EXECUTIVE SUMMARY
MEDARY VILLAGE MOBILE HOME PARK AND LAUNDROMAT Brookings, SD

IMPORTANT LEGAL DISCLOSURES – PLEASE READ

THIS EXECUTIVE SUMMARY IS NOT TO BE CONSTRUED AS AN OFFERING FOR INVESTMENT. RATHER, IT IS PROVIDED SOLELY FOR INFORMATIONAL PURPOSES

This Executive Summary was prepared by Sawgrass Capital Partners, LLC, (the “Sponsor”). The Sponsor does not make any representation or warranty, express or implied, as to the completeness or the accuracy of the material contained in this Executive Summary

This Executive Summary is confidential. By accepting the Executive Summary, you agree (i) that you will hold and treat the Executive Summary and its contents in the strictest confidence, (ii) that you will not photocopy, scan, duplicate or email any part of the Executive Summary, (iii) that you will not disclose the Executive Summary or any of its contents to any other person or entity without the prior written authorization of the Company, and (iv) that you will not use the Executive Summary in any fashion or manner detrimental to the interest of the Company

ANY PROJECTIONS CONTAINED IN THE EXECUTIVE SUMMARY, FINANCIAL OR OTHERWISE, ARE ESTIMATES ONLY, BASED UPON ASSUMPTIONS WHICH MAY BE INCORRECT, AND THERE CAN BE NO ASSURANCE AS TO THEIR ACCURACY. THE ACHIEVEMENT OF ANY FINANCIAL PROJECTION MAY BE AFFECTED BY FLUCTUATING ECONOMIC CONDITIONS, AND OTHER FACTORS, AND IS DEPENDENT ON THE OCCURRENCE OF FUTURE EVENTS THAT CANNOT BE ASSURED

MEDARY VILLAGE MOBILE HOME PARK AND LAUNDROMAT

PROJECT SUMMARY

The Medary Village Mobile Home Park project is an 80 lot mobile home park with laundromat in the central part of Brookings, SD a town of 25,000 residents and home to South Dakota State University. The property has been poorly managed and severely under-capitalized over the last five+ years. The result is an asset that offers tremendous potential for Sawgrass Capital Partners and its investors to purchase the property below-market, renovate the property and re- position the asset in a thriving marketplace. The resulting re-positioning will create an asset that provides cash flow to Sawgrass Capital Partners, substantial growth in equity and other financial benefits. The property will be purchased for $1,550,000 or $19,375 per pad, on or around 4/1/2020 which is an under-market value-buy in the Brookings area. The property will be purchased with a commercial loan through Bankstar Financial Bank in Brookings

MARKET INDICATORS

Medary Village Mobile Home Park and laundromat sit on approximately 6.82 acres of desirable, high density residential zoned land in the central part of Brookings, South Dakota a town of 25,000 residents and home to South Dakota State University which have both shown consistent year over year population growth and historically low unemployment. Current park occupancy of ~72% is below market average and current lot rents have not been raised for over 5 years. Lot and home rents are ~$35-$75 below market rents based on a current market rent survey, giving potential to increase net operating income significantly. The park also needs some new homes brought in, attention given to park cleanliness standards and attention to deferred maintenance issues, which will further add to the operating income

With the high barriers of entry for building new mobile home parks and laundromats along with the high demand for affordable housing, the Medary Village Mobile Home Park project is poised for significant market success. With the opportunity to acquire this property at such an excellent price per pad at this time, the profit potential is exceptionally strong in the short and long term

EXIT STRATEGY

Management plans to run and optimize Medary Village MHP/Laundromat as a cash-flowing investment and will either sell or re-finance in years 5-7 as needed to return investor’s capital when our revitalization efforts are complete. Investors will enjoy preferred annual returns of 10% paid quarterly. Management plans to share annual after tax cash flows pro-rata with investors as a capital paydown and distribute 60% of equity gains from a liquidity event (i.e., a sale or refinance of the asset) between years 5-7, but reserves the right to sell the asset sooner under the right conditions

Medary Village MHP and Laundromat is in a unique and very strong cash flow position with the ability to raise rents $35- $75 per unit over time to be more reflective of current market rates, while still maintaining a competitive advantage over local competition. At the time of purchase, seller-provided financials show approximately $159,000 in annual Net Operating Income (before debt service, investor dividends, management fees and taxes). In 5-7 years, after completing the capital improvements/repairs, increasing the in-fill rate, stabilizing lot rents closer to market rents over time and improving occupancy, management believes this park/laundromat will generate a Net Operating Income (before debt service, investor dividends, management fees and taxes) of approximately $233,000, and assuming we can achieve a 9% (or better) cap rate, that would equate to an approximate valuation of $2,590,000!

In summary, the Medary Village Mobile Home Park and Laundromat property is a very compelling investment project with significant upside for success. We invite your feedback and interest regarding the Medary Village Mobile Home Park and Laundromat. Please feel free to call for more information.

Sawgrass Capital Partners, LLC

Attn: Rudy Curtler Cell (763) 213-6284 [email protected]

Sawgrass Capital Partners, LLC

Attn: Mike Samson
Cell: (651) 500-1651 [email protected]

Sawgrass Capital Partners, LLC

Attn: Allan Austreim Cell: (605) 695-0144 [email protected]