Mobile Home Park Details

Cap Rate: 9.4%
Listing ID: 1574703
Posted On: Dec 16, 2021
Updated On: Feb 22, 2022

Description

The newly built (2021) Patriot Pine Estates Manufactured Home Community is back on the market! It is located within the city limits of Fayetteville, less than a 10-minute commute from downtown Fayetteville and just over a mile from the new Amazon facility being built- which will have 500+ jobs when completed. The community provides plenty of upside potential in a strong market. Current occupancy consists of 9 park owned homes (POH) and 1 lot renter. Future owners can capitalize on the significant upside by filling 6 vacant lots, either by leasing the pads only or by purchasing homes and leasing the homes.

All infrastructure and POHs are new - 8 are 2020 or 2021 models and the 9th will be completely rebuilt by March. They can be sold if a more passive income is preferred but, significantly, 8 of them are taxed as personal property (very low rate). The 6 unoccupied lots will provide buyer flexibility and significant value add opportunity. There is huge demand for units, and they are rented as soon as they come available.

The park sits on approximately 4.33 acres, which contains 1 private road and fee ownership of a strip of land for future road (if deemed necessary). The park is on CITY WATER AND SEWER, so there are no expensive wells or septic tanks to be maintained. Also, all electrical and water infrastructure and most of the sewer infrastructure is brand new. Trash collection is via dumpster, paid for by owner. Water and sewer are sub metered and paid by tenants.

This stabilized investment offers solid returns with no deferred maintenance. The CAP rate will be ~9% at the time of sale, but income can be augmented significantly by renting the remaining pads or purchasing new POHs. There is no deferred maintenance. Even the electric mainline infrastructure onsite was replaced by the Fayetteville PWC in late 2020.

This park currently has a manager who oversees day-to-day operations. We are asking investors to submit offers for the entire park, including all POH's. A packet with additional information is available upon request. This park is for sale by owner, with no broker fees. It's an excellent investment for a first time park owner...no messy septic tanks or dated buildings...everything is new!

Possible owner financing with $1MM down.

Location

● Stable employment and constant demand for rentals. Large employers include the military and the Department of Defense (Ft. Bragg is home to more than 30 military units), Cape Fear Valley Health System and Cumberland County Schools
● Market stability as MHC’s have historically demonstrated a low correlation to the broader market
●Huge demand for homes- Fayetteville housing authority has hundred of families waiting, with highest need being 3 bed/2 bath
●Homes typically leased as soon as they are ready for occupancy

AREA OVERVIEW
Life in Fayetteville and Cumberland County is a combination of timeless Carolina values and creative energy. Residents can find something for every lifestyle and budget, from quiet countryside mornings to small communities that hearken to gentler times, to the upbeat vibe of Downtown Fayetteville. It’s easy to get around and conveniently within a day’s drive from two-thirds of the nation’s population.

The outstanding quality of life here encompasses everything from some of the state’s best schools, extensive higher education and vocational training resources, to first-rate healthcare. Fayetteville offers all the benefits and attractions of a large city with the comfort of a smaller community, as well as the opportunities available in a right-to-work state. Many of the residents are veterans who chose to stay after their service ended, giving the area a wealth of technical skills related to engineering, aviation, and maintenance.

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