Open Gate Mobile Home Park
$52,174 per site, 40% IRR Year 4
Marketing description
To download the offering memorandum and financials, click View OM or Due Diligence. You will be prompted to sign a confidentiality agreement. Once completed, you will be able to immediately download the information. For any questions or concerns, please contact Ethan Linares.
The MHP Value Team at eXp Commercial is pleased to exclusively offer Open Gate MHP, a 23unit mobile home community located in the highly desirable and rapidly growing Stuart, Florida market, just minutes from the downtown waterfront and major employment centers.
The property features a diverse mix of income-producing assets, including four tenant-owned home (TOH) lots currently renting for an average of $675 per month, six occupied park-owned homes (POHs) generating average lot rent of $675 per month plus $150 per month in home rent, two mobile homes converted into duplexes (four total rental units) averaging $593 per month, and four standard apartment units averaging $1,250 per month. The community also includes five vacant lots and two vacant park-owned homes, providing significant upside through lease-up and redevelopment. The property is serviced by private well and septic systems.
Open Gate MHP offers investors a compelling value-add opportunity with multiple avenues to increase revenue. Current physical occupancy sits at approximately 78%, leaving immediate upside through filling the five vacant lots and two vacant park-owned homes. The underwriting assumes stabilization by leasing the vacant sites over time while increasing lot rents toward market levels. Existing mobile home lot rents remain below achievable market rates, creating an opportunity for steady rental growth through annual increases.
The property's current operations produce an adjusted Net Operating Income of approximately $96,000, while the pro forma projects NOI growth to approximately $129,000 in Year 1, $173,000 in Year 2, and over $185,000 by Year 3, driven by lease-up, rent growth, and operational efficiencies. At the asking price of $1,200,000, investors benefit from an attractive 8.03% inplace cap rate, with the potential to achieve 10.75% in Year 1, 14.45% in Year 2, and 15.46% in Year 3. Cash-on-cash returns are projected to increase from 7.5% in-place to over 22% by Year 3, creating a compelling risk-adjusted investment profile.
Open Gate MHP represents a rare opportunity to acquire a well-located, cash-flowing community with substantial upside through occupancy improvements, rent optimization, and long-term operational enhancements in the heart of Florida's Treasure Coast.
Investment highlights
- 23-unit mixed-use community - Consisting of 4 tenant-owned home sites, 6 occupied park-owned homes, 4 duplex apartment units, 4 standard apartments, 5 vacant lots, and 2 vacant park owned homes in the desirable and fast-growing Stuart, FL market
- Current physical occupancy of 78.3% - Provides immediate value-add through leasing 2 vacant park-owned homes and 5 vacant sites, while existing lot rents average $675/month with additional upside through annual rent growth
- Strong in-place returns - 8.03% cap rate and 7.50% cash-on-cash return, expanding to a projected 15.46% cap rate and 22.38% cash-oncash return by Year 3 through lease-up, rent optimization, and operational improvements
- Rare opportunity - acquire a cash-flowing Treasure Coast asset with projected NOI growth from approximately $96,000 today to over $185,000 by Year 3, creating significant upside through stabilization and long-term appreciation
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