Park Place Communities
Lenoir City, TN 37771
Debt • AFFORDABLE HOUSING

Min. Invest

$25K

Target Hold

3 Mo.

Return On Investment

20%

PROGESS - 100% PLEDGED
PROGESS - 0% FUNDED

Investment Summary

RealtyeVest has a stake in all real estate investments offered in our marketplace.

RealtyeVest is offering investors the opportunity to invest in the acquisition of two mobile home parks with a total 123 site pads in the Knoxville, TN. Metropolitan Statistical Area (MSA).

The parks are well-maintained with direct bill water and sewer for approximately 97 of the units (one of the parks) and a chance to convert the other park to direct bill or submeter water and sewer. Included in the package are 87 park owned homes. Park Place Communities plans to convert the units to Resident Owned Units by selling the Units with the assistance of 3rd Party Lender to take on the financing obligations. The goal is to have the park-owned units completely converted to Resident Owned Units in 3 years.

The mobile home park is located in an area with a high demand for affordable housing. During pre-purchase demand testing, a test ad for tenants generated over 200 responses.

Why We Like This Deal
  1. Extraordinarily Experienced sponsor (top 100 operators in America)
  2. Loan-to-Value: 45% (1st lien security)
  3. Off the charts returns (20% annualized)
  4. ULI & Price Waterhouse cites Affordable Housing as a top trending asset class for years to come.
  5. Warren Buffet owns Clayton Homes (largest mobile home builder in the US)
  6. Quick in-and- out (90 days)

Loan Details
Loan Amount: $1,000,000
Term: 90 Days (Guaranteed) Interest Only
Return: 20% Annualized Return

Exit Strategy: Sponsor has engaged a Private Lending Fund that will provide long-term debt on the parks. The initial time to fund the acquisition was too short for the lender, sponsor engaged RealtyeVest for the short-term bridge loan.

Location Highlights

  • Lenoir City is a full-service City inside the greater metropolitan Knoxville area.
  • Lenoir City is nationally known as the “Lake Capital of the South.
  • Four major federal highways pass through Lenoir City.
  • Less than 30 miles to Downtown Knoxville.
  • Knoxville is the largest metropolitan with a population of 704,500.

The sponsor Park Place Communities or PPC is a real estate investment company specializing in the affordable housing sector. PPC has a national footprint with properties located in eight different states ranging from as far west as Nevada and as far east as North Carolina. They are also recognized as a Top 100 owner and operator in the United States. This will be the sponsors second raise with RealtyeVest.

Risk Mitigates
Security: The loan is secured by a first position lien.

Sponsor Track Record: The sponsor successfully operates 13 parks totaling approximately 1000 units currently.

In-Place Cash Flow: 2016 in-place cash flow was $330,118 or $27,509 monthly. The debt payment on the loan is $16,667 monthly. This equates to a 1.65% Debt Service Coverage Ratio, industry standard is 1.25 and above.

High Demand: The mobile home park is located in an area with a high demand for affordable housing. During pre-purchase demand testing, a test ad for tenants generated over 200 responses.


Risk Disclosures:

The offering materials to be reviewed and considered by investors with respect to this offering include the information described in the website content relating to this offering (as amended and supplemented through and until the closing of the transaction) and the subscription agreement relating to such securities (see the "Documents" tab). We refer to all of this information collectively as the "Property Information Package". Investors should review the Property Information Package in its entirety before investing and should consult with appropriate legal, tax, and investment advisors. Please note that RealtyeVest is not serving as your fiduciary or advisor with respect to this opportunity.

Below are certain risks associated with this investment that should be carefully reviewed prior to any investment in this opportunity:

Forward-Looking Statements: Investors should not rely on any forward-looking statements made regarding this opportunity, because such statements are inherently uncertain and involve risks. We use words such as “anticipated,” “projected,” “forecasted,” “estimated,” “prospective,” “believes,” “expects,” "plans,” “future,” “intends,” “should,” “can,” “could,” “might,” “potential,” “continue,” “may,” “will,” and similar expressions to identify these forward-looking statements. Similarly, the financial forecasts contained herein and in any other offering materials are based on numerous assumptions. Although these assumptions are believed to be reasonable, they are all subject to uncertainty. Non-Transferability of Notes: The transferability of the Company's Notes is restricted both by the subscription agreement for that entity and by U.S. federal and state securities laws. In general, investors will not be able to sell or transfer the Notes. There is also no public market for the Notes and none is expected to be available in the future. Moreover, although there is a defined redemption date for the preferred equity investment in the Fund, an extension option may be exercised and in any event, there can be no assurance that the investment will be liquidated at or promptly after such maturity date (as it may be extended). Persons should not invest if they require any of their investment to be liquid. This is particularly important for persons of retirement age, who should plan carefully to assure that their assets last throughout retirement.

Real Estate Market Risk: Investments related to real estate are subject to market valuation risks that may be caused by changing economic and local market conditions such as local real estate market conditions, prevailing interest rates, the rate of unemployment, the level of consumer confidence, the value of the U.S. dollar, energy prices, changes in consumer spending, the number of personal bankruptcies, disruptions in the credit markets and other factors. Such conditions are beyond the control of the Company and of the Fund. Real estate markets are affected by many factors, such as general economic conditions, supply and demand for real estate investments, interest rates, the availability of financing, and other factors, all of which are beyond the control of both the Company and the Fund.

Borrower Credit Risk: The Company’s obligation to make payments on a Note will not be guaranteed for the length of the term corresponding to the borrower’s loan. The Company (and thus investors) will be relying on the borrower for the execution of its business plan in a way that enables the sponsor to repay the principal of the corresponding borrower loan. The borrower may not have a significant record of performance and may be unable to sell or refinance the underlying property in a way that enables the borrower to fulfill its obligations under the corresponding borrower loan. The borrower loan is being made with respect to a property that does not generally meet the financing criteria for conventional mortgages from institutional sources. Credit risk is inherent in the mortgage lending industry, and there can be no assurance that the creditworthiness of the borrower will be sufficient to assure the full repayment of the underlying borrower loan. The Company does not guarantee payment of the Notes or the corresponding borrower loan, and the Notes are not obligations of our borrower.

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Property Summary

Location:
This is a two-park package located in Lenoir, Tennessee. Lenoir City is located in Loudon County on the Tennessee River on the eastern side of Knoxville in the Knoxville Metro. Knoxville is the largest city in East Tennessee, ranking third statewide with a metropolitan population of 704,500. It is located in a broad valley between the Cumberland Mountains to the northwest and the Great Smoky Mountains to the southeast. These two ranges afford an attractive natural setting and provide a moderate, four-season climate, with average monthly temperatures ranging from 38 degrees in January to 78 degrees in July.

Livability:
Knoxville continually receives high honors for quality of life. According to the American Chamber of Commerce Researchers Association (ACCRA) Cost-of-Living Index, which measures relative price levels for consumer goods and services in metropolitan and nonmetropolitan areas, Knoxville ranked as one of the most affordable southeast urban areas with a Cost-of-Living Index of 87.4 in March 2012, with the average of all participating cities equaling 100.0. In Kiplinger.com’s 10 Best Value Cities for 2011, Knoxville is listed at number five due to its low unemployment and cost-of-living. Forbes magazine ranked Knoxville sixth on its list of Best Mid-Size Cities for Jobs in 2012.

Property Description:
2580 Browder Hollow Road, Lenoir City, Tennessee

    A-4 Mobile Home Park 1 has 97 pads with a unit mix of:
  • 9 – 3BR 3 BA
  • 4 – 3BR 1 ½ BA
  • 2 – 3BR 1 BA
  • 12 – 2BR 2 BA
  • 3 – 2BR 1 ½ BA
  • 51 – 2BR 1 BA
  • 2 – 1BR 1 BA
  • 4 – 1BR Efficiencies
  • 5 – Resident owned units
  • 5 – Empty lots
  • 35 units have central heat and air and 52 have window units
  • 9.8 Acres

1443 Old Highway 95, Lenoir City, Tennessee

A-4 Mobile Home Park 2 has 26 pads with 25 resident owned units and 1 unit with central heat and air that is owned by the park owner.

Total of approximately 13.33 acres.

Property Name: Park Place Communities
Property Type Affordable Housing

Market Overview

Lenoir City, TN is located about 20 miles outside of Knoxville, TN in the greater metropolitan area of Knoxville, TN and has a median income of 36,762 dollars per household. The median selling price for mobile home pricing is $112,600.

Lenoir City is also known as the “Lake Capital of the South”. The city is surrounded by 3 lakes and boast great scenery as well as recreation. It is home to a great school system, new library and beautifully designed park system.

With a population of 704,500 within the Metropolitan City of Knoxville. Lenoir City, TN maintains an impressive under 4% unemployment rate. According to Glassdoor.com there are over 10,000 open jobs within Knoxville, TN.

    Some of the major employers of Knoxville include:
  • U.S. Department of Energy- 13,000 jobs
  • University of Tennessee- 10,000 jobs
  • Covenant Health- 9,000+ jobs
  • Tennova Health- 8,100 jobs
  • Knox County Public Schools- 8,100 jobs

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