Hidden Valley Village offers a platform to take an existing manufactured housing community with 90+ pads to the next level. It’ll take some TLC and “elbow grease” to get it stabilized, ownership says, but the opportunity is there by:
1) Placing new or used homes on vacant pads to sell
2) Placing new or used homes on vacant pads to rent as Park-Owned Homes. Home rentals estimated at $400, not including ground rent
3) Increasing ground rent
4) Setting up a rent-to-own program
5) Expanding the park*
Nearby MH parks are at high occupancy and this one could be too. (Owner is absentee and hasn’t attempted to lease up vacancy.) Current occupancy is approx. 20%, with gross income of about $3,000 per month at a rent of $180 per pad, whereas market rent is closer to $200-225/month for ground lease. Proforma value in today’s market is estimated in the $3 million range if fully leased.
Nearby manufactured housing dealers report the rental market is strong if a new owner were to work with a dealer to place homes on vacant pads either as straight rentals or rent to own. ”Tons of opportunity” one noted. Another estimated a 3-4 year period to stabilize park rentals.
Hidden Valley Village is located across from a Walmart Supercenter and several other national retail tenants, providing a prospective exit strategy for re-development in the dominant retail corridor in Bedford County.
One of the drivers to boosting occupany, says current ownership, is to attract tenants (retirees or otherwise) who want to take advantage of the recreational opportunities at nearby Smith Mountain Lake (30 miles from Bedford) but can’t afford to live there. Created in 1963 by the impounding of the Roanoke River, Smith Mountain Lake is the largest lake in Virginia.
* NOTE: Any expansion would require upgrades to include paved road, sidewalks, streetlights, etc. Consult with Town of Bedford for specific requirements/approvals.
