Park Estates MHP Portfolio

St. Paul, MN | Off-Market Acquisition | Dec 2021 


Park Estates MHP is an affordable community consisting of 113 lots roughly 15 minutes from downtown St. Paul. This four-star community has a nice mixture of lots and storage units. This community was acquired from long-time legacy owners who managed the property for over 40 years. 

About the Project

With no broker involved, this mobile home park is a true off-market deal. Our intent is to begin our process of renovating and modernizing Park Estates. As a result of our team, processes, and operations, we expect to more than double investors’ equity in just a few short years. 

The Challenge

Park Estates has good bones and 32% below market rents. The self storage revenue is way below market and not properly being utilized. 

The Plan:

Sunrise negotiated a $10mm purchase price for the mobile home park and park-owned-home inventory. Sunrise will raise lot rent and bring storage rents to market. This visibility of income provides safe, predictable cash flow (and clarity) for our Fund 3 partners.

The Outlook

Acquired with a nice margin of safety, this asset appraised for $1m above the purchase price at acquisition. Based on the appraisal of $10.82mm we were able to achieve a 30% return on equity on day one. Once the business plan has been executed, we project this asset will significantly outpace the metrics necessary to exceed investors’ Fund 3 projections.

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