Summer Breeze Alabama Portfolio

Mobile Home Park Details

Purchase Method: Cash
Cap Rate: 11.7%
Listing ID: 1077334
Posted On: May 9, 2019
Updated On: Aug 14, 2020

Description

Summer Breeze is a portfolio including two parks, 92 pad Wetumpka Estates in Wetumpka, AL and a 35 pad Bessemer Estates in Bessemer, AL. The parks are priced individually and can be bought individually, but I believe a significant discount can be obtained if the buyer will purchase the smaller one simultaneously.

The seller only owns the two parks and would be left with the smaller park which he doesn’t really want to do. And having said that, the smaller park is located 4 miles from a brand-new Amazon Distribution facility and is in the process of hiring 1500 new workers at $15 per hour. Bessemer has virtually no new housing and I believe new homes could sell in this park quickly. There is large park in Bessemer which I sold back in 2018 and the new owner just brought in 90 brand new homes and I hear they are renting well.

Both parks are in excellent locations to host RV, but have not pursued this market.

Both Parks have public water and sewer

Location

Wetumpka is located about 100 yards from US 231, a 25k CPD thoroughfare and needs new signage taking advantage of this, However they get excellent foot traffic anyway already. They just need some inventory to sell or rent.

Bessemer is almost downtown and it only 4 miles from New Amazon Distribution Center.

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Park Information

Community Type:	All Age
Number of MH Lots:	127
Total Occupancy:	70.0 %
Year Built:	1950
Average MH Lot Rent:	$215
Size:	18 acre(s)

Financial Information (Pro Forma)

Gross Income:	$411,132
Operating Expense:	$237,344
Net Operating Income:	$173,788
Expense Ratio:	57.7 %
Debt Info:	This Cap Rate is assuming 20% vacancy at Wetumpka and 30% at Bessemer