Recent Case Studies
In September, 2019, the Stone Capital Team and our investment partners purchased a 98-lot mobile home park in Moultrie, Georgia.
Original Acquisition Cost: $1,330,000
Total return: 1.82x
Regency Village was a mix of resident owned homes and park owned homes. The seller left a number of homes vacant throughout most of the year for seasonal farm workers, creating volatility and unpredictability in the cash flows. Minimal work had been done to maintain the property throughout the years and the sellers kept poor records, leading the property to be non-financeable at acquisition.
Stone Capital Investors transitioned Regency Village from a seasonal worker community with minimal market value to a full resident owned community. Lot rent was increased to market and we continued to make targeted improvements to the community, instilling our community rules and standards. The property was positioned for the infill of 35 vacant lots upon exit.
Timeframe: 37 months
In June, 2018, the Stone Capital Team and investment partners purchased an 89-lot mobile home park in Byron, Georgia.
Original Acquisition Cost: $425,000
Total return: 3.18x
Grove Estates was initially acquired out of foreclosure, with 26 existing residents and a community that was underserved. Most residents were a negative influence, roads were in ruin, and most of the homes were owned by the previous owner who just lost the property in foreclosure to the bank.
Stone Capital negotiated with both the city and the former owner to take possession of the homes that had been left behind in the foreclosure. After an extensive rehabilitation that included residents transitioning to home ownership, road, infrastructure and amenity upgrades, and the infill of the vacant lots, investors received 2 liquidity events. A refinance at a $1.75 million valuation, and by month 56, an exit price of $2.6 million.
Timeframe: 56 months
In August, 2020, the Stone Capital Team and investment partners purchased a 92-lot mobile home park in Wetumpka, Alabama.
Original Acquisition Cost: $1,050,000
Total return: 2.55x
Wetumpka was a mismanaged community with most homes being tenant owned and with residents paying significantly below market rent. Some residents were problematic, making the community feel unsafe to those who lived there and the land in general was not taken care of.
Stone Capital Investors transitioned this property with paved roads, lighting installations, and the removal of troublesome residents. We brought in new homes, new residents, and created a functioning community from the ground up.
Timeframe: 23 months
In February, 2021, the Stone Capital Team and investment partners purchased a 98-lot mobile home park in Douglas, Georgia.
Original Acquisition Cost: $1,400,000
Total return: 2.04x
Grove Park was purchased at a cost of $1.4 million, with 96 tenant owned homes paying rent that was 60% below market.
Stone Capital Investors cleaned up the park, lot rent was increased to market, and we instilled our community rules and standards. Under our ownership, the property operated with robust efficiency, including a 70% net operating income margin.
Timeframe: 23 months
In February, 2021, the Stone Capital Team and investment partners purchased an 85-lot mobile home park in Adel, Georgia.
Original Acquisition Cost: $1,200,000
Sunshine Acres was a mismanaged park, with rent well below market and suffering from low occupancy due to prior management and resident issues.
Stone Capital cleaned up the community by removing debris, uninhabitable homes, and made strategic improvements to the park owned homes acquired at acquisition. We transitioned the park owned homes to resident ownership, while also improving the community’s occupancy from 34% at acquisition to 76%. As a result of our efforts, the community’s revenue has thus far increased over 170% since taking ownership.