We placed this MHP under contract this summer in Fayetteville, NC and are now looking to assign the contract. We sourced this deal through a friend who contacted the owner via direct mail. We spent July/Aug conducting due diligence and re-negotiating terms with the owner. We have decided to drop the deal due to the time, effort, and capital required to resolve the contaminated water well in the park.
All other aspects of the deal remain attractive but we couldn’t get comfortable taking on the large project without having someone in our group who was closer to the park.
We have an extensive set of diligence documents that we gathered during our ~2 month inspection period. We will also be happy to provide color commentary on the project based on our on-site tours and conversations with the park manager and local stakeholders.
- Price: $700,000
- Total Pads: 75 (53 occupied)
- Park Owned Homes: 5
- Seller Financing Available: 65% LTV, 8% Fixed Rate, Interest Only Payments, 5 Year Term
- Average Lot Rent: $225 (~10-15% below market)
- Utilities: Water Well / Septic (City water/sewer line runs in front of property. We obtained tap fee estimates for $45k for water and $45k for sewer)
- Inspection Period Deadline: Oct 8
- Closing Deadline: Oct 15
- Assignment Fee: $50,000
- Earnest Deposit: $11,000
- MSA: Fayetteville MSA (376k population; $111k median home price; 13% vacant housing; $1,100 3-bed apartment rents)
- Located less than 10 miles from two Walmart Supercenters, a Walmart Distribution Center, and is near McDonald’s (0.1 miles), Food Lion Grocery Store (0.1 miles), Gray’s Creek High School (4.9 miles), and Cape Fear Valley Medical Center (11.0 miles).