M&W MHC
Muscatine, IA
Marketing description
BWE Investment Sales, LLC (BWE) is pleased to present the exclusive opportunity to acquire M&W Manufactured Housing Community, a 130-site manufactured housing community located in Muscatine, IA (Quad Cities MSA). The property is serviced by well water and a brand-new waste-water treatment plant that was built in 2022, along with roads that were just repaved 2 years ago. The average lot rent is $400 with occupancy currently sitting at 55%. With 6 vacant park-owned homes and 53 vacant lots, this offering presents a significant value-add opportunity through lease up and moderate infill of the vacant sites.
M&W provides investors with an attractive basis and significant upside in a notable Midwest market where there is strong demand for affordable housing. The Quad Cities are one of the most stable real estate markets, supported by major employers and a diverse local economy that is home to more than 380,000 people. We project an investor to be able to achieve an average of a 9.2% cash-on-cash return, 24.2% IRR and a 2.7x equity multiple over a 5-year hold.
Investment highlights
CONVENIENT LOCATION
M&W is located in the Quad Cities. The Quad Cities region consists of 4 core cities (Davenport, Rock Island, Moline, and Bettendorf) on the border of Iowa and Illinois and along the Mississippi River. More than 380,000 people reside in the MSA. Major Employment industries include Manufacturing (John Deere), Healthcare (UnityPoint Health – Trinity & MercyOne Genesis), Retail (Walmart & Hy-Vee), as well as food production and agriculture (Tyson, Oscar Mayer / Kraft Heinz). Given the strong local economy, stable and diverse employment sectors, and stable population – M&W presents a compelling long term investment opportunity.
INFRASTRUCTURE
The community is serviced by well water & a brand new waste-water treatment plant that was built & installed in 2021. The significant capital spent on upgrades to the utility system minimizes risk and reduces future operating expenses and capital expenditures. The community also has newly paved roads.
ATTRACTIVE BASIS
M&W is priced at $20,385/lot (excluding POH value) with significant upside that can be captured by infilling vacant sites. We are projecting an average of 9.2% cash-on-cash return with a conservative and proven path of infilling an average of 8 homes per year.
Exclusively Listed By Brian Brockman | Bang Realty Inc. | License No. B67571000
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