Apple Creek Mobile Home Park – New Investment

Property Overview:

Address7117 Lincoln Rd. Bismarck, ND
Lots208
Occupancy85%
Acres55
Avg. Lot Rent$360
Market Lot Rent$385
UtilitiesPublic
W/S BillingWater paid by property (plan to submeter)
MSA Median Home Price$260,000

Apple Creek consists of 208 lots across 54.60 acres. The property was built in two phases: phase I in the 1970’s and phase II in 2015.

The property is located in Bismarck, ND which is the state capital of North Dakota. Unlike many ND cities, Bismarck’s economy is not dependant on oil production. Bismarck has a strong health care presence and has demonstrated a stable employment base. The state of North Dakota is Bismarck’s largest employer.

The Bismarck MSA population is over 130,000 and population growth within the city of Bismarck surpassed 17% from 2010 to 2017. The MSA’s unemployment rate averaged 3.1% over a more than 10 year period ending in August 2018, which is 360 bps below the national average of 6.7% over the same time span.

We love to see public, education and healthcare companies as the top employers in our markets. Below is a list of the top 10 Bismarck employers:

State of North Dakota (4,600); Sanford Health (3,284); Bismarck Public School District (2,187); CHI St. Alexius Medical Center (2,044); U.S. Government (1,200); City of Bismarck (988); Bismarck State College (719); Mandan Public School District (697); Aetna (660); University of Mary (642); Housing Industry Training (641); MDU Resources Group (592); Bobcat/Doosan Company (582);

Apple Creek has landscaping characterized by mature trees in a country setting. The property offers residents a quiet and traditional neighborhood experience. It has private, paved streets, and all lots are accompanied by paved, off street parking for multiple cars. Residents also benefit from a  playground, basketball court, leasing office and curbside trash pick-up which the park pays for. It is serviced by public water / sewer which the park also currently pays for.

The business plan is bump rents to market and invest capital to start submetering for water in order to bill tenants for their respective usage.

Forbes Article – Should You Invest In Mobile Home Parks? Only If You Like Consistent Returns

Mobile home park investing is not an exciting cryptocurrency, a high-flying tech startup or a trophy office tower you brag about owning. A mobile home park is just a parking lot filled with single- or double-wides that kicks off a lot of cash flow.

I co-own a portfolio of 23 mobile home parks and help real estate investors grow their portfolios with mobile home park investments. There are a lot of unique aspects to the industry that make mobile home parks compelling investments. But, for some strange reason people do not gather around me at parties to learn about the intricacies of them. So, to keep your attention, let’s focus on just one strength most parks share: consistency.

A portfolio of mobile home parks purchased at the right price is a remarkably bankable investment. Mobile home parks deliver profits year in and year out, whereas their cousins (apartment buildings) are often far more erratic. Why?

The rest of the article can be viewed on Forbes via this link:

https://www.forbes.com/sites/forbesrealestatecouncil/2018/12/17/should-you-invest-in-mobile-home-parks-only-if-you-like-consistent-returns/#2b1ef4853a4d

Looking For Your First Property Deal? 12 Important Things You Should Do First

Narrow Down Your Search

Most new real estate investors cast a wide net. This is usually a mistake. They just spin their wheels looking at overpriced deals online. Counterintuitively, if an investor narrows their search to a specific deal type in one city they are more like to uncover a compelling investment. They’ll get to know the local players (brokers, owners) and will be the first call when someone decides to sell.

You can find the rest of the article at Forbes.com

Signs Your Local Real Estate Market Is Starting To Heat Up

Watch the cranes.

This only applicable for commercial real estate markets, but when development of skyscrapers is booming, that’s usually the beginning of the end.

Ironically, when development deals do not “pencil”, is when developers should be building. Most development funding is approved when times are good. By the time all the projects are completed, the market typically softens. This new glut of vacant space causes landlords to slash rents. So begins the inevitable commercial real estate downcycle. Then, when all the cranes have gone back into hibernation, is precisely the time to go shopping for office, warehouse and retail properties.

You can find the rest of the article via Forbes.

 

The Need For Private Real Estate

In the past two decades, we’ve experienced two severe market declines, and two slow, tepid economic recoveries.

We live in a new world of lower growth with longer and woefully underfunded retirements. At today’s valuations, traditional stock and bond investments alone – in a low-yield environment – are not going to cut it.

Private real estate funds are the solution. A pool of diversified real estate can offer investors the potential for higher returns, inflation protection and reduced volatility relative to the stock market.

Yet 95% of retail investors do not own any commercial real estate investments.

 

We believe the reason for this is two-fold:

1. Investors lack exposure to the world of private investments and are not fully comfortable with terminology / investment mechanics.

2. Investors do not know how to find, evaluate and invest in high-quality, passive alternative investments.

 

Evergreen is making a dent in this problem.