55+ park cap rates

mobile home university
1

Hi all. Has anyone any data on the valuations of 55+ Communities compared to similar communities not age restricted?

2

We are involved in both and our choice is +55. Prices are condition of properties and location. We are seeing caps as low 2’s to 5 cap for +55. For all age parks 4.5 caps to 7. If you have a +55 parks really to sell for a 5 cap or higher–we are buyers—CASH—LESS THAN 5 DAYS DD!! My observation presently is most parks for sale are ones very difficult to sell in NORMAL TIMES. Time to be very cautious for first-time buyers.

3

Thanks Carl.
Any specific expenses or experience you’ve lived through with your 55+ parks that justify such aggressive CAPs you can share?

4

I recently asked a similar question to a prominent MHC Broker and their guidance was the cap rate spread for 55+ is typically 25 to 50 basis points lower than a comparable all-ages property.

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