Santiago Communities Inc. wants to build a 200-unit manufactured home community near the Kennewick water treatment plant to offer affordable housing in a tight residential market.

The Santa Ana, California-based manufactured home developer submitted a letter of interest to buy 26 acres from the Port of Kennewick for $831,400. If approved, the port will retain water rights to the site, which is off East Third Avenue near Oak Street Industrial Park.

The deal is pending before the port commission, with a closing date no later than Sept. 1, 2021. The long lead time is to give the buyer time to review the feasibility of developing the site, which is bordered to the north by the Columbia River.

The $5 million project would be developed in phases, with a community center with kitchen, laundry, restrooms, recreation rooms and a manager’s office. Santiago sells manufactured homes for an average of $125,000 for a three-bedroom, two-bath home. At full buildout, the community would be valued at $25 million.

The property consists of three parcels split between the city of Kennewick and Benton County. Lewis County River Estates borders the site on the east.