Contact Information

Jon Fisher

License: 471.020503 (IL) 18000549 (IN) 117228 (SC)

Mobile Home Park Details

  • Price: $1,350,000
  • Purchase Method: Cash, Seller Financing, New Loan
  • Cap Rate: 4.5%
  • Property ID: 1248273
  • Posted On: Apr 28, 2020
  • Updated On: Apr 28, 2020

Property Description

Melrose Mobile Home Park is located in an upscale rural subdivision near Quincy, IL. Melrose MHP was purchased by the current owner back in 1995 with plans for 131 pads to be built. Although the park was not developed to the original size & scale of the original developer, the current owner has greatly improved the property to make this one of the nicest mobile home communities that you will find anywhere in the country.

Melrose MHP is on city water and that is paid by the owner of the park. The pads are individually metered for electricity & gas. The sewer is handled by the park via their three stage lagoon system. Keep in mind that this lagoon system was originally built to handle 131 pads so it is operating at only 40% of legal capacity currently. The lagoon system operates under an NDPES permit with the Illinois EPA and is current with all testing and requirements. The park employs a licensed wastewater operator to handle all EPA testing and reporting. Testing logs and results are available for your inspection.

Melrose MHP began to expand in 2015 when the current owner undertook the task of developing Melrose North…a 12 pad, 55+ adult community. The preliminary dirt work was contracted, and they also did a $48,000 asphalt overlay on the streets in the original portion of the park. In 2016 they completed the water & sewer mains in Melrose North, as well as individual service connections. They also extended the electrical mains and meter pedestals to each pad. The concrete street was paved as well as eight additional drives and garage floors, as well as two 24’ x 24’ garages with attached 12’ x 16’ breezeways. They also added the 24’ x 32’ community room on top of a full basement which acts as the storm shelter for the community. Fencing has been installed around Melrose North, and a new French drain was installed to alleviate some lingering drainage issues the park had been facing earlier. Landscaping and plantings were initiated and continue to this day.

Since 2016 the owners have built two more 24’ x 24’ garages with breezeways and drives, and purchased a two bedroom, 2.5 bath showcase home. The owners are beginning an aggressive advertising campaign in the spring of 2020 to fill the pads in the new 55+ section of the community.

This is a beautiful park in a beautiful location. To the southwest you can see the beautiful campus of John Wood Community College. The park is located in the midst of many executive and rural estates. The park is approximately one mile south of major development that includes Lowes, Home Depot, and other national retailers.

MHP rents could likely be increased without any significant pushback from tenants as they realize they are getting a lot of bang for their buck in this community. 35 out of the 39 pads are occupied in the all age community currently with lot rent at $210 for 1-2 residents, and an additional $10 per resident. The lot rent for Melrose North is $450 per month.

There is additional ground to the west that could be purchased to expand the park fairly economically as that section of the park borders the existing sewer mains

Amenities

  • Club House
Interested in purchasing this mobile home park? Get pre-qualified for a loan.

Park Information

Community Type: All Age
Number of MH Lots: 51
Total Occupancy: 73.0 %
Year Built: 1950
Average MH Lot Rent: $210
Size: 16 acre(s)

Financial Information (Actual)

Gross Income $99,748
Operating Expense $39,231
Net Operating Income $60,517
Expense Ratio 39.3 %
Debt Info

Lot Information

Singlewide Lots: 39
Doublewide Lots: 12
Triplewide Lots: 0
Park Model Lots: 1

RV Information

Number of RV Lots: 0

Utility Information

Water: City
Water Paid By: Park
Sewer: Septic

Park-Owned Homes

Number of Park-owned Homes: 0

Other Listings by Jon Fisher See More

Similar Mobile Home Parks for Sale