Mobile Home Park Details

Purchase Method: Cash, New Loan
Cap Rate: 7.0%
Listing ID: 1704525
Posted On: Jul 2, 2022
Updated On: May 3, 2023

Description

Rugby MHP portfolio is a 102-pad mobile home community located on 16.24 acres in Rugby, ND. This portfolio consists of three separate parks in the same city, with two being right across the road from one another (Parkland Courts North, Parkland Courts South, & Eastgate Estates). The park is believed to have been developed in the early 1980's and has served the community by offering an affordable housing option since that time. The property is zoned MH Park Space. The park is not located in a flood zone. The park is presently managed by a 3rd party professional management firm. The park also has a maintenance man.

The pad size varies, but the majority are single section pads between around .15 to .20 acres. There are currently three trailers that need to be removed from the premises. Of the 70 occupied pads in the park, 64 of the trailers are TOH's currently averaging between $230 and $250 per month. Three additional trailers are POH's that are renting between $450-650 per month. Two abandoned trailers are in the park and they have liens on them from the local government for back taxes. The current owner is bringing the pad rental rates up to market levels. The rates were last raised in August of 2021. Tenants have been notified that their rent will be increasing an additional $20/month starting on August 15th, 2022.

PUBLIC WATER & SEWER! The Rugby MHP portfolio is on city water & city sewer! The underground pipe material is believed to be PVC. Residents are direct billed for all utilities & trash. The park roads are asphalt & gravel. The roads in Parkland Courts North & South are considered to be in average condition. The gravel road in Eastgate Estates needs some attention. The tenants mow their own pads and the park mows the common areas. The park utilizes a 3rd party vendor to push snow as needed.

The park utilized annual leases. There are currently five tenants behind in their rent but are "catching up".

MR. LANDMAN, LLC is a licensed real estate firm in the State of North Dakota under License #0005744034. Jonathan Fisher is a licensed broker in the State of North Dakota under License #10982.

Location

Rugby is a city in, and the county seat of, Pierce County, North Dakota. The population was 2,509 at the 2020 census, making it the 19th largest city in North Dakota. Rugby was founded in 1886. Rugby is often billed as the geographic center of North America.

Rugby has approximately 200 businesses ranging from retail stores to national manufacturers with an infrastructure designed to take products where they need to go - across the country or around the globe. With a workforce to support enterprises with as many as 370 employees, the labor force in Rugby remains both strong and entrepreneurial, including industries as diverse as agriculture, manufacturing, retail, renewable energy and health care. Major employers include Rugby Public Schools, Heart of America Medical Center, Rugby Manufacturing, and Envision.

There are a lot of little things that make Rugby a great place to live, raise a family, and start or expand a business. Whether it's playing in the community orchestra, acting in a Village Arts theatre production or enjoying one of the many parks, there's no shortage of activities here in Rugby to get involved in. Other activities include the Prairie Village Museum, Lyric Theatre, Rugby Golf Course & Country Club, Music in the Park, and the Pierce County Fair. Rugby is just a short drive from multiple lakes and the International Peace Garden. Hunting, fishing, and snowmobiling are also greatly enjoyed in the area.

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