Mobile Home Park Details
- Purchase Method: Cash, New Loan
- Listing ID: 1020844
- Posted On: Jan 7, 2019
- Updated On: Dec 30, 2021
Description
OFFERED AT $950,000 / 8.7% CAP RATE - At the offering price of $950,000, the property yields an 8.0% cap rate on 2017 income and an estimated 8.7% cap rate on projected 2019 income.
42 UNITS / $22,619 PER UNIT - The project consists of 42 units: 36 TOH and 6 POH (including 1 OFC unit that is modeled w/o rental income). TOH Units average $282 per lot, and POH units rent for $300 monthly.
93% OCCUPANCY - Only three spaces were vacant as of the Dec-2018 rent roll, all POH units. This offers a prospective buyer stability with some upside potential. The cash flow model assumes an ongoing 7% general vacancy deduct, reflecting current occupancy levels.
COVERED LAND PLAY - The site's desirability for higher and better uses creates the potential for an investor to hold the property for future development while still generating a significant return on their investment.
CITY TRASH/SEWER - The property benefits from city provided trash and sewer services, costs currently included in tenant rents, along with well water service. Electricity is direct billed. There is no natural gas service at the site.
Location
CITY POPULATION OF 100,000 - Las Cruces is medium sized city with a population of 101,759 residents (4.2% growth since 2010) and is considered part of the larger El Paso MSA which counts over 1 Million residents. El Paso is a quick 50 miles to the southeast.
INCOME AND HOUSING - The median household income stood at $30,375 for the 2010 Census. Zillow estimates the typical home value at $169,700, up 7.5% YOY and the Zillow Rent Index comes in at $1,052 per month, up 4.0% YOY (Dec-2018).
MAJOR INTERSTATE CROSSROADS - Las Cruces sits at the intersection of I-10 and I-25, making it a major crossroad point for travelers heading north to Albuquerque, east to El Paso or west to Phoenix.
DEFENSE/AEROSPACE ECONOMY - Las Cruces is home to the Virgin Galactic HQ and Spaceport, the White Sands Missile Range and a NASA Test Facility - all of which contribute significantly to the cities employment base. It is also home to New Mexico State University with a student body of almost 15,000 at the Las Cruces campus.
SUBJECT PROPERTY - The subject property is located on the western end of town, less than a half mile east of the Rio Grande and just over one mile north of I-10. Picacho Ave (NM HWY-70) is a major E-W arterial connecting with Main St in Downtown Las Cruces around two miles due east of the property site.
Park Information
| Community Type: | All Age |
| Number of MH Lots: | 42 |
| Total Occupancy: | 93.0 % |
| Size: | 4 acre(s) |
Utility Information
| Water: | Well |
| Water Paid By: | Park |
| Sewer: | City |