K-River Motel & Campground 7795 State Route 154

K-River Motel & Campground is a quaint little investment property located in southern Illinois (near the STL Metro). The property is a combination of a year round 32-pad RV park and a 11-key motel. There are three additional "over-run" hookups that are utilized during peak season or for electric car charging. This is an ideal property for an "owner operator" to own as it also includes a really nice 3bed/2bath modular house on a poured concrete foundation with a basement (which also acts as the storm shelter for the RV park/motel). The house also has a fireplace. The house is heated by an exterior wood burning fireplace which supplies both the heat and hot water for the property.
Why is it for sale? This is normally one of the first questions that I receive when listing a commercial property. This property has been owned by the current seller for over 22 years. It has been a profitable business for him. The seller is in his 60's and is a "single grandfather". He has recently taken custody of his 3-year old granddaughter, and he is finding it more difficult to balance his time between his new parenting responsibilities with the day-to-day operation of the park.
The RV park is well laid-out and offers outstanding infrastructure. The RV portion was built in 2011. All of the electrical & plumbing work was installed by local Union workers. The water & sewer lines are both 3-inch copper. The water line was installed 54 inches deep. Tracer wire was installed at this time as well. Each grid of the RV park has its own 1500 gallon septic tank in addition to a 1000 gallon dosing tank. The property utilizes three separate shutoffs for the septic lines which is beneficial during periods of heavy rainfall.
City water. Septic (four separate tanks). Gravel Road through park. Asphalt parking lot in front of motel in great shape. RV park is currently not back-billing electrical to monthly guests. The park utilizes one of the motel rooms as the office. All of the electrical pedestals offer 30 amp, 50 amp, and 110 GFI.
All 32 of the RV sites are full-service. The 30-amp service currently runs $30/day, $140/week, and $450/month. The 50-amp service runs $35/day, $150/week, and $475/month. These rates include water, electric, trash, sewer, & internet. The motel charges $60/night, $280/week.
The buyer of this property will also be buying a good portion of "goodwill" and repeat business. K-River Campground currently has a 4.3 rating on Google with nearly 60 reviews.
So this Motel & Campground has largely catered to work crews in the area to work on the nearby power plants and pipelines. There are also several large infrastructure projects slated to begin in the near future which should increase demand for the rentals:
•Ameren currently has 22 pipeline projects
•Baldwin Power Plant has a planned outage starting in May
•Prairie State Energy has a planned outage starting this coming Fall •Kaskaskia River dredging and manufacturing plant construction •Sparta airport being expanded
The seller has ran all of his business interests and his personal business out of the same checking account. Also...a lot of the guests are fans of country music, in particular Johnny CASH. Therefor the financial records are not going to be accepted by virtually any lending institution with regards to underwriting financing. As a result we are not providing any financials on this property as they are not of service, and also don't accurately paint a picture on the income this property is generating.
The new buyer will need to be a cash buyer, or able to finance this as if it was a "new enterprise"...probably requiring 20% down.