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GREAT MARKET AND LOW RENTS SPELL LONG TERM SUCCESS

The RV park for sale in the city of Reno (Washoe County) Nevada sold on October 19, 2001 for $1,000,000. Vince Reynolds of MHRV Advisors and John Grant of Park Brokerage Inc represented the seller in this transaction.
 
The park was built in the 1979 and contains 79 full hook-up RV spaces with a small area for the possible addition of a few more spaces.  The property is situated on 4.75 acres. The monthly rental rate at the park is $300 to $325.  The daily rate is $20 and the weekly rate is $92.  The majority of the income is derived from monthly occupancy. The park’s only amenity is a laundry facility. The RV park is located in the northwest area of town just west of I-395.  The park is slightly terraced and has some views.  The park was in fair condition at the time of sale.
 
The buyer used the proceeds of a 1031 exchange and placed a $350,000 down payment on the park. The RV park financing was provided by the owner, he carried a first note and deed of $650,000 at 9%, interest only, for five years.  The note also has a principal pay down of $1,000 per month after the eighteenth month.  The park had three vacant spaces at close on escrow and has an average annually occupancy of 70%.  The cap rate was just above 10% based upon adjusted expenses.
 
Reynolds commented, “The Reno/Sparks market now supports a population of approximately 325,000 with a median income of $41,000.  The population has grown at a rate of 3.5% annually over the last several years. With gaming and the burgeoning industrial market, Reno will continue to see occupancies above those of Las Vegas.  Reno has a more diverse employment market than Las Vegas with not as much reliance on gaming and construction”.
 
Grant commented, “The buyer has several improvements already underway and has many more planned for the park.  He has already had the streets slurry sealed and is working on improving  access into one area of the park.  He plans on adding a web page and increasing advertising to help increase the rents and occupancy”.

Mobile Home Park / Trailer Parks for Sale in NV, Washoe County, Reno

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