Phoenix MSA MHC Portfolio
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Price: $20,700,000
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Address: 6500 W Glendale Ave. Glendale, AZ 85301
Property Description:
Market Pricing
Call for offers due: May 5th
Brand new to the market are two infill family mobile home parks located in metro Phoenix offering an investor the opportunity to acquire 229 units in the fast-growing west side of Maricopa County. Both of these properties are located right on major thoroughfares and offer immense upside in rents with both properties coming in approximately 50-60% less than nearby properties. Both also offer the bones to become excellent affordable housing plays with larger lots, amenities, and entrances built for gated communities. These properties have been operated by a family for the last couple of decades and offer significant professional management upside.
The Phoenix MSA remains one of the hottest housing markets in the country with inbound migration numbers off the charts. The average lot rents in the communities are $360-375 which the broker conservatively believes are $180-$200 under market and rents could be pushed towards $650-700 with some amenity upgrades (upgraded park areas, playgrounds, updated pool area/clubhouse, landscaping, gated entry, and signage improvements) and replacement of certain older homes with new inventory. The park’s vacancy is minimal and the entire market rental vacancies in Avondale and Glendale are under five percent.
Highlights
- Sales Price: Market Pricing
- Rents: Presently $225-300 Below Market
- NOI (in-place): Approx. $830,625
- NOI (PRO FORMA): $1,030,430
- Expense Ratio: 35.7%
- Average Rent: $370 + Utilities
- New Financing or Cash
Purple Sage
Purple Sage features 117 total MH sites spread out over 12.2 acres on one of the most heavily trafficked roads in metro Phoenix. The large parcel allows for large lots and dedicated parking sites at each space. The community features a large pool and clubhouse in the center of the community as well as palm trees and other landscaping. Located next to Glendale High School, this community offers rents significantly under the market. Local comps suggest rents for the market in the low $600’s plus utilities while currently spaces are rented for $370. The water, sewer, and trash are master-metered and billed to the tenants by a local firm to the maximum legal allowances. The electricity and gas are direct-billed to each tenant.
Median Home Cost: $386,000
Address: 6500 W Glendale Ave., Glendale, AZ, 85301
Country Villa
Country Villa is another MH community with significant upside. Rents are again significantly below market and the community needs a freshening in amenities. Park currently has a pool and a clubhouse and is located on a major road right off the Interstate 10 freeway. Park right next door has rents at $620 plus utilities and roads are wide, paved with driveways at each MH site.
The park also contains 25 RV sites which are currently used for permanent stays only. The rents for those sites are $387 including utilities which again are significantly under-market. Broker recommends an amenity refresh on this community as well notably the playground area, clubhouse, and pool area.
Median Home Cost: $380, 849
Address: 1105 N Dysart Ave., Avondale, AZ, 85323