Fund 3 Asset Case Studies
Sunrise negotiated a $650,000 purchase price, and the previous owner carried financing with the following terms: 25% down payment, 7% interest, with 25-year amortization. We felt confident in our ability to increase NOI to $120,000 shortly after acquisition by instituting more professional property management.
Upon acquisition, we put proper leasing practices in place, instituted a large scale marketing effort, scrutinized repair & maintenance, cut payroll, and trimmed unnecessary expenses.
Sunrise negotiated a combined $2.6mm purchase price for the properties. Upon acquisition, Sunrise replaced on-site management, pumped septic tanks, demolished unsalvageable abandoned homes, renovated salvageable park-owned-homes, and power washed units. Once aesthetics improved, Sunrise set about recapturing the loss-to-lease.
Sunrise has created over $3.5mm in sweat equity on an original investment of $1.1mm. By 2022, the real estate was worth well over $10mm, more than quadruple the value at acquisition.
Green Level MHP was identified through our internal marketing efforts. Green Level was sourced via cold call, and our lead principal Kevin Bupp began negotiations to purchase the property in a direct-to-owner transaction.
When Sunrise took over the property, the park had numerous infrastructure problems, inferior on-site management, below market rents and poor collections. Sunrise doubled the property’s NOI within the first three years of ownership and returned all investor capital along the way.
Sunrise negotiated a $700,000 purchase price and favorable seller-financing with a 25% down payment. Upon acquisition, Sunrise replaced on-site management, power washed all mobile homes, added skirting and shutters to all homes, pumped all septic tanks, and increased curb appeal with improved landscaping.
Once cosmetics improved, Sunrise brought in ten new mobile homes and used lease-option transactions to increase economic occupancy.
Sunrise negotiated a $1.4mm purchase price and began the turnaround by power washing all homes, repaving the roads, replacing the leach field, and installing water meters to promote conservation. With a significantly improved quality of life, residents were happy to increase their lot rents from $315 to $425 over a three year period, demonstrated by an increase in both physical and economic occupancy.
Sunrise maximized the value of the asset, and ultimately disposed of the asset for $2.3mm in August 2020. We created nearly $1mm of sweat equity in three years.
Sunrise negotiated a $200k purchase price and began the top-to-bottom renovation. We brought in a qualified onsite manager to establish law and order. Within twelve months, every home in the community had undergone a complete renovation and the park transformed from 100% vacant to 100% occupied.
Sunrise subsequently executed a cash-out refinance on the property, returning all investor capital in the process. Investors now have an infinite cash-on-cash return while retaining equity in a $1.3mm asset.
Sunrise received a tip from a podcast listener about a community bank that was interested in selling a non-performing MHP note. Sunrise purchased the note for less than $1mm and began renovations, repairing damaged roads, rectifying deferred maintenance, replacing on-site management, stabilizing poor collections, and installing water meters to promote conservation.
Sunrise increased the NOI, boosting revenue and lowering the expense ratio to 48%. Within three years, the property value increased by 126%. Having created significant sweat equity, Sunrise decided to sell the asset for $2.25mm, providing investors with an exceptional risk-adjusted return.
Sunrise negotiated a $1.4mm purchase price and began the turnaround by power washing all homes, repaving the roads, replacing the leach field, and installing water meters to promote conservation. With a significantly improved quality of life, residents were happy to increase their lot rents from $315 to $425 over a three year period, demonstrated by an increase in both physical and economic occupancy.
Sunrise maximized the value of the asset, and ultimately disposed of the asset for $2.3mm in August 2020. We created nearly $1mm of sweat equity in three years.
Sunrise negotiated a $3.77mm purchase price and began working to improve the community. Capital was infused to fix water leaks and make necessary road repairs.
Prior to sweeping rent control being enacted in NY, Sunrise recaptured a portion of the loss-to-lease. Over three years, lot rents moved to $370. With physical occupancy abutting 100% and strict rent control in place, Sunrise maximized the value of the asset and decided to sell the property. All told, Sunrise created over $1mm of sweat equity in three years.
Sunrise negotiated a $3.86mm purchase price and began the turnaround by fixing the roads, renovating all vacant units, and replacing onsite management. Lot rent leases on updated homes garnered the market rate of $480, boosting average lot rents in the community to over $400 while simultaneously increasing physical occupancy.
Sunrise substantially increased NOI, maximized the value of the asset, and created over $1.5mm in sweat equity within two years. With multiple unsolicited offers in a hot sellers market we sold the asset in Q4 2020 and exceeded our targeted return for investors.
Luhrs Parking Garage is institutional grade, Class A property located within a 3-minute walk from the Phoenix Suns and Arizona Diamondbacks stadiums. Sunrise negotiated and purchased a high-quality, stabilized asset, at well-below replacement cost, in one of the hottest markets in the nation.
We intend to buy, improve, and hold the Luhrs Parking Garage for decades to come. After optimizing rates and improving operational efficiency, we expect to significantly increase the NOI and overall value of the property. It’s a historical, generational asset in Downtown Phoenix that will provide stable, recurring income for many years into the future. This visibility of income provides safe, predictable cash flow (and clarity) for our Fund 3 partners.
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