Mobile Home Park Details

Purchase Method: Cash, New Loan
Cap Rate: 9.4%
Listing ID: 3400713
Posted On: Jul 20, 2023
Updated On: Sep 19, 2023

Description

Sunrise Mobile Court is a beautiful 45-pad affordable home community located on 4.92 acres in Cedar Rapids, IA. The age of the park is unknown. The property is zoned multi-residential 3+ (MHP) and the park is presently in compliance. The park is not located in a flood zone. The park has a onsite manager. The park utilizes various companies & individuals for maintenance.

The size of the pads were not provided to the listing agent. There is one vacant trailer that need to be removed from the premises. Of the 45-pads in the park, 27-pads are occupied with tenant owned homes averaging right at $400/month, five are POH's, five are RTO's, and seven are empty pads ready for infill. The pad rental rate was last raised in October of 2022. All of the pads have electric, water, & sewer to the site. The park utilizes leases and currently has a combination of annual & month/month (TOH) leases. Currently none of the tenants are behind in rent. The rent is being raised to $430/month on November 1st, 2023.

CITY WATER & SEWER!!! The composition of the water pipes was not provided to the listing agent. The amperage of each electrical meter was not provided to the listing agent. The park has electric meters & gas meters to each pad and is directly billed by the provider. The park is currently paying for the water bill so adding meters might offer a value-add component for the next owner (currently utilizing RUBS). The roads through the park are paved asphalt and are considered to be in "good" condition by the current owner. The tenants are responsible for mowing their own space. The park mows the empty pads and common spaces. The park takes care of snow removal (as needed). The park provides garbage service (dumpster).

Since the owners have purchased the park they have made several improvements:

•Infill on three previously vacant lots
•Removed and evicted the previous manager
•Replaced rainwater "sump pump"
•Removed eight trees and trimmed several more
•Raised rents closer to market levels
•Established stable tenant base by proactively evicting problem tenants
•Installed reliable on-premises park managers and deployed institutional grade operational infrastructure to enable seamless remote management

Value-add opportunities are present with:

•Infill on the current seven vacant pads plus the pad being occupied by a teardown POH.
•Continue to raise rents to market levels.
•Rent out the building on the property as a laundry facility or storage.
•Addition of water meters to replace the current RUBS system.

Additional DD items can be found in the deal room:
https://drive.google.com/drive/folders/1VuOh8vRX4Y4PSmBc4xgzTx
GvZ8vEWQK1?usp=sharing

MR. LANDMAN, LLC is a licensed real estate firm in the State of Iowa under license #F06199000. Jonathan Fisher is a licensed broker in the State of Iowa under license #B68919000.

Location

Cedar Rapids is the second-largest city in Iowa, United States and is the county seat of Linn County. The city lies on both banks of the Cedar River, 20 miles north of Iowa City and 100 miles northeast of Des Moines, the state's capital and largest city. It is a part of the Cedar Rapids/Iowa City region of Eastern Iowa, which includes Linn, Benton, Cedar, Iowa, Jones, Johnson, and Washington counties.

As of the 2020 United States Census, the city population was 137,710. The estimated population of the three-county Metropolitan Statistical Area, which includes the nearby cities of Marion and Hiawatha, was 255,452 in 2008. Cedar Rapids is an economic hub of the state, located at the core of the Interstate 380 corridor. The Cedar Rapids Metropolitan Statistical Area (MSA) is also a part of a Combined Statistical Area (CSA) with the Iowa City MSA.

Cedar Rapids is nicknamed the "City of Five Seasons", for the so called "fifth season", which is time to enjoy the other four. The symbol of the five seasons is the Tree of Five Seasons sculpture in downtown along the north river bank. The name "Five Seasons" and representations of the sculpture appear throughout the city in many forms.

Linn County is a county located in the U.S. state of Iowa. As of the 2020 census, the population was 230,299, making it the second most populous county in Iowa. The county seat is Cedar Rapids. Linn County is named in honor of Senator Lewis F. Linn of Missouri. Linn County is included in the Cedar Rapids, IA Metropolitan Statistical Area.

The economy surrounding the Cedar Rapids, IA market is quite vibrant. Iowa is a very business friendly, landlord friendly state. Here is a list of the largest employers in Linn County, IA.

•Rockwell Collins (7,162 employees)
•Mercy Medical Center (2,862 employees)
•Cedar Rapids Community Schools (2,860 employees)
•AEGON Insurance Group (2,632 employees)
•St. Luke's Hospital (2,400 employees)
•Amana Refrigeration Products (2,300 employees)
•MCI (1,880 employees)
•City of Cedar Rapids (1,700 employees)
•Hy-Vee Food Stores (1,691 employees)
•Alliant Energy (1,650 employees)
•McLeodUSA Incorporated (1,645 employees)

Sunrise Mobile Court is one of three parks in Iowa owned by the same ownership group. They are available separately or as a portfolio. Here is the distance from Cedar Rapids to the other two parks:

73 miles from Mount Pleasant, IA
123 miles from Albia, IA

Interested in purchasing this mobile home park? Get pre-qualified for a loan.

Get Financing