| CREOP

About the Deal

This investment opportunity presents a total of 61 pads and 63 doors, including 38 TOH/RTO units and 23 POH units. Notably, four of the homes are 2022 models, adding a touch of modernity to the property. Additionally, there are currently 11 vacant POH units, with three under renovation set to be completed next month. The property benefits from city water/sewer connections and features a newly installed sewer pump in 2022. Enhancing security measures, new surveillance cameras were also installed in 2023, ensuring a safe environment for residents. Furthermore, the property boasts new commercial mailboxes, added in 2022.
With an asking price of $3,050,000, this investment offers significant potential. Currently, the property is generating a gross income of $350,000 (NOI $194,000.) However, with the opportunity to fill the 11 vacant units and bring rents up to market rates, the pro forma gross income is estimated to reach $480,000 (NOI $315,140.) This represents a substantial increase in income potential. By capitalizing on this opportunity, investors have the potential to enhance their cash flow and overall return on investment.
Considering the forced appreciation resulting from these value-enhancing measures, acquiring the park at $3.05M could lead to a significant value increase of $4.4M. With the promising prospect of increased cash flow, improved NOI, and property value, this investment opportunity deserves careful consideration. The property's favorable features, combined with the potential for strong financial returns, make it an attractive option for investors looking to maximize their investment portfolio.

Florence, SC

The mobile home park (MHP) is strategically located across from the Florence Regional Airport and less than 3 miles from downtown Florence. As a tertiary market with a smaller inventory, the number of apartment deals in Florence has been limited, with only two market-rate trades recorded in the past year. The annual sales volume for multifamily assets has averaged $14.4 million over the past five years, with a recent high of $44.0 million in investment volume. Despite its lower market price compared to the national average, the multifamily market in Florence offers attractive investment opportunities.
The market price for market-rate communities in the Florence metro area is approximately $100,000 per door, showing an increase from the previous year. Florence's multifamily market price is significantly discounted compared to the national average, with prices more than 50% below the country's average. The market cap rate in Florence has dropped and is currently at its lowest level in the past five years, although it remains higher than national averages. The vacancy rate in the Florence multifamily market has increased by 1.1% over the past 12 months, reaching 4.9%. Rent prices have experienced a 9.1% increase in the past year, with a cumulative growth of 20.1% over the past three years.
Currently, there are no ongoing construction projects in the area, indicating potential opportunities for future development. Despite limited apartment deals, the Florence market has witnessed employment growth of 2.6% compared to a population growth of 0.4% in the past year. This suggests a positive economic outlook for Florence and underscores the potential for investment in the multifamily sector.