Sleepy Valley Community

Data Room Access: http://properties.​muellerhoffman.​com/1387994-sale

Property Description

Mueller & Hoffman, as exclusive agent for the owner, is pleased to present the opportunity to purchase Sleepy Valley Community, a 91% occupied, all-ages community with 103 total sites including 68 manufactured home sites and 35 RV sites, located in Colorado Springs, CO.​ Of the 68 manufactured home sites, 6 are vacant; 4 sites contain vacant homes, which are new homes currently listed for sale.​ Except for the manager's home, all occupied manufactured homes in the community are tenant-owned.​ Of the 35 RV sites, 3 are currently vacant, and the occupied sites are rented to long-term residents.​ Additionally, current ownership has recently improved the roads at the community.​ The property is serviced by municipal water and sewer, which are paid for by the owner and billed back to the tenants.​ Trash service is paid for by the community and billed back.​ Electric and gas are directly billed to the tenants.​

This offering provides prospective investors the opportunity to acquire a stabilized, well-maintained community in a highly desirable market where high construction costs and limited single-family inventory have resulted in sustained elevated home prices, driving persistent demand for attainable housing options in the area.​ Sleepy Valley is offered at $12,000,000, equating to a 5.83% cap rate on current income.​ Prospective buyers may assume a $5,200,000 FNMA loan, fixed at 3.73%, with just under a year of interest-only payments remaining.​ By assuming the debt, adding a supplemental loan at closing, and filling the 4 new homes in inventory, a new owner may achieve a Year 1 cash-on-cash return of approximately 9% and an IRR exceeding 26% over a 5-year holding period.​

Location Description

Colorado Springs is located at the eastern foot of the Rocky Mountains in east-central Colorado, approximately 70 miles south of Denver.​ It is the county seat of El Paso County, the largest city by land size in the state, and the 39th most populous city in the United States.​ The Colorado Springs Metropolitan Statistical Area has experienced tremendous growth.​ As of the 2020 census, the MSA’s population was 755,105, a 17% increase since 2010.​ While single-family home prices are down from record-breaking highs (over $500,000) seen in the summer of 2022, home prices remain elevated, with the median sale price for single family homes at $448,000 as of January 2024.​ Colorado Springs offers many modern urban amenities, including over 150 parks, 5 sports complexes, over 260 miles of trails, and 5,000 acres of open space in 48 open-space areas.​ The city and its surrounding suburbs are served by 8 public school districts and numerous private schools.​ There are also several colleges and universities in the city, including the University of Colorado-Colorado Springs, Colorado College, and Colorado Technical University.​ The United States Air Force Academy is also located immediately north of Colorado Springs.​

Highlights

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  103-space MH/RV Park in Colorado Springs

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  Attractive 3.73% FNMA Assumable Loan; eligible for supplemental debt

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  Potential IRR Exceeding 26% Over 5 Years

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  91% Occupancy

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  6.43% Year One Cap Rate

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  Tremendous growth market - Colorado Springs population has grown 17% over the past decade

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  Serviced by public utilities

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  Recent capital improvements include asphalt overlay

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  Ownership recently purchased and moved in 6 new 2024 homes