Mobile Home Park Details
- Cap Rate: 4.3%
- Listing ID: 1388027
- Posted On: Feb 2, 2021
- Updated On: Jul 7, 2021
Description
https://estersonmhcteam.com/property/palm-bay-fl-msa-5-park-portfolio
Well located, 470 active MH lots, five park manufactured home community portfolio with upside in occupancy, lot rent and 55 lot expansion area.
The portfolio is a stabilized with upside opportunity with 5 mostly land-lease communities in strong market. The portfolio has 470 active MH lots with 361 lot rent only tenants each paying an average lot rental rate of $475 per month. There are 15 park owned home tenants and 12 vacant park owned homes that can be brought online. 59 tenants are on a rent to own type contract which mostly expires in 2021 & 2022.There are 21 active vacant lots. 63 MH lots are used for long-term RV tenants. These lots would support a modest single wide home. Additionally, there is a rented Single Family Home at Intercoastal MHC and a rented 3 bedroom apartment in Cypress MHC. Current occupancy is roughly 93% on active lots. There and additional 55 undeveloped lots..
All parks are year-round, all-ages communities and has city water at 3 parks that is billed back to the tenant. 2 Parks use a well and city water is available at one of them. 4 communities use public sewer and 1 park utilizes a waste water treatment plant that has a renewed 5 year permit and has no known deferred maintenance.
The tenant owned units are an older vintage but in above average condition. Roads are paved and in mostly average condition as our offering price suggests. 4 parks are partially in flood-zones. All parks are located in excellent locations near all amenities.
This portfolio is being offered as a value-add investment with a 4.25% CAP on current lot rent only using a 38.4% expense ratio on sellers adjusted actuals. The cash-on-cash starts at 7% and goes to 12% after expansion.
Park Information
Number of MH Lots: | 472 |
Total Occupancy: | 93.0 % |
Financial Information (Actual)
Net Operating Income: | $1,628,815 |