– Located in Plattsburgh, NY and within 7 miles of each other, Pine Rest and Northway are all-age manufactured home communities
totaling 144 sites with a current physical and economic average occupancy at 51%.
– With lot sizes large enough to accommodate newer size homes and currently no park owned homes, value-add opportunity to add
homes and fill up the park. Increasing occupancy by 15% (or 22 sites) would add over $90K of additional annual lot rental revenue for a new owner.
– New move-in rents will be at $475 within the next few months, or $118 higher than the current average. There is a tremendous
opportunity to capture the added revenue upon turnover. If turnover is 20% annually, that would add over $20K in additional annual
lot income going forward.
– Rents are under market and increasing existing tenants by 3% per year will add around $10K of additional lot rental revenue each
year. According to the NY Housing Stability & Tenant Protection Act of 2019, MH owners cannot increase rent more than 3%, except
if justified by an increase in operating expenses which can include capital expenditures. It is our understanding that under the state
rent control rents can increase up to 6% when including amounts spent by a owner on capital improvements.
– Strong demographics in the area with average household incomes and housing values at $82,280 and $243,152, respectively, within
a 10-mile radius of the communities. As single-family affordability becomes increasingly more challenging in this market, more
people will be looking for inexpensive options that still provide a high-quality living situation like the communities offer.
– Attractive basis below replacement cost.