Mobile Home Park Details

Cap Rate: 6.3%
Listing ID: 1671944
Posted On: May 19, 2022
Updated On: Sep 1, 2022

Description

Beck Partners is pleased to present Wood Acres Community in Mobile, Alabama. This is a rare opportunity to acquire a high quality manufactured home community with immense upside through infill of vacant lots. Wood Acres Community features 105 developed lots with 76 lots occupied by park owned homes. All homes were brought in and renovated by the Seller in the last 15 years. This property was developed in the early 2000s and features public water and sewer that are directly billed to the tenants. There is an on-site office, playground, and utility sheds. Also included is additional land that has been planned and approved for a 3rd phase containing an additional 38+ lots.

This park features large lots with parking pads and is located in an area with a high demand for affordable housing. There are several major employers within a 3 mile radius of the community. Current ownership has a waiting list for new tenants and has begun raising rents $50.00 as the annual leases expire. This is an immediate opportunity for a Buyer to achieve easy upside by continuing to raise rents.

Location

Mobile Alabama is the 4th largest city in Alabama and home to the 9th largest deep-water port in the nation. Job growth is 6.6% year over year thanks to the city’s low business cost, skilled workforce, and favorable taxes and incentives. Shipbuilding, as well as steel and chemical companies, drive the growth of the areas manufacturing industries. Other major employers include Infirmary Health Systems, Mobile County School Systems, and several Universities located in the City.

This community is located in West Mobile, AL one of the strongest sub-markets in the MSA. The average vacancy rate of 4.4% is well below the market average of 6.2% and the average 2 bedroom rent of $1,049 is above the market average of $1,014. In the past 10 years, rents in this submarket have risen by 46.6% including 9.9% gains in the past 12 months. Within 3 miles of this property, there are several major employers including South Alabama University, Mobile Regional Airport, Providence Hospital, and a major retail corridor with national tenants such as Walmart, Target, Lowes, and Home Depot. To top it all off, this property is in one of the strongest school districts in Mobile County. The community is zoned for Baker High School which is one of the top two high schools in the county's public school system that features 16 high schools.

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