Tradewinds Mobile Home Park is a Class C community that could be converted to a Class B through a focused repositioning. It’s an all age community developed in the 1970s with 69 total sites and presents itself as a value-add opportunity below market rent. The site mix consists of 55 lot rentals, 10 RV lots, apartment building with 4 units, 2 storage and 6 rental spots. The average lot rent is $359/lot after pass throughs, which is way below the average market rent of $515/lot excluding utilities. Tradewinds rent include water, sewer & trash which is estimated to be $70.
Many of the tenants are snowbirds. The park has a very solid history of high occupancy rates with very little turnover. Streets in the park are paved. Water is municipal and sewer is handled by recently renovated septic tanks.
An investor with a future vision of value will recognize Tradewind’s value could potentially be $3M which is referenced in the Underwriting.
An investor could immediately add approximately $50,000 annually in income by increasing the monthly rental at par to current market rates and charging water consumption to the tenants.