A Great Investment Opportunity in One of The Fastest Growing City in the U.S.
Limited Time Remaining to take advantage of this investment opportunity.
You can double your money in 5-years
Once in a while, all the many real estate investing requirements come together to create an excellent investment project, this is one of those rare events.
Your opportunity to invest in the development of a new Mobile Home Park. The first Senior living Mobile Home Park in the San Antonio metropolitan area.
Preferred returns of 8% plus a percentage of the cash flow provide investors returns of between 14.9%-20%!
Accredited Investors Only: This opportunity is limited to accredited investors In keeping with the SEC and State Securities regulations. (Regulations D 506-C Offering)
The Project is a new development of a 110-120 space, Class “A”, Senior Living Mobile Home Park (MHP) in San Antonio, Texas. By developing acreage into a new MHP we are Creating Wealth, wealth that you can share in.
The Parks Design: Watch our Video on what a 5-Star Park should look like. 5-Star Mobile Home Park Video
A design white paper for use by the architect and engineers design the project, is available on request.
Park Location: This South San Antonio, location is a good growth area, with high demand for attainable housing. It is located just off of, and visible from, IH 35 south and near Loop 410 So. The area has a good mix of incomes but is predominantly a blue collar area. (San Antonio is the fast growing city in the USA)
Park Location Map : The location is within minutes of South Park Mall, Palo Alto Collage, Texas AM University San Antonio, The Toyota Factory, the South Side’s Main Shopping Street “Military Drive”, New Auto dealerships, Hospitals, nationally branded Restaurants all are nearby. Across the street are two (2) new high end Apartment Complexes.
Minimum Investment $25,000
Average investment $100,000
Project Time Line 5-7 years
More Quick Facts
- We anticipate investors will double their money in 5 years.
- Investors will get a preferred rate of return of 8% plus up to 50% of the free cash flow.
- We are raising $1,350,000 equity and using bank financing for the balance.
- Break-even should be achieved in 30-36 months.
- When leased and at full rent rates, the project will have an income of $750,000 per year.
- When fully leased, annual projected profits is $519,000, with an estimated annual Free Cash Flow is at $288,868
- Investors 8% preferred rate, plus a percentage of the cash flow would provide a estimated annual return of 12% -16.9%
- If the project is sold at the end of year five at an 8% cap rate, a gain on the sale would be 50-100% of the amount invested for the investor. See proforma year five below.
- We anticipate holding the investment for 5-7 years, then selling the park or refinancing returning the investors capital while keeping the cash flow.
- See offering materials for complete details.
Power Point Download Palace Way MHP Investment Power Point Presentation
The Projects Developers and Syndicators: James E. Glasgow & David Joiner, Read More
Anticipated Construction Start Date: Early Spring 2019
Stages 2: will contain the balance of the spaces, construction timing of of phase-2 will start to be completed when the park leases the earlier phase.
Time Line: Based on a similar Mobile Home Park that expanded in the last three years that added 278 spaces having leased them all in less than 36 months. We estimate a total project time line of 24-40 months. The time line from start of construction to sale of the project is at 5-7 years
- Locate property, design, start construction 6 months from funding approvals.
- Construction 90 to 120 days phase-1, Phase-2 will take 3-4 months.
- Lease up 6-9 months for Phase-1, total project 24-40 months.
Competitive lot rents: Using information from similar parks in San Antonio. Lot rents ranged from $375 a month to $550 a month. The high end of the scale was for a mobile home rental pad site for a single or double wide home, with an 8’ X 8’ storage shed, two or three parking spaces, in a well-maintained park with amenities.
Projected Lot Rents: Palace Way Senior Life Style Park Lot rents will be $400 and $450 a month initially, raising the lot rent to the higher end of the scale ($550-$600) once we are at 90% occupancy.
Pro Forma Projections:
Projections are based on minimum park size of 112 spaces. .
Projected time Frame: The project will take from 24 months to 40 months to complete and lease up.
Projected Profit: The park income when leased up will be $658,000 per year, net income will be $ 433,600. At the end of year five when the park achieves maximum rent rates the projected revenue is estimated at $936,000 net income will be $584,000 and net cash flow of $354,300
Projected Cost: The Park will cost $4,300,000* to develop, of which 60-70% will be financed. (*Including carrying cost to lease up).
Projected Completed Project Valuation: The Park’s value when complete and leased up will be.
- $8,030,000 at a 6.5% cap rate at lease up.
- $6,650,000 at an 8% cap rate at lease up.
Projected Returns: The Mobile Home Park’s total returns to investors on a per year bases, when the property is leased up should be 12%-15% per year (cash on cash). The Mobile Home Park’s total returns (annualized) when the Park is fully leased, and then sold, based on a 5-year projected time frame for the investment is estimated at:
- 15% -34% annualized if sold at an 6.5% cap rate
- 15% -24% annualized if sold at an 8% cap rate
The percentage returns would adjust downward if the time to a sale is at 6 or 7 years instead of 5 years. This is a forward-looking statement: A $100,000 equity investment could conceivably grow over five years to be worth $175,000 to $220,000 (income received and property net value combined).
Break Even: Break-even should occur at 67 spaces rented and 17 homes sold and financed. Break-even as a percentage is at 57% occupancy of the total of 112 spaces.
Negative cash flow Funds: From inception to break-even at 67 spaces rented is estimated to occur 24 to 30 months into the project. (50% of the way through lease up of phase 2) this time to lease up to break-even will require a reserve for negative cash flow.
All figures are estimates, subject to changes as needed.
New MHP Development of 112 spaces in 2 phases
Total Project Cost – $4,200,000*
(*Including carrying cost to lease up).
Equity Investment & Operating Reserves : $1,350,000
Total Financing: HUD guaranteed bank loan needed: $3,000,000
Palace Way Partners LLC Senior Living MHP Proforma
Pro-Forma Income Statement
- Proforma is for the completed project
- 80% of revenue will be from Mobile Home Space rentals
- 10% of revenue will be from Financing homes for buyers.
- 10% of revenue will be from other sources, such as RV storage rental, club house rental, Mobile Home sales.
- 30 homes or 20% of homes may be park financed for buyers, for simplicity only the income spread between payments is shown.
Proforma Projections for Completed Project
|Revenue||Per Space||Month||Year||Year 5|
|MHs Paying Lot Rent 90 X||$400||$36,000||$432,000||$648,000
at $600 Mo. *
|MHs Paying Lot Rent 22
Cell Tower Revenue
at $550 Mo.
|Sub Total: Lot Revenue||$46,500||$558,000||$800,400|
|Park Financed Homes (PFHs) Promissory Note Revenue **||$300 Avg.||$ 9,000||$108,000||$108,000|
|Late Fees||$ 350||$ 4,200||$ 5,400|
|Other Income||$ 1,500||$ 18,000||$ 18,000|
|Sub Total: Revenue||$688,200||$810,600|
|Vacancy||$ – 2,000||$ -24,000||$-36,000|
|Bad Debt||$ – 500||$ – 6,000||$ -6,000|
|Operating Expenses||Details||on request|
|Total Operating Expenses 31%||$ 21,500||$258,000||$352,000|
|Net Operating Income 69%||$36,1340||$433,600||$584,400|
|Loan interest payments||$ 14,55950||$174,708||$163,663|
|Loan Principal Payments||$ 4,677||$ 56,124||$ 67,170|
|Total Payment||$ 19,236||$230,832||$230,832|
|Total Park Cash Flow 39%||$17,737||$202,768||$353,568|
|Cash on cash return 27%|
|* Lot rents increase at year five to $600 monrth.|
* Home Sales & Finance Income
New Home Acquisition/Sales Financing: Additional Park revenue is generated by selling mobile homes and renting space to the buyers. These are preliminary numbers. The cost of to produce mobile home sales will be covered by the down payments on the houses.
We would love to have you as an Investor. If You have an interest in
participating in this Mobile Home Park investment opportunity please contact me.
James Glasgow email@example.com 210-413-7230
PDF of the Private Placement Memorandum (PPM)
Complete details of the project are included in the Business plan,
subscription agreement and PPM. The following downloads are for accredited investors. Please review the first three and if you are interested, please complete the form on this page or Contact Jim Glasgow for a password at 210-413-7230 or Jim@Courtstreetpartnersllc.com we will send you back the open document password.
Active Regulation 506-C Offering Circulars
Contact Jim Glasgow for copies of these documents
- Letter to Investors Somerset– PDF
- Executive Summery Somerset– PDF (Project over view)
- Business Plan Somerset– PDF (The Projections numbers)
- PPM, Operating Agreement, Subscription agreement
- Our Adin THINK REALTY Magazine PDF Link
- Power Point PresentationMobile Home Park Investment Opportunity
- Power Point Presentation Why A Senior Living Mobile Home Park
- Mobile Home Park Investing Video
- What Should a 5-Star park look like Video
A 506(c) publicly advertised offering was undertaken as part of the Form D filing for the mobile home park development offering . This investment is suitable for accredited investors only!
• The securities may be sold only to accredited investors, which for natural persons, are investors who meet certain minimum annual income or net worth thresholds;
• The securities are being offered in reliance on an exemption from the registration requirements of the Securities Act and are not required to comply with specific disclosure requirements that apply to registration under the Securities Act;
• The Commission has not passed upon the merits of or given its approval to the securities, the terms of the offering, or the accuracy or completeness of any offering materials;
• The securities are subject to legal restrictions on transfer and resale and investors should not assume they will be able to resell their securities; and
• Investing in securities involves risk, and investors should be able to bear the loss of their investment.
This form was previously submitted