Once in a while, all of the many requirements that make a great real estate investment come together to create an excellent investment opportunity; this is one of those rare events.
Targeted investment averaged an annual return of 15.9%!
The Project is a new development of a 305+ space, Class “A” 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 VideoThe 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, and entertainment. Only 4.3 miles from the San Marcos historic downtown. Austin is 33 miles away, and San Antonio, the 7th largest city in the U.S., is just 54 miles away. The area is popular with job seekers, retiring seniors, and the retiring military.
Accredited Investors Only: This opportunity is limited to accredited investors in keeping with the SEC and State Securities regulations. (Regulations D 506-C Offering)
Quick Facts
· Located in a high-demandarea
· Investment Timeline 10 years
· This project is eligible for Opportunity Zone Investment.
More Quick Facts
1. The mobile home park’s size is 305 spaces.
2. Investors receive a 6% preferred rate, plus 70% of the free cash flow would provide an estimated annual return of 15.9% of the amount invested.
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 $2,400,000 per year.
5. When fully leased, annual projected profits are $1,940,000 with an estimated annual Free Cash Flow is at $1,240,000
6. We anticipate holding the investment for 10 years, then selling the park or refinancing, returning the investors' capital with everyone keeping their cash flow.
7. The park will be an All-Ages land lease community.
Anticipated Construction Start Date: in Fall 2023
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 $650 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, and two or three parking spaces in a well-maintained park with amenities.
Projected Lot Rents: The Park Lot rents will initially be $650 a month, raising the lot rent to the higher end of the scale ($800) once we are at 90% occupancy.
Projected Project Cost: The Park will cost $22,350,000* to develop, of which 60-70% will be financed. (*Including carrying cost to lease-up).
Valuation at lease-up: The Park’s estimated value when complete and leased up will be:
· $49,000,000 at a 5% cap rate.
· $40,800,000 at a 6% cap rate.
· $35,000,000 at a 7% cap rate
Valuation at Year Ten: The Park’s estimated sale valuation at the end of 10 years
· $62,000,000 at a 5% cap rate.
· $51,700,000 at a 6% cap rate.
· $44,300,000 at a 7% cap rate
All figures are estimates, subject to changes as needed.
· Total Capitalization - $21,644,563
· Bank loan - $17,040,453
· Total Equity investment $6,000,000
We would love to have you as an Investor. Contact me.
James Glasgow jeglasgow@yahoo.com
or call 210-413-7230
Private Placement Memorandum (PPM) and other offering materials are available to accredited investors upon request.
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!
We would love to have you as an Investor. Contact me.
James Glasgow jeglasgow@yahoo.com
or call 210-413-7230
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