American Presidential Estates

American Presidential Estates

Wayne County, MI | Off-Market Acquisition | Dec 2024

• Appraisal
• Survey
• Phase 1
• Warranty Deed

Overview

Our latest acquisition, American Presidential Estates, adds 503 institutional-grade sites to our growing Midwest portfolio. This off-market transaction presents an exceptional opportunity to tap into immediate value through rental optimization and operational efficiencies. With our proven value-add strategy, we are positioned to enhance both investor returns and the long-term viability of these communities.

About the Project

This acquisition includes two adjacent communities operating at 85% occupancy, with 427 tenant-owned homes and 16 park-owned homes. Both properties are connected to city water and sewer services, ensuring streamlined infrastructure management and reduced operational complexity.

Strategically located just hours from our existing holdings in Fort Wayne, IN, and Columbus, OH, these communities strengthen our footprint in a prime Midwest corridor.The market fundamentals further reinforce the strength of this investment. Ann Arbor’s housing market continues to expand, with an average home price of $456K (+6% YoY) and median three-bedroom rents of $2,900 per month—28% above the national median. This demand is driven by a robust local economy anchored by the University of Michigan, major healthcare systems, and a rapidly expanding tech sector, creating long-term stability for quality affordable housing.

The Challenge

Despite strong market fundamentals, these communities have been under-optimized for decades. The previous owner, a 66-year-old long-term holder preparing for retirement, maintained below-market rents and limited infill efforts.

• Current lot rents are 27% below market, leaving significant room for revenue growth.
• Operational inefficiencies—including bloated payroll and excessive administrative costs—reduce overall profitability.
• 76 vacant lots remain undeveloped, representing untapped potential for value creation through strategic infill.

These factors create a clear path for upside through targeted improvements in pricing, management, and occupancy.

The Plan

Our strategy focuses on three key areas to drive strong returns: optimizing rental income, improving operational efficiency, and expanding the community with new homes. We plan to gradually adjust rents to bring them in line with market rates while maintaining affordability. By streamlining management and cutting unnecessary costs, we aim to improve profitability and reduce expenses over time. Additionally, we’ll bring in new homes at a steady pace to meet strong demand, offering them at competitive prices well below current market listings. A $3.1 million improvement plan will support these efforts, enhancing the community and increasing overall value for investors.

The Outlook

This acquisition aligns perfectly with our investment approach—finding undervalued properties in high-growth markets with strong demand. As Ann Arbor continues to expand in research, healthcare, and technology, these communities will remain highly desirable for residents seeking quality, affordable housing. By applying our proven strategy, American Presidential Estates will become a flagship asset in our portfolio, reinforcing Sunrise’s strong track record in institutional-grade manufactured housing investments.