As demand for quality, affordable housing continues to increase across the United States, Colliers has transacted a $16.3 million purchase of Woodland Acres Mobile Home Community. Totaling 231 units on over 50 acres of land, the property is located at 3500 N. Dirksen Parkway in Springfield, Illinois.
Colliers’ Michael J. Nissley, National Director / Executive Managing Director | Manufactured Housing & RV Group represented Ronald D. Coleman, the seller.
Flagship Communities Real Estate Investment Trust (“Flagship” or the “REIT”) (TSX: MHC.U), the buyer, is one of the Midwest region’s largest owners of residential manufactured housing communities. The purchase marks the REIT’s entrance to its seventh U.S. state, Illinois. Located just 10 minutes northeast of downtown Springfield directly off historic route U.S. 66 bypass and less than 1-mile off I-55, the community is 94% occupied with average rents of $373/month.
“The community is one of the highest-quality and well-managed properties in the area, making it a great fit for the buyer as they enter into the Illinois market,” said Nissley. “The property is income-producing and located just minutes from grocery stores, restaurants, shopping, golf courses, and many of the Abraham Lincoln National Heritage sites. As we continue to see strong demand for affordable housing across the United States, mobile home parks of this caliber continue to be a strong investment. ”
According to Green Street Data, mobile home parks were the top-performing real estate class in 2020. While a majority of commercial real estate asset classes faced challenges in 2020, mobile home parks saw a 12% increase in commercial property value. The growing demand for inexpensive housing makes mobile home parks one of the most attractive housing options for the average American who cannot afford a conventional home. Mobile home parks are typically 1/3 the cost of a single-family house or 1/2 that of an equivalent apartment building in the same community.