Central NC MHP Portfolio
Greensboro, NC | Off-Market Acquisition | August 2024
Overview
Our latest acquisition in the North Central NC MSA, Hidden Forest MHP, provides a nice 10%+ chunk of instant equity and a significant return for our Fund 4 investors. This acquisition exemplifies our strategy of targeting undervalued assets to generate substantial value for our investors.
About the Project
Hidden Forest MHP is a unique asset in our portfolio, featuring expansive single-family style lots, wide roads, and rolling meadows. This is the last institutional-sized mobile home community in this rapidly-growing North Carolina metro. Hidden Forest offers a perfect blend of affordability and desirability, attracting individuals looking to downsize in this thriving city.
The Challenge
The initial challenges at Hidden Forest included significantly below-market rents (50% below market) and high vacancy rates. Our strategy focuses on recapturing the loss-to-lease by adjusting rents to just below market rates and leveraging the massive infill opportunity with infrastructure already in place. These measures are designed to significantly increase the community’s value without relying on the more challenging infill process.
The Plan
We acquired Hidden Forest MHP for $5 million, with a current appraised value of $5.7 million. This acquisition adds to the cumulative sweat equity in Fund 4. With planned improvements, we project the park’s value to increase substantially. Our approach includes increasing rents to just below market rates and utilizing the fully modern infrastructure to maximize occupancy and revenue.
The Outlook
Situated in a region with a high demand for affordable housing, Hidden Forest MHP stands out as a premier property. The economic dynamism of the market, coupled with the property’s unique features and substantial instant equity generated upon acquisition, positions Hidden Forest MHP as a highly desirable investment. Hidden Forest is truly a blank canvas for us to create one of the best mobile home communities in the market.