Portfolio of 5 Mobile Home Parks
Ottawa, Peru, Earlville, Mendota, IL
In December 2018, the Keel Team and investment partners purchased a portfolio of five mobile home parks (222 lots) in Ottawa, Peru, Earlville and Mendota, Illinois.
Original Acquisition Price
December 18, 2018
Initial Cash Investment
Through improvement initiatives such as: filling vacant pads, renovating run down homes, modest lot rent increases, billing back utilities, and others, we were able to improve the parks’ operations, increase NOI, and achieve a significant value increase. The financial results of these efforts are summarized below:
Recourse debt for both partners.
Cash flow distribution
On June 2019, the first cash flow distribution was $54,029.37.
Cash out refinancing event
On August 22nd, 2021, the first refinancing event occurred.
Investors received $1,919,999.90 from the refinancing event. The new debt is non-recourse, CMBS debt.
10% Preferred Distributions Paid Monthly
Starting in Month 6
Future Potential ROI Opportunities
Infinite returns since all of the original equity investment has been returned, yet we still own the portfolio of MHP’s.
Additional supplemental loan available 12 months after refi (possible additional future return per refinance loan terms).
Forced savings of approximately $2,800,000.00 due to the equity remaining in the property after the August 2021 refinancing event. (Based on the refinance appraisal values)
Additional potential equity appreciation as the MHP continues to increase in value with annual modest rent increases.
Interested in learning more?
Get in touch with us today to learn more about mobile home park investing!
LEGAL DISCLOSURE: All investment offerings have a high degree of risk. Results may vary. Past performance is not a guarantee of future success.