Exclusive Offering of California Commercial Advisors

Kevin Burger - 949.375.1301 - kevin@CalComAdvisors.com - 01441685

Hornbrook TP pg. 2

Investment Overview

Property

Location

Financial Detail

Comparable Properties

Investment Rationale

Contents

Hornbrook TP pg. 3

Summary

Value Add Opportunities

Investment Overview

Hornbrook TP pg. 4

California Commercial Advisors is pleased to present the Hornbrook Trailer Park for your consideration. This is a

value add opportunity to purchase an HCD permitted 21 space mobile home park with a site-built home, duplex,

storefront and multiple storage buildings. This property is located just off of I-5 in the city of Hornbrook in Siskiyou

County . This rural community offers up the opportunity to fill vacancies and implement bill backs for utilities

along with raising rents to market on both lot and Park Owned Rentals.

Investment Overview—Summary

Hornbrook TP pg. 5

Rental of existing 10 vacant lots

Rehab Storefront building to rental

Rent various available storage units

Expense Recapture for Water/Trash &

Septic Expense

Increase rents to market rates

Enhanced Marketing and Management

Investment Overview—Value Add Opportunities

Hornbrook TP pg. 6 Property

Hornbrook TP pg. 7

Property Details

Property Description

Infrastructure and Utilities

Site Mix and Occupancy

Parcel Information

Property Overlay

Property

Hornbrook TP pg. 8

Site Address: 15608 Hornbrook Road

City, State: Hornbrook, CA

HCD Designation: 21 Mobile Home Sites

Park owned Rental Units: 2/1 SFR, Duplex, Storefront

and 2 mobile homes, plus

storage building and

improved container

Community Type: All Age

Acreage: 3.6

Parcel Number: 040-150-170-000

Property—Details

Hornbrook TP pg. 9

The Hornbrook Trailer Park consists of 3.6 acres of land with various rental properties and rental opportunities. The improvements include an

HCD permitted 21 space Mobile Home Park, a modern and spacious 2 bed/1 bath Single Family Residence, a Duplex, and a storefront building at

the entrance along with various storage buildings.

The SFR has recently been renovated and the Duplex is in good condition. Both are rented. The storefront is currently vacant. Plans were made to

convert it to a rental home as it has 200 amps of power and an existing bathroom and kitchen. There is one 40’ storage container with built in

shelving, a large storage shed behind the SFR, large shed used by management at the back of the property closest to the creek. Additionally, there

are several other unused smaller storage buildings that could be rented but have not.

The Mobile Home Park consists of nine lot rent only tenants. The park owns two single wide mobile homes which are rented. There are 10 vacant

lots.

Property—Description

Hornbrook TP pg. 10

Service Type Provider Payor Metered/Direct Billed

Electric: Pacific Power Tenant Direct Billed

Water: City Landlord Master metered

Gas: Tenant Tenant Propane

Trash: Contracted Svc. Landlord

Septic: Self Maintained Landlord

On-Site Manager: No

Off-Site Maintenance: Yes

Off-Site 3rd Party Management: Yes

Role Compensation

Off-Site Maintenance $15/hr

Off-Site Manager 7% of Gross

Utilities Park Management

Property—Utilities & Management

Property—Site Mix & Rental Compilation

Hornbrook TP pg. 11

Total Occupied Monthly Rents

Total Mobile Home Lots: 21 11 $275-$450

Vacant Mobile Home Lots: 10 0 $350

Resident Owned Homes/Lot Rent Only: 9 9 $275-$450

Park Owned Mobile Homes: 2 2 $575-$700

Park Owned, Site-Built (SFR, Duplex, Store): 4 3 $385-$755

Park Owned Storage: 4 0 $50-$200

Property—Parcel Information

Hornbrook TP pg. 12

APN: 040-150-170-000

Approximately 3.6 Acres

This 3.6 acre parcel is primarily flat with a slight

downward slop towards Cottonwood Creek.

Mature trees are throughout the property shad-

ing the lots.

Home sites are spacious and provide full utility

hookup for electric, septic connections and wa-

ter service.

Site built single family residence, duplex and

store are at front of property nearest Hornbrook

Road with mobile home lots spread primarily

along the parcel’s perimeter.

The road loops through the property and is com-

prised of primarily of crushed asphalt and gravel.

Hornbrook TP pg. 13

Summary

Maps

Demographics

Amenities/Services

Location

Hornbrook TP pg. 14

Hornbrook is a rural community located along

the I-5 corridor between Northern California

and Oregon. This city in Siskiyou county of ap-

proximately 250 people lies 2,172’ above sea

level providing average monthly temperatures

in the low ’70’s.

Hornbrook embodies quiet and peaceful coun-

try living while only 15 miles to the county seat

of Yreka, a city of over 7,800. To the north lies

Ashland and Medford Oregon. Ashland is 23

miles from Hornbrook and has been named in

the Top 10 of “The 100 Best Small Art Towns in

America”.

The climate has been described as warm, sum-

mer Mediterranean. The Cottonwood Creek

that runs adjacent to the property flows to the

Klamath River just to the south of the property.

Location—Summary

Hornbrook TP pg. 15

Location—Maps

Hornbrook TP pg. 16

Amenities/Services

The 2010 United States Census] reported that Hornbrook had a population of 248. The population density was 210.8 people per square mile (81.4/km2). The ra-cial makeup of Hornbrook was 195 (78.6%) White, 0 (0.0%) African American, 15 (6.0%) Native American, 0 (0.0%) Asian, 0 (0.0%) Pacific Islander, 10 (4.0%) from other races, and 28 (11.3%) from two or more races. Hispanic or Latino of any race were 19 persons (7.7%).

The Census reported that 248 people (100% of the population) lived in households, 0 (0%) lived in non-institutionalized group quarters, and 0 (0%) were institu-tionalized.

There were 108 households, out of which 23 (21.3%) had children under the age of 18 living in them, 46 (42.6%) were opposite-sex married couples living togeth-er, 13 (12.0%) had a female householder with no husband present, 2 (1.9%) had a male householder with no wife present. There were 7 (6.5%) unmarried oppo-site-sex partnerships, and 1 (0.9%) same-sex married couples or partnerships. 40 households (37.0%) were made up of individuals, and 16 (14.8%) had someone living alone who was 65 years of age or older. The average household size was 2.30. There were 61 families (56.5% of all households); the average family size was 3.11.

The population was spread out, with 50 people (20.2%) under the age of 18, 18 people (7.3%) aged 18 to 24, 45 people (18.1%) aged 25 to 44, 82 people (33.1%) aged 45 to 64, and 53 people (21.4%) who were 65 years of age or older. The median age was 46.7 years. For every 100 females, there were 87.9 males. For eve-ry 100 females age 18 and over, there were 85.0 males.

There were 156 housing units at an average density of 132.6 per square mile (51.2/km2), of which 72 (66.7%) were owner-occupied, and 36 (33.3%) were occu-pied by renters. The homeowner vacancy rate was 6.3%; the rental vacancy rate was 11.9%. 159 people (64.1% of the population) lived in owner-occupied hous-ing units and 89 people (35.9%) lived in rental housing units.

Bus Services to Yreka and other cities via Siskiyou Transit & General

Express (STAGE) from Hornbrook Community Center

Hornbrook Elementary within walking distance of the property

Hornbrook Post Office 1/2 mile from park

Siskiyou County Airport 17 miles

Doorstep to the Klamath National Forest

Location—Demographics & Amenities/Services

Hornbrook TP pg. 17

Rent Roll

Financial Analysis

Financing Assumptions

and Cash Flow Analysis

Financial Detail

Hornbrook Trailer Park Rent Roll--August, 2020

Space Rental Unit Market Rent Current Rent Lot Rents Current

Lot Rents Year 1

Lot Rents Year 2

POH/Other Rents Cur-

rent

POH/Other Rents Year

1 POH/Other

Rents Year 2 Tenants Current

Store Store $850 VACANT

House House $850 $755 $755 $850 $893 J&J

Apt A Duplex $450 $385 $385 $450 $473 ST

Apt B Duplex $450 $385 $385 $450 $473 GO

1 MH $350 $285 $285 $299 $314 EJ

2 MH $350 $350 VACANT

3 MH $350 $350 VACANT

5 MH $350 $275 $275 $289 $303 SK

6 MH $350 $350 VACANT

7 MH $350 VACANT

8 MH $350 $275 $275 $289 $303 JT

9 MH $350 VACANT

10 MH $350 $295 $295 $310 $325 JB

11 MH $350 $350 $368 VACANT

12 MH $350 $350 $368 VACANT

13 MH $350 $350 $368 VACANT

14 MH $350 VACANT

15 MH $350 $275 $275 $289 $303 CB

16 MH $350 $275 $275 $289 $303 RH

17 MH $350 $60 $60 $63 $66 RH-STORAGE

18 MH $350 $350 $350 $368 $386 TK

19 Misc $350 $35 $35 $37 $39 RW-STORAGE

20 MH $350 $295 $295 $310 $350 RW

21 MH $700 $575 $350 $368 $386 $225 $236 $248 EA

22 MH $350 $450 $450 $450 $450 PH

23 MH $700 $700 $350 $368 $386 $350 $368 $386 JO

Monthly $11,000.00 $5,670.00 $3,475.00 $4,676.25 $5,962.33 $2,195.00 $2,453.50 $2,576.18

Annual $132,000 $68,040 $41,700 $56,115 $71,548 $26,340 $29,442 $30,914

Hornbrook TP pg. 18

Financial Detail—Rent Roll

Hornbrook Trailer Park Hornbrook, CA 21 Lots Siskiyou County Value of 21 Lots: $293,000 Value of Park Rentals: $242,000

Price per Lot @ Lot Value only: $13,952 List Price $535,000

Seller Current Buyer Buyer

BASE RENTS: 2019

Actual YR 1

ProForma YR 2

ProForma

Lot Rents Vacant Lots Vacant Park Owned Rentals $41,700 $56,115 $71,548

Vacant Lots at Market Rents 10 1 $46,200 $33,600 $21,000

Gross Poential Rental Income-LOT RENT ONLY $87,900 $89,715 $92,548

Reimbursements

Water/Septic/Trash 75% recovery $0 $6,197 $6,321

Total Expense Reimbursement $0 $6,197 $6,321

GROSS POTENTIAL INCOME (GPI): Vacancy Rate $87,900 $95,912 $98,869

Vacancy 52.4% -$46,200 -$33,600 -$21,000

EFFECTIVE GROSS INCOME (EGI): $41,700 $62,312 $77,869

EXPENSES: Park Owned

Rental Expenses 2019 Actual

Expenses EXP % Year 1

Expenses EOY 2

Proforma

Real Estate Tax reset to sale price $5,885 23% $5,885 $5,891

POH Taxes $200

Insurance Liability & Prop $200 $2,650 10% $3,250 $4,131

Management Fee $2,919 11% $4,362 $5,451

Electric $2,090 8% $2,090 $2,132

City Water $2,875 11% $3,298 $3,364

Trash Removal $3,298 13% $2,875 $2,933

Park Repair/Maintenance $2,200 9% $3,500 $4,200

POH Repair $6,738

Accounting/Postage $500 2% $750 $755

Legal & Professional $1,250 5% $1,450 $2,000

Cleaning & Supplies $1,450 6% $1,500 $1,800

Permits and Licenses $500 2% $565 $575

TOTAL EXPENSES: $7,138 $25,617 $29,525 $33,231

Lot Expense % 61.4% 47.4% 42.7%

NOI (lot rent only): $16,083 $32,787 $44,638

Park Owned Rental/Other Income

OTHER INCOME :

Rental of Duplex, SF & Storage $26,340 $29,442 $30,914

Park Owned Rental Expenses Seller 27% Buyer 40% $7,138 $11,777 $12,366

TOTAL OTHER INCOME: $19,202 $17,665 $18,548

OPERATING CASH FLOW BEFORE DEBT: $35,285 $50,453 $63,187

Hornbrook TP pg. 20 Financial Detail—Analysis

Hornbrook TP pg. 21

Financial Detail—Financing Assumptions & Cash Flow Analysis

Seller Current Yr 1 ProForma Yr 2 ProForma

$35,285 $50,453 $65,952 OPERATING CASH FLOW BEFORE DEBT: (NOI):

Potential Lender Terms

Interest Rate Amortization in Years Down Payment

5% 25 50%

Amount Financed: $267,500 $267,500

DEBT SERVICE: $18,768 $18,768 $18,768

CASH FLOW AFTER DEBT: $16,517 $31,685 $60,999

Principal Reduction $4,577 $4,771 $4,953

TOTAL PRE-TAX CASH FLOW: $21,094 $36,456 $65,952

CAP RATE AT SALE PRICE: 6.60% 9.43% 12.33%

CASH ON CASH RETURN: 6.17% 11.84% 22.80%

EXPENSE RATIO: 61.4% 47.38% 41.36%

TOTAL RETURN: 7.89% 13.63% 24.66%

PRINCIPAL REDUCTION: $4,577 $4,771 $4,953

DCR: 85.7% 174.7% 252.6%

Broker Notes & Assumptions:

*Gross Income for year 1 & 2 ProForma includes renting 3 lots each year at market rents of $350 and annual rent raises on existing tenants of 5%

*Year 1, and beyond, includes billing back water, sewer and trash related costs and collecting 75% of total

*Cap Rate at Sale Price includes resetting property taxes with seller’s existing expenses and income for Lot rent and Park Owned Rentals

PARK OWNED RENTALS VALUE:

*Store $60,000

*2bd/1bth SFR $90,000

*Duplex $75,000

*Park owned mobiles (2) $15,000

*Storage Buildings/Container $2,000

Value of non-lot rentals $242,000

Hornbrook TP pg. 22

Hornbrook TP

21 MH Lots, plus Park Owned Rentals

$535,000 FOR SALE

Weaver Creek Trailer Park

22 MH Lots, Weaverville CA

Closed 5/1/2020 for $500,000

Burney Falls Trailer Resort

10 MH & 18 RV lots, Burney CA

Closed 11/21/2018 for $439,000

Comparable—Sales

Shastina Mobile Estates-Weed

33 MH Lots, plus Park Owned Rentals

$945,000 FOR SALE

Riverwood MHP

52 MH Lots, Dunsmuir CA

Closed 5/9/2018 for $1,685,000

Bixby Knolls MHP

51 MH Lots, Anderson CA

Closed 3/30/2018 for $1,485,000

Hornbrook TP pg. 23

Property Address Rent Space Utilities Included

X: Hornbrook TP 15608 Hornbrook Rd.

Hornbrook, CA

$350 MH Trash, Water, Septic

A: Blue Heron RV 7630 Copco Rd

Hornbrook, CA

$650 RV Trash, Water, Septic

B: Gazelle MHP 18625 Old Hwy 99

Gazelle, CA

$340 MH Trash, Water, Septic

C: Cascade Sun Mobile Estates

401 S 13th St.

Montague, CA

$325 MH Septic

D: Klamath River

Trailer Park

17630 Hwy 96

Klamath River, CA

$350 MH Trash, Water, Septic

X

C

D

A

B

Comparable—Rents

Hornbrook TP pg. 24

Investment Rationale

This opportunity presents itself when marketing and managerial expertise is applied. At the moment, the park virtually runs itself with limited

managerial involvement. A remote manager comes to collect rent once a month and check on the property. The current owners have been

selective in who they rent to and rents have not been raised in several years. Because the owners have been selective in their choice of ten-

ants, rent collections have been 100%.

Comparable market rents are ranging from $340-$400 where some rents in the Hornbrook park are as low as $275. There is currently no adver-

tising for vacant lots. This is an opportunity to use marketing and management skills to immediately fill vacant spaces. The closest other park

for RVs, the Blue Heron RV park does not take long term renters. A referral arrangement with the Blue Heron could provide a good supply of

potential long term tenants for the park.

There is a vacant storefront building which would make a great residential rental. There is a kitchen and bathroom present and investing in the

rehab of this part of the property would provide one more unit available for rent.

The park currently pays for city provided water, trash pickup and septic maintenance. These expenses should be passed to the tenants as they

are the users of these services. Most tenants understand this and often it is easier to pass on utilities than to institute a rent increase. Although

in the case of this park, both could be done. The costs for these services to each tenant would be less than $40 per month. My analysis has

rents going up 5%.

At the asking price of $535,000, this park represents a price per lot of less than $14,000 per lot plus the value of the site built structures.

This property is located in a truly peaceful and quiet area—exactly what a lot of people are looking for these days. Contact me for more details

or to arrange a tour of the park.

Hornbrook TP pg. 25

Offered by:

Kevin Burger

California Commercial Advisors

949-375-1301

kevin@CalComAdvisors.com

DRE:01441685

Please feel free to call or email me with questions regarding the

Hornbrook Trailer Park