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2004 UNREPLACEABLE LOCATION, YEAR ROUND OCCUPANCY

 The mobile home park & RV park for sale in the city of Earp, CA, San Bernardino County sold on December 30, 2004 for $3,000,000.  Vince Reynolds and Norman Sangalang of MHRV Advisors represented the Seller in this transaction.

The park consists of 128 spaces, 64 Mobile Home spaces  and 64 extended stay RV spaces (38 riverfront spaces) situated on approximately 12.5 acres with covered and open boat and RV storage.  There is also a small marina and fueling dock allowing direct access to the Colorado River.  The park has several amenities that include a recreation hall, storage building, restrooms and laundry facilities. Other improvements include the small marina with above ground gas storage tanks, several restrooms, a general store, boat ramp and developed campground areas.  The mobile home and RV park also has it’s own on-site well water and septic system. Electrical service includes 20 and 30 amp site pedestals. The property is subject to a long-term BLM ground lease that expires 12/31/2089 (appx. 84 remaining years).

The buyers assumed the existing mobile home park financing of  $1,019,000.

Vince Reynolds commented, “Although this property was not fee simple the 84 years remaining on the ground lease affords enough security to avoid a major reduction in value.  The cap rate for this sale was 1% higher than it would have been for a fee simple transaction. We encountered a couple of hurdles with the BLM, but for the most part they are an easy to work with landlord that offer fair lease rates. Under the right conditions such as those found at this resort an owner can obtain a much higher cash flow than in a fee simple property.”

Norman Sangalang stated, “Direct access to Colorado River on the Parker Strip really opens the owners to a wide range of income possibilities with several avenues for adding value.  Residents in a park like this are there more for the lifestyle and atmosphere than for any other reason.  It is fairly common for tenants at this park to pay rent year round but only stay at the park for a few summer weekend or snowbird during the winter months.”

Reynolds continued, “The sellers acquired the property through a partnership acquisition and were not quite hands enough for a property like this so the actual income and expense numbers did not conform to industry standards.  The buyer saw that changes could be and some revenue opportunities were not being accessed.  The buyer plans to add more boat storage and upgrade some of the older mobile homes in the park.”

Mobile Parks For Sale in CA, San Bernardino County, Earp
  

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