Contact Information

Jon Fisher
License: 471.020503 (IL) 18000549 (IN) 117228 (SC)

MR LANDMAN LLC

CONTACT BROKER

Price: $550,000
Purchase Method: Cash, New Loan
Cap Rate: 18.6%
Listing ID: 6753557
Posted On: Oct 23, 2024
Updated On: Nov 1, 2024

Description

Alpha Park is a 19-site mobile home community located on 1.60 acres in Eureka, IL. The park was developed in the 1950's and has served the community by offering an affordable housing option since that time. The property is zoned MHP. The park is not located in a flood zone. The park is presently self-managed by the long-term owners of the property. The owners also currently handle all of the maintenance for the park.

The average pad site is 0.08 acres. The pads are predominantly 12 x 60 (see rent roll for full breakdown of pad sizes). There are currently not any trailers that need to be removed from the premises. Of the 18 occupied pads in the park, all are POH's averaging $625/month. Rents are below market levels and should be considered a value-add component for the next owner. There are currently two tenants behind in their rent but not by a significant amount. The park utilizes annual leases that transition into month-to-month. The tenants currently pay their rent by dropping it off at the office or handing it to one of the owners. The trailers are predominantly 80's models with a few 70's models.

Alpha Park is on CITY WATER & CITY SEWER! The underground water pipes are PVC and they were replaced approximately 10-years ago. The sewer lines are six-inch clay tile. The electrical pedestals are believed to be 100 amps. The park is currently paying the water/sewer bill for the tenants (perfect candidate for water meters!). The park is also paying for Garbage removal. The tenants are direct billed by their respective providers for electric and gas. The road in front of the park is owned & maintained by the City of Eureka. The park road is asphalt and is considered to be in extremely good condition. The park mows the entire park. The park utilizes a local contractor for snow removal.

The current owners have owned this park for 33 years! There is no deferred maintenance for the next ownership group! From the road to the skirting to the roofs...immaculate. Trailers are older but were painted about 10-years ago and show nicely. The majority of trailers only have one tenant in them. Many of the tenants have been with them for nearly a decade.

When asked what they would continue to focus on if they were not selling the park:

"Raise rents. We've not been as aggressive in this department as
we perhaps should have been."

Location

Eureka is a city and the county seat of Woodford County, Illinois. The population was 5,295 at the 2010 census. Eureka is part of the Peoria, Illinois Metropolitan Statistical Area.

Eureka is a small community centered on the intersection of what is now U.S. 24 and Illinois 117. It is also one of the towns along the Ronald Reagan Trail, a series of roads that connect towns in central Illinois that were of importance to Reagan's early life. President Reagan attended and graduated from Eureka College.

The median home cost in Eureka is $161,400. Home appreciation the last 10 years has been 26.6%. Home Appreciation in Eureka is up 7.3%.

The median age of Eureka real estate is 45 years old.

Renters make up 32.6% of the Eureka population.

The average one-bedroom unit rents for $710/month.
The average two-bedroom unit rents for $900/month.
The average three-bedroom unit rents for $1,170/month.

Eureka has an unemployment rate of 4.5%. The US average is 6.0%.

Future job growth over the next ten years is predicted to be 20.8%, which is lower than the US average of 33.5%.

The Median household income of a Eureka resident is $48,902 a year. The US average is $69,021 a year.

Woodford County is a county located in the state of Illinois. The 2020 United States Census listed its population at 38,467. Its county seat is Eureka. Woodford County is part of the Peoria, IL, Metropolitan Statistical Area. Its name comes from General William Woodford, an officer of the American Revolutionary War who served at the brutal military encampment at Valley Forge, Pennsylvania.

The Peoria Metropolitan Statistical Area, as defined by the United States Census Bureau, is an area consisting of six counties in Central Illinois, anchored by the city of Peoria. As of the 2020 census, the area had a population of 402,391. The City of Peoria, according to the 2020 US Census Bureau, has 113,150 people.