ROLLING MEADOWS MOBILE HOME PARK
Mt. Vernon, IL
PURCHASE DATE: May 2017
Rolling Meadows Mobile Home Park is located in Mt. Vernon, Illinois and was purchased in May of 2017 for $750,000. The property is comprised of 102 pads situated on 49 acres of land. In general, the park was in decent shape given the low purchase price. The mobile home ownership and vacant pad allocation at COE was as follows:
- 4 park owned mobile homes
- 68 resident owned mobile homes
- 30 vacant pads.
At acquisition, MHP obtained new financing of $487,500 and raised additional capital of $833,480 beyond the down payment. The business strategy is to deploy the bulk of the capital to acquire, install and renovate 30 mobile homes, which will mitigate the current vacancy problem. Remaining capital will be utilized for other park enhancements; such as, installation of new roads throughout the park and new signage, which has already been completed. Because of these factors, it will strongly contribute to more than doubling the monthly gross income.
Income from trailer rentals has been modeled at $575/mo. with the average cost per new trailer at $16,500. It is anticipated that the completion of the acquisition and renovation will take approximately 18 months to be fully implemented and stabilize the operations at the park. Once stabilized, this portion of the Value Add Strategy is complete. The exit strategy for the sale of this park is three years.
As of 5 months into the ownership, we have purchased over half of the number of trailers planned and are achieving monthly rents that are 20% higher than modeled. CAP EX improvements are progressing under budget. Pad rents have been increased 17%. Overall, Rolling Meadows Estates is preforming better than modeled at this point in its ownership on several different fronts.