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Investment Overview

South Park MHC is a 55+ community located in the highly sought after Des Moines, IA market. Currently there are 24 homes on site, offering new ownership the ability to acquire a stable property in a strong growth market. Current ownership runs the community as a park owned home community, offering new ownership additional upside through the sale of the homes, and the ability to establish lot rent rates upon entry. Current ownership is responsible for water, trash, and snow removal, with the residents direct billed for all other utility services. New ownership could bill back water and trash, or add water meters in order to reduce operating expenses. All tenants are currently month to month, with many being long term tenants. Currently there is an on site manager at the property that receives free lot rent in exchange for assisting with collections, park maintenance, etc.

Seller Finacing Available

Owners are open to seller financing or a seller second for qualified investors. Terms are negotiable, but seller prefers a 3-5 year term. Contact Broker for Additional Details.

Capital Improvements

Since acquiring the property in 2020, current ownership has spent over $750,000 in capital improvements to the property. The community has new pex water lines throughout, new sewer lines, new electrical runs, and newly paved park streets. Current ownership has also rehabbed all of the homes and performed minor infill. Current owners are still working to improve the property throughout the sale process by adding patios to the lots for the current tenants and renovating the currently vacant homes.

Investment Highlights

- Strong economic market - Ability for increased short term income through RTO contracts - Stabilized property - Major Capex items completed within last four years

Financial Analysis

Financial analysis assumes setting a base lot rent at $500 for each resident, and then increasing lot rent by $25 per year. Contract sale assumption numbers are based on charging $600 per month above lot rent for a five year, zero interest term.

Subject Property

South Park is located in the South Side of Des Moines, near the DSM International Airport. The community is located less than 10 minutes from Downtown Des Moines, and less than five minutes from Des Moines International Airport. The subject property is located less than five minutes from two major grocery stores, Hy-Vee and Walmart and is within walking distance to local restaurants.

Des Moines, IA

Des Moines, IA is the capital city of Iowa and has seen consistent growth. Des Moines is the fastest growing MSA in the Midwest, with an average growth rate of 3.1% from 2020-2023. Des Moines is a hub for major employers within Iowa and includes employers such as John Deere, Principal Financial, Hyvee, 3M, Caseys, Amazon, Microsoft, and many others. Des Moines also has strong health care and public service industries, offering job diversity and security for local residents.