ACTON COUNTRY Mobilehome Park

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1 ACTON COUNTRY Mobilehome Park Investment Offering Eric Coulsell Listing Broker cell BRE License # Eric@Calcomadvisors.com

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3 Investment Narrative California Commercial Advisors is pleased to present Acton Country Mobilehome Park for sale. A prime coupon clipping, buy and hold investment real estate opportunity. Acton Country Mobilehome Park is a 25 space and 2 apartment, all age, mobile home park located in the unincorporated City of Acton situated in the County of Los Angeles. The mobile home park sits in the middle portion of a large parcel of acres. The property is located on Sierra Highway with substantial frontage to this main thoroughfare. The mobile home park is well maintained with tenant and owner pride of ownership. The park is historically 100% occupied with mature trees, wonderful mountain views and quiet country setting. There is a vacant land parcel of /- acres immediately south and across Sierra Highway from the park that is included in the sale. APN is the mobile home park parcel and APN is the vacant land parcel. The park is currently 100% occupied, with excellent space rent of $610 and all utilities passed through. The park is of high quality with newer homes in many spaces. The park was originally constructed and planned to be a larger 200 space park. The rent roll has a space number of 158 for example. It is unknown if a mobile home park expansion is feasible with the City Acton and County of Los Angeles. Nonetheless the property has substantial vacant acreage located on Sierra Highway with prime visibility to well travelled Highway 14. Highway 14 is a very busy highway connecting the Antelope Valley (includes Cities of Palmdale and Lancaster) to northern Greater Los Angeles (Santa Clarita, Valencia, edge of San Fernando Valley). In addition to the land value, Acton Country MHP is an easy to operate, turnkey high quality park. The park is on municipal water with submetering for gas, electric and water. There is a flat pass through charge for septic and trash. The park is on septic, with septic tanks and leachfields. The park was constructed in approximately There is no rent control in the City of Acton and rent control does not currently exist for Los Angeles County. Buyer to verify. There is 1 park owned home rental and 2 mobile home notes included in the sale. The park owned home has an estimated value of $30,000 and the remaining principal balances on the two notes is $44,000 approximately. The ownership maintains one rental in the case it is needed for park manager purposes. The property is being sold with Seller financing. Property Location The Mobile home Park is located approximately 1/2 mile West of the Santiago Rd off ramp of Highway 14 on the north side of Sierra Highway. Acton is located 25 miles northeast of Santa Clarita and 11 miles south of Palmdale on Highway 14 The City of Acton is located in Los Angeles County. The Antelope Valley freeway gives easy access to the San Fernando Valley as well as to Los Angeles for the residents who Commute for work. It takes a quick 25 to 30 minutes to reach the San Fernando Valley and approximately 50 to 60 minutes to Los Angeles. Today most residents commute to the San Fernando Valley and Los Angeles. The Old West is alive and well in Acton. Nestled in a mountain valley, Acton enjoys four distinct seasons. Every winter, morning winds peel away clouds to reveal fresh snow deposited on the mountaintops during the night. Spring and autumn brings the colorful canyons to life and summer temperatures range between the 80 s to the low 100 s. Websites of interest: (acton agua dulce chamber of commerce); Acton,_California; LIST PRICE: $2,490,000 Current cap rate: 7.00%, Seller Financing offered and a requirement for sale. The Seller will require Buyer documentation to approve extending credit. This will require at least tax return information, credit report and proof of funds. Seller to approve or disapprove at Seller sole discretion.

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5 Financials- Rent Roll Current Unit Space Rent Water Gas Trash Electric 3 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 1, $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Apt 1 $ 1, included included included included Apt 2 $ included included included included Monthly Revenue $ 17,390 $ 589 $ 814 $ 1,000 $ 1,385 Annual Rental Revenue $ 208,680 Annual Utilities Water $ 7,064 Gas $ 9,768 Trash $ 12,000 Electric $ 16,621 Annual Utilities Total $ 45,453 Annual Total Revenue $ 254,133

6 Financials- Income and Expense Income Monthly Annual Notes Rent Monthly Rental Income $ 17,390 $ 208,680 From Rent Roll Utilities (w, s, g, t) $ 3,788 $ 45,453 From Rent Roll Other: Laundry $ 100 $ 1,200 Note payments $ 1,009 $ 12,108 2 mtgs with approx 5 yrs remaining Vehicle Storage $ 90 $ 1,080 $30 a month storage for other than RV vehicles SFR Water service $ 50 $ 600 See operational notes Total Income $ 22,427 $ 269,121 Expenses (proforma) Onsite Manager - - Mgr is part time, pays reduced rent for apt unit #2 Property Taxes $ 1,876 $ 28, % tax rate adjusted to new price Insurance $ 333 $ 4,000 Gardener $ 275 $ 3,300 Street sweeping, landscape work Legal Professional $ 50 $ 600 Park has had 2 evictions in 19 years Licenses Permits $ 65 $ 783 HCD & County Utilities Water $ 618 $ 7,417 5% over income Gas $ 855 $ 10,257 5% over income Trash $ 1,050 $ 12,600 5% over income Electric $ 1,454 $ 17,452 5% over income Septic $ 250 $ 3,000 Septic tanks pumped every 2 months Office Exp $ 100 $ 1,200 Office exp and petty cash Meter Reads $ 59 $ 708 Park Billing Advertising $ 15 $ 180 Annual budget for rare vacancy Bank Charges $ 20 $ 240 Car & Truck Travel Exp $ 100 $ 1,200 Tree Maintenance $ 67 $ 800 Reserves $ 225 $ 2,700 $100 per sp/unit per year Total Expense $ 7,413 $ 94,822 Expense ratio 35.2% NOI $ 174,299 Cap Rate 7.00% Price $ 2,490,000

7 Financials- Deal Structure Proposed Terms Down Payment $ 700,000 30% Seller Financing $ 1,790,000 70% Monthly Pmts $ (13,693) 4.5% interest, 15 year am, due in 10 Annual Pmts $ (164,321) Year 1 principal pmts $ 85,520 Year 10 principal pmts $ 128,123 Balloon end of yr 10 $ 734,504 Nearly $1M in principal paid down in 10 years Cash on Cash year % Total Return year % principal paydown + cash on cash Financial and Operational Notes The mobilehome park was managed completely by the property owner. The property owner recently moved out of the area and there is now an in place manager that does part time work. There is no off site management. Given the park size and simple operation, new ownership should operate the park in the same hands-on manner. The on site manager pays reduced rent of $500 per month for apt unit #2 for compensation. Park manager duties: Read utility meters, collect rents, distribute rent invoices and watch over park. The property is on septic. The septic tanks are pumped every two months. A 800 ft leachfield was installed in 2012; 800 foot field, 8 x 100 ft, ft lines. Capital cost of septic work: $31,000. There is one park owned home included in the sale. This home rents for $1,150. The home has been kept as park owned for potential managers/owners. Estimated value of $30,000. The property is submetered for gas, water and electric. County water and natural gas. Electricity is 50 amp service. The park has multiple electrical breakers with 200 amps. Each breaker serves 4 homes. Flat $40 monthly charge to tenants for trash and septic service. There is a laundry room on site with 2 washers and 2 dryers. There is no laundry lease agreement. The apartment unit tenants are typically the only users of the laundry facility at $100 monthly. The property occupies acres, originally intended as a 200 space MHP. Estimated vacant acreage on parcel is 20 acres. The property is zoned A-2-2, land use heavy agriculture residential zoning 1 home per 2 acres. The park was built in 1973 subject to a non-conforming use permit (NR98064), County of Los Angeles. This use permit is set to expire October 13, Extension of permit will require a non conformance review. Application and environmental report costs are approximately $13,000 and time frame of review is 6-12 months per conversation with LA County Planning. There is a SFR that sits just north of the property. This SFR receives water through the park water lines. The SFR is metered for the water and pays the park $50 a month for this service. Space 159 on rent roll. Pictures in this offering date to May The park provides free RV Storage to the tenants. Vehicles or equipment stored that are not RVs are charged $30 per month. Currently 3 items are being charged at $30 per month. The two notes included in the sale: space 144, balance $17,576, pmt $353, due 7/2022; space 153 approx pmt $656 with a balance of $27,000.

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9 Property Photos There are two apartment units on the property, unit #1 and #2. Pictured above. Each unit has two parking spaces, 1 bed and 1 bath. The units are on either end of the building with a park office located in the middle of building. Current apartment rent is $1,025 per month with utilities (gas, electric, water) included. Apartment units each have small backyards. There is a storage container at end of apartment building for park operations.

10 Property Photos Many newer, recent double wide homes in park given built in 1950s. Potential to change out the few existing single wide homes as the opportunity arises for double wide homes increasing park equity and realizing profit on sale and financing.

11 Property Photos Guest parking and play area pictured above. There is no pool or clubhouse to maintain or insure. Mail center below at entrance / exit to park.

12 Property Photos RV Storage and Trash Dumpsters RV Storage. This could potentially be expanded into vacant excess land. Buyer to verify use. Trash Dumpster service: Garbage trucks are able to empty dumpsters via excess land rather than driving through park, substantially reducing wear and tear to park streets.

13 Property Photos Excess Land View of land southwest of the MHP above. Highway 14 in background. View of land northeast of the MHP below (picture is dated to ) Sierra Highway frontage.

14 Property Photos Excess Land

15 Property Photos Aerial Mobilehome Park sits on acre parcel, APN: Property originally intended as 200 space MHP. High end custom, newer custom homes lie to the northeast of the property. The beautiful valley and hills make this investment truly investment real estate of the long haul. Parcel south of park, south of Sierra Hwy is included in sale. View of Sierra Hwy in front of park headed south towards Santa Clarita. Highway 14 in background left.