Tucson 55+ MHC Portfolio
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Price: $37,000,000
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Address: 4550 N Flowing Wells Tucson, AZ 85705
Property Description:
Market Pricing
Call for offers due: April 25th
Brand new to the market are two irreplaceable Tucson 4.5-star MHC’s which have been owned by the same family for over twenty years. Swan Lake Estates and Friendly Village Estates provide an investor the extremely rare opportunity to acquire a 376-site 55+ designated MH community with all tenant-owned homes in a major Sunbelt market. Both communities have rents significantly under market and water/sewer/trash included in the rent. Simply a recapture of 80% of those utility costs would mean a few million in equity and be on par with every other competing property. They also offer operational upside with higher costs incurred by the private owner vs cost efficiencies with a larger operator.
The Tucson MSA remains one of the hottest housing markets in the country with inbound
migration numbers off the charts and unlike Phoenix significantly less multifamily supply
incoming which should keep rents steady. The average lot rents in the communities are $474.00
and $484.00 which the broker conservatively believes are $80-$100 under market and rents
could be pushed towards $700 with some amenity upgrades (pickleball, updated pool
area/clubhouse, landscaping, and signage improvements) and replacement of certain older
homes with new inventory. The park’s vacancy is minimal.
Highlights
- Sales Price: Market Pricing
- Rents: Presently Below Market and W/S/T
Included. - NOI (in-place): Approx. $1,251,401
- NOI (2023): $1,477,073
- Expense Ratio: 43%
- Average Rent: $480 Inc. Utilities
- New Financing or Cash
Swan Lake Estates
Swan Lake features 279 sites spread out over an entire city block with large lots, driveways, gated entry, and wide paved roads. The community features two pools, two clubhouse gathering areas, a stocked fishing lake, and shaded parks and gathering areas for the senior tenants. All the bones are there to make this a 5-star resort community. Also in 2018, the seller upgraded some previously vacant land to install a large solar system which helps alleviate the high summer power bills in the community. Data for this project is included in the Dropbox linked to the right. The water, sewer, and trash are included in the already low rents and the electricity is mastermetered. The community is approximately 2/3rd doublewides as well.
Unit Breakdown
- 279 Total Sites
- 204 Doublewides
- 70 Singlewides
- 5 Vacant Sites
Median Home Cost: $294,000
Address: 4550 N Flowing Wells, Tucson, AZ, 85705
Friendly Village
Friendly Village Estates is a 97-site 4.5 star community located less than a mile from Swan Lake offering operational efficiency to manage both communities. Friendly Village contains cul-de-sac roads, ground-set homes on doublewide lots, and a huge clubhouse and pool/spa area. The entry is off the main road and gated providing extra layer of security to the senior tenants. All homes contain driveways and are on large lots, there is also a small RV storage area in a corner of the community. Friendly Village like Swan Lake is also serviced by public water and sewer systems. which is included in the low rents. The electric is master-metered and billed to each tenant.
Unit Breakdown
- 97 Total Sites
- 43 Doublewides
- 49 Singlewides
- 5 Vacant Sites
Median Home Cost: $293,000
Address: 1202 Miracle Mile, Tucson, AZ, 85705