100 Oak Ridge Rd, Fredericksburg, TX 78624 For Sale

Sunstone Real Estate Advisors is pleased to present the opportunity to acquire The LiveOaks Manufactured Home Community, a 129-site manufactured housing community offering stable in-place cash flow and clear upside through rental realignment. The property is currently operating at approximately 98% occupancy (127 occupied sites), providing a highly consistent income stream with minimal vacancy risk. Current average lot rents are approximately $504/month, which are below projected market levels, creating an immediate opportunity for revenue growth. With only 2 vacant sites, the asset is effectively stabilized, allowing investors to focus on rent increases rather than lease-up. The community benefits from a large, established tenant base and strong demand for affordable housing.

The primary value-add opportunity is driven by phased rent increases, with projected rents growing from $504/month to $754/month over a three-year hold period. Rents are underwritten to increase to $604 in Year 1, $679 in Year 2, and $754 by Year 3, aligning the property with market comparables. Additional upside is achieved through professional management implementation and expense normalization, particularly within payroll and maintenance. These strategies provide a clear and executable path to increased revenue and improved operational efficiency.

Financially, the property demonstrates strong income growth, with Net Operating Income projected to increase from approximately $477K to $793K by Year 3. Total revenue is expected to exceed $1.14 million annually, driven primarily by rent increases and sustained occupancy. Expense ratios improve significantly to approximately 31%, enhancing overall profitability. Investor returns strengthen accordingly, with projected cap rates approaching 6.7% and cash-on-cash returns nearing 5.9% by Year 3. Overall, the asset represents a compelling core-plus investment with stable cash flow and a clear path to value creation through rent normalization.

Overall, this offering represents a compelling core-plus investment opportunity with immediate cash flow and substantial upside through rent increases and operational efficiencies. The combination of high occupancy, below-market rents, and strong projected NOI growth provides a clear path to enhanced returns. Investors can capitalize on a proven strategy in a market with consistent demand for affordable housing. With strong fundamentals and scalable upside, The LiveOaks Manufactured Home Community is well-positioned to deliver both near-term yield expansion and long-term appreciation.