Help with MHP/Retail/Apt. property


#1

Any help would be appreciated in valuing the following property.

Location: A small city within a large city, metro 2MM+, in Texas and on major street.
Lots: 34 occupied tenant owned, 1 is manager (no income), maybe room for 3-4 new lots.
Avg Lot Rent: $306 (most at $275 & $300 but market should be 350-400) includes city water/sewer but electric is billed back.

Property also includes two retail buildings with three tenants, standalone 4-plex apt. and standalone building with 2-3 apartments.

Retail (Class C): Leases are not landlord friendly regarding passing through expenses and two have outs clauses (if regulation of title/payday lending changes) but should not be difficult to relet at some point or renegotiate at renewal. Two of three have been there 5+ years and one at 3 years. All three have different leases with varying degrees of landlord responsibility.

Tenant A- $2,425/mo, owner pays taxes, tenant pays utilities (but not shown as income on rent roll), 2 yrs remaining & right to renew 36 mo at market rate.
Tenant B- $3,200/mo, gross lease, 2.5 yrs remaining. Tenant right to terminate with 90 day notice.
Tenant C- $3,300/mo, gross lease, 1 year remaining, right to renew 1 yr, option to terminate with 6 mo notice.


Apartments:
7 units average rent $660/mo, all utilities included.


Total Annual Income $320,000
Expenses $150,000 (estimated at 44%, have not been provided all info)
County Appraisal: $1.8MM up $1MM over last year, yearly taxes $52,000.
Electric- Portion not billed back $18,000/yr
Water- $34,000/yr

Thanks in advance


#2

Looks like the land is worth more than the park. 1.8 is just the appraised value by county/City which is usually more conservative. I would contact a commercial broker get an idea what’s going on in the area. Park value by your numbers is probably $1.2m to $1.5m.


#3

Thanks! Yes, in the past the appraisal district has been behind in true value across the board but is now hammering every commercial property. Its a boom for tax protest companies. Appreciate your response.