Case Study: SD Hickory Asset Overview

Challenge:
The SD Hickory investment involved the acquisition of two mobile home parks: Meadow View and Creekside. Despite their excellent maintenance, these parks faced a significant challenge with a 40% vacancy rate. Our due diligence revealed the underlying issue: both parks were managed and maintained solely by the owner, who also owned the homes. This arrangement resulted in an unsustainable workload for one individual, encompassing both daily maintenance and management responsibilities across two locations.

Solution:
To address this challenge, a comprehensive management strategy was implemented. We decided to divest the park-owned homes, selling them either to existing tenants or new ones. This approach not only facilitated homeownership for tenants, fostering pride in their homes, but also alleviated the maintenance burden on the park ownership. The proceeds from these sales were reinvested into acquiring new mobile homes, which were then introduced to fill the remaining vacancies and sold to new tenants.

Positive Outcome:
The execution of this strategic plan led to a successful turnaround for the SD Hickory investment. Both parks now feature full tenant rosters and are managed professionally. This has ensured that each park retains its family-oriented atmosphere and maintains high neighborhood standards, in alignment with our Mobile Home Park revitalization objectives.