Edwards MHC

Executive summary

BWE Investment Sales LLC (BWE) is pleased to offer the exclusive opportunity to acquire Edwards Mobile Home Park. Edwards Mobile Home Park is a 65 unit (63 lots/2 storage) mobile home community located in Granite City, IL, a suburb 7 miles north of St. Louis, MO. The current lot rent is $396, and the community is serviced by public sewer and water and curbside trash, all billed back to the tenants. There is value add opportunity for investors through rent increases, rehabbing and filling vacant park-owned homes, and filling vacant pads.

Edwards MHP is located with convenient access to the highway and is near a plethora of employment opportunities, retail, and attractions, including picturesque parks, festivals, and an emerging art scene in Granite City.

This is an opportunity for investors to buy a 65-lot community, in a primary market for $24.6K per lot. This is a 7.97% cap rate on entry, using a 51.27% expense ratio that can be increased to a mid-teen cap rate after year 5 by filling vacant homes, infilling vacant lots and optimizing operations to reduce your expense ratio. We are modeling $550,000 of capex for the community, plus an additional $120,000 on infill cost to fill the vacant lots. Executing on this value-add strategy and exiting at a 7.8% cap rate, we are projecting a 16.5% unlevered IRR / 23.1% levered IRR and a 10.16% average cash on cash over 5 years.

Bang Realty-Illinois, Inc | License No. BRK. 471020548