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OPPORTUNITY FOR MULTIPLE NEW HOMES SALES FUELS PURCHASE

The mobile home park for sale in the city of Borrego Springs, CA, San Diego County sold on October 22, 2004 for $770,000.  Vince Reynolds and Norman Sangalang of MHRV Advisors represented the Buyer and Seller in this transaction.

The mobile home park consists of 26 mobile home spaces and a pad for a traditional single family home.  The property is situated on 3.22 acres and is serviced by the local water district and city sewer. The park is located in the retirement community of Borrego Springs in Northeast San Diego County. Amenities includes a small office and pool.  The park was built in 1998 and has never had more that 10 occupied spaces.  The sale included 7 park owned homes, two of which were rented for $600 at time of sale.  The sale was structured as a lease option which allows the Buyer to focus on bring in new homes, home sales and fill vacancies.

Although mobile home park financing was possible for this park, the buyer and seller used a lease option sale instead.

Vince Reynolds commented, “It is rare to find a newer park on city services in Southern California that is still in the fill stage. Because of high land values, rising construction costs and resistance by local government to allow new development the ability to build a new park in Southern California next to impossible.  This may be the last fill/development park San Diego County. The Buyer has already moved new homes into the park and begun an upgrade to the existing rec room/office.”

Norman Sangalang added, “The Borrego Springs area has the potential to be a retirement and vacation center like its overpriced neighbor Palm Springs.  Housing prices in Coachella Valley have risen beyond what most snowbirds can afford.  With rents in the mid $200 to $300 range Borrego Springs is a pleasant and affordable alternative that is attracting more and more winter visitors and permanent residence.

Reynolds continued, “Creating a lease-option was the only way to obtain the true value for this park.  Only 2 of the spaces were producing revenue, so allowing the buyer to use less than 10% as option consideration enabled the seller to get the $770,000 he desired.  This park is basically brand new, has direct bill utilities and concrete streets.  I think anyone would be hard pressed to build this park for the $29k a space it sold for.  The buyer plans on selling homes for approximately $150,000, at that price they will be most affordable brand new homes in San Diego County.  Throw in the rec. room, swimming pool and the value of the homes that were included in the sale and it this park becomes a nice little deal.”

Mobile Home Parks For Sale in CA, Borrego Springs, San Diego County, 

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