Green Level MHP

Burlington, NC | Off-Market Acquisition | Nov 2014

Overview

Green Level Mobile Home Park is an all-ages, affordable community consisting of 131 spaces located in the fantastic Raleigh-Durham MSA. The community was acquired in a direct-to-owner, off-market transaction.

About the Project

Green Level MHP was identified through our internal marketing efforts. Our acquisition team makes several thousand cold calls each and every week to create consistent off-market deal flow. 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.

The Challenge

When Sunrise took over the property, the park had numerous infrastructure problems, inferior on-site management, below market rents and poor collections. The original developer held the park for decades before turning management over to his daughter, who was neither maintaining the community properly nor maximizing the value of the asset.

What We Did

Sunrise negotiated a $1,070,000 purchase price, and the previous owner carried financing with the following terms: 10% down payment, 5% interest, with 30-year amortization. Upon acquisition, Sunrise replaced on-site management, power-washed all mobile homes, repaired numerous water leaks, sold all park-owned-home units, and recaptured the loss-to-lease.

The Outcome

Sunrise doubled the property’s NOI within the first three years of ownership and returned all investor capital along the way. Investors now have an infinite cash-on-cash return while retaining equity in an asset currently valued at more than $3.5mm. This is how you generate cash flow & build legacy wealth.