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Rare 55+ MH & RV Park Sale in Yuma, AZ 

The sale of a Yuma County mobile home park for sale was completed on September 19, 2007 for $1,960,000.  Vince Reynolds and Norman Sangalang of MHRV Advisors represented both parties in this transaction. 

The park consists of 63 spaces (51 Mobile Home spaces & 12 RV spaces) situated on approximately 5 acres.  The mobile home spaces include 34 singlewide and 16 doublewide homes.  All of the 12 RV spaces are rented on an annual or seasonal basis.  The sale included 5 park owned homes + a managers residence. The park owned homes are rented by snowbirds for the 6 month season. The park has several amenities that include a pool, recreation hall, restrooms and laundry facilities. The park is on city water and sewer and gas and electric is direct billed to tenants. 

The buyers obtained a new mobile home park loan of $1,372,000 (70% LTV) at 6.5% amortized over 30 years.

Vince Reynolds commented, “There are few true 55+ mobile home parks in Yuma. Yuma is often considered to be secondary market catering only to the “Snowbird RV” market.  The buyer recognized that this is not always the case and a 55+ community with directly billed gas and electric on city services doesn’t come to the market very often.” 

Norman Sangalang stated, “Our sellers were very firm on their price and would not allow much room for negotiations making it difficult to get the park into contract. Along with several spaces on long term leases set at below market rents, we had to find a investor who could see the upside potential of the park.  Due to the rarity of this type of park there was a lack of direct sales comparables that could be used for the purchase price. However, with the terms of the sale, upside potential and quality of the park we felt this park is an excellent investment opportunity.”

Reynolds continued, “Contrary to popular belief, there are only a few true mobile home parks in Yuma. There are over 100 parks in Yuma but most of them are seasonal RV parks or older permanent travel trailer parks. This investor saw the year round occupancy and revenue and was able to see that the value should be close to if not on par with mobile home parks in Phoenix and Tucson.  Inc. Magazine just ranked Yuma as #2 among cities under a population of 150,000 for job growth (down from #1 in 2006).  In fact non-farm job growth is up 31% from 2001. Yuma’s reputation as a retiree/snowbird town is facing some new competition as the  job market grows and diversifies with more families move to the area everyday.”

 

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