Mobile Home Park Details
- Cap Rate: 5.9%
- Listing ID: 1313194
- Posted On: Aug 26, 2020
- Updated On: Dec 11, 2020
Description
https://estersonmhcteam.com/property/hickory-estates-green-mountain-mhc
Contact the listing agent Dylan Hellberg for more information
(843) 469-0347
dylan.hellberg@marcusmillichap.com
Hickory Estates consists of 14 lots with all tenant owned homes (TOH) with below market lot rents of $150. Green Mountain View has 9 lots with 8 TOH’s on $225 lot rent and 1 rent to own (RTO) that matures in March 2021. These parks are NOT in a flood zone. Green Mountain View is in an opportunity zone while Hickory Estates is not.
Both parks are on public water/sewer/electric that’s directly billed to tenants. Trash service is provided by a dumpster and is included in rent at Hickory Estates. At Green Mountain View, trash is curbside pick-up and is direct billed to the tenant. The roads at both parks are gravel and in average condition. The park owner mows common and vacant areas.
The parks cannot be sold separately. The pricing represents a 5.94% cap rate using lot rent income on actuals, using a 46% expense ratio. We are asking that investors submit offers at or above $450,000. These communities should qualify for conventional recourse bank financing from a local bank. By increasing rent $25 (which can be implemented immediately), an investors cash on cash return jumps to 9.53%. Our pro-forma suggest that upon exit the new owner should achieve a sale price of $765k at a 7% cap rate using a $300 lot rent.
Location
Hickory & Taylorsville, NC
Park Information
Number of MH Lots: | 23 |
Total Occupancy: | 100.0 % |
Size: | 5 acre(s) |
Financial Information (Actual)
Net Operating Income: | $26,740 |
Utility Information
Water: | City |
Sewer: | City |