For a video tour, please visit: https://vimeo.com/262082652

TWO 55+ MH/RV COMMUNITIES385 SITESPRICE: CONTACT BROKER

PLEASE DO NOT SPEAK WITH TENANTS OR EMPLOYEESMission, TX

78572

Mobile Gardens

Mobile GardensLemon Tree

LEMON TREE RV INN

ADDRESS 1740 E. Business 83, Mission, TX 78572

PRICE Call Broker for Price

TERMS Loan Assumption

COUNTY Hidalgo

YEAR BUILT 1978

TAX PARCEL IDS S2950-00-000-0201-15

TOTAL SITES 203 (150 park model; 40 RV; 13 self storage)

COMMUNITY TYPE 55+

LAND SIZE 9.3 acres

DENSITY 21.5 sites/acre

INVENTORY HOMES 17 (17 occupied as of Feb ‘18)

AVERAGE LOT RENT $224 (base rent only)

MH PHYS OCC 85.0% (170 sites as of Feb ‘18)

MH ECO. OCC 81.5% (163 sites as of Feb ‘18)

ROADS Asphalt

FLOODPLAIN Zone X

ZONING R-4 (Mobile & Modular Home)

WEBSITES www.lemontreervinn.com

UTILITIES

WATER/SEWER City of Mission (tenants pay $5 per month)

GAS Texas Gas (direct billed)

ELECTRICITY PXU (submetered & direct billed)

TRASH City of Mission (tenants pay $5 per month)

MOBILE GARDENS MH/RV RESORT

ADDRESS 1901 N. Glasscock Rd, Mission, TX 78572

PRICE Call Broker for Price

TERMS Loan Assumption

COUNTY Hidalgo

YEAR BUILT 1971

TAX PARCEL IDS S2950-00-000-0242-10

TOTAL SITES 182

COMMUNITY TYPE 55+

LAND SIZE 19.7 acres

DENSITY 9.2 sites/acre

INVENTORY HOMES 13 (6 occupied as of Feb ‘18)

AVERAGE LOT RENT $290 (base rent only)

MH PHYS OCC 95.1% (173 sites as of Feb ‘18)

MH ECO. OCC 91.8% (167 sites as of Feb ‘18)

ROADS Asphalt

FLOODPLAIN Zone X

ZONING R-4 (Mobile & Modular Home)

WEBSITES www.mobilegardenscommunity.com

UTILITIES

WATER/SEWER City of Mission (tenants pay $10 per month)

GAS Texas Gas (master metered & owner pays)

ELECTRICITY Star Tech (direct billed)

CURBSIDE TRASH City of Mission (included in rent)

385 SITES | MISSION, TXPRICE: CONTACT BROKER

EXISTING LOAN INFORMATIONORIGINAL LOAN AMOUNT $1,650,000

CURRENT BALANCE $1,539,094

INTEREST RATE 5.51%

1ST PAYMENT DATE 12/1/13

MATURITY DATE 11/1/23

TERM (YRS) 10

AMORTIZATION (YRS) 30

I/O (YRS) N/A

MONTHLY PAYMENT $9,379

LENDER Wells Fargo

EXISTING LOAN INFORMATIONORIGINAL LOAN AMOUNT $2,655,000

CURRENT BALANCE $2,515,720

INTEREST RATE 4.76%

1ST PAYMENT DATE 10/6/14

MATURITY DATE 9/6/24

TERM (YRS) 10

AMORTIZATION (YRS) 30

I/O (YRS) N/A

MONTHLY PAYMENT $13,866

LENDER Union Capital

PROPERTY DETAILS

AREA HIGHLIGHTS

• The communities are conveniently located in the Rio Grande Valley, midway between Harlingen and McAllen, and within a 30-minute drive to the Mexico border. The Valley encompasses numerous towns clustered at the southern tip of Texas and the area is home to an estimated 1.4 million residents.

• The McAllen MSA, which encompasses all of Hidalgo County, has experienced rapid population growth resulting in an estimated 2022 population of approximately 943,620, making it the fifth largest MSA in Texas. Moderate incomes in the area coupled with rapid population growth drive demand for affordable housing.

• Hidalgo County’s economy is currently experiencing a surge in development due primarily to growth in international trade, retail trade, tourism and manufacturing industries. 80 of Fortune 500’s global manufacturers have operations in the region, including AT&T, Bissel, Black & Decker, BMW, Delco, Drexel Meyers, Sony and more. The top four employment sectors in the Hidalgo County MSA are educational services, retail trade, healthcare and construction, which account for 52% of the employed residents in the county.

• Access to the United States-Mexico border is also a critical component to the economic stability of the region. It is estimated that cross-border commerce creates nearly 9,650 jobs and contributes about $800 million annually in total economic impact. Around 3,600 people cross the border daily to work in Mexico; the majority tend to be plant managers or engineers that have manufacturing facilities in Mexico.

• Located deep within South Texas, the Rio Grande Valley is a hot spot for snowbirds, tourists and retirees. The region’s mild climate and beautiful scenery attract visitors from across the nation. During the 2015-2016 season, 51,000 Winter Texan households visited the Valley. The average Winter Texan is 72.3 years of age, owns an RV or mobile home, and has plans to return next season, creating large demand for 55+ MH/RV housing.

• The communities are near large retailers such as Home Depot, HEB, and Walmart as well as the highly rated medical centers, Mission Regional Medical Center and McAllen Medical Center. The communities are also served by two major international airports, McAllen International Airport and Rio Grande Valley International Airport, both within a 30 minute drive of the properties.

INVESTMENT HIGHLIGHTS

• Located in the beautiful Texas Rio Grande Valley, this offering includes Lemon Tree RV Inn and Mobile Gardens MH/RV Resort. Only a few minutes apart, these 55+ properties are offered together; however, the owner will look at offers separately.

• Rare opportunity to acquire two high quality assets in a recovering market that can be purchased at above market cap rates and an attractive basis with very few park owned homes. There is an opportunity to grow revenue at both parks by bringing in homes to sell.

• These both must be purchased as loan assumptions. Both offer attractive longer term CMBS debt.

• Lemon Tree RV Inn is operated like a manufactured home community as it consists of mostly park model homes housing stable, longer term 55+ age residents.

• Utilities are public and the area has excellent demographics with a population of 531,285 within a 10-mile radius from the communities.

• Lemon Tree and Mobile Gardens offer its residents plenty of amenities and services including a heated swimming pool, shuffleboard courts, laundry facilities, lounge patio, air-conditioned clubhouse, recreation hall, bingo, and church services.

Mobile Gardens

Lemon Tree

385 SITES | MISSION, TXPRICE: CONTACT BROKER

INVESTMENT HIGHLIGHTS

2 Gross Scheduled Site Rent (MH)00 Less: Vacancy3 Less: Employee/Model0 Less: Bad Debt0 Less: Concessions0 Total Rental Income 4 Plus: Water/Sewer Income

Plus: Electric IncomePlus: Other Income

5 Plus: RV Rental IncomePlus: Park-Owned Rental Income

0 Total Other Income0 Effective Gross Income0 EXPENSES0 Repairs & Maintenance6 Payroll0 Administrative0 Marketing0 Professional Fees7 Utilities0 Electricity0 Water/Sewer0 Telephone/Internet/Cable0 Gas0 Trash0 Total Variable Expenses8 Taxes0 Other Tax0 Insurance0 Management Fee0 Total Operating Expenses9 Plus: Capital Reserves0 Total Expenses00 NET OPERATING INCOME

Debt ServiceNET CASH FLOWExpense Ratio

($112,546)

2017 Actuals1

$0

787 971

$241,963$316,683

Actuals

346

40 7,589

$0

$9,071

18,2787,251

3,961

2016 Actuals1

4.00%

26

97

($112,546)

50

$1,330

$1,280

$168,242

$252,628

$243,128

41

25

$927

45,405$176,139

7,817

16,835

9,500

4,750

$168,06841,045

184,432

18,998

$176,4708,337

17,898

$420,870

239

247 46,997

189,9651,000

4,465589 111,935

$230,905

88

24

$52 $9,807

1.38%

3.00%

36.00%

$5,408$1,953

$0$140,616$0

0.50%

Proforma

$223,103

Financial Analysis

INCOME$316,683 $390,600$241,963 $223,103

$0$0

$48 $50

9,147

24

21

59,233

96

296

3,481

26

204

72

22

$929

44

38

100

4,99324,000

0$215,292

6.00% 23,500

0 0$1,282 $243,636

$55,695$57,415

38,673

$1,25024,0005.89%

0 04,461

$885

$0$0

0

$9,521

Actuals

$407,535

$237,574

$237,5740

($112,546)

0

$1,250$215,292 $1,282

$169,961$162,654

$50,108($112,546)

$35,23756.96%

$0

$147,783

$243,636

23

$0

$54

208 39,51760 11,442

$10,304

0 00 0

$377,94661,263322

12,90099 18,762

Actuals

$41,069per site

$216

68

14 2,73423 4,400

18

38

44

312

48

20,253

7,1848,337

$167,247

215

$0$0

225 42,806

107

1

42

19

$1,133

7,916379 72,08793

$880

6.35%

$1,133

3,577

$40,931$215

per site

$391,419149,457

4,592

13,624

per site

$133

71

28

87

56,266

17,577

0

4,232

25

240 45,62823 4,335

16,274572 108,67586

94

4,753

0

65,678

216

$25,194

25

6,81036

16,608

5,35713,400

4,781

Proforma

$150

$11,718

25

0

59.12%

4,75080

per site

$28,500

16,762

7,014

25 4,750

0

90 17,10015,200

18,4354,924

67,648356

37

62.24% 58.30% 60.03%

2015 Actuals1

1. Actual numbers based on financials provided by the client. The 2015 rental income break down is not available

2. Gross Scheduled Site Rent = 150 MH Sites x $317 avg lot rent x 12 months

3. Employee concessions calculated by annualizing the amounts on the rent roll. Sites B-15 and C-04 receive a rent concession from November through March. Site C-12 is the managers home who receives free lot rent every month

4. RUBS and other income grown 3% from 2017 Actuals

5. RV Income and Park-Owned Home Income grown 3% from 2017 Actuals

6. Payroll includes husband and wife managers, part-time maintenance, and part-time campworker

7. Adjusted utilities grown 3% from 2017 Actuals

8. Proforma taxes = 2017 assessed value x 2017 mill rates grown 20%

9. Numbers do not reflect actual expense

UNDERWRITING ASSUMPTIONS

LEMON TREE RV INN PROFORMA

385 SITES | MISSION, TXPRICE: CONTACT BROKER

FINANCIAL ANALYSIS

2 Gross Scheduled Rent00 Less: Vacancy0 Less: Bad Debt0 Less: Concessions0 Total Rental Income 3 Plus: Utility Income3 Plus: Other Income0 Plus: RV Income0 Plus: Home Rent0 Total Other Income0 Effective Gross Income0 EXPENSES0 Repairs & Maintenance4 Payroll 0 Administrative0 Marketing0 Professional Fees5 Utilities0 Electricity6 Water/Sewer0 Internet0 Gas0 Trash0 Total Variable Expenses7 Taxes0 Other Tax0 Insurance0 Management Fee0 Total Operating Expenses8 Plus: Capital Reserves0 Total Expenses00 NET OPERATING INCOME

Debt ServiceNET CASH FLOWExpense Ratio 48.29% 50.21%

2015 Actuals1

5,459

10 1,766

25 4,550

450 81,90018,200

18,8727,671

3,640100

26,852148

per site

$36,400

$0

20

83,105

4,76917,128

7,448

$42,832

0

1,7159

101

0

5,300

26,070

40 7,27948 8,69762 11,294

29

4,483

6,130

41

4,000

6,074

94,253

per site

$235

94

26

457

$31,533$173

per site

$551,52242,334

5.99%

$1,831

8,80128 5,07648

$1,831

4,70152 9,473

$1,392

$0

30 5,445

184

26

33,484

7,6197,890

$253,316

109

42

43

184

126

$226

453

66 12,03723 4,100

273

82,371120 21,922

Actuals

$41,063per site

89 16,247

$542,27249,766

$121

45 8,22618 3,205

$22,088

$0$0

$236,461

$315,061

35

$209,095

$42,706($166,389)

$70,07261.44% 57.13%

$309,927

$289,427

$289,4270

($166,389)

0

$1,590$333,177 $1,731

Actuals

$599,354

$0$0

0

$21,242

6,360

$1,158

$1,59012,0002.00%

55,219

$143,538 $151,338

7,12632,500

0$333,177

2.18% 12,000

0 0$1,731 $315,061

39

303

518

25

34

$1,289

50

94

110

22,879

33

22

33,558

106

158

19,877

$0

$125 $117

$647,993$513,288 $550,842

Financial Analysis

INCOME$492,506

$550,842

Proforma

90.76%

1.00%

$53,406$0

0.00%

8.24%

$6,480

49

$120 $21,87941 7,497

49,967275

8,95864 11,633

Proforma

$200

28,771

$588,107

$638,074

354302

48,512

19,998

$234,5869,123

25,523

9,100

6,370

$210,75555,012

53

30

35

$1,151

64,396$209,499

9,647

50

$1,760

$1,710

$317,727

$320,347

$311,247

($166,389)

4.00%

42

104

2016 Actuals1

51

18,322

9,366

$4,100

$22,715

19,28617,065

($166,389)

Actuals

143

$492,506 $509,188

$0

233 267

2017 Actuals1

1. Actual numbers based on financials provided by the client

2. Proforma UW GSR= 182 sites x $297 avg. lot rent x 12 months (Average lot rent includes one furnished duplex unit where each tenant pays $1,000 in site rent)

3. RUBS and other income grown 3% from 2017

4. 2016 payroll expense included temporary employee for $6,000

5. Adjusted utilities grown 3% from 2017

6. 2017 Water and Sewer expense excludes repairs to the master meter

7. Proforma taxes= 2017 assessed value x 2017 mill rates grown 20%

8. Numbers do not reflect actual expense

UNDERWRITING ASSUMPTIONS

MOBILE GARDENS MH/RV RESORT PROFORMA

385 SITES | MISSION, TXPRICE: CONTACT BROKER

FINANCIAL ANALYSIS

12

34

5

385 SITES | MISSION, TXPRICE: CONTACT BROKER

RENT COMPARABLES

SUMMARY

PROPERTY ADDRESS # OF SITES

PHYSICAL OCC.

AVG RENT

RENT INCLUDES

ADJUSTED RENT

1 Bentsen Grove MHC 810 Bentsen Palm Dr Mission, TX 78572 291 94% $660 W/S/T $628

2 El Valle De La Luna MHC 201 South Taylor Rd McAllen, TX 78501 83 94% $315 W/S/T $274

3 Palm Shadows MHC 200 N Valverde Rd Donna, TX 78537 252 96% $239 None $239

4 Winter Haven MHC 1015 W. Sam Houston St Pharr, TX 78577 170 95% $270 W/S/T $236

5 Winter Ranch 600 State Hwy 495 Alamo, TX 78516 269 98% $370 W $346

TOTALS 1,065 95% $371 $345

Lemon Tree RV Inn* 1740 E. Business 83 Mission, TX 78572 203 85% $224 None $224

Mobile Gardens MH/RV Resort* 1901 N. Glasscock Rd Mission, TX 78572 182 95% $297 T $290

*55+ communities | Source: Hidalgo County, TX JLT Market Report - September 2017 T – Trash; W – Water; S – Sewer; L – Lawn

385 SITES | MISSION, TXPRICE: CONTACT BROKER

DEMOGRAPHIC INFORMATION 3 MILES 5 MILES 10 MILES

2017 Population Estimate 932 7,055 169,459

Population Growth 2010 - 2017 7.25% 36.38% 17.80%

2017 Renter Occupied Housing Percentage 17.20% 22.70% 36.70%

2017 Owner Occupied Housing Percentage 77.10% 71.20% 58.50%

2017 Estimated Average Household Income $104,455 $4,550 $87,218

2017 Estimated Median Owner-Occupied Housing Value $104,070 $80,899 $176,554

Source: U.S. Census Bureau

TOP 10 HIDALGO COUNTY EMPLOYERS EMPLOYEES

Edinburg Regional Medical Center 3,000

University of Texas-Pan American 2,850

McAllen Medical Center 2,800

Hidalgo County 2,200

South Texas College 2,200

City of McAllen 2,000

Doctors Hospital at Renaissance 2,000

Rio Grande Regional Hospital 2,000

U.S. Customs and Border Protection 1,600

BBVA Compass Bancshares Inc. 1,500

Source: McAllen Economic Development Corporation

AREA EMPLOYMENT & DEMOGRAPHICS

Mobile Gardens

Lemon Tree

MCALLEN

MISSION

HARLINGEN

MEXICO

Red Gate Power Plant

FUTURE

EDINBURG

LA PLAZA MALLMISSION REGIONAL

MEDICAL CENTER

RIO GRANDE VALLEY PREMIUM OUTLETS

SUPERCENTER

Taking Care of BusinessRecreate PMS

N

University of Texas Rio Grande Valley• The University of Texas Rio Grande Valley, with campuses in

Brownsville, Edinburg, McAllen, Harlingen and Rio Grande City, is a public research university that currently enrolls approximately 28,500 students per year.

• Offers more than 120 undergraduate and graduate degree programs.

• Recently opened the School of Medicine that offers students the most technologically advanced resources, including a 15,000-square foot Smart Hospital complex.

• The second largest Hispanic-serving institution in the nation.South Texas College• Offers more than 119 degree and certificate program options

including degrees in a variety of art, science, technology and allied health fields of study.

• A public community college located throughout Hidalgo and Starr counties, which currently enrolls approximately 34,000 students per year.

Red Gate Power Plant• Uses 12 of the largest natural gas-powered reciprocating engines in

the world which produces enough energy to power approximately 50,000 homes

• Owned and operated by the South Texas Electric Cooperative, which is made up of eight member cooperatives, including the Hidalgo County based Magic Valley Electric Cooperative.

La Plaza Mall• One of the highest-grossing and largest malls in south Texas

totaling 1,500,000 square-feet of space.• Features more than 150 specialty stores and attracts 18 million

plus visitors annually.• Draws from a consumer base of more than ten million people within

a 200-mile radius in south Texas and northern Mexico.McAllen International Airport• The airport is conveniently located in McAllen, Texas off Expressway

83 and sits directly across La Plaza Mall, one of the top shopping destinations in the Valley.

• Approximately 2.4 million people pass through the terminal annually.

385 SITES | MISSION, TXPRICE: CONTACT BROKER

LOCATION & ATTRACTIONS

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 ARA, A Newmark Company (ARA Newmark) 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 Newmark 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 Properties.

www.aranewmark.comManufactured Housing and RV Park Group: 901 S. MoPac Expressway, Barton Oaks Plaza II, Suite 275, Austin, TX 78746 T 512.342.8100

PRIMARY CONTACTS

Todd Fletchertfletcher@aranewmark.com T 303.260.4470

Andrew Shihashih@aranewmark.com T 512.637.1219

PLEASE DO NOT SPEAK WITH TENANTS OR EMPLOYEES

Additional information is available on our website at: http://arausa.listinglab.com/LemonTreeMobileGardens

For a video tour, please visit: https://vimeo.com/262082652

!

83BUS

N SH

ARY

RD

S ST

EWAR

T RD

N BR

YAN

RD

495