Cedar Rapids Mobile Home Park | 58 Units | 48% Occupied

Investment Highlights

• 58-Unit Mobile Home Community; Minutes from Downtown/CBD and I-380; Adjacent to Cedar Rapids Public Transit
• 119,960 Individuals with Average Household Income of $75,175 in 2023 (5-Mile Radius); 11% Population Growth
• Value-Add Opportunity with Upside in Rents, Occupancy, and Utility Recapture; Public Water/Sewer
• Starting Bid $4K per unit, sale comps range from $37k - $61k per unit

 

Offering Summary

Marcus & Millichap and RI Marketplace are proud to present the opportunity to purchase Edgewood Forest Mobile Home Park, a cash-flowing, value-add investment opportunity consisting of a ±58-unit community with 57 mobile home lots and 1 single family home located at 2925 Johnson Avenue NW in Cedar Rapids, Iowa.

The Mobile Home Park consists of 20 tenant owned homes (TOH), 3 rented park owned homes (POH), 5 rent to own homes (RTO), 1 single family house, 12 vacant POH, 2 abandoned homes, and 15 vacant lots. The average lot rental rate per month is $306, the average POH rent is $510 including lot rent, the average RTO payment above lot rent is $195, and the SFH rent is $1,000. The vacant park owned homes have an average age of 1975 and are in below average condition.  (see Due Diligence vault for Certificates of Title to Park Owned Homes) The park is serviced by public water and sewer that are paid for by the park and billed back to tenants at a flat rate, but metron meters are in place to bill by usage. The cost of the water and sewer would indicate there may be some leaks and the current recapture rate is very low, creating an upside opportunity in the utility expense and recapture rate. Electricity is billed directly to tenants. Trash is serviced by dumpster that is paid for by the park. The roads are paved and in average to below average shape.

Cedar Rapids is a rapidly growing city with a robust economy. There are about 136,00 people and a population growth rate of 11% since 2020. The city boasts almost 300 different manufacturing plants and facilities for two dozen Fortune 500 companies, including headquarters for Collins Aerospace, trucking company CRST, and Aegon. Grain processing is a major industry in Cedar Rapids that directly employs roughly 4,000 people and another 8,000 people indirectly. With a median home cost of $184,000 and average 2-bdr apartment rents of $960, there is a constant need for affordable housing. Positioned directly next to a bus stop for the Cedar Rapids Transit system, this property is perfectly positioned to take advantage of that demand.  The Property benefits from dense and compelling demographics with a population draw of ±119,960 residents within a 5-mile radius and an average household income of ±$75,175.