The park consists of 19 mobile home spaces and 5 excess acres. Most of the spaces are larger and easily accommodate a doublewide home. Rents in the park average $450 and are considered to be below market rates. Tenants pay for water & gas directly and are sub-metered or billed for sewer, electric and trash. The park is serviced by city water and a municipal sewer district. The park was 100% occupied during the time of sale. There were old permits allowing for 30 additional spaces but the local sewer district has not increased its capacity to currently allow for any new spaces.
Norman Sangalang commented, “Like many investors in late 2009, the buyer found themselves with a large amount of idle cash in their bank and securities accounts earning very little returns. Looking for better yielding alternatives with the relative security of cash has become a major priority for the conservative investor. Real estate is an option, but with the uncertainty in office, retail and even apartments values over the next few years this type of investor has a low tolerance for trading higher returns for risk of potential loss in equity. This park provided a solid cash flow with a better chance of equity preservation.”
Vince Reynolds added, “This park has been nearly 100% occupied over the past 10 years. Since this is the only park in the town of Julian there is no direct competition for tenants. With most of the expenses being the responsibility of the tenants, the owners expenses are very low. The value of any commercial property is largely derived from the level of income. Parks tend to retain their value because they are able to maintain their occupancy levels even in a down economy and almost never need to reduce rents. This slow and steady approach is why parks did not see the wild speculation in purchases over the past few years and exactly why they are not suffering substantial loss of value either.”
Vince Reynolds and Norman Sangalang specialize in Mobile Home Parks For Sale, Park Financing Loans and RV parks for sale and loans exclusively throughout the states of California, Arizona and Nevada and have sold or refinanced over 100 MH and RV parks over the past few years. For further information please contact MHRV Advisors at (858) 456-5110 or http://www.mhrvadvisors.com
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