Property Prospectus: The Offering First Commercial Property Corporation is pleased to be the exclusive marketing agent of Cedarbrook MHC. Located in the rural South King County Washington town of Black Diamond, Residents are able to enjoy a quiet, small town atmosphere while taking advantage of good local shopping and easy access to the major cities, Seattle and Tacoma. Price Spaces Lot Size Undetermined 122 (90 Single-Wide, 19 Double-Wide, 18 Vacant Spaces + 3 to be demolished ) 20.32 +/- acres For more information contact the Seller s Agent, First Commercial Property Corp. Joel Erlitz : 206-985-7275 (ext. 100) Erik Bell : 206-985-7275 (ext. 112)
Table of Contents Introduction & Overview..... Page 1 Property Highlights...... Page 2 Proforma..... Page 3 Comparable Market Rents....Page 4 Demographics.... Page 5 Property Photos..... Page 9
Introduction & Overview Cedarbrook is a quiet family community located in the City of Black Diamond in the Southeast part of the Puget Sound. Although Black Diamond has been more rural in nature, this town s location with a relative abundance of developable land has created the ability for development in close proximity to urban centers. A recent proposal for the addition of 6,060 homes has divided the City council. Now lying on the very edge of suburban sprawl, Cedarbrook is well positioned to be a significant source of affordable housing for the entire area. There are 122 spaces, 18 of which are non-performing-vacant, 3 park owned homes to be demolished, 4 RV occupied spaces and 1 park owned home. Current rents range from $505 to $660 which includes water, sewer and garbage. The access to this property is one driveway fronting on State Route 169. A driveway from Black Diamond-Ravensdale Road allows for emergency access via a locked gate. Cedarbrook lies in a bioswale, along a very small stream, Ginder Creek, with a low point about 2/3 of the way toward the east edge of the property; there is a gradual rise north. The FIMA Flood Insurance Map (Comm. Panel # 53033C0480D) shows the subject property lying within Zone X: Areas of minimal flooding, outside the 500 year flood area. There have not been any problems in the past in that regard. Very rarely does a manufactured housing community of this size within King County ever come on the market. It will not escape the attention of investors that the recapitalizing of the utility systems (sub-metering of utilities after re-plumbing the water system) filling of vacant spaces and gradually bringing rents to market levels would provide for a significant upside in both the future asset value and cash flow of Cedarbrook. PRICE: TERMS: Undisclosed Cash and via conventional financing. For more information contact the Seller s Agent, First Commercial Property Corp. Joel Erlitz : 206-985-7275 (ext. 100) Erik Bell : 206-985-7275 (ext. 112) 1
Property Highlights 122-Unit (including manager s unit) mobile home park built in 1969 and later expanded in 1985. Park is located on 20.32 +/- acres. The majority of the units are single-wide spaces, with the lot sizes ranging from 2,800 sf to 3,150 sf Some homes are well kept, while others are older units. This has been a blue-collar, lowincome community. A play area is available for recreation, and the laundry facility, once available for tenant use, is now used for storage. The area offers everything from hiking, fishing and skiing, to wineries/breweries and sporting events. There could be a large utility recapture potential ($240,000/year) with forecasted sub-meter project. Below market rents. 2
Proforma Projection 2017 $35/Mo Increase 2018 $40/Mo Decrease 2019 $40/Mo Increase 2020 Scheduled Gross Income $ 681,368 $ 892,685 $ 857,525 $ 892,685 Fee Income $ 13,845 $ 13,845 $ 13,845 $ 13,845 Utility Income * $ - $ - $ 180,316 $ 182,119 Vacancy Factor ** $ - $ (110,040) $ (81,180) $ (26,781) Total Projected Income $ 695,213 $ 796,490 $ 970,506 $ 1,061,869 RE Tax $ 52,726 $ 52,726 $ 57,999 $ 63,799 Insurance $ 7,938 $ 8,018 $ 8,098 $ 8,179 Utilites $ 267,501 $ 270,176 $ 191,825 $ 193,744 Mgt/Labor/Payroll Tax $ 64,840 $ 65,488 $ 66,143 $ 66,805 Legal/Accounting $ 4,424 $ 4,469 $ 4,513 $ 4,558 Office/Adv/RM $ 3,924 $ 3,963 $ 4,003 $ 4,043 M/R/S+Reserve $ 2,490 $ 39,825 $ 48,525 $ 53,093 Lic/Permits $ 1,951 $ 1,971 $ 1,990 $ 2,010 Management Fee $ - $ - $ - $ - Total Expenses $ 405,795 $ 446,635 $ 383,097 $ 396,230 Net Operating Income $ 289,418 $ 349,855 $ 587,410 $ 665,638 * 2018 calendar year forecasts a re-plumbing and sub-meter capital improvement project estimating a 94% recapture rate upon completion. ** 2017 vacancy factor is omitted as projected " Scheduled Gross Income " is net of all rents associated with vacant spaces. *** THE SELLERS HAVE REQUESTED THAT THE DEADLINE FOR OFFERS SUBMITTED TO OUR OFFICE SHALL BE THE END OF BUSINESS JANUARY 15, 3
Comparable Market Rents PARK NAME CITY # SPACES # VAC RENT LL Paid ADUSTED W/S/G GARB Utilities RENT SUBJECT PROPERTY BLACK DIAMOND $ 122 $ 21 $ 586 W/S/G $ 60 $ 18 $ 664 WILDWOOD MOBILE ESTATES MHP AUBURN $ 86 $ 3 $ 720 None $ 75 $ 20 $ 815 WHITE RIVER ESTATES AUBURN $ 202 $ - $ 735 None $ 85 $ 20 $ 840 DON WAN ESTATES AUBURN $ 76 $ - $ 610 None $ 50 $ 20 $ 680 MOUNTAIN MEADOWS COMMUNITY ENUMCLAW $ 185 $ 675 None $ 75 $ 18 $ 768 MOUNTAIN VILLA MOBILE ESTATES ENUMCLAW $ 184 $ 17 $ 801 G $ 60 $ (18) $ 843 GOLDEN VALLEY ESTATES BUCKLEY $ 96 $ 2 $ 665 None $ 60 $ 20 $ 745 4
: Black Diamond Demographics (2015) Black Diamond Population: 4,291 Residents Median Age: 42.5 Years Median household income: $67,526 Median Gross Residential Rent: $1,103 Primary Occupations: Management, Administrative, Construction, Sales, Education. 5
Demographics Continued 6
Demographics Continued 35 minute drive to Amtrak Station in Tacoma. 40 minute drive to Seattle Tacoma International Airport 8 miles from Green River Community College, 15 miles from Renton Technical College and Highline Community College. 40 minute drive from Downtown Tacoma, 50 Minute Drive from Downtown Seattle and Bellevue. Less than 10 minute drive from newly developed Maple Valley shopping center (pictured below). 7
Demographics Continued Located on the south end of the Puget Sound Region. Top Puget Sound Employers: Amazon, AT&T Wireless, Boeing, Costco, Microsoft, Nordstrom, Paccar, Starbucks and Weyerhauser. King County Population: 2,117,000 +/- 40 Minutes from the Port of Tacoma, the fifth largest port in the United States. 50 Minutes from Joint Base Lewis-McChord (JBLM), the fourth largest military installment worldwide by population. 8
Property Photos Left: Driveway view of Double-wide home located on site. Above: Back side street view of Double-wide home. Left: Stream running through Ginder Creek Nature Trail located on the Northeast side of the property. 9
Property Photos Continued Left: Driveway view of Double-wide home located on site. Right: Street view of right side of Double-wide home. 10
Property Photos Continued Above: Street views of two single wide homes. 11
Property Photos Continued Left: Street view of Double-wide home Located on raised lot above main avenue. Right: Main entrance sign located at Southwest corner of the parcel. 12
Property Photos Continued Below and Right: Street views of two Singlewide homes located. Each space has its own driveway capable of holding vehicles. 13