Summary

Buckhead Farm is a three-star manufactured housing community located in Fayetteville, North Carolina.  The acquisition includes excess land allowing for the expansion of the community by 240 pads.  Located just off I-95, the major north-south interstate, Fayetteville is home to Fort Bragg and Pope Air Force Base, one of the largest military installations in the world.  The current rents are in-line with other parks in Fayetteville, yet the other parks don’t have as good an amenity package as Buckhead is able to offer its residents. This property should command a rental premium on the market with the implementation of a marketing plan, which to this point has essentially been non-existent.  The strategy includes the assumption of a low leverage loan and fixed rate financing, thereby protecting the current return without sacrificing the ability to service the debt.

Mobile home communities in North Carolina are prevalent, as living in a manufactured home is more widely accepted as affordable housing than other areas of the country. Numerous mobile home manufacturing plants are based in North Carolina and deliveries throughout the state put it in the top five in the country in terms of new manufactured homes delivered annually. Sixteen percent of the population in North Carolina lives in a manufactured home.