116 SPG CITY DR, JOHNSON CITY, TN 37601

The Esterson MHC Team is pleased to present Spring City MHP & RV, a 78-unit manufactured housing and RV community located in Johnson City, TN, offering investors a cash-flowing asset with strong upside through lot rent increases and vacant lot infill. Spring City MHP & RV is situated at 116 Spring City Drive in Johnson City, TN 37601 (Washington County), within the Johnson City, TN MSA. The property sits on 5.9 acres and is NOT in a Flood Zone and NOT in an Opportunity Zone. Parcel numbers are 038A B 003.01 and 038A B 005.00. Johnson City is the 8th largest city in Tennessee with a 2026 population of approximately 74,892, growing at 0.85% annually (up 5.3% since the 2020 census). The Johnson City, TN MSA benefits from a diversified employment base anchored by East Tennessee State University (ETSU), the James H. Quillen VA Medical Center, Ballad Health System, and a growing manufacturing and logistics sector. The Tri-Cities region (Johnson City, Kingsport, Bristol) has emerged as one of the most affordable and fastest-growing metro areas in the Southeast.

The community is 78 total units consisting of 42 Tenant Owned Homes (TOH) (average lot rent $419/month), 2 Rent-to-Own (RTO) units at $450/month lot rent plus $375/month average RTO payments, 25 rented long-term RV lots at an average of $579/month (all RV tenants increasing to $625/month effective July 1), 5 vacant RV lots, and 4 vacant mobile home lots. Current occupancy is 88.5%. Water is public, billed back to tenants. Sewer is public, billed back to tenants. Trash is curbside (included in city water/sewer/trash bill), and billed back to tenants. Electric is direct billed to MH tenants and landlord pays electric for RV tenants and common areas. Gas/propane, and cable are tenant-paid via direct bill. The park uses Metron meters for water billing ($7.50/month meter reimbursement per MH tenant). The main road running through the park is paved and publicly maintained. Landlord mows common areas. No snow removal is required.

Spring City MHP & RV is being offered at a purchase price of $3,600,000, reflecting an 8.47% global cap rate on in-place operations (P&L 1). The mark-to-market P&L 3 yields a 11.2% cap rate at full occupancy with maximized rents, translating to a pro forma upside value of approximately $5,729,860 at a 7.0% exit cap. The most immediate upside is the July 1st RV rent increase to $625/month across all 25 occupied RV lots, representing an estimated $13,800/year in additional gross revenue. Investors may achieve further upside by infilling 5 vacant RV lots and 4 vacant MH lots, increasing MH lot rents toward the $585/month market rate, and optimizing utility billback recapture rates. Financing is contemplated with a community bank recourse loan of $2,160,000 (60% LTV) at an estimated 6.50% interest rate with 25-year amortization. All offers should include price, inspection timeline, terms, proof of funds, due diligence requirements, and relevant real estate experience.