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STABLE CASH FLOW PARK SELLS IN 40 DAYS AT FULL PRICE

The mobile home park for sale in the city of Ventura, CA, Ventura County sold on April 20, 2005 for $1,300,000.  The buyer assumed the existing seller financing of $450,000. Vince Reynolds and Norman Sangalang of MHRV Advisors represented the Seller in this transaction.

The park consists of 36 mobile home spaces and apartment (37 total units). The property is situated on 2.21 acres and is serviced by city water and a septic system. Most spaces accommodate singlewide homes with a few doublewides spaces. Amenities at the park include a laundry facility, storage and office. The park is subject to the County of Ventura rent control allowing for CPI increases (2% min to 8% max) and a 15% increase on turnover. Average space rents were at $289. Gas and electric are submetered and passed through to the tenants as well as sewer and trash with the park only paying for water. The park was nearly 100% occupied at the time of sale.

The buyer assumed the mobile home park financing of $450,000.

Vince Reynolds commented, “Mobile home parks do not make it to the market in Ventura County that often.  The quick sale of this park shows just how desirable central coast real estate is.  Occupancy at this park has been historically very high.  Even though this is an older park the buyers can expect to see continued stable income with a realistic possibility of upside in rents as spaces turn over.  The rent control ordinance in the county is livable unlike, other rent controlled cities in Ventura County and with just a few turnovers in the park this park will become a great return on investment.”

Norman Sangalang added, “The seller completed several replacements and improvements since purchasing it in 2001.  Upgrades included replacing most of the underground utilities including replacing the water lines, septic lines and lots of repaving.  With the exception of the electrical system this park systems are like new. The modernization of the parks infrastructure will allow the new owners will be able to focus on the park operations and less time on repairs and maintenance.

Reynolds continued, “The Buyer owns another park in the city of Ventura and will be able to use his staff for both properties and refer tenants to both properties. The seller needed a quick close to facilitate a 1031 that he already had in place.  This transaction met the expectations, value, and timelines of both buyer and seller.”

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