MUNCY, PA-Atlanta-based Apartment Realty Advisors recentlynetted the sale of the Meadow Brook manufactured housing communityhere. Built in 1968, Meadow Brook is an 83-site, all-age communitylocated in the Susquehanna Valley, about 130 miles northwest ofPhiladelphia. ARA co-directors Todd Fletcher and Andrew Shihbrokered the transaction between the buyer, a local owner/operator,and the seller, Pocono REO Trust, LLC, represented by BerkadiaCommercial Mortgage, LLC.

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"This was a very unique transaction with several unusualcircumstances," Shih tells GlobeSt.com. "The community was an REOasset with a major municipal sewer hookup requirement. In the end,the gross price was $1.4 million--or $16,867 per site--and thebuyer, who ultimately purchased the asset through a 1031 Exchange,received a credit of $550,000 for utility improvements."

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Despite the sewer issues, Meadow Brook is a well-maintained,three-star community. Each site is individually metered forelectricity and the property maintains an onsite water well. PoconoTrust was in the process of planning the community's sewer systemconversion from private septic to municipal service and it includedthat cost in the sale, which will allow the project to becompleted.

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As of September 2009, Meadow Brook was 90% occupied withslightly below market rents. "The buyer saw an opportunity topurchase a fairly stable asset that still had plenty of upsidepotential, especially after the completion of the sewer and roadimprovements," says Fletcher.

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