https://estersonmhcteam.​com/property/arrowhead-mhp

Please contact the listing agent Dylan Hellberg for more info dylan.​hellberg@marcusmillichap.​com

9.99% Gross CAP rate on normalized Day 1 Revenue and Expenses

Arrowhead MHC is a mostly stable community with achievable upside in occupancy and rent, located 40 minutes from downtown Roanoke Rapids, NC.​

Arrowhead MHC consists of 50 MH lots with 14 tenant owned homes (TOH), 29 rented park owned homes (POH), 5 vacant park owned homes, and 2 vacant lots.​ The average lot rent in the park is $208 and the average home rent is $191 above lot rent.​ The park owned homes are an average vintage of 1986, with some in average condition and some that need work.​ The park is NOT in an opportunity zone or flood zone.​

Arrowhead MHC is serviced by public water that is billed directly to tenants, a 1:1 septic system, and electricity that is public and billed directly to tenants.​ Trash is serviced by a dumpster and included in rent.​ The roads are gravel and in good shape.​

The pricing represents a 7.66% CAP using all income except POH revenue, at a 49.9% expense ratio.​ The gross CAP rate is 9.99%.​ We are asking investors to submit offers at or above $860,000.​ We have indications that this park qualifies for recourse community bank debt and are estimating terms of a 65% LTV, 5% interest rate, and 25 year amortization, which provide investors with day 1 cash on cash returns of 13.21%.​ Once the park is fully stabilized, the proforma value is $1,269,000 at a 7.50% CAP rate and provides a 21.82% cash on cash return.​

**Ask listing agent about possible additional lots.​