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We are pleased to announce the acquisition of a 300-site mobile home community portfolio located in Bismarck, North Dakota.
With this acquisition, our portfolio now includes over 3,000 sites/units and more than $55 million in assets under management, with $12.8 million added in Q3 alone.
Based on comprehensive financial modeling, we anticipate this asset delivering a project-level IRR of approximately 22%, an MOIC of 2.5x, and a cash-on-cash return of 10% over a five-year hold period.
Value-Add Strategy
Occupancy Growth: Based on favorable demographics in the Bismarck market and the growing demand for affordable housing, our in-house home sales coordination team plans to execute their strategic plan to minimize vacancy. Currently, average portfolio occupancy is 78%.
Revenue Growth: Within the first year, we plan to increase rents to market by approximately 14% along with the potential for utility reimbursements.
Community Enhancements: Our in-house asset management team plans to implement upgrades to amenities and essential repairs to create a better living experience for residents through thoughtful improvements and maintenance.
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