top of page

Crystal View Capital Fund III Finances Iowa MHC with a $8 Million Loan

Updated: May 20

Crystal View Capital Fund III, LLC (the “Fund”) is pleased to announce that its manufactured housing community in Iowa recently closed on its financing of a new loan of approximately $8 million with a 6.06% fixed interest rate. This loan has a 5-year interest-only period and a 10-year term.


This asset was acquired by the Fund in December 2022 and consists of over 400 sites. Since acquisition, we have executed on several initiatives to increase the value of the asset:


Utility Reimbursement: The installation of submeters generated additional revenue to offset the cost of operating and maintaining wells. Our team worked with a state attorney to determine reassignment of utility charges to residents, including water, sewer, and trash. In addition, our team worked with the city municipality to dispute overcharging on recurring bills. This resulted in a 50% reduction on the monthly sewer bill. This value-add strategy created ~$235k in annual savings generating $3.6 million in value at a 6.5% cap rate.


CapEx Improvements: The completion of repaving roads throughout the community that were previously neglected by prior ownership has substantially improved the overall curb appeal and has boosted existing and new residents relations.


Home Sales: With the combined effort of our in-house home sales coordination team and the on-site management team, we have filled 11 sites generating $274k in home sales creating an additional $812k in value at a 6.5% cap rate. In the last quarter, we have begun to offer financing to home buyers through Zippy Lending accelerating the home buying process and providing financing alternatives to potential home buyers. In addition, the team is working diligently on rehabbing our existing home inventory to bring it to market.


Revenue & Net Operating Income: Since acquisition, we have achieved a 28% increase in total revenue and 57% increase in NOI.


By achieving this value-add strategy, the asset has surpassed its initial projections of a 20.3% Internal Rate of Return (“IRR”) and a 2.2x Multiple on Invested Capital (“MOIC”) on a levered basis to our revised return estimates of a 33.0% IRR and a 3.6x MOIC.


Crystal View Capital ("the "Firm") is a private equity real estate firm that specializes in the acquisition and management of self-storage facilities and manufactured housing communities. The Firm is actively raising capital for its fourth fund, Crystal View Capital Fund IV, LP with a target raise of $200 million. Presently, Fund IV has over $60 million in assets consisting of mobile home communities in its acquisition pipeline targeted to close in the next 30-60 days.


For more information about the Fund, please reach out to our team at invest@crystalviewpcapital.com.

Comentarios


Los comentarios se han desactivado.
bottom of page