INVESTMENT HIGHLIGHTS
1. SCALED ENTRY INTO THE STRONG EL PASO MARKET
EXECUTIVE SUMMARY
Berkadia Manufactured Housing is pleased to present the El Paso Portfolio. This offering consists of three communities and features 115 total sites. Strategically located in the El Paso MSA, these assets have great accessibility to major highways, making it a key gateway for goods and services between Mexico and the U.S. Additionally, these communities are strategically positioned less than 30 minutes apart allowing ownership to benefit from shared staffing, helping to reduce costly management oversight and expenses. The portfolio is currently operating at an economic occupancy of 85% and features below market rents–providing value-add in the form of future rents and occupancy upside. Lastly, all parks feature public water utilities that are currently being recaptured. This offering presents an opportunity to invest in a portfolio with scaled entry into the robust El Paso area, as well as rental upside and value-add opportunities.
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Located in west Texas along the southern border of New Mexico, the El Paso, Texas, Metropolitan Statistical Area (MSA) borders the Rio Grande River, home to one of the largest international border crossings and the second-largest military base, Fort Bliss. The El Paso region represents one of the largest manufacturing centers in North America and is recognized as globally competitive due to El Paso's largest bilingual and bi-cultural workforce, the largest in the Western Hemisphere. Additionally, Fort Bliss is the area's largest employer, supporting over 47,630 direct jobs and generating $22.9 million in annual economic activity locally.
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EL PASO 3 PORTFOLIO
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Berkadia®, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is an industry leading commercial real estate company providing comprehensive capital solutions and investment sales advisory and research services for multifamily and commercial properties. Berkadia® is amongst the largest, highest rated and most respected primary, master and special servicers in the industry. This advertisement is not intended to solicit commercial mortgage loan brokerage business in Nevada.
© 2024 Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Berkadia® and Berkadia Commercial Mortgage® are trademarks of Berkadia Commercial Mortgage LLC. Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. Tax credit syndication business is conducted exclusively by the Berkadia Affordable Tax Credit Solutions group. For state licensing details for the above entities, visit: https://www.berkadia.com/licensing/.
Berkadia®, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is an industry leading commercial real estate company providing comprehensive capital solutions and investment sales advisory and research services for multifamily and commercial properties. Berkadia® is amongst the largest, highest rated and most respected primary, master and special servicers in the industry. This advertisement is not intended to solicit commercial mortgage loan brokerage business in Nevada.
© 2024 Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Berkadia® and Berkadia Commercial Mortgage® are trademarks of Berkadia Commercial Mortgage LLC. Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. Tax credit syndication business is conducted exclusively by the Berkadia Affordable Tax Credit Solutions group. For state licensing details for the above entities, visit: https://www.berkadia.com/licensing/.
hunter larocca
Director
402.227.9643
hunter.larocca@berkadia.com
Brian Hummell
Director
614.468.5773
brian.hummell@berkadia.com
Kevan Enger
Senior Managing Director
407.494.8541
kevan.enger@berkadia.com
Ian Hilpl
Managing Director
315.406.0900
ian.hilpl@berkadia.com
This portfolio presents the opportunity to gain immediate scale by acquiring 115 sites across 3 communities. El Paso is the sixth largest city in Texas and the 22nd largest city in the United States. This large metropolitan area, located along the Texas-Mexico border, boasts a business-friendly operating environment and a high quality of living. El Paso is a top 20% U.S. performing economy and continues to experience economic growth by attracting new businesses.
In recent years, El Paso has experienced significant growth. Between 2010 and 2020, the city’s population grew by over 10%, making it one of the fastest-growing cities in Texas. This growth has been driven by a strong economy, with El Paso serving as a hub for international trade and commerce. The city is home to a number of major employers, including the Fort Bliss military base, the University of Texas at El Paso, and several large hospitals.
2. BELOW MARKET RENTS
The rental comparison analysis illustrates high occupancy rates across the market, as well as an average lot rent of $477. Lot rents for the El Paso Portfolio are well below the surrounding market competition, leaving a significant opportunity to raise lot rents. By implementing a $25 across the board in Year 1, GPR could increase by over $34,000.
3. OPERATIONAL EFFICENCIES LIMITING MANAGEMENT OVERSIGHT
The El Paso Portfolio is tailored to ownership benefits due to several key operational efficiencies, including:
• Public Water at all communities that is recaptured by Metering or by Flat Fee
• Trash Recapture at Mi Casita and Montana Vista
• Shared Management Capabilities due to Close Proximity
• A big initiative to repair and sell off Park Owned Homes
These characteristics along with a push to start recapturing sewer expenses will allow a new owner to increase income and in turn, lower their expense ratio.
EL PASO 3 PORTFOLIO
Jay Gunn
Broker of Record
TX Lic. #9002106