Wilderness mhc RECEIVERSHIP SALE. 108 Wilderness Park Drive Clarendon, PA 16313

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1 A 88-SITE VALUE ADD COMMUITY COMMUITY PRICE: $6, RECEIVERSHIP SALE 18 Wilderness Park Drive Clarendon, PA 16313

2 PROPERTY DETAILS ADDRESS COUTY TAX PARCEL ID SITE IFORMATIO 18 Wilderness Park Drive Clarendon, PA Warren W SITES 88 COMMUITY TYPE LAD SIZE DESITY IVETORY HOMES AVERAGE LOT RET All Age acres.92 sites/acre one* $244 (base rent only) MH PHYS OCC 64% (56 sites as of Dec 16) MH ECO OCC 55% (48 sites as of Dec 16) ROADS FLOODPLAI ZOIG Asphalt Zone X R-1 Residential *Lender is currently exploring options for taking control of 28 homes that are controlled by the former borrower; however, delivery of these homes at closing is not guaranteed at this time WATER SEWER ELECTRICITY GAS CURBSIDE TRASH UTILITIES Private Wells (Submetered) Private Treatment Plant (flat rate fee) Pen-Elec (direct billed) Private Wells (Submetered) Fletcher/Advance Disposal (direct billed) IVESTMET HIGHLIGHTS Opportunity to acquire an 88-site value add property currently in receivership. The receiver was put in place mid-october of 216. This was one of the smallest assets in a portfolio of non-performing loans purchased by the seller, a large private equity group, thus they are looking to quickly dispose of it. Offered well below replacement cost at $6,818 per site. At 55% economic occupancy, there is tremendous potential to add value by filling vacant sites. The permit for the park s wastewater treatment plant does not expire until 221. There are approximately 2 natural gas wells that service the homes in the community. In past years, when the wells were more productive, there was excess gas and oil that could be sold outside of the park. In the past few years, there have been multiple oil spills from a crude oil tank at the property requiring remedial action and the park is currently in the process of cleaning up the most recent spill. The receiver reports that the city has been patient and easy to work with as they work on the issue. Further remediation may still be required after the property is sold. Detailed environmental reports are available in the property package. There are currently no park-owned homes. Average income of $6,2 and average home value of $114,65 in a one-mile radius of the property. AREA HIGHLIGHTS Wilderness MHC is located in northwest Pennsylvania two hours south of Buffalo, three hours east of Cleveland and less than three hours north of Pittsburgh. Warren County has a population of 41,815 according to the U.S. Census Bureau. The property sits by the border of the Allegheny ational Forest providing numerous outdoor recreation activities. Allegheny spans over 5, acres and is the only national forest in the state of Pennsylvania. The Allegheny Reservoir features an extensive trail system with breathtaking views and several campgrounds and boat ramps. Minutes from the community, Warren is the county seat and home to numerous national retailers including Wal-Mart, CVS, McDonald s, Subway and Wendy s. Several of the county s top employers operate in Warren including Blair Payroll LLC, orthwest Bank, United Refining Company, Warren General Hospital, Whirley Industries, Wal-Mart and Targeted Pet Treats LLC, all of which are within 15 minutes of Wilderness MHC. Warren General Hospital, the sixth-largest employer in the county, is an 89-bed facility sitting less than ten minutes from the property. The hospital has 2,95 admissions annually. Warren Area High School is minutes from the community and earned a bronze medal ranking from U.S. ews & World Report. 88 SITE MHC COMMUITY COMMUITY PRICE: $6,

3 FIACIAL AALYSIS Jan '16 T12 Actuals 1 Aug '16 T8 Ann Dec '16 T2 Inc Ann Proforma 11 ICOME 2 Gross Scheduled Rent $234,136 $21,91 $139,813 $266, Less: Vacancy.%.%.% 38.46% Less: Vacant Borrower Homes.%.%.% 4.4% Less: Bad Debt.%.%.% 1.% Total Rental Income 1.% $234,136 1.% $21,91 1.% $139, % Plus: Utility Income , Plus: Other Income Plus: Oil Sales ,869 Total Other Income , , Effective Gross Income $26,6 $21,91 $179,564 12,563 11,721 2,667 $149,712 4, ,944 $19, EXPESES per site Actuals per site Actual Exp per site Aug '16 T8 Exp per site Proforma Exp Repairs & Maintenance $784 $71,328 $65 $55,3 $65 $55,3 $55 Payroll , , ,634 2 Administrative , , , Marketing 5 Professional Fees , , ,385 5 Utilities ,75 Electricity 12 9, , ,557 Trash 86 7, , , ,54 Total Variable Expenses $1,681 $152,992 $1,99 $1,18 $1,99 $1,18 $1,74 Taxes 112 1,15 93 Other Tax 17 1, ,525 Insurance 19 9, , , Management Fee 14.24% 37, % 29, % 29,97 6.% Total Operating Expenses $2,39 $21,97 $1,498 $136,338 $1,498 $136,338 $1,352 Plus: Capital Reserves 5 $5,5 18,2 6, ,55 $97,691 8,489 5,369 11,439 $122,989 4,55 Total Expenses $2,39 $21,97 $1,498 $136,338 $1,498 $136,338 $1,42 $127,539 ET OPERATIG ICOME $49,99 $65,563 $43,226 $63,117 Expense Ratio 8.8% 67.53% 75.93% 66.89% UDERWRITIG ASSUMPTIOS 1. Jan 16 T12 and Aug 16 T8 financials are from the borrower and no representations or warranties are made as to the accuracy of those numbers; Receiver went in place in mid-october Proforma GSR = $244 x 91 sites x 12 months 3. The borrower is currently liable for, but not required to immediately pay, the lot rents on 8 (as of Dec 16) vacant homes owned by the borrower; The Proforma assumes that half of these homes will be revenue-producing after a sale 4. Utility and Other Income grown 3% from the Dec 16 T2 Inc Ann; Dec 16 T2 Ann Utility income consists of $23,71 of Water & Sewer income and $15,981 of Gas income 6. $12,24 of legal fees related to the receivership have been removed in the Aug 16 T8 Ann 7. Electricity expense grown 3% from Aug 16 T8 Ann; Trash expense grown 3% from Jan 16 T12 8. Proforma Taxes = $18,19 assessed value x % mill rate 9. Other Tax removed in Proforma since the borrower currently owns the homes 1. Historical Capital Reserves are unknown and do not represent actual amounts 11. Proforma is first year projection put together by ARA ewmark and may not represent actual future performance 5. Historical R&M includes expenses related to environmental issues at the park 88 SITE MHC COMMUITY COMMUITY PRICE: $6,

4 PROPERTY location BUFFALO WILDERESS MHC ew York Pennsylvania CLEVELAD Ohio Pennsylvania PITTSBURGH HARRISBURG WARRE COUTY TOP TE EMPLOYERS Blair Payroll LLC Warren County School District orthwest Bank State Government United Refining Company Warren General Hospital Whirley Industries Wal-Mart Associates Inc Rouse Estate Targeted Pet Treats LLC 88 SITE MHC COMMUITY COMMUITY PRICE: $6,

5 Property aerial WILDERESS MHC WHIRLEY IDUSTRIES Food and drink container manufacturer located in Warren, PA. Operate 17 sales offices in the US and eight abroad. Seventh-largest employer in Warren County. BLAIR CORPORATIO One of the largest direct marketing mail order retailers in the US headquartered in Warren, PA. Has been in business for over 1 years. Largest employer in Warren County. UITED REFIIG COMPAY Independent refiner and marketer of petroleum products headquartered in Warren, PA. Have over 35 retail outlets in PA, OH and Y. Employs over 4, across all of its facilities. 88 SITE MHC COMMUITY COMMUITY PRICE: $6,

6 MA D LR HIL R ME ZIM E MOHAWK AV WILDERESS MHC Additional information for Wilderness MHC is available on our website at: ATIOAL MAUFACTURED HOUSIG GROUP PRIMARY COTACTS: Todd Fletcher tfletcher@aranewmark.com T Andrew Shih ashih@aranewmark.com T Jon Shay jshay@aranewmark.com T Manufactured Housing Group: 91 S. MoPac Expressway, Barton Oaks Plaza II, Suite 275, Austin, TX T 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 ewmark Company (ARA ewmark) 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 ewmark 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.