KEITH WILSON CO - LoopNet



KEITH WILSON CO. APRIL 2018

MOBILE HOME PARK BROKERAGE

________________________________________________________________________

2608 RISING STAR CELL: (405) 414-9803

EDMOND, OK 73034 E-MAIL: kwilsonco@

FOR SALE

COUNTRY EAST MOBILE HOME PARK

24466 S. Frontage Road

Hydro/Weatherford, OK 73048

$1,150,000

62 sites

Top 10% park in OK/all MH/all pad rent/newer homes/very clean

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The information contained herein, while gathered from sources deemed reliable, cannot be guaranteed

GENERAL INFORMATION

Address: 24466 S. Frontage Road, Hydro/Weatherford, OK 73048

No. of sites: 62

Age: 1983 (previous owner built park and owned for 34 years before current owner

purchased on April 28, 2017)

Lot rent: $200 SW, $210 DW, rents increased $40 12/1/2017-still below market-best park in

market. Previous rent increase was $10 on 11/2015.

Occupancy: 97% (2 vacant, 54 revenue, 6 double wides on double lots that rent $220-290)

MH/RV: All MH. No RV

Age of homes: ½ of the homes are 1985-2000 & ½ are 2000-newer/no park owned homes

Land: 16 acres, flat with few trees.

Streets/parking: Asphalt streets, gravel parking pads in good condition

Storm shelter: Yes

Electricity: Park has backup electric generators

Park rules: Tenants mow and cannot rent their homes out, must be owner occupied.

Manager: Lives on site, receives free lot rent

Utilities: Tenants pay for electricity and gas. Owner pays for trash (City of Weatherford)

and water/sewer by 2 water wells and a 2 cell lagoon.

Water System…consists of 2 wells, approx. 220’ deep, with 2 5 hp pumps, one is

primary and one is backup. The pump in the S. well has been replaced only

once in 34 years, in 2013. The pump in the N. well has been replaced twice, the

last being 2007. The 2 wells feed into a 4” pipeline loop that encircles the park.

There are 3 pressure tanks (100 gal each) in each well house. When a pump comes

on, it fills the tanks in both well houses. 5 of the 6 pressure tanks were replaced

in March 2016. Also, in 2016, the owner installed a Generac system for the south

well so that residents have water even if (ever) power goes off. Most of the DEQ

expense is for license and testing of drinking water. The most water the park has

used is 16.73-acre feet in a very dry year. The allocation to the park by the OK

Water Resources Board is 32-acre feet. Typical year, the park will use 10-acre

feet of water.

Sewer System…provided by a 2 cell lagoon, usually only 1 cell is used.

occasionally, in the winter, when the days are short and the evaporation

loss is minimal, 2 cells are utilized. The sewer system and lagoons are gravity

flow with no lift pumps. Maintenance consists of just mowing and spraying the

lagoon rock walls to keep weeds down. No testing is required for the lagoon, but

there is a $500 annual fee.

This private utility system is in pristine condition. The park was built in

accordance with plans approved by the State of Oklahoma Health Dept.,

the predecessor to the DEQ. They also inspected and approved the construction

after it was built.

Location: The park is located 60 miles W. of Oklahoma City, OK (pop. 1.4M) fronting

on the S. side of the service road of Interstate 40. The address is Hydro, a small

farming community of 1,000, but the park is physically located closer to (3 min)

Weatherford, OK, pop. 12,000, home to southwestern University with 6,500

students. MHP rents in Weatherford are generally $200 WITH tenants paying

utilities, so compared to Country East, rents are $40-50 higher! The quality of

Country East is the best in the market, so rents are substantially below market.

New owner should be able to raise rents at least $50/mo. in the next 2 years,

increasing income $32,400.

INCOME/EXPENSE

April 28-Dec. 31, 2017 (8 mo.) Annualized

Income………………………………. $73,818……………………………………..$110,727

$40 rent increase @ 54 12/1/17……………………………………………………..136,647 (1)

Expenses

Auto……………………………... $79…………………………………………. $118

Bank charges…………………… $127………………………………………... $190

Contract labor …………………. $160………………………………………... $240

Consulting………………………. $250………………………………………... $375

Insurance……………………….. $5,970……………………………………… $5,970 (2)

Office……………………………. $227………………………………………... $340

Payroll taxes……………………. $894………………………………………... $1,341

Postage/delivery………………… $27…………………………………………. $40

Professional fees………………... $8,537……………………………………… $5,000 (3)

Property tax…………………….. $118………………………………………... $177

R/M……………………………… $3,849……………………………………… $5,773

Salaries and Wages…………….. $15,125…………………………………….. $22,687

Supplies…………………………. $648………………………………………... $972

Taxes and licenses……………… $2,635……………………………………… $3,952

Utilities………………………….. $4,456……………………………………… $6,684

Total……………………………………………………………………………...$53,859 (4)

NOI………………………………………………………………………………… $82,788

(1) Park is still at least $70 under market @ 54 = $45,360 /yr. Reason why park is full.

No one left park when rents raised $40 Dec. 1, 2017. 11.1% cap when rents to market

(2) $5,970 is a full year policy. GL - $3,772 & workmen’s comp - @ 2,198

(3) $12,805 includes legal for April 28 closing of park. Adjust to $5,000/yr. for legal/acct.

(4) 40%

SALES INFORMATION

Purchase price……………………………. $1,150,000

Price/pad………………………………….. $18,548

Cap rate…………………………………… 7.2 %

11.14% when rents brought up $70 to market

RENT ROLL (page 1 of 2)

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RENT ROLL (page 2 of 2)

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AERIAL MAP

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COUNTRY EAST PARK IN RELATION TO OKC & WEATHERFORD

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PHOTOGRAPHY

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