904 Industrial Rd Pipestone, MN 56164

Pipestone Estates is a 41-site manufactured housing community located in Pipestone, Minnesota. The community is operating at approximately 49% physical occupancy, with 20 occupied units. The community includes 17 resident-occupied sites, 14 community-owned homes, and 10 vacant sites. The property presents a value-add opportunity driven by lease-up, rent growth, and operational normalization. Current average lot rent is approximately $505 per month, with in-place revenue of approximately $139,000 under the current rent roll with adjusted expenses. Utilities are billed-back to tenants. Total revenue is projected to increase from approximately $139,000 at current operations to $276,500 by Year 3, driven primarily by occupancy gains and contractual rent growth. Net Operating Income is projected to increase from approximately $26,000 currently to $106,940 by Year 3, as the community approaches stabilized occupancy levels. Expense ratios improve from approximately 81% at current operations to 61% by Year 3, reflecting improved scale efficiency as revenue expands. By Year 3, the asset is underwritten to achieve a 13.37% cap rate and a 10.02% cash-on-cash return.