An All Ages Mobile Home Park Development Project
A rare opportunity to participate in a new Mobile Home Park development Syndication.
Be part of one of the first New Mobile Home Park developments in the high growth IH-35, Central Texas Corridor in a decade or more.The goal of this investment is to double the investor equity investment in 5 years.
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 Class “A” 5-Star Mobile Home Park (MHP) in the IH-35 Central Texas Corridor. The Mobile Home Park will consist of 150-350 spaces. Development will be in three or four stages.
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 get preferred rate of return of 8% plus 60% of the free cash.
- We are raising $2,000,000 Minimum equity and using bank loans in the amount of $3,000,000 to $3,500,000.
- It might take 30 months to reach break even.
- When leased and at full rent rates, the project will have income of $1,000,000 per year.
- When leased up, project annual profits is $650,000 to $700,000
- Annual Free Cash Flow is estimated at $450,000.
- If the project was sold at end of year 5 at the projected 8% cap rate, the investors return on the sale would be 90%-100% of amount invested plus their cash flow returns during the holding period.
Project development will be in stages.
Development Stage 1: will be 50 spaces and include the park’s basic infrastructure, office space, entryway, signs, and the residence common area amenities.
Stages 2 and 3: will contain 50 spaces each, to be constructed when the park nears lease up of the earlier phases. Expansion beyond 150 spaces will depend on the availability of land, financing, and demand . See Park Development in the project offering.
Time Line: Based on a similar Mobile Home Park that expanded recently 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 & Phase-3 will take 3-4 months each.
- Lease up 6-9 months for Phase-1, total project 24-40 months.
Projected Lot Rents: Using information from similar parks in the area. 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.
We will use $400 and $450 a month lot rent initially, raising the lot rent to the higher end of the scale once we are at 90% occupancy.
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 210-413-4-7230 or Jim@Courtstreetpartnersllc.com we will send you back the open document password.
Active Regulation 506-C Offering Circulars
PDF Table Of Contents (Password required o open some documents)
- Letter to Potential Court Street Investors Letter To Investors – PDF
- Court Street Partners Executive Summary – PDF (Project over view)
- Court Street Partners Biz Plan – PDF (The Projections numbers)
- PPM, Operating agreement, and Subscription Agreement available on Request
For document password call Jim 210-413-7230 or Submit the form at the bottom of the page will automatically get you the password for opening the document.
Marketing Materials: The information contained in our ads and power points are similar across the individual Park Syndications.
- Our Ad in THINK REALTY Magazine PDF Link
- Power Point Presentation Mobile Home Park Investment Opportunity
- Power Point Presentation Why A Senior Living Mobile Home Park
- Mobile Home Park Investing Video
Pro Forma Projections:
The following projections are based on the minimum park size of 150-spaces, (park sizes of 300+ spaces are more profitable). Should we raise the full $5,000,000 in the offering the size of the mobile home park being developed can be expand to between 300 and 400 spaces. See offering materials for complete details.
Projected time Frame: The project will take from 24 months to 40 months to complete and lease up. Lease up rate is estimated at 100 spaces per year.
Projected Profit: The park income when leased up will be $758,000 per year, net income will be $548,000. At the end of year five the projected revenue is estimated at $1,000,000 and net cash flow of $702,000
Projected Cost: The Park will cost $5,000,000 to develop (150 spaces), 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.
- $8,430,000 at a 6.5% cap rate at lease up.
- $6,850,000 at an 8% cap rate at lease up. 98%
- $10,800,000 at 6.5% Cap Rate after Rent Increases are in place, year 6 or 7.
- $8,775,000 at an 8% Cap Rate after Rent Increases are in place, year 6 or 7.
Projected Returns: The Mobile Home Park’s returns to investors on a cash flow bases, when the property is leased up should be 12%-14% 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 5-7 year projected time frame for the investment is estimated at:
- 15% -44% if sold at an 6.5% cap rate
- 15% -30% if sold at an 8% cap rate
The percentage returns would/could be 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 $250,000 (income received and property net value combined).
Break Even: Break-even should occur at 85 spaces rented and 17 homes sold and financed. Break-even as a percentage is at 57% occupancy of the total of 150 spaces. An all ages park will lease up faster then a Senior living park. The Senior living park will command a higher sales price.
Negative cash flow Funds: From inception to break-even at 85 spaces rented, is estimated to occur 24 to 30 months into the project. (70% 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 150 spaces in 3 phases
Total Project Cost – $5,000,000
Equity Investment & Operating Reserves: $2,000,000
Total Financing: Bank loan needed: $3,000,000
Palace Way Partners MHP Proforma
Pro-Forma Income Statement All Phases Combined
- Proforma is for the completed project of 150 spaces.
- 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 will be park financed for buyers, for simplicity only the income spread between payments is shown.
Proforma Projections for Completed MHP Development Project
|Revenue||Per Space||Month||Year||Year 5|
|MHs Paying Lot Rent 120 X||$400||$48,000||$576,000||$720.000
at $500 Mo. *
|MHs Paying Lot Rent 30 X||$450||$13,500||$162,000||$198,000
at $550 a mo.*
|Sub Total: Lot Revenue||$61,500||$738,000||$918,000|
|Park Financed Homes (PFHs) Promissory Note Revenue **||$300 Avg.||$ 9,000||$108,000||$108,000|
|Late Fees||$ 450||$ 5,400||$ 5,400|
|Other Income||$ 1,500||$ 18,000||$ 18,000|
|Sub Total: Revenue||$869,400||$1,049,400|
|Vacancy||$ – 2,750||$ -33,000||$-43,000|
|Bad Debt||$ – 500||$ – 6,000||$ -6,000|
|Admin & Other||$ 500||$ 6,000||$ 7,000|
|Supplies||$ 500||$ 6,000||$ 7,000|
|Telephone||$ 200||$ 2,400||$ 3,000|
|On Site Management||$ 7,000||$84,000||$100,000|
|Trash||$ 1,000||$12,000||$ 13,000|
|Utilities||$ 500||$ 6,000||$ 6,500|
|Legal & Professional||$ 300||$ 3,600||$ 3,500|
|Adver. & Mkt||$ 500||$ 6,000||$ 6,000|
|Maintenance||$ 2,000||$24,000||$ 36,000|
|Total Operating Expenses 31%||$ 21,500||$258,000||$302,000|
|Net Operating Income 69%||$47,670||$572,400||$702,400|
|Loan interest payments||$ 17,250||$207,000||$207,000|
|Loan Principal Payments||$ 3,750||$ 45,000||$ 45,000|
|Total Payment||$ 21,000||$252,000||$252,000|
|Total Park Cash Flow 39%||$26,700||$320,400||$450,400|
|Cash on cash return 21%|
|* Lot rents increase at year five.|
* 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
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.
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