Zanesville MHP Portfolio
Columbus, Ohio Area| Off-Market Acquisition | Q3 2025
Overview
The Zanesville MHP Portfolio is exactly the kind of acquisition we target at Sunrise Capital Investors: significant margin of safety with day one cash flow.
We acquired this stabilized, income-producing mobile home park portfolio as part of a growing mid-Ohio portfolio. On closing day, it delivered $2.15 million in day-one equity to our investors. This deal wasn’t speculative. It was built on margin of safety and long-term fundamentals – and it’s bringing our footprint in this market up to ~900 units, total.
Based on the recent Colliers appraisal, the Zanesville MHP Portfolio is expected to reach a stabilized value of $44.5 million, representing a 2.3x equity multiple in under five years, per the latest appraisal.
Across the portfolio, current lot rents are up to 43% below market. That rental delta offers us a clear, achievable path to value creation without relying on aggressive projections or market timing.
About the Project
This is a multi-asset acquisition in an underserved, supply-constrained market with strong fundamentals and limited new development.
These communities are operating with solid occupancy and existing infrastructure. Average lot rent across the portfolio sits at $442, while internal data places the market benchmark at $607. The appraisal confirmed an even higher benchmark of $636. That’s a rental gap of $165 to $194 per lot. That’s easily achievable upside without overreach.We secured the acquisition with fixed-rate debt to provide long-term predictability and protect investor returns in any rate environment. It’s a strong addition to Fund 4’s base of recession-resistant, cash-flowing assets.
The Challenge
This was a classic example of operational inefficiency hiding in plain sight.
While the assets themselves were strong, they were unable to be managerially and operationally optimized by their non-institutional operator. We have a clear path to bring rents up to market and install the systems to run a scalable portfolio.We sourced the deal off-market and moved quickly to secure it at 9.5% below market value. That valuation gap doesn’t even account for the embedded operational upside. But deals like this don’t happen by accident—they require deep understanding of the asset class, relationships to get a seat at the table, and conviction around long-term fundamentals.
The Execution Plan
Our value-creation strategy is already in motion:
- Immediate Cash Flow: Income-positive from the moment of acquisition
- Rental Upside: 37% to 43% below-market rents across the portfolio
- Day-One Equity: $2.15 million in built-in margin of safety
- Economies of Scale: Our Zanesville market footprint grows to ~900 units
- Fixed-Rate Financing: Locked-in returns with no interest rate exposure
- Institutional Management: SCI systems to boost NOI and stabilize operations
- Operational Synergies: Scale benefits as part of our growing Ohio cluster
- Up to $20M in Depreciation: Bonus depreciation opportunity in 2025
- Projected Returns: 2.3x equity multiple in under 5 years based on current appraisal
The Outlook
This is a textbook Perpetual Passive Income investment.
We bought it right. It cash flows from day one. It sits well below replacement cost and it’s providing our investors with immediate upside, before we deploy a single capex dollar.
As we bring rents closer to market and implement operational improvements, this portfolio is expected to materially enhance both short-term distributions and long-term equity growth.
Fund 4 now holds 15 properties with a total acquisition cost of $197 million and a combined appraised value of $222 million at close. That’s a $25 million fund-wide margin of safety, and this portfolio is a key contributor to that spread.
It’s the kind of deal that allows us to keep delivering on our promise: stable, durable income today—and perpetual upside for years to come.