ACTON COUNTRY Mobilehome Park 2501 Sierra Hwy, Acton, CA 93510

Investment Offering

Eric Coulsell Listing Broker 949-383-0813 cell BRE License # 01465230 [email protected] Acton Country Mobilehome Park 2501 Sierra Hwy, Acton, CA 93510

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 town of Acton situated in the County of Los Angeles. The mobile home park sits in the middle portion of a large parcel of 25.43 acres. The property is located on Sierra Highway with substantial frontage to this main thoroughfare. The mobile home park is well main- tained 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 1.36 +/- acres immediately south and across Sierra Highway from the park that is included in the sale. APN 3217-024-010 is the mobile home park parcel and APN 3217-024-011 is the vacant land parcel.

The park was originally constructed and permitted to be a larger 200 space park however only 25 spaces of the 200 were constructed. It is unknown if a mobile home park expansion is feasible with the City Acton and County of Los Angeles; it is believed that a new proposal to the required government planning agencies to build out the mobile home park would be necessary. None- theless 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, San Fernando Valley).

The park is currently 100% occupied, with space rent of $650 (effective July 2018) and all utilities passed through. The park is of good quality with newer homes in many spaces. Acton Country MHP is a low management demand, turnkey good 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 tank and leachfields. The park was constructed in approximately 1973.

There is no rent control in the City of Acton and rent control does NOT CURRENTLY exist for Los Angeles County. However it ex- pected that Los Angeles County WILL institute rent control in August of 2018. Buyer to verify terms of rent control. It is not known to Seller or Broker what the terms of the rent control in Los Angeles County will be if approved and implemented.

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 $40,000 +/- and the remaining principal balances on the notes as of April 2018 space 144 payment $352.97, principal remaining $15,269.42 due July 2022, space 153 payment $653.76, principal remaining $18,060.55 due December 2020. The ownership main- tains one rental in the case it is needed for park manager purposes.

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 Sier- ra 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. 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.

LIST PRICE: $2,490,000 Cap rate: 6.78%, Seller Financing offered and a requirement for sale.

The Seller will require Buyer documentation to approve extending credit. This may require tax return information, credit report and proof of funds. Seller to approve or disapprove extending credit at Seller sole discretion. Seller financing will include a 10% prepayment penalty for the life of the loan.

The enclosed information has been sourced from parties we believe are both credible and reliable; however, it is incumbent upon any buyer to verify the data as to its accuracy prior to purchasing this property. Broker makes no warranties, guarantees, or representations that the are either expressed or implied as to the accuracy of this information. Acton Country Mobilehome Park 2501 Sierra Hwy, Acton, CA 93510

Property Photos

Eric Coulsell Broker cell 949-383-0813; [email protected] CA BRE#01465230

Property Photos

Eric Coulsell Broker cell 949-383-0813; [email protected] CA BRE#01465230

Property Photos

Many newer, recent double wide homes in park. 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. The space lots feature large backyards, significantly larger than the typical/many MHP communities, which is an amenity that is well appreciated by the tenants.

Property Photos

The property provides for wonderful mountain views for many of the tenants as seen in the photo above.

Eric Coulsell Broker cell 949-383-0813; [email protected] CA BRE#01465230

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.

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, substan- tially reducing wear and tear to park streets. Highway 14 in the background.

Financials- Rent Roll Effective July 2018

Unit Space Rent Water Gas Trash Electric 3 $ 650.00 $ 17.55 $ 30.76 $ 40.00 $ 27.91 4 $ 700.00 $ 17.03 $ 21.16 $ 40.00 $ 26.63 5 $ 650.00 $ 26.66 $ 38.82 $ 40.00 $ 308.25 6 $ 650.00 $ 20.28 $ 33.96 $ 40.00 $ 84.73 35 $ 650.00 $ 16.85 $ 15.50 $ 40.00 $ 13.26 36 $ 650.00 $ 17.55 $ 34.77 $ 40.00 $ 29.10 37 $ 650.00 $ 19.00 $ 34.77 $ 40.00 $ 43.97 38 $ 650.00 $ 17.73 $ 30.71 $ 40.00 $ 20.73 142 $ 1,125.00 $ 19.00 $ 22.60 $ 40.00 $ 100.60 143 $ 650.00 $ 17.03 $ 27.67 $ 40.00 $ 42.95 144 $ 650.00 $ 36.87 $ 28.68 $ 40.00 $ 30.98 145 $ 650.00 $ 22.83 $ 49.98 $ 40.00 $ 82.90 146 $ 650.00 $ 68.77 $ 41.97 $ 40.00 $ 61.34 147 $ 700.00 $ 17.20 $ 21.94 $ 40.00 $ 39.18 148 $ - $ 38.15 $ 34.77 $ 40.00 $ 29.45 149 $ 650.00 $ 19.00 $ 54.03 $ 40.00 $ 40.04 150 $ 650.00 $ 31.76 $ 28.68 $ 40.00 $ 42.95 151 $ 650.00 $ 16.85 $ 31.73 $ 40.00 $ 16.81 152 $ 650.00 $ 25.39 $ 36.37 $ 40.00 $ 101.15 153 $ 650.00 $ 21.55 $ 32.75 $ 40.00 $ 43.45 154 $ 650.00 $ 17.73 $ 28.68 $ 40.00 $ 33.72 155 $ 650.00 $ 17.38 $ 37.81 $ 40.00 $ 29.29 156 $ 650.00 $ 17.03 $ 18.54 $ 40.00 $ 38.15 157 $ 650.00 $ 29.21 $ 39.57 $ 40.00 $ 47.57 158 $ 650.00 $ 20.28 $ 37.81 $ 40.00 $ 49.94 Apt 1 $ 600.00 included included included included Apt 2 $ 900.00 included included included included Monthly Revenue $ 17,675 $ 589 $ 814 $ 1,000 $ 1,385 Annual Rental Revenue $ 212,100

Rent Roll Notes: 1) Space 4 is For Sale and a new tenant will be charged $710. 2) Space 142 is park owned home rental. The park owns one home for potential mgmt. purposes. 3) Space 147 is a newer resident paying $710 monthly space rent. 4) Space 148 receives free space rent and is On Site manager. 5) Apt 1 pays 50% rent and provides 8 hours weekly manual labor in park. 6) Apt 2 is previous on site manager and pays less than market rent.

Eric Coulsell Broker cell 949-383-0813; [email protected] CA BRE#01465230 The enclosed information has been sourced from parties we believe are both credible and reliable; however, it is incumbent upon any buyer to verify the data as to its accuracy prior to purchasing this property. Broker makes no warranties, guarantees, or representations that the are either expressed or implied as to the accuracy of this information. Acton Country Mobilehome Park 2501 Sierra Hwy, Acton, CA 93510

Financials- Income and Expense

Income Annual Notes Rental Income $ 212,340 From Rent Roll Trash ($30/space) $ 9,000 From Rent Roll Submetered Utilities $ 33,594 adjusted for 2 apt units w/utilities included in rent Note payments $ 12,108 2 mtgs with approx 3 years remaining Vehicle Storage $ 1,080 $30 a month storage for other than RV vehicles SFR Water service $ 600 See operational notes Total Income $ 268,722

Expenses Proforma 2017 Taxes 2016 Taxes 2015 Taxes Auto and Travel $ 2,400 $ 5,410 $ 5,892 $ 6,752 Property Taxes $ 28,777 $ 28,777 $ 28,777 $ 28,777 Prop Taxes Direct Assess. $ 1,475 $ 1,475 $ 1,475 $ 1,475 Insurance $ 5,410 $ 5,410 $ 5,184 $ 3,981 Legal and Professional $ 650 $ 650 $ 630 $ 595 Repairs $ 3,011 $ 3,011 $ 160 $ - Black Top Repair $ 500 $ 2,680 $ - $ - Reserves $ 5,400 $ - $ - $ - Supplies $ 828 $ - $ 828 $ 594 New Dryer $ 50 $ 576 $ - $ - Gas, Water, Electric $ 36,282 $ 34,941 $ 33,650 $ 31,716 Backflow Service $ 50 $ 50 $ 45 $ 45 Billing Service $ 713 $ 708 $ 708 $ 703 Fire Prevention Fee $ 119 $ - $ 117 $ 115 Gardening $ 1,650 $ 1,650 $ - $ 1,546 Gas System Leak Survey $ 100 $ - $ - $ 500 Licenses and Permits $ 1,313 $ 1,313 $ 823 $ 823 CUP/NCU Renewal $ 500 $ 9,478 $ - $ - Pest Control $ 160 $ - $ 160 $ - Rubbish Disposal $ 4,800 $ 4,780 $ 8,409 $ 8,409 Septic Pumping $ 3,000 $ 2,348 $ 3,084 $ 2,952 Telephone $ 1,700 $ 1,600 $ 1,669 $ 1,864 Tree Removal $ 700 $ 950 $ 500 $ - Tree Maintenance $ 250 $ - $ - $ - Total Expense $ 99,837 $ 105,807 $ 92,111 $ 90,846 Expense Ratio 37.15% Net Operating Income $ 168,885

Expense Notes (previous page): 1. Auto: Owner lives locally to park and drives multiple times per week to use office. New owner could reduce significantly. 2. Property Taxes adjusted to new price + fixed amt. 3. Insurance includes workmans comp. 4. Reserves added at $200 per space/ unit. 5. Trash company changed from Benz to WM in 2017 current bill $400/mo. 6. New septic company in 2017 charges $750 every 2 months. Volume removed 3000 gallons every pump, should be pumped every 3 months. 7. Annual allocations made for black top repair, laundry machines, gas leak survey, CUP renewal and tree removal (in addition to reserve allocation)

Proposed Deal Structure

Price $ 2,490,000 Cap Rate 6.78%

Seller Financing Proposal Down Payment $ 700,000 28% Loan Amount $ 1,790,000 72% Interest Rate 4.5% Monthly Payments $ 13,693 15 year amortization/ Due in 10 years Annual Debt Service $ 164,321 Cash Flow $ 4,564 Cash on cash 0.65% Principal Paydown year 1 $ 85,520 Buyer to verify 10 year principal paydown $ 1,055,496 Buyer to verify Note will carry a 10% prepayment penalty for the life of the loan

Financing Commentary:

It is understood by the parties involved that the seller financing loan payments leave low cash flow to the Buyer and a low cash on cash return on the Buyer’s equity investment. However, there is substantial principal paydown of the note every year with over $1M in principal paid down by year 10. The reason for the proposed seller financing terms is to achieve the goal of approximating the existing monthly cash flow that the park currently generates “as is”.

Other: 1) The Seller financing will have a prepayment penalty of 10% for life of the loan. 2) Seller to approve creditability of Buyer at sole discretion of Seller in order to extend credit. 3) There is potential flexibility on the down payment amount and interest rate if payment targets are achieved. 4) Potential flexibility in short term (less than 12 months) lower monthly debt payments initially.

Please call broker to discuss.

Eric Coulsell Broker cell 949-383-0813; [email protected] CA BRE#01465230

Financial and Operational Notes

• The property owner recently moved out of the area and there is now a full time manager at space 148 receives free space rent for manager duties. The apartment tenant in unit #1 receives reduced rent for 34 hours of labor per month (handyman type work). There is no off site management as the park operations do not need off site management. • Park manager duties: Read utility meters, collect rents, distribute rent invoices and watch over park. • The property is on septic. The septic tank is pumped every two months. A 800 ft leachfield was installed in 2012; 800 foot field, 8 x 100 ft, 10-11 ft lines. Capital cost of septic work: $31,000. The leachfield is located on the vacant land portion east of the property. There is one septic tank and it is located just to the right of the entrance to the park in front of the front wall. • 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 $40,000. The park owned home occupies one the more better spaces in the park, on top of the hill with nice 270 degree views. There is value in new ownership controlling this space within the park. • There are two chattel mortgages included in the sales described in the investment narrative. • 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 25.43 acres, originally intended as a 200 space MHP. Estimated vacant acreage on parcel is 20+ acres. The park was built in 1973 subject to a non-conforming use permit (NR98064), County of Los Ange- les. The current use permit is set to expire October 13, 2018. Exhibit “A” of the previously approved non- conforming use (year 1998) can be found on the next page of this offering. • The application for renewal of the non conforming use permit was submitted with initial payment to Los An- geles County on 12/28/17. Permit status as of April 29th, 2018: Initial site visit from County Planning completed. Approvals received from Dept of Fire and Dept of Public Works. Dept of Parks and Rec is requesting an offer from Seller/Owner for an equestrian/hiking trail along southern and eastern border of parcel, 12 ft in width. Waiting Dept of Health response and Certificate of Compliance and then 30 day public posting period. An optimistic estimate is permit approval within 60 days. • 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 actual park rent roll. This is reflected with income on the financials. • 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. • 2017-2015 expenses are from the Seller’s Tax Returns, with an adjustment to Property Taxes.

Eric Coulsell Broker cell 949-383-0813; [email protected] CA BRE#01465230

Exhibit “A” of the approved non conforming use permit NCR 98-064 dated 12-2-98

The image is fitted to space. Per plot plan: developed area 3.73 acres, undeveloped 21.70 acres.

Eric Coulsell Broker cell 949-383-0813; [email protected] CA BRE#01465230

Property Photos –Aerial

Mobilehome Park sits on 25.43 acre parcel, APN: 3271-024-010. Higher end custom homes lie to the northeast of the property. The beautiful valley and hills make this truly long term investment real estate. Triangle Parcel south of park across Sierra Hwy is included in sale. Bottom: Southwest portion of excess vacant land. Highway 14 in background.

Eric Coulsell Broker cell 949-383-0813; [email protected] CA BRE#01465230

Rent Survey

Map ID Street Address City Property Name Type Space Rent A 3524 E Avenue R Palmdale Sagetree All age $ 650.00 B 37311 47th St E Palmdale Thousand Elms 55+ $ 430.00 C 2121 E Avenue I Lancaster Bel Air All age $ 500.00 D 2330 E Ave J 8 Lancaster Hacienda All age $ 450.00 E 43850 20th St E Lancaster Rancho Mirage $ 391.00 F 18035 Soledad Canyon Road Canyon Country Caravilla All age $ 850.00 G 27361 Sierra Hwy Canyon Country Cordova All age $ 830.00 H 29021 Bouquet Canyon Road Santa Clarita Lily of the Valley All age $ 952.00 I 30000 Sand Canyon Rd Canyon Country Sierra Heights All age $ 1,100.00 J 23450 Newhall Ave Newhall Polynesian All age $ 700.00 K 23500 The Old Road Newhall Crescent Valley All age $ 1,250.00 L 2451 Soledad Canyon Road Acton Gemstone 55+ $ 545.00 M 2501 Sierra Hwy Subject Property Subject Property All age $ 610.00

Rent Survey Continued

Space Rent Survey with Park Name $1,400.00

$1,200.00

$1,000.00

$800.00

$600.00

$400.00

$200.00

Space Rent with City Location $1,400.00

$1,200.00

$1,000.00

$800.00

$600.00

$400.00

$200.00

The rent survey and analysis on this and the preceding page indicate that the park has room to increase rents in the coming years in addition to the proposed rent increase of $40 effective June 1st, 2018. There is a tenant in the park that is currently paying $710 and was initially signed at $810 but given a rent concession in order for the tenant to clean up the home space. New tenants, especially if the park begins to advertise and choose all age versus 55+, could have new rents at $810. Cheaper space rent can be had in Palmdale and Lancaster but in general Acton Country is a more attractive place to live and significantly closer to the major employment center of Los Angeles.

Property Photos Excess Land

Undeveloped land east of the park top and undeveloped land west of park. Hundreds of nice homes are located north and east of the park Highly travelled highway 14 is seen in the bottom photo. Undeveloped land is flat to gently sloping topography.

Property Photos Excess Land

Additional pictures of undeveloped land east of the park. MHP in background. Access road from east side of park bottom photo.

Investment Discussion Excess Land / Park Expansion

• The property was initially approved with the County of LA for a non conforming use permit for a 200 space mobile home park. Seller has all documents provided at time of purchase in 1998. These include submittals and plans to the County of LA. • Only 25 spaces were built by choice of the owner at the time of construction. • The economic demand in Acton at the time (1970s) may not have supported a 200 space MHP. • Furthermore one of the owners died before further construction was completed and it is believed the surviving widow did not have the desire to complete the project. • The permit for the 200 space mobile home park expired in 1990. • The property had a non conforming use permit placed on the property in 1998 as a 25 space MHP. Please see Exhibit A previous page. • This permit expires in October 2018, the application for renewal has been submitted and paid to LA County Dec 2017. Permit renewal status discussed in previous pages. • This application is for a renewal of the existing use, “Exhibit A”. • Therefore in order to expand the mobile home park a new application and permit to build or expand to a 200 +/- space MHP will need to be submitted subject to current mobile home park codes with LA County and various agencies. • Nonetheless this excess land is substantial and has value. The land is zoned light agriculture residential. • Below is the mapped return of listings for“ Acton Land For Sale” from Zillow; date of search 5/3/2018. Financial data fol- lows on subsequent page.

Subject property approximate location indicated by “blue star” Financial data on land listings on next page.

Eric Coulsell Broker cell 949-383-0813; [email protected] CA BRE#01465230

Investment Discussion Excess Land / Data Table

Date of Survey: 5/3/2018 Source Zillow # Location/Identifier Asking Price Acres Price Per acre 1 0 Escondido Rd $ 150,000 5.20 $ 28,846 2 Apn Vac/cor Jenan St $ 215,000 5.97 $ 36,013 3 0 Vac/1/2 Mi N Sierra Hwy $ 25,000 1.00 $ 25,000 4 Escondido Cyn Vic Hubbard $ 190,000 2.33 $ 81,545 5 0 Vac/aspen St/vic Athena $ 141,900 13.10 $ 10,832 6 Vac/cor Jenan St/wisconsin $ 215,000 4.97 $ 43,260 7 Vac Wisconsin St Vic Aliso $ 215,000 4.87 $ 44,148 8 Vac Vic El Sastre Enchanted $ 239,000 2.60 $ 91,923 9 33673 White Feather Rd $ 375,000 9.63 $ 38,941 10 0 Kalman st $ 74,000 4.77 $ 15,514 11 Hubbard Hubbard $ 75,000 10.00 $ 7,500 12 0 Vac/soledad Pass Drt $ 29,900 4.91 $ 6,090 13 Calle Del Roja $ 60,000 5.04 $ 11,905 14 0 Vac/syracuse Ave $ 72,950 0.60 $ 121,583 15 0 Vac/vic Soledad Pass $ 29,950 4.97 $ 6,026 16 W Bato Rd Vic Juniper $ 75,000 5.03 $ 14,911 17 0 Vac/vic Kalman/n $ 74,000 4.77 $ 15,514 18 0 Vac/vic 55th St W $ 33,499 2.39 $ 14,016 19 845 Vac/Soledad Pass Drt $ 70,000 10.00 $ 7,000 20 62 St. West Av $ 90,990 5.01 $ 18,162 21 Arksey Ave $ 49,990 26.10 $ 1,915 22 0 Vac/vic Tuckerway Ranch $ 45,000 10.50 $ 4,286 23 Juniper Crest Barking $ 65,990 5.09 $ 12,965 24 Arratre Cyn $ 75,000 5.08 $ 14,764 25 0 Ranchitos Dr $ 29,000 2.58 $ 11,240 Average asking price per acre $ 27,356

Valuation: Acton Country Undeveloped Land "Exhibit A" Acres: 21.7 $ 593,623

Investment Review

Acton Country Mobilehome Park is an excellent real estate investment for many investors. The real estate of 25.43 acres located on Sierra Hwy with excellent visibility to Highway 14 in Los Angeles County is intrinsically valuable. A turnkey good condition, large lots, 100% occupied MHP at a going in cap rate of 7.31% with seller financing at 4.5% occupying the large parcel makes the investment even more attractive. For the investor seeking to build equity this offering is nearly perfect.