Applewood MHC is an all-age 156-site
community (plus 144 storage units)
located in a desirable market within
an hour drive to Metro Denver and
1.5 hours to Fort Collins. There is
significant value-add potential and
relatively low percentage of parkowned
homes.
– The community is serviced by municipal water/sewer and
billed back to the tenants at a flat rate of $80 per month
(effective January 2023).
– Current owners purchased the community in December
2021 with 55 vacant sites. After their first home order, 31
empty sites remain. Demand has been impressive, and
they have successfully rented all rent-ready homes within 1
month of obtaining certificates of occupancy. Occupancy as
of November 2023 is up to 76% (119 sites), an increase of
13% (20 sites) from October 2022.
– Along with strong demographics and lack of affordable
housing in the area, this presents a significant value-add
opportunity for a potential buyer. Increasing occupancy by
15% (23 sites) would add over $87,000 of annual site rental
revenue for a new owner.
– The offering also includes 23 brand new 2022 model homes
that were recently brought into the community, of which
22 have already been filled with 1 more expected move-in
by the end of 2023. The new homes are from Clayton and
Champion with an average width/length of 70ft by 16ft
(average 1,100 square feet).
– There are 37 home notes that will be sold with the
community with a current balance of approximately
$676,000 with an average interest rate of 11% and
remaining term of 12 years.
– The community has 144 storage units available for rent, of
which 136 are currently occupied paying an average of $53
per month.
– The community has an attractive layout with a subdivision
feel featuring off-street parking, paved roads, and
spacious lots.
– Within a 5-mile radius of the community, the average
household income is $79,82 and expected to rise to $90,695
by 2027. Average home values within the same radius are
$220,193 and expected to rise to $277,628
by 2027.
– In 2020, Colorado passed a bill requiring a park owner to
provide tenants an effective right of first refusal to buy the
park. The bill was updated in 2022 to include additional
provisions. The Owners notified the tenants on Feb 1, 2023
when the listing agreement was executed and Owner
never received an offer from the residents. Another notice
will need to be sent after going under a purchase and sale
agreement. Please click here for further details:
https://cdola.colorado.gov/mobile-home-park-sales.