4-Park Portfolio in Durango, Colorado (136 units)

Portfolio Deal Room Link: http://properties.​muellerhoffman.​com/1475079-sale

Property Description

Mueller & Hoffman, as exclusive agent for the owner, is pleased to present the opportunity to purchase the Durango Portfolio.​ This portfolio includes four manufactured housing communities located in Durango, CO: Apache MHP, a 48-site, all-ages community; Valley West MHP, a 38-site, all-ages community; Falfa MHP, a 16-site, all-ages community with a leased single family home; and Junction Creek MHP, a 33-site, all-ages community.​ The properties feature 100% occupancy across 135 manufactured sites and 1 single family home, and all homes in the portfolio are tenant-owned.​

This offering provides prospective investors the opportunity to acquire four well-located communities in a market where traditional housing options are becoming increasingly unattainable, driving persistent demand for affordable housing options in the area.​ As of December 2024, the median listing price for single family homes in Durango was $899,000, representing a 9% year-over-year increase.​ Additionally, given the proximity of the parks to one another, the properties can be managed and maintained by shared staff.​ The properties are offered at $15,700,000, equating to a 5.36% cap rate on current income.​ With proposed financing, a new owner may achieve an IRR of 16% over a ten-year holding period.​

Location Description

Durango, located in La Plata County in southwestern Colorado, serves as a regional hub for commerce, outdoor recreation, and education.​ The city has an estimated population of 19,534 as of July 1, 2023.​ The Durango Micropolitan Statistical Area, which includes surrounding communities, brings the total population to approximately 56,407.​ Durango is home to the Durango & Silverton Narrow Gauge Railroad, a historic railway that runs through the San Juan National Forest.​ Outdoor activities in the area include skiing at Purgatory Resort, hiking in the Weminuche Wilderness, and rafting on the Animas River.​ The city has a semi-arid climate with four distinct seasons, making it suitable for year-round recreation.​ Annual events include the Snowdown Festival, a midwinter celebration with a Parade of Lights and themed competitions, and the Durango Bluegrass Meltdown, which features live music performances every April.​ Cultural attractions include the Powerhouse Science Center, Durango Arts Center, and the Henry Strater Theatre.​ Durango is also home to Fort Lewis College, a public institution offering undergraduate degree programs with an emphasis on liberal arts and sciences.​ The Durango Public Library provides community programming, including reading initiatives and educational workshops.​ With a mix of historic architecture, outdoor amenities, and regional services, Durango offers a range of opportunities for residents and visitors.​

1. ​

   Strong Occupancy & Tenant-Owned Homes – The portfolio boasts 100% occupancy across 135 manufactured home sites and 1 single-family home, with all homes being tenant-owned.

2. ​

   Attractive Market Fundamentals – Durango's median home price reached $899,000 as of December 2024, a 9% year-over-year increase, reinforcing demand for affordable housing alternatives.

3. ​

   Economies of Scale & Operational Efficiency – The four communities are in close proximity, allowing for streamlined management and cost efficiencies through shared staff and resources.

4. ​

   Stable Cash Flow & Strong Returns – Offered at a 5.36% cap rate on current income, with projected financing yielding an estimated 16% IRR over a ten-year holding period.

5. ​

   Desirable Location with High Demand – Durango serves as a regional hub for commerce, outdoor recreation, and education, driving sustained demand for affordable housing.