BANNOCK MOBILE HOME ESTATES
995 Wilson Avenue
Pocatello, ID 83201
Park Avenue Partners Fund 1, LLC acquired Bannock Mobile Home Estates December 10th, 2019 in an off-market transaction. It is an all-ages community of 110 pads on all-city utilities and has 64 paying tenants (58% occupied). 80% of the occupied homes are resident-owned, approximately 10% are double wides, and we anticipate improving occupancy by summer of 2020 by at least 8 units (7%) by rehabbing additional vacant mobile homes that are already on-site and conveyed with the purchase. We will be bringing in additional new and used mobile homes as well. We paid approximately a 7% cap. rate. Bannock is in a strong market in the Pacific Northwest - Pocatello, ID - where the average house price is over $178,000, the average household income is $44,000, and the nearest Super Walmart is 2 miles away. This property has been particularly poorly managed by a classic ‘mom-n-pop’ operator, and has significant upside from junk removal, rehabbing mobile homes, sub-metering for water, bumping rents, and infilling with new affordable housing units. We’ll be able to make Bannock a much better community for the existing residents and add significantly to Pocatello’s affordable housing stock. We’ll be investing significantly in this community over the next six months, and we anticipate cash flows to improve significantly this coming summer.
