The Keel Team proudly announces the closing of our latest acquisition: a 72-lot mobile home park located within the dynamic Chicago Metropolitan Statistical Area (MSA). We finalized this deal in July 2025, marking a key milestone for Keel Team, a top-tier operator having managed over 3,450 lots across 54 mobile home parks in 15+ states. Priced at $2,700,000, this acquisition highlights our strategic approach to manufactured housing investments. Our limited partner (LP) and general partner (GP) investors fueled the capital raise for significant upgrades in this syndication.

A Prime Opportunity in the Chicago MSA

Located in the Chicago MSA, this mobile home park community offers strong investment potential. The property features 72 lots, with 71 hosting homes, achieving a 98.6% lot occupancy rate. Currently, 45 tenant-owned homes (TOHs) are fully occupied, while 26 park-owned homes (POHs) include 9 occupied and 17 vacant units. One additional rental unit exists. With home occupancy at 76.06%, our proven strategies should unlock substantial value.

City water and sewer services enhance the property’s appeal compared to private utilities. Tenants pay electricity directly to the city. Our plan introduces a utility bill-back program for water and sewer, with submeters installed at $500 per lot. Tenants already cover trash costs, reducing expenses. These factors, combined with our expertise, make this property a potentially robust, cash-flowing asset with growth potential.

Strategic Improvements and Value Creation

We allocated a $413,500 capital expenditure (CapEx) budget for year-one improvements, including:

• Signage ($25,000): We will upgrade signage to boost visibility and appeal.
• Road Improvements ($50,000): Paving and enhancements ensure durable, accessible roads.
• Landscaping ($10,000): General landscaping to improve aesthetics.
• Utility Submetering ($50,000): Smart, submeters enable bill back to tenants.
• Plumbing Upgrades ($125,000): Replace risers and winterize for the colder seasons.
• Home Rehabilitation ($100,000): Remodeling 17 vacant park-owned homes, preparing them for leasing.
• New Home Purchase ($25,000): One used home will fill the single vacant lot.

These upgrades aim to maximize occupancy, streamline operations, and improve resident experience. By year five, we anticipate an 11.6% cap rate, driven by higher rents and operational efficiency. The main goal with this property is to refinance with agency debt and hold for potential cash-flow into perpetuity.

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Operational Excellence and Growth Projections

Our team excels at revitalizing under-managed mobile home parks, and this acquisition is no exception. Key strategies include:

• Home Conversions: Within two years, we plan to convert all viable park-owned homes to tenant-owned homes, cutting maintenance costs and aligning with market trends.
• Rent Optimization: Lot rents average $439.56, 22% below the $550 market rate. We will raise rents to market levels over two years, in conjunction with CapEx improvements in order to increase revenue. Park-owned homes, currently at $829.91, can reach $1,149.
• Occupancy Maximization: Filling the vacant lot and leasing 17 unoccupied homes aims to push occupancy toward 100%. Enhanced online presence, signage, and responsive management should attract and retain residents.
• Operational Efficiency: The current 68.7% expense ratio exceeds our 30-35% portfolio average. Our systems are poised to significantly lower costs, boosting net operating income (NOI) potential.

Consequently, we project income growth from $329,340.32 to $573,248.10 by year five—a 74.06% increase. Rent hikes and occupancy gains drive this growth, making the asset a potentially high-performing asset.

Tax Advantages for the Partnership

Under the 2017 Tax Cuts and Jobs Act, bonus depreciation returns to 100% for 2025. The partnership, including GP and LP investors, expects to realize approximately $1,500,000 in bonus depreciation for the 2025 tax year. This allows full deduction of qualifying personal property (5-year) and land improvements (15-year) costs in year one, enhancing tax efficiency.

Experienced Management Team

Andrew Keel, with over 54 manufactured housing communities under his belt, leads the Keel Team. Our centralized, in-house management ensures smooth operations. The structure includes:

• Andrew Keel (Member-Manager): Oversees operations, contractor negotiations, and financing.
• John Squartino (COO): Brunt of the operations and ensures we are hitting our targets.
• Asset Manager: Handles off-site management and operations, bookkeeping, and team coordination.
• Project Manager: Supports daily operations and oversees the project.
• Onsite Resident Manager: Manages rent collection, maintenance, and resident relations.

This framework aims to guarantee efficiency and a high-quality resident experience.

A Turnkey Asset with Upside Potential

With its high lot occupancy, city utilities, and Chicago MSA location, this mobile home park shows significant potential with strong upside. Our improvements and expertise are aimed at driving value through higher occupancy, optimized rents, and lower expenses. We project a 17.02% annual cash-on-cash return for our passive investors over the 5-year estimated hold period. This syndicated investment reflects our commitment to delivering value to our limited partner investors and residents, transforming this community into a premier manufactured housing destination in the Chicago MSA.

Are you interested in learning more about mobile home park investing? Contact us TODAY to learn more!

Disclaimer:

This blog post is for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation for any security, nor does it constitute an offer to provide investment advisory or other services by Keel Team LLC. Nothing in this post should be considered an invitation to invest in any securities or investment opportunities. All investments involve risks, including the potential loss of principal. Prospective investors should consult with a qualified financial advisor before making any investment decisions. For more information, please contact invest@keelteam.com.