Lockport, NY | Off-Market Acquisition | Dec 2018
Ridgeview MHP is an all-ages, affordable community consisting of 146 spaces. The community was acquired in an off-market transaction, and sourced via our internal direct-to-owner marketing efforts.
About the Project
Upon receiving a direct mail piece, the legacy owner reached out to gauge our interest but was not quite ready to sell. Over three years, Sunrise continued to foster the relationship. Our lead principal, Kevin Bupp, even flew across the country to break bread with the owner’s family. Eventually the owner realized it was time to sell the community, and Sunrise received the first call.
Touting a phenomenal school district and containing several high-end homes, Ridgeview MHP had good bones. The original developer held the park for decades, and ultimately became tired. When Sunrise took over management, pervasive potholes covered the roads, twelve vacant park-owned-homes needed renovation, and inflated expenses littered the financials. On the revenue side, average lot rents of $365 sat well below market.
What We Did
Sunrise negotiated a $3.86mm purchase price and began the turnaround by fixing the roads, renovating all vacant units, and replacing onsite management. Alluring landscaping was planted near the community’s entrance to improve curb appeal, and new signage was installed to increase visibility. Lot rent leases on updated homes garnered the market rate of $480, boosting average lot rents in the community to over $400 while simultaneously increasing physical occupancy.
Sunrise substantially increased NOI, maximized the value of the asset, and created over $1.5mm in sweat equity within two years. With multiple unsolicited offers in a hot sellers market, we sold the asset in Q4 2020 and exceeded our targeted return for investors.
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