Gadsden Tiny Home Estates and Campground
8.24% Cap rate, city water, new septic system, stabilized long term destination park
Marketing description
The MHP Value Team is pleased to present Gadsden Estates & Campground, a 116-site mixed-use
community situated on approximately 60 acres in Attalla, Alabama. Located directly off US
Highway 278 in Northeast Alabama, the property benefits from strong regional connectivity to
Birmingham, Chattanooga, Huntsville, and Atlanta, making it well-positioned to capture demand
from both long-term residents and transient travelers.
The community features 30 newly installed and fully occupied tiny homes, 63 RV sites with 35
currently occupied by long-term residents paying $600 per month, 12 primitive tent sites, 6
rental cabins, and a duplex apartment consisting of two units leased at $600 per month each.
In addition to rental income, the property generates revenue from water tubing day passes,
coin-operated laundry facilities, and an on-site general store. The property is served by city
water, and ownership has recently completed a major infrastructure upgrade by replacing the
aging septic system with seven new large-capacity septic tanks. Currently, all utilities are
included in tenant rents, creating a potential opportunity for future utility recapture and
additional NOI growth.
Based on annualized year-to-date performance and reasonable assumptions for seasonal and
transient revenue during peak operating periods, the property is projected to deliver an
estimated Day One cash-on-cash return of 9.10% and an in-place cap rate of approximately
8.24% at the offering price.
Gadsden Estates & Campground offers investors the opportunity to acquire a growing, cash-
flowing asset with a clearly defined value-add strategy and limited capital required to execute.
Key drivers of future growth include the continued lease-up of long-term RV sites, gradual rent
increases across the community, potential utility recapture, and operational improvements
designed to enhance profitability. Supported by multiple established revenue streams, recent
infrastructure investments, and a sizeable 60-acre footprint, the property presents a clear path
toward stabilization and increased cash flow, with projected investor returns exceeding a 25%
IRR over the anticipated hold period.
Investment highlights
- 60-Acre Diversified Community featuring a diversified mix of tiny homes, RV sites, cabins, tent sites, apartment units, and ancillary business operations.
- Strong In-Place Cash Flow Projected to deliver an 8.24% cap rate and 9.10% Day One cash-on-cash return, providing immediate income upon acquisition.
- Recent Infrastructure Improvements Ownership recently installed seven new large-capacity septic tanks and benefits from city water service, reducing near-term capital expenditure requirements.
- Clear Value-Add Opportunity lease-up of long-term RV sites, gradual rent increases, operational improvements, and potential utility recapture provide a defined path to increased NOI and investor returns.
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