Cottonwood MHP

Deal Room Link: http://properties.​muellerhoffman.​com/1483032-sale

Property Description

Mueller & Hoffman, as exclusive agent for the owner, is pleased to present the opportunity to purchase Cottonwood MHP, a 97% occupied, all-ages community with 25 manufactured home sites and 5 studio apartments, located in Henderson, CO.​ All manufactured home sites in the community are occupied by tenant-owned homes, and there is currently one vacant apartment unit.​ The property features paved, well-maintained roads with designated parking spaces for each site.​ Cottonwood is serviced by municipal water and sewer, which are paid for by the owner and billed back to the tenants.​ Trash service is also paid for by the owner and billed back.​ Electric and gas are directly billed to the tenants.​ After the next rent increase in May 2025, average rents at Cottonwood will be $86 below the average market rents at comparable communities, representing an 11% mark-to-market opportunity.​

This offering provides prospective investors the opportunity to acquire a stabilized community with rent upside in a market with limited alternatives, as the surrounding communities are consistently at or near full occupancy.​ The property is offered at $3,750,000, equating to a 5.12% cap rate on current income.​ With modest annual increases to bring rents to market, a new owner may achieve an IRR of approximately 14% over a 10-year period.​

Location Description

Henderson is an unincorporated community in Adams County, Colorado, located 15 miles north of downtown Denver.​ While Henderson itself is a small residential area, it benefits from its proximity to the Denver metro area and the nearby city of Brighton.​ As of the latest estimates, Henderson has a population of approximately 13,599 residents, with the greater Denver metropolitan area boasting a population of over 3 million.​ This strategic location provides residents with easy access to a wide range of employment, educational, and recreational opportunities.​ Brighton, a growing city just to the north, serves as a regional hub for shopping, dining, and community services.​ Brighton offers a variety of amenities, including the Prairie Center shopping district, Barr Lake State Park, and an active downtown area featuring local events and farmers' markets.​ The nearby Rocky Mountain Arsenal National Wildlife Refuge also provides an opportunity to experience nature, with over 330 species of wildlife in a preserved urban environment.​

Henderson is served by the Adams County School District 27J, which includes schools such as Prairie View High School in nearby Brighton.​ For higher education, residents have convenient access to institutions like the University of Colorado Denver, Metropolitan State University of Denver, and Front Range Community College.​ The Anschutz Medical Campus in Aurora, a nationally recognized center for healthcare education and research, is also within a reasonable commuting distance.​ With its proximity to Denver, Henderson provides a balance of suburban tranquility and urban accessibility.​ Its connection to major roadways, access to outdoor recreation, and proximity to both small-town charm and big-city amenities make it an attractive place to call home.​

1. ​

   High Occupancy & Stability: 97% occupied, all-ages manufactured housing community with 25 tenant-owned home sites and 5 studio apartments.

2. ​

   Tenant-Owned Homes: All manufactured home sites are occupied by tenant-owned homes, minimizing maintenance responsibilities.

3. ​

   Value-Add Opportunity: After May 2025 rent increase, rents will still be $86 below market rate, presenting an 11% mark-to-market upside.

4. ​

   Limited Competition: Surrounding communities are at or near full occupancy, supporting strong tenant demand.