CEDAREDGE, Colo., Oct. 6, 2015 /PRNewswire/ -- MHPFunds, the 6th largest owner of mobile home parks in the U.S., is pleased to announce the sale of three of their communities in the states of Iowa, Texas and Colorado. MHPFunds owns over 170 mobile home parks in 22 states throughout the Great Plains and Midwest.
The Iowa property is 483 lots, and was purchased in 2012 for $9.6 million, and was sold for a $4.4 million gain. The turn-around, spearheaded by Frank Rolfe and Dave Reynolds (also known as Frank & Dave), involved a combination of raising rents, cutting costs, and filling approximately 64 vacant lots with homes. "This is a terrific market" said Dave Reynolds "and we were very impressed by its strength. It still holds the world-record for us as far as demand, logging over 100 calls per week". The annual rate of return on this park was around 41% per year. "With room to still raise rents and to fill another 36 lots, this sale was a win/win for both parties" remarked Frank Rolfe.
The Texas property was purchased in 2014 for $2.5 million, and was sold at around a $1.5 million gain. Under MHPFunds ownership, occupancy increased from 68% to over 97% in less than two years. "This is a terrific location, and a beautiful property" said Dave Reynolds. "We were able to easily fill the vacant lots." This property should also be a success for the new owner. "The Texas economy is always hot, and there is still plenty of room to raise the rents and still remain at market levels" commented Frank Rolfe.
The Colorado property was purchased at the end of 2013 for around $1.9 million, and was sold at a net profit of over $1.5 million. "This property has everything going for it, with a major stake in a market with a severe shortage of affordable housing", said Dave Reynolds. The turn-around of this property featured a combination of raising rents to market levels, coupled with increasing occupancy from roughly 57% to nearly 84%. "Even with our accomplishments, there is still significant upside for the new owner as there are still vacant lots to fill and the rents are still below market for a property of this caliber."
Frank Rolfe and Dave Reynolds were featured in the New York Times on March 16, 2014, which declared that they "may represent the best thing going in affordable housing at a time when the nation's need for low-cost places to live has never been greater." The MHPFunds is the natural extension of that focus, with each property undergoing rigorous due diligence regarding infrastructure, location, density and economics. "We probably review fifty properties for every one that we buy – that's how selective we are" said Dave Reynolds. And the proof is in the performance.
SOURCE Frank Rolfe & Dave Reynolds
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