Price Reduced $200K!~ (20%+/- Reduction)
Possible Owner Financing: 12-24 Months Term, Interest Only
This park is a re-development opportunity located in an opportunity zone with Day-1 income in place and is located in the Moncks Corner area of the Charleston, SC MSA. The Moncks Corner area has experienced a booming 30% population increase since 2010, with the metro area experiencing 15.9% population growth and total population of roughly 750,000. This asset is 45 minutes from downtown Charleston, rated #1 city in the world in 2016 according to Travel & Leisure Magazine, and #1 city in the U.S. each year since 2013.
Fairground MHC currently has 35 MH lots and 2 individual apartments. There are 25 tenants total, with 1 apartment occupied, 23 lot renters, and 1 POH tenant. Lot rent is $330 per month. The new proposed development plan would completely redo the park and result in 42 new lots that can accommodate new larger homes. The city is requiring the park to be fully brought up to code and conform to proper zoning. This has resulted in current ownership revising the site plan to include a completely new layout with proper set backs and green space. The existing tenant base is not allowed to be replaced in its current layout. There is no definitive timeline on when the park must be revamped however we anticipate that the park will need to be in full compliance within a couple years.
The city is willing to work with ownership in creating a new MHC of up to 44 units, or an apartment development of up to 49 units. A landscaping plan has already been approved for the 44 unit park. The new owner will need to bring in all new homes and and adhere to the new approved landscaping plan which should correlate with a lot rent averaging $500+.
Fairground MHC is a year-round, all-ages community that has all public utilities. Water and sewer is sub-metered and billed back to the tenants. Electricity is directly billed to the tenants. The roads are in below average condition and will need to be replaced as designed in the new approved plan.
This park is being offered as a redevelopment opportunity with significant upside in a strong market. The purchase price of $995,000 represents a 4.8% CAP on current NOI. The optimal use of this investment is to develop a new, 44 unit park. Once the park reaches 95% occupancy using the pro forma NOI, you can refinance or sell the park for roughly $3.025M using a 5.5% exit CAP rate.
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