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COUNTRY PINESmaNUfaCTUREd HOmE COmmUNITY 1119 S maIN STREET LUmBERTON, TX 77657

For a video tour of Country Pines, please visit:http://youtu.be/i44qP_cwMSg

54 SITE MHC / 2 SF HOMESCOMMUNITY PRICE: $750,000HOME INVENTORY: $129,150

TERMS: ALL CASH

54 SITE MHC / 2 SF HOMESCOMMUNITY PRICE: $750,000HOME INVENTORY: $129,150

TERMS: ALL CASH

SITE INfORmaTION

Address 1119 south Main street Lumberton, TX 77657

counTy Hardin county

scHooL dIsTrIcT Lumberton Isd

TAX AccounT Id000014-007299-0-000000000014-007303-0-000000000014-007655-0-000000

sITes 54 MH; 2 sF Homes

coMMunITy Type All Age

coMbIned LAnd sIze

10.57 acres (includes 1 acre of expansion land)

densITy 5.3 sites/acre

MH pHysIcAL occupAncy 82.14% (46 sites as of Jan ‘14)

MH econoMIc occupAncy

80.35% (45 sites as of Jan ‘14 with one scheduled for Feb move in)

MArkeT LAnd LeAse renTs

$207 ($13 rent increase announced for Jul ‘14, raising rent to $220)

LAsT renT IncreAse $7 (Jul ‘13)

InVenTory HoMes

4 occupied rent to own homes (each pays $450/month home rent with a combined balance of $129,150 as of Feb ‘14)

roAds Asphalt/concrete/Gravel

FLoodpLAIn no

UTILITIESwATer LMud (direct billed to Tenant)

sewer LMud (direct billed to Tenant)

eLecTrIcITy entergy (direct billed to Tenant)

GAs centerpoint (direct billed to Tenant)

TrAsH IesI (paid by community)

COUNTRY PINES community price : $750,000 Terms: All cashHome Inventory: $129,150

• numerous industrial projects and expansions are in progress that will bring thousands of jobs to the area, including the construction of the nation’s largest methanol plant ($1 billion), cheniere partners’ 6 natural gas unit expansion ($12 billion), an exxonMobil expansion ($350 million), and the recently completed Motiva port Arthur Refinery expansion ($7 billion).

• Lumberton is conveniently situated off of Hwy 96 and is roughly 15 minutes from Interstate 10.

• The city is located 12 miles from beaumont, 96 miles from Houston, and just 38 minutes from the Louisiana border.

• The beaumont/port Arthur MsA is the center for trade and commerce in southeast Texas and is heavily influenced by the oil and gas industry, the port of beaumont, and a growing medical industry.

• The community is in close proximity to several retail and entertainment destinations including the thriving parkdale Mall area, 8 miles to the south, which holds ~150 stores and restaurants.

• country pines is located in Lumberton, TX, which has a population of ~12,000 and is part of the beaumont/port Arthur MsA with a population of ~389,000.

INVESTmENT HIGHLIGHTS

aREa HIGHLIGHTS

• opportunity to acquire an all age community with public utilities in a tremendous market with high job growth. country pines is perfectly positioned to capture the growing demand for affordable housing in the area.

• outstanding opportunity to acquire a stabilized community and still achieve high total returns by filling the remaining vacant sites.

• Offering includes 4 inventory homes currently occupied under a rent to own program and paying $450/site home rent (offered at the outstanding balance of $129,150).

• Two recently upgraded sF Homes are also included in the sale (upgrades included paint, roofing, and interior drywall). Both are occupied and included in the community price.

• one acre of expansion land is included in the community price and has the potential to hold 5-10 additional homes.

• The community is serviced by municipal utilities and tenants are direct billed for water and sewer.

• A rent increase of $13 is scheduled for June’14 which will raise the average rent to $220/site.

54 SITE MHC / 2 SF HOMESCOMMUNITY PRICE: $750,000HOME INVENTORY: $129,150

TERMS: ALL CASH

COUNTRY PINES fINaNCIaL aNaLYSIS

1

2 Gross Scheduled RentLess: (Gain)/Loss-to-LeaseGross Potential Income

Less: VacancyLess: Vacant InventoryLess: Bad DebtTotal Rental Income

3 Plus: Utility Income3 Plus: Other Income

Total Other IncomeEffective Gross Income

EXPENSES7 Repairs & Maintenance8 Payroll

AdministrativeMarketingProfessional Fees

4 Utilities Electricity Water & Sewer Trash Other UtilitiesTotal Variable Expenses

5 TaxesInsuranceManagement FeeTotal Operating Expenses

6 Plus: Capital ReservesTotal Expenses

NET OPERATING INCOME

2,8006,417

2,800$53,821

$74,510

$51,021

4,4080

$30,44811,356

00

14,0001,400

8402,800

$128,331

Buyers Exp

$7,000

00

$128,3310

$158,1600

$158,160

28,2470

1,582

50

$961

50

5.00%

$911

79

0

$544203

0

0

250

25

15

50

per unit

$125

0

0

81.14%

0

0.00%

1.00%

0.00%

17.86%

9

91

per unit

290

0

0

100.00%

0

0

0.00%

0.00%

0.00%

0$124,374

$124,37400

0

$124,374

00

22,235

2,253

20616,268

$85

Actual Exp

$4,760

734 0513

5,1000

3,514

0$66,826

00

5,594

9,116

0 4,280

$55,0458,267

0

0

$5520

19,074

0

100

$30,921163

32 1,790

1,0171863

$983

76

$397

341

4

13

40

56

Actualsper unit

0$41,054

00

$41,054$733

0.00%0.00%

$7330

11

$134,052

0

148

3,160

$67,226 $83,320

$1,193

$1,193 $66,826

604

0604

0

11

$133,449100.00%

0.00%

$133,449

0

$133,449

00

0.00%

0.00%

0.00%

INCOME

0$124,374

00.00%

2013

0.00%

Assumptions

Buyers UW

Financial Analysis

2012

1. Actual 2012 & 2013 numbers based on financials provided by the client.

2. proforma Gsr includes a $13 rent increase scheduled for July 2014. Income includes a home that was recently sold with a scheduled February move in.

3. There is no utility or other income.

4. Adjusted utilities grown 3% from 2013. beginning in 2013 Trash is the only expense paid by the park.

5. proforma Taxes = 80% of asking price x 2013 Tax rate.

6. Capital Reserves expense does not reflect an actual expense.

7. note that 2012 r&M expense included a number of capital expense items for the sF and inventory homes.

8. payroll for 2014 is for one manager and includes free lot and home rent (included in payroll expense) + $400 a month.

UNdERWRITING aSSUmPTIONS

54 SITE MHC / 2 SF HOMESCOMMUNITY PRICE: $750,000HOME INVENTORY: $129,150

TERMS: ALL CASH

COUNTRY PINES aREa aERIaL & dEmOGRaPHICS

dEmOGRaPHIC INfORmaTION 1 mile 3 mile 5 mile2014 population estimate 3,025 12,227 22,8642019 population projection 3,794 12,943 24,258population Growth 2010 - 2014 3.37% 3.71% 3.99%population Growth estimate 2014 - 2019 5.57% 5.85% 6.10%population Growtn 2000 - 2010 18.57% 19.93% 26.42%

renter occupied percentage 30.00% 23.78% 21.67%owner occupied percentage 70.00% 76.22% 78.33%2014 est. Average Family Household Income $74,631 $77,159 $75,8382014 est. Median owner-occupied Housing Value $123,507 $126,702 $127,482

Source: 2014 Claritas, Inc.

Village CreekState Park

69

69

96

96

287

287

421

LUMBERTON

LumbertonMiddle School

LumbertonHigh School

Lumberton Primary School

AmericasDrive•In SM

54 SITE MHC / 2 SF HOMESCOMMUNITY PRICE: $750,000HOME INVENTORY: $129,150

TERMS: ALL CASH

PORT Of BEaUmONT• The fourth busiest port in the united states (and busiest military port).• It recently completed a 650 feet long dock that will accommodate ships up to 1,000 feet long among $65 million in capital

improvements. fEdERaL BUREaU Of PRISONS• operates the beaumont Federal correctional complex, a three facility complex opened in 1998.• one of the largest employers in the area with approximately 5,000 employees. LamaR UNIVERSITY• The university offers 63 undergraduate, 47 master’s and 9 doctoral degree programs across five academic colleges. • It has a current enrollment of over 14,000 students, 1,400 faculty and staff and generates economic activity of more than

$310 million a year according to a recent perryman Group study.

PaRKdaLE maLL• Home to ~150 stores and restaurants.• Anchor tenants include Barnes & Noble, Best Buy, Macy’s, Office Depot, Petco, Dillard’s, Sears, and JCPenney. CHRISTUS ST. ELIZaBETH aNd mEmORIaL HERmaNN BaPTIST HOSPITaLS• Two of the top ten employers in the city of beaumont.

COUNTRY PINES LOCaTION maP

LUMBERTON

NEDERLAND

90

69

96

96

96

287

287

105

124

421

73

87

87

87

62

62

PORT ARTHUR

BEAUMONT

90

10

10

10

10

Christus Hospital St. Elizabeth

Baptist Hospitalsof Southeast TX

12

326

69

73

VILLAGE CREEKSTATE PARK

SABINE NATIONAL WILDLIFE REFUGE

SABINE LAKE

L OUISIA N

A

TE

XAS

ORANGE

Lamar University

Parkdale Mall

901 S MoPac ExpresswayBarton Oaks Plaza II, Suite 275Austin, TX 78746

relationships that deliver results.

www.arausa.com© ARA. All Rights Reserved

ARA NATIONAL MANUFACTURED HOUSING GROUP

andrew shihashih@arausa.com t 512-637-1219

todd Fletchertfletcher@arausa.com t 303-260-4470

Brian vitabvita@arausa.com t 512-637-1221

Jon shayjshay@arausa.com t 303-260-4486

PRIMARY CONTACTS:

BENNY AVEBENNY AVES VILLA

GE CREEK PKW

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GE CREEK PKW

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HOLMES RDHOLMES RD

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IN ST

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IN ST

96

This information has been derived from sources deemed reliable. However, it is subject to errors, omissions, price change and/or withdrawal, and no warranty is made as to the accuracy. Further, no warranties or representation shall be made by Apartment Realty Advisors (ARA) and/or its agents, representatives or affiliates regarding oral statements which have been made in the discussion of the above property. This presentation, prepared by ARA, was sent to the recipient under the assumption that s/ he is a buying principal. Any potential purchaser is advised that s/ he should either have the abstract covering the real estate which is the subject of the contract examined by an attorney of his/her selection, or be furnished a policy of title insurance. Do not contact the Property.

wInformation for Country Pines is available on our website at: www.arausa.com/listinglab/CountryPines

For a video tour of Country Pines, please visit: http://youtu.be/i44qP_cwMSg