Woodland Estate Mobile Home Park is located in rural Kokomo, IN. It is a large park that consists of 106 pads on 20.94 acres. Kokomo is currently the 14th largest city in the State of Indiana with a population of 57,836 residents. At the present time the park only has 20 paying tenants (19% occupied). The average rental rate is between $250 & $275 per month, depending upon the length of time the tenant has lived in the park. Neighboring mobile home parks are currently charging between $275 and $335 per pad, so there is some upside to capture once the park has been stabilized and cleaned up. The rents have not been raised in nearly four years. The park is on a private well and a water treatment plant. The sewer lines were repaired in 2008 with a plastic coating inside of the existing clay title (bursting system). The water risers are schedule 40 PVC. The park has electric & gas meters to the pads. No water meters are currently present on the facility. The road is asphalt and needs some attention (owner is guessing about 20 bags of patch would get it back to average condition). At the present time one tenant is behind in his rent, and they will be filing on him on August 1st.
This is a park that that should interest MHP operators who have previous experience in turn-around situations. Woodland Estates is currently operating without a license from the State of Indiana…however has yet to be fined. The lack of a license transfers to the new owner of the park, so whoever buys the park will need to correct the following issues to get the State approved license back. (Patch roads, clean-up park debris, and secure vacant/empty trailers). There are currently 20 empty trailers on the premises. The owner speculates that 15 of these could be rehabbed and be made rentable going forward. However the owner only has title to a handful of these empty trailers so it will take some legwork by the next owner to secure these from the state.
The owner will consider owner financing on a case by case basis with a minimum of $325,000 as a down payment.
