A new 250-space Mobile Home Park (MHP) development, just south of Austin, Texas.
Once in a while, all of the many requirements that make for a great real estate investment come together to create an excellent investment opportunity, this is one of those rare events.
Targeted investment averaged annual return 14.9%-19%!
The Project is a new development of a 250 space, Class “A”, Senior Living Mobile Home Park (MHP) in The Austin-San Marcos, Texas metro area. By developing acreage into a new MHP we are Creating Wealth, wealth that you can participate in.
Park Design: Watch our Video on what a 5-Star Park should look like. 5-Star Mobile Home Park Video The designers and engineers are working on the plans as you read this.
This San Marcos, Texas, location is in a high growth area, with high demand for affordable housing. Just 3.8 miles from IH-35. Convenient to shopping, restaurants, entertainment. Only 4.3 miles from the San Marcos historic downtown. Austin is 33 miles away, San Antonio the 7th largest city in the U.S. is just 54 miles away. The area is popular with retiring seniors and retiring military.
Park Design Layout: The park is designed for 254 spaces with space to add an additional 75 homes.
Accredited Investors Only: This opportunity is limited to accredited investors in keeping with the SEC and State Securities regulations. (Regulations D 506-C Offering)
· Located in a high demand area
· Project Timeline 5 to 10-years
· Located in an Opportunity Zone
More Quick Facts
1. The mobile home park size is 250 spaces.
2. Investors will get a preferred rate of return of 8% plus a % of the free cash flow.
3. Break-even should be achieved in 30-36 months.
4. When leased and at full rent rates, the project will have an income of $1,800,000 per year.
5. When fully leased, annual projected profits are $1,440,000 with an estimated annual Free Cash Flow is at $940,000
6. Investors 8% preferred rate, plus a percentage of the cash flow would provide an estimated annual return of 14% -19.9% of the amount invested.
7. If the project is sold at the end of year five at an 8% cap rate, a gain on the sale would be 120% of the amount invested for the investor.
8. We anticipate holding the investment for 5 to 10-years, then selling the park or refinancing returning the investors their capital with everyone keeping their cash flow.
9. This will be a Senior life-style land lease community
Power Point Download Palace Way MHP Investment Power Point Presentation
The Projects Developers: James E. Glasgow & David Joyner, Read More
Development Stages: Development will be in stages of 100 spaces, and then 50-75 spaces at a time.
Timeline: Based on a similar Mobile Home Park that expanded in the last four years that added 278 spaces having leased up in less than 36 months. We estimate a total project timeline of 24-40 months.
Competitive lot rents: Using information from similar parks in San Antonio. Lot rents ranged from $375 a month to $600 a month. The high-end of the scale was for a mobile home rental pad site for a single or double wide home, with an 8’ X 8’ storage shed, two or three parking spaces, in a well-maintained park with amenities.
Projected Lot Rents: Palace Way Senior Life Style Park Lot rents will be $500 and $550 a month initially, raising the lot rent to the higher end of the scale ($600-$650) once we are at 90% occupancy.
Projected Project Cost: The Park will cost $9,350,000* to develop, of which 60-70% will be financed. (*Including carrying cost to lease up).
Projected Completed Project Valuation: The Park’s value when complete and leased up will be.
· $21,500,000 at a 6.5% cap rate at lease up.
· $17,500,000 at an 7.7% cap rate at lease up.
Projected Returns: The Mobile Home Park’s
· 30-35% annualized if sold at an 6.5% cap rate
· 22-26% annualized if sold at an 8% cap rate
These are forward-looking statements: A $100,000 equity investment could conceivably grow over five years to be worth $175,000 to $220,000 (income received and property net value combined). Complete details of the project are included in the Business plan, subscription agreement.
Capitalization: All figures are estimates, subject to changes as needed.
Total Project Cost – $9,875,000*
(*Including carrying cost to lease up).
Equity Investment & Operating Reserves: $3,500,000
Total Financing: Project Financing needed $7,400,000
New Home Acquisition/Sales Financing: Additional Park revenue is generated by selling mobile homes and renting space to the buyers.
· Power Point Presentation Mobile Home Park Investment Opportunity
· Power Point Presentation Why A Senior Living Mobile Home Park investment
· What Should a 5-Star park look like Video
A 506(c) publicly advertised offering was undertaken as part of the Form D filing for the mobile home park development offering. This investment is suitable for accredited investors only!
• The securities may be sold only to accredited investors, which for natural persons, are investors who meet certain minimum annual income or net worth thresholds;
• The securities are being offered in reliance on an exemption from the registration requirements of the Securities Act and are not required to comply with specific disclosure requirements that apply to registration under the Securities Act;
• The Commission has not passed upon the merits of or given its approval to the securities, the terms of the offering, or the accuracy or completeness of any offering materials;
• The securities are subject to legal restrictions on transfer and resale and investors should not assume they will be able to resell their securities; and
• Investing in securities involves risk, and investors should be able to bear the loss of their investment.
Market conditions, the high cost of new homes and changing demographics has created a unique opportunity for the development of new mobile home parks. Well maintained MHP’s located near major metropolitan areas are at or near 100% occupancy.
There is a limited (and declining) number of mobile home parks in the country, cities have not granted very many new MHPs the needed zoning since the 1990s. Plus, the current supply of MHPs is in decline due to developer conversion of existing parks to alternative land uses, and rezoning by some cities that stops the expansion of existing parks, these events have reduced the number of existing parks.
Land Ownership/Rental Structure Makes MHP’s Unique: The Mobile Home Park will own the land / infrastructure and rent lot spaces to tenants who own the homes. In some cases, the park will purchase new Mobile Homes for placement on vacant lots, we will than sell the Mobile Homes with park financed terms or on rent the home short term. This land lease structure gives us:
· Greatly reduced maintenance expenses – Low expense ratio because we rent Mobile Home Spaces (MHS) to home owners, combined with the new nature of the park
· Low expense ratio compared to other multi-family investments (25%-40% vs. 50%-60% for apartment buildings). The home owners maintain the house, the park maintains the grounds.
· Additional cash income when the park finances the mobile home buyers.
· Pride of ownership - little to no turn-over of tenants; most tenants stay for many years
· Predictable cash flow from renting the lots to low turnover tenants