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 BUYER SEES YEAR ROUND OPPORTUNITY IN BIG BEAR

The mobile home park for sale in the city of Big Bear Lake, CA, County of San Bernardino sold on April 6, 2006 for $2,695,000.  Vince Reynolds and Norman Sangalang of MHRV Advisors represented the Seller in this transaction.

The park is clean with mostly mobile home and few RV spaces located in the resort town of Big Bear Lake. The 70 units consist of 50 mobile home + 18 RV Spaces, a 3BD/1BA house and a 2BD/1BA cabin.  Amenities include an office, rec hall and laundry facility.  The average space rent is $439 with all utilities passed through to the residents.  6 park owned homes were included in the sale.

Although mobile home park financing would be easily obtained for this property, the buyer purchased the park all cash.

Vince Reynolds commented, “Big Bear Lake has been booming lately as a second home market and the price of those second homes has now crept above $250,000 on the average.  The buyers see an opportunity to offer new MH and Park Models at $100,000 or less and provide an excellent mountain getaway.  The park has excellent views of the lake and surrounding mountains at prices much less than the competing stick built homes.”   

Norman Sangalang added, “The Seller has been running the park from out of state and has had several managers in the past few years.  The park has had some vacancy and tenancy problems because of this.  The buyer is an experienced park owner and operator and has managed parks in Big Bear in the past.  They plan on catering to the retirees and families in the Inland Empire looking for a second home.   Big Bear has recently become more active in the summer time than it is in winter.  Summer visitors stay longer and make more frequent trips, a pretty good opportunity for filling spaces.”

“The buyer put together a number of investors for this transaction and was able to raise 100% of the equity required.  They almost had to turn some investors away.  The park has an incredible amount of upside through filling the 13 vacant sites, selling new homes and renting or selling the 6 homes that were included in the sale.  While marketing this property it became evident that there is probably a bigger opportunity in seeking residents looking for a vacation home than there would be from locals looking for a permanent residence,” said Reynolds.”

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