Beverly Crest MHP

Property Description:

Park Brokerage and Commercial Real Estate is proud to announce to the market the opportunity to purchase a two-park portfolio within a block of each other in Tucson, Arizona. The park is offered at $3,300,000 for all 100 sites which is significantly below replacement cost and a 6% capitalization rate. Buyer has an opportunity to stabilize the asset which currently has a vacancy rate of 37% and rents that are 10-20% under market depending on types of buyer improvements. The property is serviced by city water and city sewer, there are six homes currently in a low-risk flood plain however due to trpe of risk new homes can be put in place.

The submarket has an overall vacancy market of approximately six percent, median 1-bedroom home rent is $1,092, and median home cost is $255,000 thus offering investor significant upside. All in cost is $33,000 per pad which is well below replacement cost and 100 site community portfolios rarely become available in prime Sunbelt markets. Broker believes acquiring via bank debt and refinancing into more attractive loan once stabilized and value is added is the play for this community especially as manufactured home prices slip.

The park has good bones including large sites capable of fitting modern singlewide units. The roads are partially paved and Beverly Crest I has a clubhouse, bathrooms, and a pool which is in the process of being completed. The electric and gas are direct-billed and have recently undergone some upgrades. Water distribution system is galvanized and sewer is mixture of PVC and orangeburg. Beverly I has 60 total sites on approximately 5 acres for an 11 sites/acre density. Beverly II is located on approximately 4 acres and 10 sites/acre density. Beverly I is in inferior condition to Beverly II and needs new roads and some electric repairs.

Loan Information (Projected):
Banks offering 60% loan to value with 6.5% principal interest payments to be paid over 10 years (rate adjustment at 5 years) with an amortization over 30 for qualified investors. Monthly payments to be $12,514.95. Down payment to be $1,320,000. Please contact George Waidelich at 925.588.9318 or at George@parkbrokerage.com for most competitive loan quotes.

• NET INCOME YEAR 1 AT CURRENT VACANCY/RENTS: $198,426
  TOTAL ANNUAL PRINCIPAL PAYMENT: $150,168
  CASH FLOW: $48,264
• APPROXIMATE NET INCOME AT MARKET VACANCY (6%): $296,064
  CASH FLOW: $146,108
• STABILIZED CASH ON CASH RETURN: 9.3%
• Broker anticipates approximately $300,000 required in improvements to achieve market vacancy not including homes