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Community Overview

The park has been owned by the same owner since 1972. There are currently 8 tenants on the property, but there are 28 lots total.
The water/sewer are billed back to the tenants. Each meter is read by the owner each month and is billed back accordingly. The tenants are directly billed for electricity and natural gas (both of which are provided by MidAmerican Energy).
The trash pick-up, snow removal, and lawn care are provided by the community owner. The owner hauls the trash from the park to the local landfill each week. Two tenants are paid $20/hour to mow the community (total cost of $80 per mow). The contractor for the snow plowing retired after the 2023-2024 winter, so a new plowing contract will be needed.
There are 3 vacant mobile homes that have been abandoned that will need to either be removed from the property or rehabilitated.

Upside Opportunity

The current lot rent is $153/month. Current market rates for the area are around $300/month. This provides the potential to increase lot rents immediately upon the purchase of the park.
The park has been well cared for by the owner throughout their years of ownership. The trees are trimmed every 3 years and the concrete road is re-tarred each year before the winter. This provides the new ownership the opportunity to bring in homes to a well-maintained community, without needing to clean up the community first.
All lots are equipped with electrical pedestals that have two 50 amp breakers and direct hook-ups to the water/sewer lines. This allows for new ownership to bring in homes without major changes needed to lots.

Income/Expense Projection Summary

The income is based on an increase to $200 upon purchase, then increasing by $25 each year until rent reaches $325, then one final increase to $350 in Year 10. The income is also based on bringing in three homes per year until the park reaches capacity in Year 8.
Vacancy assumptions are 5% for Years 2-5, then increase to 10% from years 6-10.
The expenses include an estimated $30,000 per year expense for the delivery and set up of homes. It is assumed that homes will be sold at cost, so no additional expense will be included in the projections.
Trash collection is assumed to be billed back to the tenants in Year 2. Repairs and maintenance are assumed to be $250 per tenant per year.

Additional Land For Sale

The seller is willing to sell an additional 10 acres to the east of the community for an additional $10,000 per acre. See pictures or contact broker for more information.

Shenandoah, Iowa

The subject property is located in Shenandoah, Iowa. The town of Shenandoah has a population of nearly 5,000 people and is located 60 miles southeast of Omaha, Nebraska.
The median household income in Shenandoah is about $48,000/year. About 2/3 of households in Shenandoah own their home, while the remaining 1/3 rent their home.

Area Industries and Employment

Brown's Shoe and Fit Co. and Earl May Garden and Nursery Co. were both founded and are still headquartered in Shenandoah. Both Brown's Shoe and Early May are midsize companies (50-200 employees) with locations in multiple Midwestern states. Brown's Shoe has over 80 stores in 12 different states, while Earl May has 28 locations across Iowa, Nebraska, Missouri, and Kansas.
Other than Brown's Shoe and Fit Co. and Earl May Garden and Nursery Co., the area's largest employers are: Pella Corp., Green Plains Inc., and Lloyd Inc. (all manufacturing companies). Additionally, Shenandoah is home to a hospital which employs about 300 people and a branch of Iowa Western Community College which employs over 750 throughout its multiple campuses.
The most common careers held by Shenandoah residents include: production/manufacturing, office administration, sales/management, and education services.