Mobile Home Park Details

Purchase Method: Cash, New Loan
Cap Rate: 8.1%
Listing ID: 3845273
Posted On: Oct 16, 2023
Updated On: Jan 5, 2024

Description

•Due to Iowa's new law stating a park owner must give tenants 90-day notice to increase rent, the current owner has already made tenants aware of a price increase from $400 to $430 effective Jan. 1, 2024.

• This park has 21 total lots, but only 14 of them are currently occupied. A new owner could bring in homes to sell to new tenants, rent on contract, or rent as park-owned homes to increase revenues and the value of the property.

•The subject property is served by 100% public utilities, with current
ownership paying for water which is billed back to residents. The
park roads are currently gravel.

• Current ownership lives out of state and utilizes a local manager that
lives nearby. They had worked for the previous owner and know the
property and the tenants well. They are currently paid $175 per month and assist with posting notices and other activities as needed. This would make the property an easy transition for both local and out of state buyers.

Location

The subject property is located in the center of Granger, IA on the NW side of the Des Moines metro. The property is a 25 minute drive to downtown Des Moines. With easy access to HWY 141, the property
provides affordable housing for residents working in the Des Moines
metro. Currently lot rents in the Des Moines metro average $525 per
month, offering new ownership additional upside with this property,
as well as the potential to infill vacant pads in a high demand rental
market.

• The largest sectors of employment for Granger residents include:
Healthcare and Social Assistance, Education Services, Finance, and
Manufacturing. Granger residents' average commute time is around
25 minutes each day for work.

• The yearly median household income of Granger residents is above
$96,000.

• Of the 2,200 people that live in Granger, about 20.7% of them rent
the homes they are currently living in.

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