Russell MHC has gone through
a tremendous turnaround and
the current Owner has done the
“heavy lifting,” cleaning up the
tenant base, changing out the
management staff, and rehabbing
homes and selling them to tenants
mostly through cash sales or under
a short-term RTO program.
– Future opportunity for a buyer to focus on stabilized
property operations such as increasing rents and
converting the remaining rental homes to home
ownership. Most tenants are well below the current
market of $300 per month site rents. Moving all the
tenants to market rents would create $1,000 in additional
monthly income.
– Property is licensed for 62 sites. Owner converted four
sites to RV at one point and these have been under
served. Opportunity to increase marketing to improve RV
revenue or convert the sites back to MH.
– The low-density park is an all-age community with 12 park
owned homes. Of these homes, as of January 2022, 2
are vacant, 7 are pure rentals with an average home rent
of $239, and 3 are RTO’s that will be paid off by the end
of 2022. The park owned homes are included in the sales
price.
– Property is on municipal utilities. Homes are metered for
electricity, sewer and water for which tenants are direct
billed.
– The Midwest Fertilizer Company has announced
plans to locate a $2.4B state-of-the-art manufacturing
plant in Mt Vernon that should bring up to 2,500
construction jobs and then 200 permanent high
paying jobs. Construction is expected to begin
in 2022. https://www.14news.com/2021/06/15/
midwest-fertilizer-moving-forward-with-plans-poseyco-
plant
– The median household income in a 10-mile radius of the
property is nearly $67,000.