Contact Information

Jon Fisher

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

Mobile Home Park Details

  • Price: $1,699,000
  • Cap Rate: 9.5%
  • Property ID: 1531642
  • Posted On: Oct 7, 2021
  • Updated On: Oct 7, 2021

Property Description

Hummingbird Hill MHP is part of a two-park, 103 pad portfolio located in the Princeton, IL corridor (parks are approximately 3.5 miles apart as the crow flies). The portfolio is priced at $1,998,000.

Hummingbird Hill is a 77 pad all-age community that offers value add" opportunities as it is presently 60% occupied. In addition to the 77 pads, it also has a SFR that is rented out. Sixteen of the tenants are purchasing their trailers on contract and all future contract payments would go to the new buyer of the park. The park also has two trailers in inventory that can be sold or renovated. Every trailer in this park is owned by the tenants which makes this an ideal candidate for an out of state investor. The lot rental rate is $280 per pad and it was last raised in July of 2020. There are currently five tenants behind in rent, one of the five has entered into a payment plan in an attempt to catch up.

CITY WATER & CITY SEWER!!! That is always the first question that I get so I'll just put that out there and get it out of the way. The underground pipe through the park is composed of 2'' plastic & 4'' cement. Each pad has it's own electric & gas meter which are direct billed to the tenants. Each pad has Metron innov8-VN LTE 5/8 x 3/4 (internet reads) or Badger Model 25 (manual read) water meters. The road through the park is chip seal and the seller describes it as being in average condition. The MHP maintains the roads. Tenants are responsible for mowing their own space. The MHP moves snow as needed. The MHP has two POH's that are available for sale to future tenants (included in asking price).

77 Pads in total:
30 Pads are TOH.
16 Pads are RTO.
1 SFR currently rented.
2 Vacant POH available for sale.

The current owner has done a nice job of adding gravel to the parking drives for each trailer. When asked what improvements they would make to the park if they continued to own it going forward: Continue infilling the park, sell additional vacant homes, & chip and seal the north section of the park.

This portfolio of parks had a number of park owned homes that largely sat vacant for a number of years after the current owners purchased the park. The owner is a contractor by trade and had intentions of high-end renovations prior to selling/leasing these units. With five mobile home parks in two states, combined with three small children, these high-end renovations never came to fruition due to a lack of time. Late in 2020 they decided to rent, give away, or sell on contract a number of these homes. They had a ton of interest and the park filled up quickly. I have every confidence in the financial numbers that they have provided to me. I only bring this up as some lending institutions will require 2-3 years of historical figures. Obviously the financials from 2-3 years ago will not be near as rosy as the current financial picture. Seller financing is NOT an option.

Location

Princeton is a city in and is the county seat of Bureau County, Illinois. Princeton is approximately 115 miles SW of Chicago and located directly on I-80. It would be an approximately 1 hour and 45 minute drive from both Chicago O'Hare & Midway airports. Princeton is also roughly 60 miles east of Davenport, IA and the Quad Cities. Princeton is part of the Ottawa Micropolitan Statistical Area. Due to its location where Interstate 80 meets the Amtrak system, as well as its well-preserved main street and historic housing stock, Princeton has become a popular satellite town for Chicago and the Quad Cities.

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Park Information

Community Type: All Age
Number of MH Lots: 77
Total Occupancy: 60.0 %
Year Built: 1969
Average MH Lot Rent: $280
Size: 11 acre(s)

Financial Information (Actual)

Gross Income $148,320
Operating Expense $33,172
Net Operating Income $161,612
Expense Ratio 22.4 %
Debt Info

Lot Information

Singlewide Lots: 77
Doublewide Lots: 0
Triplewide Lots: 0
Park Model Lots: 0

RV Information

Number of RV Lots: 0
Average RV Lot Rent: $0

Utility Information

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

Park-Owned Homes

Number of Park-owned Homes: 2
Average Rent for Park-owned Homes: $0

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