The Esterson MHC Team is pleased to present the 5 Park Portfolio in Pittsburgh, PA MSA. The portfolio consists of 249 lots, with a tremendous amount of upside within this value-add opportunity. The communities are all located about 30 miles from the center of downtown Pittsburgh.
The communities have 237 total mobile home lots, 1 single family house, 10 apartments and 1 commercial space. The lot rent only tenants currently pay an average lot rental rate of $341 per month, which is below current market rent estimated at $550. The market rent is based on a rent comparable survey. Current occupancy is 55%. The overall market can support substantially higher lot rents based on limited affordable housing supply and the fact that this MSA is home to over 1.2M people.
All parks are year-round, all-ages communities. Colonial and Skyview are all serviced by a private well and septic systems that are billed back to the tenants. South Heights and Chaucer are serviced by public water and sewer and is billed back to the tenants. Luxor is serviced by public water but private sewer treatment plant which is operated by a third party and is billed back to the tenants. There are no flood zones or opportunity zones within any of these parks.
The Pittsburgh MSA has a tremendous base of headquarter operations for U.S. and foreign companies within a variety of industries. These include Alcoa, HJ Heinz, PNC Bank, PPG Industries,
Mellon Bank, US Steel, Allegheny Technologies, Wesco, Bayer North America, GlaxoSmithKline, American Eagle Outfitters and General Nutrition Centers. The state’s population grew 1.50% from
2010 to 2019 and has over 13 million residents (5th most populated state).
This portfolio is being offered at $8.65M as a value-add investment, that requires filling vacant mobile home lots and raising rents over the next 3-5 years. Once that is achieved, we are showing a pro forma exit of over $21.3M using a 6% cap rate.
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