Offering Memorandum
5719 Central Avenue
Hot Springs, AR
Investment Overview
5719 Central Ave. Hot Springs, Arkansas 71913
2
The subject property is 7.22 acres comprised of 43
manufactured home spaces inclusive of 5 homes and 1
single family residence. The property was developed in
two stages during the 1980s and 1990s. The entire
grounds, roads, perimeter fencing, and rental homes have
been kept in good repair. .
Hidden Valley Mobile Home Park is one of the
nicer all-ages communities in the area. The location and
setting are very desirable. All utilities are underground,
individually metered, billed, and collected directly from
the city. The property operates efficiently, has capable
management, and attracts good tenants. There is an appli-
INVESTMENT HIGHLIGHTS cation process for new residents; all leases are month to
7.22 Acres month; and rents are paid with check or money order, no
cash. The rules and regulations are enforced, evictions are
Developed in the 1980s-1990s
rare, and the majority of the residents exhibit pride of ap-
6 Rental Units Included
pearance by maintaining their lots.
Well Maintained Property Current ownership has recently remodeled 4 of the
Great Location 6 owned homes and has implemented management to op-
Individually Metered Utilities erate with absentee ownership. Hidden Valley operates
well and the owners feel pricing the property at an 8-9%
Turn Key Operation
actual cap rate is fair; ideal for purchasers seeking a solid
Strong Market
turn-key operation, with some upside, that is suitable for
absentee ownership. This is not a distressed sale; inter-
ested parties will receive full cooperation throughout the
due diligence period and transfer of ownership. Local
banks are a likely source for financing this deal.
Hidden Valley Mobile Home Park offers an inves-
tor the opportunity to acquire a well located, functional,
and performing asset that cash flows in a growing and pre-
dictable market.
This property type weathers uncertain economies
well. The local economy has jobs, population growth, and
strong demand for affordable housing.
The statements and information herein, while not guaranteed, are secured from sources we believe authoritative.
CONTACT: CREED WILLIAMS
888-440-7619 fax 719-221-1401 direct cw@cwccp.com email
Location Description
5719 Central Ave. Hot Springs, Arkansas 71913
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Garland county as of last census, has a population
of 89,657. Hot Springs the county seat, has a popula-
tion of 35,750. There has been obvious growth since the
last census in 2000 and there are numerous ongoing de-
velopments. The area has a rich history with many
unique natural resources including Hot Springs National
Park, rivers, mountains, and lakes. Hot Springs also
hosts live thoroughbred racing from January through
April. These are major events that draw thousands of
LOCATION HIGHLIGHTS people.
County Seat Over 250,000 residents live within Hot Springs’
High Growth Area 30-mile workforce recruiting area. A local community
Natural Resources college and three universities located within 50 miles se-
Quality Labor Pool cures a knowledgeable and available labor pool. The
Retirement Destination local economy is strong and growing with numerous
skilled and unskilled jobs available. Hot Springs is home
to some of the state’s leading companies such as Alcoa,
K-Tech Inc., Munro Corporation, Weyerhaeuser, and
Xerox. Other top area employers are St. Joseph’s Mercy
Health Center (1,550 employees), 3 Wal-Mart stores
(1,094 employees), and Oaklawn Park (1,000 employ-
ees).
Hot Springs is also consistently ranked among the
top retirement destinations. Mild temperatures, beauti-
ful scenery, abundant recreation, and a vibrant downtown
with many cultural offerings consistently attracts retirees
to the area.
Sources:
www.cityhs.net;
The statements and information herein, while not guaranteed, are secured from sources we believe authoritative.
CONTACT: CREED WILLIAMS
888-440-7619 fax 719-221-1401 direct cw@cwccp.com email
Site Description
5719 Central Ave. Hot Springs, Arkansas 71913
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Hidden Valley Mobile Home Park enjoys con-
sistent high occupancy as it is one of the nicest all-age
communities in the area. The property is located in a
desirable area, very near Lake Hamilton just south of
city limits near the Hot Springs Mall and all amenities.
The Lakeside school district is considered one of the
areas best. Most home sites offer partial shade.
There are many long time residents in the com-
munity and all leases are month-month. All utilities
are individually metered, billed, and collected by the
city. Management has no utility billing duties. The
SITE HIGHLIGHTS
streets are paved and there are two off street parking
High Occupancy
sites for each lot, as well as additional guest parking.
Near Lake Hamilton
The average lot size is relatively large, approximately
Individually Metered Utilities
40’ x 100’. Mail is delivered on site. All residents
Large Lots
have individual waste containers that are picked up
Further Development Possible
bi-weekly.
Liberal Zoning
The highest and best use for this parcel is most
likely a manufactured home community. There appears
to be opportunity to add more lots or further subdivide.
There are no known zoning or use restrictions or vio-
lations, and the property is not located in a floodplain.
The entire income stream will transfer at clos-
ing inclusive of all leases, security deposits, and prom-
issory notes, if any. With experienced ownership, this
property should continue to operate on a 20-25% ex-
pense ratio. The seller will provide the purchaser: title
insurance, operating statements, rent roles, a boundary
survey, and title to any owned units.
The statements and information herein, while not guaranteed, are secured from sources we believe authoritative.
CONTACT: CREED WILLIAMS
888-440-7619 fax 719-221-1401 direct cw@cwccp.com email
Pricing and Financials
5719 Central Ave. Hot Springs, Arkansas 71913
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ADDRESS 5719 Central Ave. Hot Springs, AR
PRICE $705,000
APN# 700729001002
TYPE Manufactured Home Community
LOT SIZE ~7.22 ac
Current Land Value Assessment 38%
Current Improvement Value Assessment 62%
YR BLT 1980s-1990s
OVERALL CONDITION Good
ZONING (County)
TOTAL # SITES 43
NUMBER RENTAL HOMES INCLUDED 5 + 1 SFR
CURRENT VACANCIES
Rental Homes 0
Lots 3
STREETS Paved
UTILITIES (water, sewer, electric, natural gas) City
INDIVIDUAL METERS Yes
PARKING Off-Street
MANAGEMENT On-site
TRADITIONAL OCCUPANCY 90%
AVERAGE LOT SIZE 40x100
AREA TO EXPAND Yes
AVERAGE LOT RENT $125.
Services Included None
AVERAGE RENTAL AMOUNT $465.
Services Included None
NOI $~60,000.
COLLECTION RATE 100%
CAP RATE 8.0-9.0%
5 yr all cash IRR
5 yr leveraged IRR
*assumptions necessary
SELLER FINANCE AVAILABLE No
The statements and information herein, while not guaranteed, are secured from sources we believe authoritative.
CONTACT: CREED WILLIAMS
888-440-7619 fax 719-221-1401 direct cw@cwccp.com email
Income-Expenses
5719 Central Ave. Hot Springs, Arkansas 71913
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Lot Name Actual PRI
1 Resident 125 125
2 Resident 125 125
3 Resident 125 125
4 Resident 125 125
5 Resident 125 125
6 Resident 125 125 1,605 Insurance
6A Resident 125 125
7 Resident 125 125 4,800 RE and per prop tax
8 Park 485 485
9 Resident 125 125 6,000 Management
10 Resident 125 125
11 Resident 125 125 5,000 Est rep and maint
12 Resident 125 125
13 Park 450 450 1,300 Est mowing
14 Resident 125 125
15 Resident 125 125 600 Est phone
16 Park 475 475
17 Resident 125 125 1,000 Est util
18 Resident 135 135
19 Resident 135 135 750 Advertising
20 Resident 125 125
21 Resident 150 150
22 Resident 125 125 ANNUALIZED
23 Resident 125 125 $21,055 EXPENSES
24 Resident 125 125
25 Resident 125 125
26 Resident 125 125
27 Resident 125 125
28 Resident 125 125
29 Vacant 0 125
30 Resident 125 125
31 Park 485 485
32 Resident 125 125
33 Resident 125 125
34 Vacant 0 125
35 Resident 125 125
36 Resident 125 125
37 Resident 125 125
38 Park 425 425
39 Resident 125 125
40 Resident 125 125
Lot 41 Vacant-smaller lot 0
House Park 485 485
PER MONTH 7100 7350
ANNUALIZED 85200 88200
The statements and information herein, while not guaranteed, are secured from sources we believe authoritative.
CONTACT: CREED WILLIAMS
888-440-7619 fax 719-221-1401 direct cw@cwccp.com email
Demographics
5719 Central Ave. Hot Springs, Arkansas 71913
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Population 1-mi. 3-mi. 5-mi.
2008 Male Population 987 4,697 12,639
2008 Female Population 947 4,868 13,837
% 2008 Male Population 51.03% 49.11% 47.74%
% 2008 Female Population 48.97% 50.89% 52.26%
2008 Total Adult Population 1,600 7,977 22,000
2008 Total Daytime Population 1,498 10,140 32,162
2008 Total Daytime Work Population 767 5,567 17,822
2008 Median Age Total Population 44 46 46
2008 Median Age Adult Population 50 51 52
Population Change 1-mi. 3-mi. 5-mi.
Total Employees n/a n/a n/a
Total Establishments n/a n/a n/a
2008 Total Population 1,934 9,564 26,476
2008 Total Households 928 4,562 12,285
Population Change 1990-2008 705 3,230 7,074
Household Change 1990-2008 410 1,747 3,772
% Population Change 1990-2008 57.36% 50.99% 36.46%
% Household Change 1990-2008 79.15% 62.06% 44.31%
Population Change 2000-2008 274 1,145 2,892
Household Change 2000-2008 172 717 1,644
% Population Change 2000-2008 16.51% 13.60% 12.26%
% Households Change 2000-2008 22.75% 18.65% 15.45%
Housing 1-mi. 3-mi. 5-mi.
2000 Total Housing Units 1,003 5,321 13,284
2000 Occupied Housing Units 718 3,871 10,653
2000 Owner Occupied Housing Units 487 2,777 7,709
2000 Renter Occupied Housing Units 232 1,094 2,944
2000 Vacant Housing Units 284 1,450 2,631
% 2000 Occupied Housing Units 71.59% 72.75% 80.19%
% 2000 Owner Occupied Housing Units 48.55% 52.19% 58.03%
% 2000 Renter Occupied Housing Units 23.13% 20.56% 22.16%
% 2000 Vacant Housing Units 28.32% 27.25% 19.81%
The statements and information herein, while not guaranteed, are secured from sources we believe authoritative.
CONTACT: CREED WILLIAMS
888-440-7619 fax 719-221-1401 direct cw@cwccp.com email
Photos
5719 Central Ave. Hot Springs, Arkansas 71913
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Owned Rental Units
The statements and information herein, while not guaranteed, are secured from sources we believe authoritative.
CONTACT: CREED WILLIAMS
888-440-7619 fax 719-221-1401 direct cw@cwccp.com email
Photos
5719 Central Ave. Hot Springs, Arkansas 71913
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Tenant Owned Homes
The statements and information herein, while not guaranteed, are secured from sources we believe authoritative.
CONTACT: CREED WILLIAMS
888-440-7619 fax 719-221-1401 direct cw@cwccp.com email
Photos
5719 Central Ave. Hot Springs, Arkansas 71913
10
The statements and information herein, while not guaranteed, are secured from sources we believe authoritative.
CONTACT: CREED WILLIAMS
888-440-7619 fax 719-221-1401 direct cw@cwccp.com email
Photos
5719 Central Ave. Hot Springs, Arkansas 71913
11
The statements and information herein, while not guaranteed, are secured from sources we believe authoritative.
CONTACT: CREED WILLIAMS
888-440-7619 fax 719-221-1401 direct cw@cwccp.com email
Maps
5719 Central Ave. Hot Springs, Arkansas 71913
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The statements and information herein, while not guaranteed, are secured from sources we believe authoritative.
CONTACT: CREED WILLIAMS
888-440-7619 fax 719-221-1401 direct cw@cwccp.com email