Spring Brook MHP

Listing broker Jennifer D.​ Stein in conjunction with out-of-state cooperating broker OtherStreet Advisors is pleased to offer for sale Spring Brook MHP, a 31-site mobile home community located in Forreston, Illinois.​

The community currently includes twenty-five tenant-owned homes with an average lot rent of $397/M, and one rent-to-own home with an average RTO payment of $395/M.​ There are also four park-owned homes, three of which are abandoned, and one of which needs to be demoed.​ Finally, there is one vacant lot.​ Economic occupancy in the community is at ~84%, and physical occupancy is ~96%.​ Effective May 1st, 2025, lot rents will increase $45/M with notices already sent to tenants.​

Partial seller financing is being offered in the amount of $115,000 over a 3-5 year term, 6.00% interest rate.​

The investment strategy for Spring Brook MHP involves continuing to align rents to the market standard, and converting the remaining park-owned homes and vacant lots into occupied sites in order to achieve a total operating income of $225,158 by year five.​ Based on our underwriting, we are forecasting a 21.46% cash-on-cash return in year three, as well as an estimated value of $2,200,000.​

A new investor has the opportunity to acquire a bolt-on community in the midwest with immediate infill upside opportunity.​

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  Partial seller financing available: $115k amount, 6.00% interest rate, 3-5 year term

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  Stabilized community with upside through infilling the remaining five vacant sites

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  Potential to achieve a total operating income of $225,158 by year five

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  Ability to achieve a cash-on-cash return of 21.46% by year three

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  Estimated value in year three of ~$2,200,000 based on our underwriting at a 7.00% cap rate

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  Streets at the property are owned and maintained by The City of Forreston