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

Contact Parker Kelly for more information parker.​kelly@marcusmillichap.​com

Edgewood MHP, a 50 lot manufactured home community.​ This asset has multiple upside opportunities for investors and is located just south of Downtown Memphis.​ The Tennessee population has grown by 9% since 2010 and continues to be in the top 15 fastest growing states year after year.​

The community has 50 active MH lots with another 3 or so acres of vacant land on the east side of the parcel.​ That land is not being marketed as expansion lots for the community, but is included in the sale of the property.​ The lot rent only tenants currently pay an average lot rental rate of $326 per month, which is just below current market rent estimated at $425 based on rent comparable surveys and current JLT reports.​ Current occupancy is 64%.​ The overall market can support substantially higher lot rents based on limited affordable housing supply and growing demand in this market.​

Edgewood is a community serviced by public water and sewer.​ Tenants are billed back from the park for their usage of public water, sewer.​ Trash and electric utility systems are directly billed to tenants.​ All systems are in good working order.​ There are 23 tenant owned homes, 3 occupied park owned homes, 13 vacant park owned homes, 6 Rent-To- Own units, and 5 vacant lots.​ The privately maintained roads are paved and in below average condition and need to be repaved.​

The park is located in an excellent location near amenities and employment centers.​ Edgewood is not affected by a flood zone and is not in an opportunity zone.​ The state’s population grew 6% from 2021 to the current date and has almost 7 million residents (15th most populated state).​

Edgewood MHP is being offered as a value-add investment with a year 1 cap rate of 6.26% and a pro forma cap rate of 14% assuming market level debt financing and achievable business plan execution of multiple minor rent increases and infill of lots and vacant homes over a multi-year period.​