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WILLOW POINT

willow point manufactured Home communitY 43400 lenfestY dr., Harrison townsHip, mi 48045

For a video tour of Willow Point go to: http://youtu.be/-kOETtH8W_c

271 SITE MHC INVESTMENT OPPORTUNITYCOMMUNITY PRICE: $6,400,000HOME INVENTORY: $1,296,819

TERMS: ALL CASH

willow point Community Price : $6,400,000 Home Inventory: $1,296,819 Terms: All Cash

site information

AddRESS 43400 Lenfesty dr., Harrison Township, MI 48045

COUNTY Macomb County

TAx MAP PARCEL17-11-12-226-001, 17-11-01-476-002, 90-01-00-014-000

SITES 271

ZONING MHP, Mobile Home Park Residential

COMMUNITY TYPE All AgeYEAR bUILT 1972COMMUNITY LANd 22.43 acres; 12.08 sites/acre

MH PHYSICAL OCCUPANCY 88.19% (as of 8/31/2013)

MH ECONOMIC OCCUPANCY 85.61% (as of 8/31/2013)

AVERAGE LANd LEASE RENTS

$350 as of 8/31/2013 (Includes trash)

LAST RENT INCREASE $10 (January 2013)

HOME INVENTORY 88 as of 8/31/13 (Offered at NAdA Value of $1,296,819)

ROAdS AsphaltFLOOdPLAIN NoSCHOOL dISTRICT Macomb ISd - L’Ange Creuse

utilitieswATER Harrison Township water dept.SEwER Harrison Township water dept.ELECTRICITY dTE EnergyGAS Consumers EnergyTELEPHONE AT&TINTERNET - CAbLE ComcastTRASH Runco waste IndustriesdUMPSTER Eagle Sanitation

271 SITE MHC INVESTMENT OPPORTUNITYCOMMUNITY PRICE: $6,400,000HOME INVENTORY: $1,296,819

TERMS: ALL CASHWILLOW POINT

• willow Point is conveniently located in Harrison Township, MI, approximately 30 miles from detroit, the largest city in the state of Michigan with a population of over 700,000, with the metropolitan region holding roughly half of the state’s population

• Just minutes from beautiful Lake St. Claire, which lies about 6 miles to the East

• Close proximity to the Chrysler assembly plant in Sterling Heights, which currently employs nearly 2,500 people

• Selfridge Air National Guard base is located less than 10 miles from the community and is one of the largest and most complex joint Reserves Forces bases in the nation. It is home to TACOM, the tank-automotive and armaments command

• A short drive from some of the area’s most popular retail destinations

• Unemployment in Michigan is down to 9% from its peak of 14.1% in September 2009

• Close proximity to Interstate-94, which leads to detroit to the South and Port Huron 40 miles to the North

INVESTMENT HIGHLIGHTS

AREA HIGHLIGHTS

• Terrific opportunity to acquire a Class B asset with an in-fill location that is well positioned to continue producing strong, stable performance as tenant demand continues to increase for affordably priced, all age manufactured home community living

• A total of 88 inventory homes being offered in addition to the community at NAdA value

• Public water and sewer provided to the community with all utility lines underground

• Property should qualify for attractive, non-recourse property loan at historically low interest rates

• Upside potential for buyer to fill vacant sites, increase rents over time and implement a home financing program

willow point financial analYsis

UNdERwRITING ASSUMPTIONS

1. Actual 2010, 2011, 2012 and Aug’13 T-8 numbers based on financials provided by the client

2. Proforma GSR based on the Aug 31, 2013 Rent Roll

3. Utility and Other Income = Av. from 2011 - 2013

4. Adjusted Utilities = Av. from 2011 - 2013

5. Proforma Taxes = 2013 assessed value grown by 15% x the 2013 Tax Rate (2012 mill rate = ~ 4.7977%)

6. Proforma Capital Reserves do not reflect actual expense and are estimated at $50/site

1

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

Less: VacancyLess: Employee/Vacant InventoryLess: Bad DebtLess: ConcessionsTotal Rental Income

3 Plus: Utility Income3 Plus: Other Income

Total Other IncomeEffective Gross Income

EXPENSESRepairs & MaintenancePayrollAdministrativeMarketingProfessional Fees

4 Utilities TrashTotal Variable Expenses

5 TaxesInsuranceManagement FeeTotal Operating Expenses

6 Plus: Capital ReservesTotal Expenses

NET OPERATING INCOME

12,19541,824

13,550$470,544

$575,064

$456,994

23,718$336,742

66,233

121,969

108,40023,035

9,4859,485

$1,045,608

Buyers Exp

$40,650

132,20242,052

$913,40690,150

$1,138,2000

$1,138,200

134,30833,57756,910

0

50

$1,736

45

4.00%

$1,686

88

$1,243244

372

400

85

35

35

per unit

$150

488

155

80.25%

333

2.95%

5.00%

0.00%

0.00%

11.80%

0.00%

242

281

0.00%

0.00%

0.00%

76,05965,454

7,721

141,513

$27,944111,794

0

$775,887

0$825,521

0

49,6340

$542,611

97

42

545

$1,53480

$917,400

14,877

27,522

Actual Exp

$295,148

14,839

142,4648,649

97,767

12,656

36111,497

599

78

18

0.00%

0.00%

5.30%

432

167

per unit

566

516

94.70%

379

137

5.30%

0.00%

0.00%

0.00%

139,895$1,104,011

$964,116102,656

37,239

53,9180

$1,018,034

00

$1,001,597

00

6.01%

00.00%53,087

94.70% $948,510 93.99%

45,281117,088

$51,990Actual Exp

55,958

55

522

413

$1,110,879162,369

3212,695

16,207147,583153,361

28

$192

per unit

$103$266

Actual Exp

$71,992per unit

19,369 5513,53125,786

545

9521,022

4,87550

10,519

0$472,231

23,905

20158,240

21,548$372,988

57,408 54,583

125,676464

86

$1,52626,39723,208

138,603

39,464146$415,707

88

$413,665 $1,089215

9,9623739

$1,376

$206

511

60

71

47

31,506116 47

3.00%

Actualsper unit

$1,383 $374,789$535,419

$535,4190

$374,789$1,3830

33,535$515,402

00

$515,402$1,902

3.04%

0

$1,976

33,6233.00% 3.03%

$1,976$1,9020

417

$1,043,852

31,316

212

392 106,251

$571,621 $575,460$588,609

0

$1,743

$1,743 $472,231

112,873

81,45131,422

301

116

$930,979100.00%

0.00%

0.00%

$930,979

00

$930,979

00

0.00%

0.00%

0.00%

INCOME

0 0$1,001,597$1,018,034

00.00% 0.00%

2012 Aug'13 T8 Ann2011

0.00%

Assumptions

$825,521

Proforma

Financial Analysis

2010

271 SITE MHC INVESTMENT OPPORTUNITYCOMMUNITY PRICE: $6,400,000HOME INVENTORY: $1,296,819

TERMS: ALL CASHWILLOW POINT

willow point rent comps

1 Clinton River 4125 Riverview Circle, Mount Clemens, MI 48043 132 89% $401 T $389

2 Fairchild Lake 49900 Fairchild Rd., Chesterfield, MI 48051 345 74% $502 T $490

3 Westbridge Manor 45301 Chateau Thiery, Mount Clemens, MI 48044 1424 55% $486 T $474

4 Dequindre Estates 48790 Dequindre Rd., Utica, MI 48317 303 95% $412 T $400

5 Rudgate Clinton 20475 Foster Dr., Clinton Township, MI 48036 667 90% $425 None $425

Macomb County Communities Average 574 66% $445 $436

PhysicalOccupancy

271 88%

Adjusted RentSites Av. Rent

Note: Some information from 2013 JLT Survey: Adjusted rent assumes Trash (T) = $12

Macomb County Communities

43400 Lenfesty Dr., Harrison Township, MI 48045

Rent IncludesAddress

Willow Point

RENT COMPARABLES

$350 T $338

Subject Property#

1

2

3

4WILLOWPOINT

5

271 SITE MHC INVESTMENT OPPORTUNITYCOMMUNITY PRICE: $6,400,000HOME INVENTORY: $1,296,819

TERMS: ALL CASHWILLOW POINT

willow point mHc

271 SITE MHC INVESTMENT OPPORTUNITYCOMMUNITY PRICE: $6,400,000HOME INVENTORY: $1,296,819

TERMS: ALL CASHWILLOW POINT

willow point location map & demoGrapHics

     Source 2013 Claritas, Inc. 1 mile 3 mile 5 mile5,806 55,972 166,1485,570 56,336 169,038‐2.57% 0.57% 1.35%‐4.07% 0.65% 1.74%

1,474 14,214 43,8431,436 14,413 44,753‐1.15% 1.24% 1.44%‐2.59% 1.40% 2.08%

39.44% 32.90% 26.83%     Owner Occupied Percentage 60.56% 67.10% 73.17%

$38,296 $54,429 $60,900$49,658 $106,372 $123,151     2013 Est. Median Owner‐Occupied Housing Value

     2013 Est. Average Family Household Income

     2013 Population Estimate     2018 Population Projection     Population Growth 2010‐2013     Population Growth Estimate 2013‐2018

     Renter Occupied Percentage

     Family Household Growth Estimate 2013‐2018

     2013 Family Household Estimate     2018 Family Household Projection     Family Household Growth 2010‐2013

NEW BALTIMORE

SELFRIDGEAIR BASE

96

94

94

94

6969

75

75

275

22

10Lake

St ClairUnit

ed State

s

Canada

Richmond

New Haven

Lincoln Park

Waterford

Windsor

Shelby CharterTownship

HarrisonTownship

Dearborn

59 59 59

53

53

53

Detroit

MICHIGAN

WILLOWPOINT

271 SITE MHC INVESTMENT OPPORTUNITYCOMMUNITY PRICE: $6,400,000HOME INVENTORY: $1,296,819

TERMS: ALL CASHWILLOW POINT

dIAMONd GROVE AERIALwillow point aerial map

selfridGe airBase:• Host to the Michigan Air National Guard, Air Force Reserve, Navy Reserve,

Marine Corps, Army Reserve, Army National Guard and Active duty Coast Guard units

• One of the largest and most complex joint Reserves Forces base in the United States

• Also home to the Tank-Automotive and Armaments Command (TACOM) which supports tank construction in the detroit area

cHrYsler assemBlY plant:• Products assembled include the Chrysler 200, Chrysler 200 Convertible, dodge

Avenger and Lancia Flavia• The Facility is over 3,000,000 sf and houses over 2,400 employees• Recent additions include a 425,000 sf paint shop and a 1,000,000 sf body shop

nearBY retail:• walmart Supercenter• Mall at Partridge Creek – Apple Store, Nordstrom, banana Republic• Shelby Town Center – Costco, Marshalls, TJ Max• Lakeside Mall – Sears, JC Penny, Macy’s, Toys “R” Us• Shelby Corners – Target, best buy, Sam’s Club

SelfridgeAirbase

16 MIle Rd

N RIver Rd

Utic

a Rd

Gar

�eld

Rd

Clinto

n River Rd

15 Mile Rd

STERLING HEIGHTS

CHARTERTOWNSHIP

OF CLINTON

HARIISONCHARTER

TOWNSHIP

Mall at Patridge Creek

Shelby Town Center

Shelby Corners

Lakeside Mall

53

53

5353

59

59 59 59

3

3

97

97

97

3

Apple Store

Jo-Ann Fabric

Parisian

Taking Care of Business

Neighborhood Grill & Bar

MPCUrgent Care

L’Anse CreuseHigh School

MacombCommunity

College

Clemens CenterShopping

Center

Country MeadowsShopping

Center

GibraltarTrade Center

DuPontAutomotive

ArmstrongPerforming Arts

Center

WarrenPerforming Arts

Center

ChryslerCorporation

WILLOWPOINT

94

94

94

271 SITE MHC INVESTMENT OPPORTUNITYCOMMUNITY PRICE: $6,400,000HOME INVENTORY: $1,296,819

TERMS: ALL CASHWILLOW POINT

901 S MoPac Expresswaybarton Oaks Plaza II, Suite 275Austin, Tx 78746

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

relationsHips

tHat deliver results.

www.arausa.com© ARA. All Rights Reserved

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.

ARA NATIONAL MANUFACTURED HOUSING GROUP:andrew shihashih@arausa.com t 512-637-1219

winformation for willow point is available on our website at: www.arausa.com/listinglab/willowpoint

VQ

willow pointmHc

For a video tour of Willow Point go to: http://youtu.be/-kOETtH8W_c