Park Avenue Partners Acquires Three Off-Market Mobile Home Parks

I’m happy to announce Park Avenue Partners Fund 2 has acquired an off-market portfolio of three mobile home parks totaling 231 pads in a transaction valued at $5.3mm.??

This price represents a 9% cap rate on historical financials. The properties are stabilized (80%+ occupancy); most of the homes are tenant-owned. We assumed below-market CMBS debt from 2015 at 5.5% to finance the transaction. The portfolio appraised for $1mm more than we paid, and all three properties have upside through rehabbing existing homes, infilling with brand-new homes, better marketing, bringing rents to market, and fixing water leaks.

But we are focussed on more than?just the numbers. Our social mission is to expand the supply of affordable housing, and these three properties will enable us to provide 45 additional affordable homes to deserving families in a safe, professionally managed communities.

I’ve very proud of my team and look forward to digging in together on these three in the months and years to come to improve them for our residents and for our investors.

The properties are:?

Parkview Estates (Mandan, ND). Mandan is the ‘other half’ of Bismarck, the state capitol of North Dakota. We love owning properties in state capitols - the jobs and demand for affordable housing never go away. Parkview has 84 pads and 2 apartments and is on all-city utilities. The average household income in Bismarck is $55,000, and the average house price is $251,000. Our affordable housing will price between $10,000 and $75,000.

Minot Gardens (Minot, ND). This metro is a diversified economy driven by Minot Air Force Base, healthcare & social services, retail, education and agriculture. North Dakota consistently ranks #1 or #2 for 18 different agriculture commodities, with Minot being a hub for production. Minot Gardens has 84 pads and is on city water and a sewage lagoon. The average household income in Minot is $59,000, and the average house price is $195,000. Our affordable housing will price between $10,000 and $75,000.

Parkway Estates (Upper Sandusky, OH). This metro is a diversified economy driven by manufacturing, healthcare and social assistance, construction, retail, education and more. Parkway Estates has 63 pads, and is on all-city utilities. The average household income in Upper Sandusky is $37,000, and the average house price is $125,000. Our affordable housing will price between $20,000 and $50,000.

We currently have one additional off-market property under contract and anticipate sharing news about that with you next month.

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Enjoying co-owning MHPs together,

-Jefferson-

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