Download Offering Materials: St. Louis Portfolio

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.

Investment Highlights

Public Utilities at All Communities

Lot Rent Growth Potential

Majority of Portfolio Located in The St. Louis MSA

Significant Upside in Filling Vacancy