https://estersonmhcteam.​com/property/2-park-portfolio-pittsburgh-pa-msa

Please contact Parker Kelly for more information (678) 677-9515 parker.​kelly@marcusmillichap.​.​com

The Esterson MHC Team is pleased to present Vista View & Rolling Hills MHP, a 150 Lot, class C, manufactured home community in Greensburg, Pennsylvania with a tremendous amount of upside and value add opportunity.​ The communities are located just 4 minutes from each other and are only 25 miles from the center of Downton Pittsburgh.​

The community has 147 active MH lots with 2 single family houses and an apartment.​ The lot rent only tenants currently pay an average lot rental rate of $434 per month, which is below current market rent estimated at $550 based on rent comparable surveys.​ Current occupancy is 57.3%.​ The overall market can support substantially higher lot rents based on limited affordable housing supply and the fact that this city is a suburb of Pittsburgh, home to over 300,000 people.​

In both parks, tenants are billed back for public water, sewer, trash, and then are directly billed for electric utilities.​ There are 48 park owned homes, with 40 of them being currently vacant and 8 occupied.​ 5 Rent-To-Own unit, 68 tenant owned, 2 single family houses, 1 apartment and 24 vacant lots.​ The privately maintained roads are paved and in fair condition, but may need some patch work done.​ The parks are located in an excellent location near amenities and employment centers like Walmart, target, Home Depot, and Lowes and many other restaurants and employment opportunities being only 1.5 miles away.​ Both parks are not affected by a flood zone and are not in an opportunity zone.​

Greensburg, Pennsylvania is a suburb area of Pittsburgh that is perfect for anyone commuting to the city for work.​ But it also a great place for employment with two major corporations being headquartered there, Excela Health and Tribune Review.​ The state’s population grew 1.50% from 2010 to 2019 and has over 13 million residents (5th most populated state).​

This portfolio is being offered at a 5.29% cap rate on day one, as a value-add investment, that requires infill, filling vacant POHs and raising rents over the next 3-5 years.​

Once that is achieved, we are showing a pro forma exit of over $13M at a 6% cap rate.​ Out of the 40 vacant homes, the new buyer can renovate the ones that need it and fill them with tenants, or demo a portion of the 40 homes and start to bring in new homes while also renovating and filling the ones worth keeping.​ But the current inventory of vacant homes gives you the ability to come in and get right to work instead of waiting on new homes to be delivered.​ Also, we are using $550 as our “Pro Forma” market rent and currently there are 8 of the 68 tenant owned homes that are above $500, 6 of those 8 are already at $550.​ All new tenants brought in can be placed at “market”, while the legacy tenants continue to have the standard rent increases annually as you make these communities a better place to live for all the residents.​