Rancho Estates

About this property

Description Financing Opportunity!!! The property is currently encumbered by a Fannie Mae loan that the seller prefers a buyer to assume. The existing loan has an approximate balance of $1,600,000 at a favorable 4.12% interest rate. The loan is interest-only through June 2026, after which it converts to a five-year term amortized over 30 years (locked in at 4.12% until May 2031). Assumption requirements include a minimum of two years of mobile home park ownership or key principal role, a net worth exceeding $1,000,000, and minimum liquidity of $160,000. Rancho Estates is a 52-pad mobile home community located in Rantoul, Illinois within the Champaign–Urbana Metropolitan area. Situated on approximately 4.28 acres and originally developed in 1960, the property benefits from approved mobile home park zoning and is not located within a designated flood zone. The current ownership has operated the community for six years and manages the asset remotely through a district manager, supported by an on-site maintenance technician. The community currently operates without a full-time on-site manager. Pad sizes vary throughout the property, and residents benefit from off-street parking and a well-maintained neighborhood setting. The community is currently operating at strong occupancy levels with 49 of 52 pads occupied. Of the existing homes, 36 are tenant owned homes (TOH) paying an average lot rent of $425 per month. The remaining 10 units are park-owned homes (POH) with average rents of approximately $800 per month, and the seller holds clear title to all park-owned units. Three pads are currently vacant and may have the potential for new home placement subject to city setback requirements. One additional home is scheduled for removal due to poor condition. Approximately three residents are currently behind on rent. All residents operate under monthly lease agreements, and rent is collected electronically through the Rent Manager portal. The most recent rent adjustments were modest $25 increases for both POH and TOH units. Rancho Estates is served by municipal water and sewer, with utility costs back-billed to residents through submetering. Electricity and natural gas are directly metered and billed by the respective providers, and each pad is equipped with a 100-amp electrical pedestal. Residents are responsible for their own garbage service. The material composition of underground utility lines was not provided. The internal road network is asphalt and is reported to be in good condition, with ownership responsible for ongoing maintenance. Operational responsibilities are efficiently structured, with tenants responsible for mowing their individual lots and clearing their own driveways during winter months. Ownership maintains vacant pads and common areas and provides snow removal for the park roads. The property has benefited from consistent operational oversight and strong administrative systems, with institutional-quality financials and documentation available for buyer due diligence. Since acquisition, ownership has made several meaningful improvements to enhance the long-term quality and stability of the community. These include removal of distressed homes, tree trimming, installation of a playground, street repaving, and the addition of water meters. These investments have positioned the property for continued operational stability and future infill potential. Future upside for a new owner includes the potential infill of vacant pads, subject to municipal approval, and continued optimization of rental rates in line with market conditions. Ownership has indicated that continued infill would be their primary operational focus if they retained the asset. One of the minority owners of Marshalltown Estates is a licensed Real Estate Broker in the State of Iowa.

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