I have a park in Utah under contract and need a strong operating partner with experience and funds who are interested in taking over the deal, with me staying in as a minority owner. It’s in the greater Salt Lake City metro and the price is $3MM.
Utah is a very tough market to get into, but because of my ties there, I was able to lock this up, despite offers above my price. It’s a value-add deal and is generally clean with city water/city sewer, simple streets, no POH’s and no buildings or landscaping to maintain.
The MHP market along the Wasatch Front is 98%+ occupied with almost no POH’s. The park is in a strong area with $60K+ median income, a $270K+ average home price and 6% overall vacancy.
The current owner doesn’t care much about the park and was going to redevelop it but has since decided to sell. While development is not the primary plan, it’s only a matter of time given the location. After stabilization a year or two out, the projected cash on cash is high single digits with a projected IRR in the upper teens/low 20’s.
While I would consider assigning it, I would like to stay in as an owner. I need someone with a track record of closing, turning parks around and who can act quickly. The partner could pay cash then refi after beautification (1 year?) or get a low LTV (50-60%?) bank or short-term loan at closing. We have less than four weeks left of due diligence though much of it is in progress.
This is NOT a deal for someone looking for double-digit cash on cash returns out of the gate. It’s for someone that wants a hard to find value-add deal in a super strong market with barriers to entry. The safety net is the future redevelopment opportunity because of its irreplaceable location. If you are interested in discussing/getting more info, email me and I’ll send you an NDA and pics, proforma etc.
Best, Brian
Brian McDonald, CCIM
Crestone Capital Partners
Brian@CrestoneCapitalPartners.com
Direct: 720-636-6551