Park Portfolio

Exceptional Opportunities - Exceptional Returns
Successfully Navigating the Blue Waters of NYS

The Portfolio:Cook Properties is under contract to purchase a Mobile Home Park portfolio consisting of 55 parks and 2310 lots. The portfolio is located in New York State. The parks range in size from 10-160 sites per community. Purchase price for the portfolio is $121,750,000.

We will be the Number 1 park owner in New York State after this purchase.

mobile home parks
with 2,500+ pads

40

sq. ft.
retail and office

250,000

storage
facilities

4

  • As is Cap Rate 6.5%, Year 10: 9.47%
  • 30%/70% Class A/Class B (Common Equity) splits
  • 7% Preferred Return
  • Class B Expected Cash on Cash Returns Years 1: 9.81% , Year 10: 15.40%
  • Class B Expected Internal Rate of Return (IRR) is 15.55
  • $250,000 Minimum Investment
  • Anticipated 10 year hold period
  • Tax efficient investment vehicle, accelerated depreciation
  • 1/3 of capital investment returned in 2026
  • FUNDING DEADLINE: Nov 15, 2021
  • CLOSING DATE (est): Dec 1, 2021

About Cook Properties

Cook Properties, headquartered in Rochester, New York, was established in 1997 as a privately owned real estate development company. Since 1997, We have been involved in property ownership and management, including land development, property investment and general contracting.

We have been successfully navigating the “blue waters” of NYS for over 25 years.
We operate 51 multi-tenanted properties across New York State and have significant experience in developing and managing mobile home park communities. Our portfolio consists of mobile home parks, storage facilities, apartments, office buildings, and mixed use plazas.

    • Our mobile home park portfolio consists of 40 communities with 4000 pads
    • Our retail and office properties measure 220,000 sf
    • We operate 3 storage facilities with 500 units
    • Assets under Management is $125,000,000

 

Our paramount concern has always been our customers: our Residents, Tenants, and Investors. Satisfied customers lead to a profitable bottom line. We strive to provide the best, most satisfying, economical, safe living and work environments possible.We lead by example and treat others how we wish to be treated.

40+ MHPs throughout NY State … and Growing

Why Mobile Home Parks

  • Recession Resistant
  • Pandemic Proof
  • Bullet Proof Collections
  • Quality Affordable Housing
  • Low Resident Turnover, Life Long Residents
  • 98% of mobile homes never leave

Why Choose Self-Storage Facility Investment?

Nearly 10% of all US households rented a storage space in 2020. These facilities have low construction costs, low overhead and low staffing costs. Demand remains high across a wide range of demographics, while monthly rentals provide steady income.

Cook Properties –Portfolio Acquisition Opportunity

Cook Properties is under contract to purchase a Mobile Home Park portfolio consisting of 55 parks and 2310 lots. The portfolio is located in upstate New York. Almost all of the parks are located less than 1 hour from our Corporate Headquarters in Rochester.

Investment Highlights:

  • As is Cap Rate 6.49%, Year 10: 9.47%
  • 30%/70% Class A/Class B (Common Equity) splits, 7% Preferred Return
  • Class B Cash on Cash Returns Year 1: 9.81% , Year 10: 15.40%
  • Internal Rate of Return (IRR) is 15.55%
  • $250,000 Minimum Investment, 10 year hold period
  • Tax efficient investment vehicle, accelerated depreciation
  • FUNDING DEADLINE: Nov 15, 2021
  • CLOSING DATE (est): Dec 1, 2021
  • 10 yrfixed rate financing low 3%, 30 yramortization (75% LTV)
  • Stable MHPs with Upside: vacancy across the portfolio is ~300 lots / 13%
  • $1MM+ NOI in value add opportunity by filling vacant pads
  • Total number of park owned homes is ~490 homes / 21% (Avg. age of Home is 12 years old –built 2009)
  • 3 Star portfolio meets the huge affordable housing need in upstate NY
  • 70% of Parks on Municipal Water, 30% Private
  • 50% of Parks on Municipal/Public Sewer, 50% Private

Map of Portfolio

55 MHP’s throughout NYS

Exceptional Opportunities. Exceptional Returns.

Business Plan

The business plan for the portfolio is very similar to the numerous successful property repositions we have carried out over the years. Like other parks we have purchased, these assets have value-add opportunities through infill and management efficiencies. Although fairly stabilized as a whole (87% occupied), we intend to fill 230 vacant lots in the first 3 years. The capital expenditures needed to infill is included in the equity raise.

In addition to offering tenants the inventory of current used park owned homes, we will order 230 new homes over the first 3 years that will be available for sale. This allows us to offer a variety of options to new residents, ranging from new turn-key homes to more affordable used homes, thus widening the appeal to a larger range of residents and filling vacancies sooner. Park owned homesthat are beyond repair will be demolished and removed.

As soon as we take over new parks, we place a heavy emphasis on enforcing rules and regulations throughout the community to ensure a safe and comfortable living environment. Additionally, ourbusinessplans include immediately investing the time, resources and energy into improving the parks aesthetics. This can include replacing broken and faded signage, non working streetlights, removing trash, tree trimming and removal, and fixing potholes. A majority of these tasks and repairs are relatively inexpensive, but go a long way in filling vacancies and making a park feel new.

Our trained regional park managers will be able to combine their efforts with the management team in place, to provide a level of communication and service that the residents have not been accustomed to. As part of the acquisition of the parks –Cook Properties will be purchasing the seller’s Mobile Home Sales Center Operations, all fixed assets and other real property, andthe entire employee staff (including the Seller’s current Chief Operating Officer). With the added resources at our disposal, we will integrate what has worked well for the Seller over the years and combine those strategies with what has historically worked for us.

Lastly, a majority of the portfolio is located just a few miles from a number of parks we own. 100% of the portfolio is located in Upstate NY, largely in our backyard. We will take advantage of economies of scale to minimize operating expenses and deploy resources more efficiently.

Risks and Concerns -Mitigated

Inflation
Real Estate acts as a hedge against inflation. There are a limited supply of investment properties and a lack of available land to build new properties, as a result, real estate holds intrinsic value due to it’s scarcity. Demand for MHPs does not decrease when inflation rises, in fact,the value of existing properties may increase, given the rising cost of materials and labor to build and expand comparable properties. However, to mitigate rising prices, we are prepared to pass on increased operating and capital improvement costs to residents as rent increases (3% each year).

Interest Rates
We are locking in long-term, low, 10 year fixed rate financing for nearly all of our debt. We will only be subject to rate risk Year 6 when we project to refinance a portion of the portfolio in the form a supplemental loan ($15.8mm). We have modeled a conservative 5.50% rate. The Fannie Mae supplemental loan terms will provide the most competitive terms available at that time.
In the event we see rates rising quicker than expected, we can execute a supplemental loan refinance sooner than Year 6 –as we project to stabilize the portfolio infill after Year 3. If rates have increased too high to execute a supplemental loan, investors will simply enjoy stronger cash flow than projected throughout the duration of the hold until their capital is returned at the time of sale, iewith no supplemental loan, less debt service = more cashflow).

Pad Infill
We are projecting to fill 230 of 300 vacant lots over the portfolio within the first 3 years. While this execution does pose a risk to the projected effective gross income, we are confident in the continued strong demand in these markets.
The shortage of affordable housing is a major issue in American society. Mobile homes / Manufactured housing is at least halfthe cost per sq ft of stick built homes. We are able to provide the same quality of life for a fraction of the cost compared to stick built homes –and as such, have never had difficulty finding quality residents for infill execution. In fact, demand for MH is currently greater than the supply. We strive to solve this problem by investing in Mobile Home parks, operating them efficiently and executing infill development.

Cook Properties Fund 20 – Historical Case Study

Cook Properties Fund 20 – Closed
The subject portfolio will not be included in the Cook Properties Fund 20. The fund has closed but we wanted to
provide case study material in the following slides illustrating a similar execution investors can expect when
investing in the portfolio opportunity offered.

The capital raised was used to acquire multiple assets, in several geographic regions, rather than just one property
in a single location. The diversification helped spread the investment risk across a variety of properties with
thousands (1,500) of income producing mobile home park lots. This portfolio opportunity has 2300 pads.
We are already outperforming our anticipated cash on cash returns. We expected to achieve a 10% cash on cash in
mid 2022, however we will hit that target in late 2021.

Cook Properties Case Studies

  • Two adjacent MHPs in Waterloo NY
  • Purchased 3 years apart: Schoolhouse Estates for $425,000 March 2010 and Isle of
  • Pines for $475,000 July 2013
  • 70 total permitted pads, 35 occupied at purchase
  • 2013 Schoolhouse refinanced for $550,000 to replace water lines, pads
  • 2017 Schoolhouse refinanced for $1,085,000 to pave roads and cash out
  • Parks combined in 2018
  • 2018 Isle of Pines refinanced for $775,000 to develop 6 acres between the
  • two parks and add 16 new pads and homes
  • 2020 bought parcel next door. On track to develop 22 more new pads in 2021
  • 90 pads total by end of 2021
  • Refinanced in Sept 2021 for $9.272mm
  • All investment capital has been returned

  • Purchased in 2015 for $2.4mm
  • 141 pads
  • Sub metered water and sold off 10 park owned homes, rehabbed and rented 10 more within first 3 months of ownership
  • In 2016, just 12 months after purchase, refinanced @ $4mm
  • Raised rent annually
  • Increased annual NOI from $228,000 to $482,000
  • Increased value from $2.4mm to $4mm++ (we’re refinancing in ‘21)
  • Site plan APPROVED to develop vacant land for 50 new homes
  • Cap rate from purchase to now is 9.5% to 12.1%
  • Through 3rd Qtr 2021, cash on cash is 28%
  • Refinancing Oct 2021 for $8.925mm

  • Purchased in Jan 2018 for $2.3mm, 124 pads
  • Brought in 10 new homes and sold off 20 park owned homes in first 12 months of ownership
  • Raised rent annually
  • Increased annual NOI from $263,000 to $341,000
  • Increased value from $2.3mm to $3.9mm
  • Jan 2019 Refinanced at 65% LTV; 85% of capital returned
  • Refinanced again in 2021; balance of capital returned and an additional 50% on capital returned
  • Through 3rdQtr2021, 31% cash on cash on original capital investment

  • Purchased in 2017 for $3.3mm, 117 pads
  • Installed 12 new pads and homes
  • Sub-metered water in 2018, adding $35,000 to the bottom line
  • Raised rent annually
  • Working on site plan to develop excess vacant land for 60 new homes
  • Increased annual NOI from $296,444 to $481,000
  • Cap rate from purchase to now is 8.9% to 9.6%
  • Refinancing Oct 2021 for $7.75mm
  • Through 3rdQtr2021, cash on cash is 28%

  • Purchased 2018 for $3.5mm, 192 pads in 2 parks
  • Installed 30 new pads and homes so far
  • 20 homes demoed
  • Raised rent annually
  • Increased annual NOI from $312,412 (2018) to $454,695 (2019)
  • Increased value from $3.5mm to $5.5mm; will refinance 1st qtr2022
  • Cap rate from purchase to now is 8.9% and 13%
  • 2020 cash on cash return was 12.4%
  • Through 3rdQtr2021, cash on cash is 17%
  • Purchased Jan 2020 for $3.19mm, 85 pads
  • Installed 6 new pads and homes and executed on management efficiencies
  • Raised rent Jan 2021
  • Increased value from $3.19mm to $4.95mm, refinance Sept 2021
  • Returned ALL Investor Capital in 20 months


Important Information and Disclaimers

The information contained herein is provided for informational and discussion purposes only and is not, and may not, be relied on in any manner as legal, business, financial, tax or investment advice or as an offer to sell or a solicitation of an offer to buy an interest in the investment described herein (the “Investment”), or to participate in any trading strategy. A private offering of interests in the Investment will only be made pursuant to the Investment’s offering materials, including the Investment’s subscription documents (the “Offering Package”), which will be furnished to qualified investors on a confidential basis at their request for their consideration in connection with such offering. The information contained herein will be superseded by, and is qualified in its entirety by reference to, the Offering Package. To the extent that there is any inconsistency between this document and the Offering Package, the provisions of the Offering Package shall prevail. No person has been authorized to make any statement concerning the Investment other than as set forth in the Offering Package and any such statements, if made, may not be relied upon. The information contained herein must be kept strictly confidential and may not be reproduced or redistributed in any format without the approval of Cook. By accepting this document, the recipient agrees that it will, and it will cause its shareholders, partners, members, directors, officers, employees and representatives, to use the information only to evaluate its potential interest in the securities described herein and for no other purpose and will not divulge any such information to any other party except for its advisors under duties of confidentiality. By accepting this document, each recipient agrees to return it promptly upon request. The Sponsor is the sole sponsor of the offering of interests in the Investment. The interests in the Investment are subject to restrictions on transferability contained in the Offering Package. Neither the Sponsor nor any of its affiliates makes any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein and nothing contained herein shall be relied upon as a promise or representation whether as to the past or future performance. No representations are made as to the accuracy of any targets, estimates, approximates or projections or that such targets, estimates, approximates or projections will be realized. Forward-looking statements are based upon certain assumptions and information available on the date hereof. Actual events are difficult to predict and may be beyond the Sponsor’s control. The information contained herein does not purport to contain all of the information that may be required to evaluate an investment in the Investment and any recipient of this document is encouraged to read the Offering Package and should conduct its own independent analysis of the data referred to herein prior to making an investment in the Investment.

Prior to the sale of interests in the Investment, the Sponsor will give investors the opportunity to ask questions and receive answers concerning the terms and conditions of an investment in the Investment and other relevant matters and to obtain any additional information (to the extent that the Sponsor possesses such information or can obtain it without unreasonable effort or expense) necessary to verify the accuracy of the information in this document. Each prospective investor should consult its own attorney, business adviser and tax adviser as to legal, business, tax and related matters concerning the information contained herein including the merits and risks involved with an investment in the Investment. The Investment involves a high degree of risk. Participation in the is suitable only for sophisticated accredited investors and requires the financial ability and willingness to accept the high risks and lack of liquidity inherent in an investment. Investors in the Investment must be prepared to bear such risks for an indefinite period of time. No assurance can be given that the Investment’s objectives will be achieved or that investors will receive a return of their capital. There will be no public market for interests in the Investment, and interests in the Investment will be subject to strict limitations on transfer. Investors should regard their interests as illiquid, and investors should not invest in the Investment unless they are prepared to lose all or a substantial portion of their investment.

All track record and prior investment performance is subject to and qualified by the following:

A. As used herein, the term “Cook Properties Investors,” or “Cook Properties” refers to the umbrella brand of real estate investments sponsored by Cook. Accepted investors will be investing in Cook, a Delaware limited liability company (the “Fund”) and the assets of the Fund will vary from those of Cook Properties.
B. All references, if any, to net investment returns reflect returns on an investment-by-investment basis. There can be no assurance that unrealized investments will be realized at the valuations used to calculate the net investment returns contained herein and transaction costs connected with such realizations remain unknown and, therefore, are not factored into the calculations.
C. Unless otherwise stated, all financial information provided herein is unaudited.
D. Any reference to a targeted or projected NOI, cash flow, annual return, IRR, or multiple of invested capital contained in is merely an estimated “target” and inherently subject to a variety of risks and uncertainties that could cause actual results to differ materially from those predicted or anticipated. While the targeted performance is based on assumptions that the general partner believes are reasonable, the actual returns will depend on a very broad range of factors applicable to individual investments. There are risk factors that could cause certain assumptions to prove to be incorrect, which may include, without limitation: (i) changes in government policies and government activities in the debt markets; (ii) changes in interest rates; and (iii) economic and market conditions. No assurance, representation or warranty is made by any person that any targeted returns will be achieved, and no recipient of this document should rely on such targets.
E. The summaries of various investments are intended to be a brief summary of certain key terms and does not contain all material information regarding these investments. Additional information regarding these potential investments is available upon request.
F. There can be no assurance that any potential transaction will be consummated or, if consummated, the terms on which such transaction will be consummated, until the final execution of the investment documents.
G. Past performance of investments made by persons affiliated with the Fund is not indicative of future results and there can be no assurance that the Fund will achieve results that are comparable to any prior investment described herein.

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