Anderson Mobile Home Park is an all age community located less than 20 minutes from Topeka, KS. The community has 36 mobile home lots, one single family residence, and an outbuilding for park storage. The property is 100% occupied and has only one park owned home on site. The community is well maintained, and the majority of the homes are late 1990s and early 2000s vintage. The community has been owned by the same family for nearly 30 years, and has been well maintained by current ownership.
Lot rent is currently $265 per month, which is nearly $100 below market rent estimated at $350 per month. Similar parks located in Topeka, KS are averaging $475 to $525 offering future upside in lot rents given the subject property's proximity to the city of Topeka.
This property offers a new owner upside through raising lot rents to market over time, and the ability to bill back trash all without the need to infill or take on capital expenditure projects within the first several years.
The property also features two storm shelters for the tenants.
Utilites and Infrastructure
The property is served by rural water and a double cell lagoon system. Rural water is billed back to the residents each month, with the current ownership also charging a water and sewer maintenance fee. This allows ownership the ability to produce income above the water usage costs.
The sewer and water lines are all high pressure plastic. Sewer main lines are 6" plastic with 4" branch lines, and water lines are 2" mains with 3/4" branch lines.
Gas lines throughout the property were replaced in approximately 1998 and gas is billed directly to residents.
The main road is asphalt, with gravel drives for the homes. The main roads were repaved in 2021, and are in good condition.
Lagoon System
The property's sewer is served by a two cell lagoon system. Half of the park is gravity fed, with a lift station servicing the other half. The lagoon system is discharged on a quarterly basis for sampling. The lagoon system is in full compliance with the state of Kansas and the current waste water permit is available for review.
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Capital Improvements
Current ownership has invested nearly $100,000 in capital improvements over the last 3 years.
Improvements include:
-New asphalt for main road and shop: 2021
-Single Family Residence Complete Interior Remodel: 2021
-Excavation work to assist with drainage: 2022
-Single Family Residence Exterior Remodel: 2023
-Sewer Line Replacement: 2023
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Investment Highlights
- 100% Occupied with majority TOHs
- Below Market Rents ($265 Currently)
- Quiet, Clean Community
- Long Term Tenants
- Topeka, KS MSA
Financial Analysis
The financial analysis is based on the seller's 2023 actual expenses, with income based on current occupancy.
For year 2, a lot rent of $300 was assumed. In years 3 and 4, lot rent was adjusted up $25 per month, with a 3% increase each following year.
The financial analysis does not account for billing back garbage, or raising lot rent on the single park owned home or the single family residence.
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Subject Property
Anderson MHP is located South of Meriden, KS just off of HWY 4. The subject property is less than 20 minutes to Downtown Topeka. This offers tenants of the community an easy commute to good paying jobs within Topeka and the surrounding area, while offering more affordable lot rent.
Topeka, MSA
The Topeka, KS MSA has a population of over 200,000 residents and has a diverse employment sector. Major employers include Blue Cross Blue Shield, Goodyear Tires, Target Distribution, and many county, city, and educational institutions.
