Contact Information

Mobile Home Park Details

  • Price: $1,350,000
  • Purchase Method: Cash, Seller Financing
  • Property ID: 1296864
  • Posted On: Jul 29, 2020
  • Updated On: Aug 10, 2020

Property Description

*Listing Broker: Jennifer Stein, JDS Real Estate Services Inc.*

Link to Offering Memorandum & Public Files:

https://drive.google.com/drive/u/4/folders/1T5r296wa8NpFPh1Qr2CYTPJ8u9bwtB5C

This is a unique opportunity to purchase a 251-space park with major upside potential. The property is approximately 28% occupied. The current management group has allocated resources and efforts to clean up the state of the park, removing approximately 77 homes that were previously abandoned and/or not currently useable. Additionally, funds were utilized to improve the state of the roads with work ranging from grading and leveling to repaving and pothole repair.
Current ownership has made sizable investments in Capital Expenses, teeing the property up for an incoming buyer, these include: Repaving of roads at entrance/exits ($97,325) + Grade and Level, Compact base ($24,875), Landscape work ($941.84), Concrete Slabs for dumpsters with enclosures ($22,235), Move and temporary block and level unit ($825), Electric work (Permit for 60 homes)($7,200), Demo Permits for 83 homes ($6,473.17), Home Demos ($116,250).
Water, Sewer, and Electric are all under a RUBs bill-back system. Current Owners have initiated conversations with Consumers Energy to install a new electrical system at the park allowing for a direct-bill to tenant system. An incoming buyer would easily be able to pick up where they left off and implement, allowing for increased efficiency, and a significant reduction in utility expense. Additionally, a majority of water/sewer expense is currently being recaptured via the RUBS program. This RUBS program will reduce expense exposure to incoming buyer.
Since 2014 the City of Flint has made huge strides to fix the existing water issues. In 2016, the U.S. Senate approved an allocation of $100 MM in funds to address lead contamination in the Flint Water System, becoming available March 2017, and implemented by the EPA.By December 2017, the city identified and replaced more than 6,000 lead service lines that had been causing the lead contamination issue.
In April 2018, the MDEQ reported the ***Flint water is now below the federal lead action level***, meaning it is now safe. The city continues to use a data-driven approach to identify any remaining lead pipes that may exist, although it is believed that most of the issues have already been remediated.
Flint Michigan has a strong MH demand with many of the nearby parks exhibiting high rental rates and high occupancy. Datacomp JLT Market Survey (available upon request) will show that, parks receiving capital investment in both home & park CapEx, are able to attain strong rental and occupancy rates.
Additionally, by executing on the opportunity with Consumers Energy to replace the electrical infrastructure, much of the expense exposure would be eliminated, sending more of the cashflow direct to the bottom line. This park represents a fantastic value-add opportunity!

Location

--Proximity to Airport: Located on the northeast boarder of Flint, MI. Flint is situated between Flushing and Genesee Township,
and is approximately 1 hour north of Detroit. Bishop International Airport (FNT) is 10 miles from the property.

-- Proximity to Near By Cities: Located between Flint and Mt. Morris Township, Genesee Forest • Mobile Home Park provides
quick access to the local cities.

-- Amenities Near By: There are numerous retail, dining, education, worship, recreation, and other amenities within close proximity to the property.

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

Park Information

Number of MH Lots: 251
Total Occupancy: 29.0 %
Year Built: 1965
Average MH Lot Rent: $340
Size: 23 acre(s)

Financial Information (Actual)

Gross Income $389,303
Debt Info

Utility Information

Water: City
Water Paid By: Tenant - RUBs
Sewer: City

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