Featured Opportunity | Renaissance Park Manufactured Home Community
INVESTMENT DETAILS
- Seeking $170,000 investment
- After 1.5x LP principal has been returned, LP/GP split is 65/35.
- In-place cap rate of 8.3% on 15/50 occupied pads.
- Majority of lot rents are half the market rate for the region
- Long-Term Tenant Base: >85% residents have been leasing over 1 year, 60% residents have been leasing over 5 years
USE OF FUNDS
Equity raised will be used for the purchase, management, operation, and sale of the asset.
EXECUTIVE SUMMARY
As living costs continue to rise the demand for manufactured housing is expanding. Aliquippa, PA is a perfect example of a market where manufactured homes are a perfect fit for a growing community. Manufactured Home Communities are among the most affordable housing options available. This has resulted in the asset class being more robust in recessions than many other real estate asset classes and providing significant room for rent growth. We are excited to present this attractive investment opportunity in Renaissance Park Manufactured Home Community.MANUFACTURED HOME INVESTMENT OVERVIEW
Why Manufactured Housing?
- Home price appreciation has reduced the availability of affordable housing.
- The supply of mobile home communities is constrained by zoning & neighborhood pushback. Parks are becoming increasingly scarce assets.
- Tenant turnover significantly lower than apartments or multifamily.
- Drastically lower maintenance costs as Tenants typically own their homes and lease the land.
- The supply of mobile home communities is constrained by zoning & neighborhood pushback. Parks are becoming increasingly scarce assets and drawing increasing interest from institutional investors.
- Tax benefits of park improvements can be depreciated over a shorter life than apartments or commercial buildings.
Aliquippa Mobile Home Park
- 2020 Avg. Household Income: ~$75k within 5 miles of community
- In-place cap rate of 8.3%
- 50 park pads - 35 vacancies. Significant infill opportunity. Majority of lot rents are half market rate. Gross income potential is 2x in-place revenue with current pad count.
- Potential for more than doubling the number of pads and creating an institutional quality asset.
- Long-Term Tenant Base: >85% residents have been leasing over 1 year, 60% residents have been leasing over 5 years
