Description

We are offering a 35-pad manufactured housing community at 1001 South 1st Street in Lamar, Colorado, for $495,000. The park sits on 4.275 acres and currently has 18 occupied homes, two vacant homes and 15 vacant lots, which gives a new owner a clear value-add path through lease-up.

Nearly all of the homes are owned by their residents, so ownership carries little of the maintenance and capital cost tied to park-owned homes. The one park-owned home is on a rent-to-own contract that will convert to standard lot rent, adding a built-in increase in future income. Water, sewer, gas and electric are all billed directly to residents by the city, so the landlord is not carrying utility expense.

On current income, the park produces net operating income of about $42,354, an 8.56 percent cap rate at the asking price. Filling the 15 vacant pads and two vacant homes would raise income significantly, and the low entry price per pad leaves room for an operator to invest in marketing and home placement.

Lamar is the county seat of Prowers County in southeastern Colorado and is home to Lamar Community College. Demand for affordable housing is steady, and commute times are short. We see this as a straightforward lease-up opportunity at an accessible price. Contact Ellie Stanton, Andy Monette or David Barocas of Pinnacle Real Estate Advisors for the rent roll and financial analysis.