Courtside Plaza - mobile home park for sale in Kankakee, IL 1347192

Contact Information

Glenn Esterson

Marcus & Millichap, Charlotte

CONTACT BROKER

Price: $790,000
Cap Rate: 7.6%
Property ID: 1347192
Posted On: Oct 27, 2020
Updated On: Dec 7, 2020

Property Description

https://estersonmhcteam.com/property/courtside-plaza

Please contact the listing agent Dylan Hellberg for more information
dylan.hellberg@marcusmillichap.com (843) 469-0347

Courtside Plaza consists of 24 MH Lots, 21 self-storage units (SS), 12 garage storage units (GS), 3 large garage storage units (LGS), a retail space occupied by an auto shop, and a pump station secured by a ground lease. In the MHP, there are 19 tenant owned homes (TOH) and 5 vacant lots. In the SS building, there are 11 rented units - all 7 large units rented - and 10 vacant units. In the 3 GS buildings, there are 4 rented units and 8 vacant units. In the LGS building, all 3 units are vacant.

The lot rent in the MHP averages $387. The SS rent is $250-$275/month for a large unit and $50/month for a small unit. The GS rent is $60/Month. The auto shop’s rent is $750/month. The LGS units are approximately the same size as the large SS units, so an investor can market these for rent in the $200-$300 range. The pumping station’s rent is $1,350/month.

The ground lease on the pumping station expires 12/31/2024 and has four, 1-year options to renew with a $100/month rental increase at each option. All buildings/units on the property are serviced by public water/ sewer. For the pumping station ground lease, the tenant pays all related expenses except for real estate taxes; for the autobody shop, the tenant is responsible for liability insurance, electrical and gas and the landlord is responsible for all other expenses; and for the self-storage buildings, the landlord is responsible for all expenses. All leases for the SS, GS, LGS and auto shop are month-to-month. Electricity is billed directly to all tenants in the MHP. The roads are paved and in below average condition. This property is NOT in an opportunity zone or flood zone.

The pricing represents a 7.12% cap rate using rental income on actuals using a 56.38% expense ratio. We are asking investors to submit offers at or above $860,000. Our underwriting suggests that once the property is 100% occupied and at market rents, an investor can exit the property at a 7.5% cap rate for $1,571,000.