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YUMA'S PREMIER FIVE STAR RV PARK CHANGES HANDS

The five star, 338 space RV Resort Park for sale in the City of Yuma (Yuma County) Arizona sold on February 29, 2000, for $5,150,000. Vince Reynolds of (MHRV ADISORS) Business Real Estate and John Grant of Park Brokerage Inc. represented both parties in the transaction.

The RV park resort was built in 1985 and contains 338 full hook-up RV spaces with concrete pads.  The property is located on 25 acres.  The park contains 270 annual park model residents, 54 seasonal/monthly residents and 14 pull thru spaces.  The park has annual rents of $1,975 seasonal of $1,925, and monthly rents of $350.  Amenities include a pond with fountain, large clubhouse, pool, spa, and rec. hall.  The park is 100% occupied during the October 1st through-April 1st winter, "snowbird" season.

The sales price worked out to an 8.5% capitalization rate and a 15% cash on cash return.  The buyer put down $1,900,000, the seller took care of the RV park financing by carrying an AITD of $3,250,000 at 8% amortized over 30 years, due in 10 years.

"The sellers built the park in 1985 and have been planning to retire from park operations for the last few years.  The buyers are experienced mobile home park operators and have just become familiar with snowbird RV parks through acquisitions in the Rio Grande Valley.  This is their first venture into Yuma." said Reynolds

Vince Reynolds also commented, "Yuma had another great season, the overall trends show nothing but increases for this market.  More snowbirds are going to Yuma because of the excellent weather, better rental rates, proximity to Mexico for prescriptions & services and less congestion than in Phoenix-Mesa.  During the peak months of January and February, there are absolutely no vacant spaces in the entire town.  This year several hundred new spaces came online and all of them were filled with RV's during the peak time.  I'm sure that with the current trends the market could absorb a few thousand more spaces in the next few years."

John Grant added, "This is one of the top three parks in Yuma and at $15,236 per space it is definitely the highest price per space Yuma has seen.  Investors are realizing that RV parks with over 75% annual or park model tenants are very stable investments and command cap rates similar to quality mobile home parks. 

RV Park Resort For Sale in Arizona, Yuma County, Yuma
 

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