Southdowns Mobile Home Park is a 112 site (88 MH sites / 12 MH&RV / 12 RV lots), all age community located in Woodward, Oklahoma, approximately 2.5 hours northwest of Oklahoma City. Built on 19.91 acres, the park has a site density of 5.6 sites per acre and most of the sites will accommodate double-wide homes. Twelve (12) of the original MH sites were approved by the City for MH & RV use in 2015.
The park was built in the early 1970's and is direct metered for gas and electric. The water is master metered and included in the rent structure. The park has a fixed pass through for trash ($16 per site) and sewer ($14 per site). There are 13 sites that pay a trash and sewer charge was $8 and $7, respectively, and those sites will have their rates raised in 2019. The increase is underwritten into the NOI and cap rate. The residents pay for lawn care and are also charged pet fees and late fees, when applicable. There is an opportunity to sub-meter the water and bill the resident for usage.
The park has a basic amenity package consisting of an 800 SQ stick-built building with an office and maintenance shop. There is also a storm shelter and a pool. The main asphalt road loop through the park (Oxford Circle) is a public road and maintained by the City. The street lighting is owned and maintained by the power company NWEC.
The water lines are approximately 25% copper and 75% PVC/PEX. The water is not sub-metered, but the rental agreements allow the park to sub-meter or bill each resident for their proportional share. The sewer main line is clay and the park has a copper sulfate preventative maintenance program to discourage tree root growth. The Seller has upgraded 44 lateral lines with PVC since 2008 and added clean-outs as necessary. The previous owner also upgraded the existing laterals to PVC during his ownership.
The electrical system is direct and features 100/150/200 amp pedestals at each MH site. The RV sites are 30/50 amp. The gas system is also direct and both the gas and electric companies own the system up to the meter. The park is responsible for any beyond the meter connections.
The Seller has made many capital improvements during their ownership:
1 - New pool filter (2018) and plumbing to the new filter and pump (2013).
2 - 2 internal water shut off valves (2017).
3 - 2003 Ford Ranger truck (2017 – low mileage) and John Deere riding mower (2016). Both included in sales price.
4 - New office computer (2017).
5 - New security cameras and DVR system (2017).
6 - New Ridgit K-6200 sewer drain cleaning machine (2015).
7 - Electric pedestals at sites 11 & 102.
The offering includes the POH portfolio consisting of 50 in-place MH’s (49 SW & 1 DW). One home is used for storage (#61). There are no LTO/RTO or notes in the portfolio. There is a complete and detailed list of the 50 homes and the Seller has title to all of the mobile homes. The POH inventory list also includes their current NADA valuation as well as any recent upgrades. The homes are 2-4 bedrooms with multiple bathrooms. The SW’s measure 12’-16’ by 54’-80’ and date from the 1970’s-2004.
The community is in fair to good condition and the POH portfolio is well maintained. There are three vacant homes available for rent. The underlying rents are projected at $215. The existing 18 site rents are at $210-$215.
