Capstone Manufactured Housing is pleased to present the St.
Louis Portfolio, which is comprised of 11 communities across Illinois and
Missouri. Most notably, 7 of the communities are clustered together in the St.
Louis MSA. The proximity of those properties allows ownership to share staffing
and reduce costly management oversight. Furthermore, the entire portfolio
greatly benefits from an ideal utility situation with public utilities. At 8 of
the 11 parks, the residents are responsible for the water & sewer, through
sub-metering or direct-billing. The residents also pay for trash at a handful
of the communities. Since the responsibility of the utilities lies largely with
the residents, the net utility expense should be low for a portfolio of this
size, but there is opportunity to improve the recapture income. A new owner can
seek almost full-recapture by passing on the trash to all the communities and
implementing a W&S bill-back system at the remaining three properties.
Additionally, the St. Louis Portfolio features a large
value-add opportunity. The portfolio occupancy is 64%, and seven of the
properties have an occupancy of 67% or lower. This leaves 138 vacant sites to
fill, which would bring in over $430,000 of income at the current lot rents.
Not only is there upside in vacancy, but the average portfolio lot rent is
below market. In the St. Louis MSA, the market rent is $439, compared to the
portfolio average lot rent of $269. A new owner can capitalize on a lease-up
and rent growth strategy to significantly increase cash flow. This offering
presents the enticing opportunity to acquire a mid-sized portfolio with
operational efficiencies and value-add components.