Case Study: Maltby Light Industrial Covered Land Play

In 2022, we acquired a strategically located mobile home park in Maltby, WA, zoned for light industrial use. The acquisition represents a classic covered land strategy, generating strong interim cash flow while preserving significant long-term redevelopment potential.

INVESTMENT SNAPSHOT

Phase: In Progress

Location: Maltby

Property Type: Mobile Home Park

Acquisition Date: 2022

Purchase Price: $4,025,000

Equity Raised: $1,300,000

Strategy: Opportunistic

INVESTMENT THESIS

Covered Land Play: Acquired below replacement cost with existing mobile home park cash flow covering holding costs, mitigating downside risk while planning for future industrial development.

Strong Interim Income: Stable tenancy and predictable rental collections provide attractive cash returns during the entitlement and redevelopment planning phases.

Zoning Advantage: The site's light industrial zoning aligns with regional trends favoring logistics, distribution, and industrial users, particularly as demand for last-mile facilities in the greater Seattle metro continues to surge.

Value Creation Opportunity: Long-term upside through potential industrial redevelopment, site consolidation, or strategic sale to an industrial operator seeking critical mass in a supply-constrained market.

CURRENT STATUS

Asset Management: Ongoing operations management of the mobile home park to optimize cash flow and maintain community stability.

Predevelopment Work: Initial feasibility studies and site evaluations for future industrial use are underway.

Market Dynamics: Industrial land in the greater Snohomish County region continues to appreciate, driven by limited new supply and sustained demand from logistics, light manufacturing, and tech-adjacent industries.

Exit Potential: Exit options include redeveloping into a build-to-suit industrial asset, selling to a user or developer, or recapitalizing once redevelopment entitlements are secured.