Shady Grove Mobile Home Park
Petersburg, VA | Off-Market Acquisition | Nov 2015
Shady Grove Mobile Home Park is an all-ages, affordable community consisting of 52 spaces. The community was acquired in an off-market transaction, and sourced via direct-to-owner marketing.
About the Project
Shady Grove Mobile Home Park was identified through our internal marketing efforts. Roughly 80% of our historical transactions have been sourced in this manner. Upon receiving a direct mail piece, the owner contacted our team and was immediately interested in selling the property.
When Sunrise took over the property, the park had $221,000 in Revenue but a mere $27,000 NOI, which depicts major operational inefficiencies. The owner was retired, lived out of state, and preferred not to engage in property management.
What We Did
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 increased NOI to $162,000 by increasing revenue and cutting expenses. Having maximized the value of the asset, we decided to sell the property at market, ultimately disposing of the asset for more than $1.8mm in May 2018.
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