Mid-Coast Maine MHP portfolio
• Two MHP, less than 3 miles from one another
• 125 MH spaces, 5 apartments, 1 SFH, one storage barn. 13 vacant sites, 3 vacant POH in need of rehab, 1 vacant apartment in need of rehab.
• Roughly 50/50 mix of TOH and POH
• Overall economic occupancy of 87%, physical occupancy of 90%.
• Lot rent averages $420/month. POH rent averages $955/month (MH max is $1600 for new singlewide 4-bed/2-bath)
• One park is municipal water/sewer. Other park is municipal water and a mix of municipal sewer and septic. Water/sewer are NOT submetered.
• Pro forma lot rent NOI of $388k based on current, in-place rent roll and 37% expense ratio. Pro forma home rent NOI of $180k based on current, in-place rent roll and 46% expense ratio. The sum of those is a total pro forma NOI of $568k based on current, in-place rent roll and 40% expense ratio. Pro forma figures do not take into account any upside or cost reductions and are constructed to try to give an accurate reflection of current reality on day 1 for a new owner
• Indications of acquisition financing from local banks at ~3% with 25-year amortization. Seller second possible
• Not in a flood zone
• No deferred maintenance. Recent capital projects include substantial paving and tree trimming/cutting.
• Approximately 100 acres of flat expansion land with access to municipal water and sewer that could take hundreds of expansion pads.
• Area has average SFH price of $200k. Getting a good average apartment price is difficult because there’s so little inventory, but I have a 3 bed/1 bath duplex apartment that I rented to a tenant over the summer for $1500/month (tenant pays all utilities other than water/sewer).
• Possibility to sell only MH assets and I’ll retain apartments and SFH.

I prefer to sell with a self-storage facility located adjacent to one of the parks, but am open to selling only MHP. That self storage facility has:
• 102 newly built self-storage units (13,500 sq ft). Facility opened in 2020 and is currently at 72% occupancy (Feb 2021) with limited advertising.
• 1 Quonset hut, 1 industrial garage
• ~6 acres to build out at least ~200 more self-storage units in a market where most competitors are full
• Rents have been kept below market to encourage lease-up. Versus primary competitor (who has basically no vacancy) units are $5/month, $10/month, and $30/month cheaper

Upside for new buyer
• Water/sewer submetering
• No rents for current tenants (lot or home rent) have been raised for two years
• Infill of vacant sites. CASH program has worked well for another park in town
• Increasing storage rents to market
• Substantial expansion build-out of both MH sites and self storage to more than double units in both

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