RUMBAUGH ESTATES

Rumbaugh MHP
Midland, MI 48642

Type: Mobile Home Park
Units: 57
Year Built: 1976
Date Purchased: Nov 2018
Date Sold: April 2020

Property Metrics
Loan to Value 10%
Total Purchase Price $550,000
Total Sales Price $1,600,0000
ROIC 190%
IRR 39.1%

Strategic Approach

The Rumbaugh Estates was purchased from a “mom & pop” owner who was not able to gather the rental income from the tenants and was overall not happy with the asset. Due to poor management and unoccupied spaces along with poor marketing this was a great potential asset for JAYS Properties to provide value. Hiring an onsite property manager along with strategic decisions on rent collection made a very large impact on building equity into this opportunity. This opportunity also was able to be seller financed since there are challenges when financing mobile home park assets.

Value-Add Plan

The plan began with raising the rents by $25 and beginning to rid the tenants that were not paying on time. Fortunately, this opportunity had all park owned homes so no true renovations needed to be completed, but due to the large 38 acreage of this property there was room to expand. JAYS Properties added 4 additional pads to the property along with hiring an onsite property manager to be the eyes and ears on the ground to collect rent on time. This asset had private utilities – well water and septic. Another portion of the value add was to have a third party company sub-meter the entire park to increase cash flow by over 25% which contributed to significant value add and generated more monthly income. Net Operating Income at ownership was $70,000. After ownership by JAYS Properties and providing value, NOI was $156,000.

CHIMES BUILDING

Chimes Building
Syracuse, NY 13202

Type: Retail & Multi-Family
Units: 50
Year Built: 1970
Date Purchased: Nov 2009
Date Sold: Aug 2016

Property Metrics
Loan to Value 75%
Total Purchase Price $1,000,000
Total Sales Price $6,675,000
ROIC 47%
IRR 32.1%

Strategic Approach

The Chimes Building was purchased from a large entity based out of New York City. The asset was originally a commercial office building that was losing money due to poor allocations of expenses and high management fees. JAYS Properties, LLC purchased the asset and did not want to continue on the path of utilizing high management firms and a large staff so all of it was stripped down to lower overhead while bringing the current tenant base up. This was a heavy value add opportunity with significant growth potential.

Value-Add Plan

The plan began with a complete rebranding and remarketing of the property to become UA Towers. The previous owners did not take advantage of the location of the asset, downtown Syracuse, NY where apartments were needed in a historical area. JAYS Properties repurposed the building to be permitted for a Retail & Multi-Family mixed use asset. The property after value add consisted of 50 apartment units and a full retail space on the 1st floor of the Class A building. This was able to bring in more revenue in commercial clientele than the previous management.

Over $2MM was invested into developing 5 of the 14 floors and then the building was sold for $6.675M surviving the economic downturn of 2008. The building was sold to a developer with continued value add to bring the building to 124 Class A condo style units.