Shady Grove Mobile Home Park

Petersburg, VA | Off-Market Acquisition | Nov 2015

Overview

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.

The Challenge

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.

Shady Grove Mobile Home Park

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.

The Outcome

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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