https://estersonmhcteam.​com/property/cooper-lake-mh-rv-park

Contact Dylan Hellberg for more information dylan.​hellberg@marcusmillichap.​com

Value-add opportunity with significant expansion and revenue growth potential.
Cooper Lake MH & RV Park is a year-round, all-ages mobile home and RV park that consists of 8 MH lots and 69 approved RV lots. There are 7 rented park owned homes and 1 vacant park owned home on the MH lots. The average MH lot rent is $300 per month and the average home rent is $407 per month.
Out of the total 69 RV lots, 34 are currently active, 8 more will be active by closing, and 27 require a power pole installment and final inspection from the municipality to become active. 1 power pole can service up to 4 lots, so an investor would need to install about 7 to activate all 27 of the non-active lots. There is an older, tenant owned mobile home on one of the active RV lots. The RV lot rent is $650 per month and the park maintains roughly 60% occupancy on active RV lots.
The park is serviced by a well and septic system that is paid for by the park and included in the rent. Trash is serviced by a dumpster and paid for by the park. Electricity is billed directly to tenants on mobile home lots and is included in the rent on RV lots. The park owned homes are an average vintage of roughly 1985. The roads are gravel and in average shape as our offering price suggests.
A small portion of the property is located in a flood zone. The flood zone affects roughly 8 RV lots in the park, but no mobile home lots. It is believed there are NO restrictions on RV occupancy due to the flood zone. The park is NOT located in an opportunity zone.
The upside on the deal consists mainly of activating the remaining 27 RV lots. If an investor activates all 27 RV lots, maintains the 60% RV occupancy while increasing RV lot rent to $700, and fills 1 vacant park owned mobile home while increasing MH lot rent to $400, they will see roughly 24.6% cash on cash with an exit value of roughly $2.95M at a 7.5% CAP rate.
We are asking investors to submit offers at or above $1,900,000. Given the location and metrics of the park, the deal will qualify for traditional recourse community bank debt.