Marcus and Millichap is pleased to present this rare opportunity to purchase a stabilized Mobile Home asset in Birmingham, Alabama. This 216 pad park is located 1.5 miles from Interstate 20 inside of the I-459 loop and sits on 47 acres. The average income in this area is $75,910 per household with an average home value of $195,593. The average household rent is approximately $733. This is an excellent value add opportunity by developing additional lots on the adjacent vacant land (6 acres), individually sub-metering the water, and increasing rents. The current vacancy rate is 6%.

The property is located in an Opportunity zone which may be eligible for preferential tax treatment. Investments in Opportunity Zones allow investors to defer federal taxes on any recent capital gains until December 31, 2026, reduce that tax payment (on the rollover) by up to 15%, and pay as little as zero taxes on capital gains from the replacement property if the investment is held for 10 years. Quite a tax shelter.

When a tenant vacates and abandons a home the current owner renovates the unit. He then sells or finances the unit to a new owner. There are currently nine (9) financed homes with a total outstanding balance of approximately $45,000.There are six (6) additional park owned homes that are in various stages of renovation. The park typically spends around $3,500 per renovation and will sell in the range of $7,500 to $11,000. The park then holds the note and generally charges $300 per month plus the lot rent of $375.

This is one of the most desirable parks in Birmingham with an average tenancy of 6 years. There is long term grocery store tenant at the entrance to the park, and a new office has recently been added. Historically, the homeowners have been allowed to make additions/ expansions to their property over time which has contributed to the long length of stay. The owner is at retirement age thus willing to sell.