Salisbury, MD | Off-Market Acquisition | Q4 2025
Overview
Cedarhurst & Walston MHPs are all-ages, affordable housing communities totaling 180 spaces along Maryland’s Eastern Shore. Both were acquired from long-time legacy owners who had developed the properties decades earlier and kept lot rents at just $250 for years, despite market rents having moved north of $400. Today, while these communities were originally acquired in prior Sunrise funds, they are now held within Fund 5, where we continue to own and operate them as part of our long-term strategy to drive additional operational efficiency, appreciation, and cash flow for investors in the years ahead.
About the Project
Cedarhurst & Walston were acquired through a pocket listing with a local broker. We had been in contact with the owners for years, but the family ultimately chose to sell through a broker. Because of that, we stayed close to the process and followed up consistently for months before the listing ever went live, positioning Sunrise to become the preferred buyer.
The Challenge
Over time, the owners had grown tired, and the communities had suffered from years of deferred maintenance and operational neglect. When Sunrise took over management, abandoned homes were scattered throughout the properties and underground infrastructure was in poor condition. Both the well and septic systems required meaningful attention. Abandoned homes had also contributed to unruly resident behavior and crime in the area, while the properties as a whole needed significant cleanup and aesthetic improvement.
What We Did
Sunrise negotiated a combined purchase price of $2.6 million for the two communities. After acquisition, we replaced on-site management, pumped septic tanks, demolished unsalvageable abandoned homes, renovated salvageable park-owned homes, and power washed units throughout the properties. As the communities began to improve visually and operationally, we then focused on recapturing substantial loss-to-lease.
The Outcome
Sunrise grew NOI substantially and increased lot rents to just below market levels. In June 2019, we executed a cash-out refinance and returned all investor capital within two years. Investors achieved an infinite cash-on-cash return while retaining equity in an asset that appraised for more than $6 million. Within two years, Sunrise created more than $3.5 million in sweat equity on an original investment of $1.1 million. By 2022, the real estate was worth well over $10 million — more than quadruple its value at acquisition.
Importantly, this story did not end there. Rather than exiting the asset, Sunrise retained ownership and brought these communities into Fund 5, where they remain today. That allows current investors to continue benefiting from the cash flow, appreciation potential, and operational upside still ahead, while Sunrise continues executing its long-term strategy to improve performance and create value over time.