Central NC MHP Portfolio

Central NC MHP Portfolio

Greensboro, NC Area | Off-Market Acquisition | August 2024

• Appraisal
• Survey
• Phase 1
• Warranty Deed

Overview

Our latest acquisition in the Greensboro, NC area  provides a huge 50%+ 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

This Greensboro-area 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. It offers a perfect blend of affordability and desirability, attracting individuals looking to downsize in this thriving city. 

The Challenge

The initial challenges 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 this Greensboro-area MHP for $3.7 million, with a current appraised value of $5.6 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, this acquisition 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 this addition to the Fund 4 portfolio as a highly desirable investment. Our Greensboro NC MHP is truly a blank canvas for us to create one of the best mobile home communities in the market.