Prairie View Acres is an all ages, 56 lot Mobile Home Community located in the Waterloo, IA MSA. The property is currently at 75% economic occupancy with 41 Tenant Owned Homes (37 single wides and 4 double wides) and one rented park owned home, and 83% physically occupancy when including the 4 vacant park owned homes on site.
The property also features 11 adjoining acres m/l of farm ground that could likely be developed into additional pads, as well as an additional 4 acres m/l surrounding the lagoon system to the north of the property. Currently the 15 acres m/l of vacant ground is rented for an additional $600 per year to a local farmer.
Lot rents are currently a modest $315 per month as of April 1st, 2024.
This property offers new ownership substantial upside through gradual lot rent increases to align them with the current market rates, and also offers the opportunity for contract sales of the 4 park owned homes, as well as the potential for future expansion and minor infill.
With rural water service located at the road, and city sewer located approximately half a mile away, new ownership could also increase the future value of the property by connecting to public utilities.
Investment Highlights
- Below Market Lot Rent
- Strong Historical Occupancy
- 5 Park Owned Homes
- 41 Tenant Owned Homes
- Private Utilities, with nearby public utility connections
- Located in the Waterloo, IA MSA
Park Owned Home Information
- 2008 TL (480 Square Feet) LOT 20
- 1997 Fairmont (924 Square Feet) LOT 26
- 1993 Mansion (1,088 Square Feet) LOT 41
- 1978 66x14 (1008 Square Feet) LOT 47
- 2012 Harmony Homes (1,120 Square Feet) LOT 48
Included Property
The property sale includes the 5 park owned homes on site, a 2010 plow truck for road maintenance and snow removal, and a lawn mower for the common area mowing.
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Infrastructure
Currently the property is served by a well and lagoon system. Rural water is available at the road of the park if new ownership would prefer to hook up to a public system.
The current lagoon system could also be hooked up to the city of Raymond, IA and the nearest connection point is approximately half a mile from the subject property.
The water lines in the park were replaced in approximately 2005. The sewer system is original and believed to be Orangeburg. Current ownership has not had any issues with the park infrastructure, including the well and lagoon system. The well and septic lagoon are in compliance with state, county, and local regulations.
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Lagoon System
The lagoon system is a double cell, gravity fed system, eliminating the need for pumping or the maintenance of electrical and mechanical systems. There are three access points for the length of the system between the lagoon and the park, one about every 300 feet for easy access to the plumbing lines.
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Converting Private Utilities
Quotes for connecting to public sewer are roughly $425,000. Rural water is available at the road if new ownership would prefer to connect water to a public system as well. All water lines within the park have been upgraded to PEX in 2005.
Financial Analysis
Listed numbers are actuals based on information provided by current ownership, with a management fee estimate added for future ownership. Future projected income is based on raising lot rents to $350, as well as selling the 4 park owned homes on site on a 5 year, $500 per month above lot rent basis which is conservative for home values in the area. Year 3 is based on lot rent of $400, with a 3% annual increase in the remaining years.
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Subject Property
The subject property is located .5 miles north of the city of Raymond, IA and is a 15 minute drive from downtown Waterloo. The property is located in the highly sought after Dunkerton School district, making this property an ideal location for working families in the area.
The property is located at the intersection of Osage Road and HWY V-49. The subject property's location offers residents a quiet setting, with an easy commute to Waterloo and Cedar Falls.
Waterloo, IA MSA
The Waterloo, IA MSA encompasses Waterloo and Cedar Falls, IA and has an MSA population of 170,000 residents. The MSA has been growing steadily, in part due to strong local economic factors and amenities in the area.
Waterloo is home to multiple large department stores such as Walmart, Target, Scheels, Menards, etc. This offers residents in the area easy access to shopping and amenities, as well as major employment centers for the area.
Local Employers
Major employers in the area include John Deere, Waterloo Fiber, Hy-vee Inc., Tyson Foods, The University of Northern Iowa, Nestle, and Unity Point Health.
