https://estersonmhcteam.​com/property/covered-bridge-mhp

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

Price Reduced $400,000! Motivated Seller. All offers considered.

The Esterson MHC Team is pleased to present Covered Bridge MHP, a 64 Lot, manufactured home community in transfer, PA. This stable asset also has easily achievable upside opportunities. The community sits just 30 miles from the center of Downtown Youngstown, Ohio with access to all that the city has to offer and it’s just 25 minutes Youngstown-Warren Regional Airport.

This community has 64 active MH lots. The park consists of 40 tenant owned homes that currently pay a lot rent of $365 per month, 6 vacant park owned homes, and 18 vacant lots. The parks lot rent and home rents are middle of the pack compared to the current market rent set at $400-$425 according to our rent survey and based on limited affordable housing supply and growing demand in this market.

Covered Bridge MHP is a quality, clean, stabilized asset with upside through raising rents, infilling vacant lots and billing back for the public utilities. The park is serviced by a public water and sewer which are included in the tenants rent and paid for by the park but can be sub metered and billed back. Trash is curbside pick-up and paid for by the tenants. All systems are in good working order. The privately maintained roads are in average to below average condition and will need to be repaved or overlayed. There is currently an onsite manager that helps run the park.

The owner lives 5 hours away and has stabilized the park to the point that it is currently at but can’t complete the infill from that far away. The park is located in a convenient location near amenities and employment centers. Covered Bridge is not affected by a flood zone and is not in an opportunity zone.

Covered MHP is being offered as an upside investment with an entry cap rate of 6.9%, but will instantly be increased to a 9.7% cap rate once you bill back for water and sewer. We have a pro-forma of an 17.3% cap rate based on $400 lot rents ($35 increase), filling the 6 vacant homes, and filling the 18 vacant lots. This is assuming market level debt financing and achievable business plan execution.