993
252,677
$
GROSS INCOME MULTIPLIER
AVAILABLE FINANCING
CASH DOWN PAYMENT
171,889
$
174,228
287,435
$
188,229
302,243
$
202,855
317,710
$
218,133
6.4
Cash on Cash
7.2%
8.4%
9.4%
10.5%
10.7%
11.5%
12.4%
8.973%
Profit on Sale (Per Year)
N/A
-3.5%
1.8%
4.6%
4.0%
5.0%
5.8%
6.5%
$
35,821
Estimated Annual Return
N/A
4.9%
11.2%
15.1%
14.7%
16.5%
18.2%
19.9%
CAPITALIZATION RATE
PURCHASE PRICE
$
273,258
ESTIMATED RETURN ON INVESTMENT
ACQUISITION COST SUMMARY
PRICE PER UNIT
153,978
270,751
$
2,400,000
65%
$
1,560,000
13.4%
SALE PROJECTIONS
35%
$
840,000
Sale Price
LOAN FEES & LEGAL
3.00%
$
46,800
Deduct:
TITLE & ESCROW COSTS
2.00%
Debt
$
2,944,209
$
$
$
$
$
$
ACQUISITION FEE
$
72,000
Cost of Sale
-191,374
-205,300
-219,985
-222,022
-233,541
-245,572
-258,139
OPERATING RESERVES
$
144,000
Original Investment
-1,306,000
-1,306,000
-1,306,000
-1,306,000
-1,306,000
-1,306,000
-1,306,000
COMMUNITY IMPROVEMENTS
$
100,000
---------------------
---------------------
---------------------
---------------------
---------------------
---------------------
---------------------
CASH REQUIRED TO CLOSE
$
1,306,000
$
298,403
$
327,704
$
493,392
-1,560,000
3,971,375
72,000
87,166
-1,560,000
3,778,038
31,200
$
-1,560,000
3,592,932
$
(113,165)
-1,560,000
3,415,726
$
$
-1,560,000
3,384,388
COMMISSION TO BUYERS BROKER
Cash Generated from Sale
-1,560,000
3,158,466
$
666,465
-1,560,000
$
847,236
PROPOSED FINANCING
LOAN AMOUNT
65%
TERM
$1,560,000
10
INTEREST RATE
4.400%
Loan Balance
$1,560,000
RETURN & PROFIT SHARING
CASH FROM OPERATIONS
10.4%
80.00%
THIS STATEMENT WAS PREPARED ON THE BASIS OF ASSUMPTIONS AND ESTIMATES.
PROFIT ON SALE
6.5%
80.00%
BECAUSE ANY PROJECTION IS SUBJECT TO UNCERTAINTIES, THESE PROJECTIONS
TOTAL AVERAGE ANNUAL RETURN
16.9%
ARE NOT REPRESENTED AS SPECIFIC RESULTS THAT WILL ACTUALLY BE ACHIEVED.
SALE ASSUMPTIONS
CAPITALIZATION RATE
8.00%
COST OF SALE
6.50%
Macintosh HD:Users:blakecomfort:Desktop:Lamplighter MHP Tucson:Pro-formas:Lamplighter Park Pro-forma sales package updated to burn vacancy off.xls
6/15/16