Capstone is pleased to present the North Dakota MHC Portfolio. This offering features 338 sites across 4 communities: Devils Lake, Minot, Grafton, and Larimore. Named after the cities they are located in; the parks span the state of North Dakota. The portfolio benefits from operational efficiencies, such as public utilities and a low number of park-owned homes. The inventory homes make up only 8.6% of the portfolio, greatly reducing repairs and management oversight costs. Furthermore, the residents at each community pay for their utility usage through direct-billing or submetering and a flat fee for trash. The current water & sewer system has room for improvement for a new owner. Current ownership did not maintain a large operating footprint in these ND markets, and therefore, leaks were not detected quickly enough, leading to lost recapture opportunities. The lean management team in these markets also missed opportunities to properly winterize some vacant homes, which contributed to lower recapture rates. An operator with more dedicated resources locally will be able to respond to the unique challenges that the ND climate presents for water and sewer systems. Additionally, the portfolio is operating at 71% occupancy, and with 20 vacant park-owned homes to fill, this would increase ERI by $107,000 at the current lot rents. This offering presents the opportunity to acquire a mid-sized portfolio in North Dakota with public utilities and value-add components.

• Upside In Filling Vacancy
• Low Percentage of Park-Owned Homes
• Public Utilities
• Opportunity to Improve Utility Recapture