Redding Portfolio

We are excited to share that we have closed on the largest acquisition ever in all the BoaVida Funds – the Redding Portfolio. We closed escrow Dec. 15 on a 777-space, $65M, three-community portfolio located in Redding, CA. These three large communities are institutional-quality assets with strong locations within the local market. We believe that the acquisition price of $83,000 per space represents a significant discount to recent market pricing and the value is further enhanced by highly accretive assumable loans. The two loans have a blended interest rate of 3.28%, loan to value of 41%, and 4.25 years of remaining term. This low interest provides for strong initial cash flows while the remaining term and low leverage provide us time to increase the net operating income significantly prior to our first refinancing. This acquisition also included 57 park-owned homes, with the majority of these homes being 2010 and newer, and we believe that the aggregate value of these homes exceeds $2M. 
 
These communities are comprised of nearly 100% double-wide spaces with high-quality amenities including swimming pools, clubhouses, lush landscaping, and wide roads. Two of the three communities are in quiet suburban locations that cater to retirees and more affluent residents, while the other community is located in the central park of the city. The communities have been well-maintained with little deferred maintenance. The portfolio is 97% occupied, and we believe we can quickly take occupancy to 100%. In addition, given the quality of the communities with all double-wide spaces, we are confident we will be able to continue to increase rents with the market without risk of losing tenants. 
 
Because of the large size of this acquisition, the total equity raise of $40,290,000 was divided among the 2023 Fund and several other BoaVida Funds and investors. Also, as this investment represents a more stabilized asset profile than usual BoaVida Fund deals, we have structured the deal with the profit split at 70% to the investor/30% to BoaVida, and the preferred return increased to 6%. The first-year cash flow to investors is projected to be a strong 4.4% and is expected to increase approximately 1% each year until the first refinance. We are projecting that investors will receive distributions totaling approximately 80% of their invested capital by Year 4 through cash flow and loan refinancing, and distributions totaling approximately 150% of their invested capital by Year 9 when we do a second refinance. 
 
In summary, we are excited to add this high-quality portfolio to the BoaVida 2023 Fund and are confident that the combination of strong cash flow, limited downside risk, and income growth make this a great fit for our investors. 

  • Date Acquired: 15 Dec, 2023

  • Acquisition Price: $65,000,000

  • Spaces: 777

  • City/State: Redding, CA

REDDING WEATHER