Confidential

Deer Valley Mobile Home Community (Deer Valley Estates)

Address: 4940 Cline Rd, Resaca Georgia 30735

Location: 2.5 miles from U.S. Interstate 75, exit 326, southern outskirts of Dalton GA, 78 miles north of Atlanta, 40 miles south of Chattanooga, in Whitfield County, close to Gordon County line. Located 2.7 miles from new 184-acre Carbondale Business Park -- which will have 2 million square feet of manufacturing, distribution and retail space.

Property Size: 36 lots on 30.7 acres, 27 park-owned homes

Lot Sizes: Vary from 1/3 acre to one acre with room foradditional lots and homes

Homes: 24 three-bedroom homes and 3 two-bedroom homes, including one double-section home and one triple-section home

Landscape: Moderate slope or flat, partially wooded, pond and stream on property

Rents: Home rents vary from $100 per week to $540 per month; lot rents vary from $175 to $240 per month (most at $225 per month)

Zoning: R-3 (Residential – single family homes)

School System: Valley Point

Price: $790,000

Monthly Profit & Loss Statement:

Revenue $14,625 See Note 1

Expenses

Advertising 185 See Note 2

Management Fee 2200 See Note 3

Repairs/Maintenance 1250

Water 670 See Note 4

Trash Collection 248 See Note 5

Electricity 90 See Note 6

Administrative 15

Real Estate/Property Taxes 376 See Note 7

Insurance 468 See Note 8

Total Expenses $ 5,502

Net Operating Income $ 9,123

Notes:

1 At full occupancy, community generates$16,250in monthly revenue. Assume 10% vacancy above. Revenue is currently collected via personal check or money order. Cash is not accepted.

2 Usually runclassified ad in Dalton’s Daily Citizen newspaper when community is not full. Ad also appears on newspaper’s website.

3 Management fee is paid monthly to community manager, an independent contractor. This fee could be significantly reduced.

4 Water service provided by Calhoun Utilities. Each home has anindividual septic tank and system. Water lines thoroughly checked in 2010. Water could be submetered to each unit.

5 Trash collection provided by Allied Waste Services. Residents deposit their trash into two large dumspters located in the center of the community.

6 Electricity for park streetlights and water system pumps. Each home is metered for electricity and residents pay their own electricity bills. Electricity is provided by North Georgia Electric.

7 Taxes total $4,519 for the year (2009). This includes real estate property taxes of $1,863 and manufactured home taxes of $2,656 paid to Whitfield County. The manufactured home taxes are assessed per home and typically decline a few percent each year.

8 Insurance expense includes annual physical damage policy premiums of $2,259 and general liability coverage premiums of $3,366 (for 2010).

Key Investment Considerations

  • Community is located in the high-growth U.S. Interstate75 corridor, 5 minutes (2.5 miles) from exit 326 (Carbondale Rd.)
  • Carbondale Business Park is a new184-acre industrial park under development at this exit (2.7 miles from Deer Valley). The park will have approximately 2 million square feet of manufacturing and retail space. It will generate over 1,900 jobs. This is the largest industrial park in the state of Georgia located on an interstate highway.
  • Community is located midway between the employment centers of Dalton and Calhoun. This area is the center of the global carpet and flooring industries with major corporate employers such as Shaw Industries (a Warren Buffet company) and Mohawk Industries.
  • The populations of Whitfield and Gordon counties are projected to grow 12.2% and 13.3% respectively, from 2010 to 2015, according to the Georgia Department of Labor.
  • Companies are building new manufacturing and distribution facilities in the Dalton/Calhoun area. IVC, an international vinyl company based in Belgium, recently moved its US headquarters to Dalton. IVC also just opened a new $70 million, 520,000 sq. ft. manufacturing plant in Dalton.
  • Community is located 30 miles north of Cartersville, now considered a suburb of Atlanta. Strong, upscale growth and development continues north of Atlanta, particularly along the interstate highways (I-75 and I-85).
  • Property is situated about 12 miles north of probable Atlanta Northern Arc expressway intersection with I-75 (east-west expressway to connect I-75 and I-85, approximately 65 miles north of Atlanta)
  • Property is 40 miles south of Chattanooga, a growing mid-size city that continues to attract majorindustry/factories/plants (such as Volkswagen’s new assembly plant, a $1 billion investment)
  • With the community’s 30.7 total acres and with less than 1.2 homes per acre, there is the possibility of doubling the number of units within the community.
  • Property is currently zoned (residential) such that single family homes could be developed and sold individually. This could potentially be very profitable.
  • With proximity to I-75 and withnew commercial development close by, conversion of property to commercial use is also apossibility in future years.
  • Community iswidely regarded as one of the very best in northwest Georgia – clean, quiet, safe, large lots, paved roads (some gravel), scenic pond, beautiful setting. Located less than a mile from the Chattahoochee National Forest with views of the national forest mountains.
  • Compared to the lot sizes of most manufactured home communities in northwest Georgia (or anywhere), the Deer Valley lot sizes are significantly larger.
  • The Valley Point school system is highly sought after andgenerally considered to be superior to neighboring school systems.
  • All Deer Valley residents have signed a detailed lease agreement. The lease agreement stipulates substantial financial penalties for early lease termination.
  • Whitfield County governmental/regulatory attitudes toward mobile home communities are positive.
  • Local banks have familiarity with mobile home parks and regularly finance them
  • Two independent property value appraisals have been conducted on the community. Copies of these appraisals are available upon request.

2003: $1,130,000

2006: $1,175,000

Directions to Deer Valley

-From I-75, take Carbondale Rd exit (exit 326)

-Go west on Carbondale – for 1 mile

-Turn left onto W Nance Springs – go 1 mile

-Turn right onto Cline Rd – ½ mile on right

Contacts

Kyle Webb

Deer Valley Development, LLC

Atlanta, GA

404-681-7599

Jerry Wooden

Manager

Deer Valley Mobile Home Community

Resaca, GA

706-383-8123

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