CLEAN RV PARK WITH SELLER FINANCING IN BOOMING MARKET PROVIDES FOR AN EXCELLENT COMBINATION

The sale of the Foothill Village RV Park located at 12705 S. Frontage in Yuma, Arizona was completed on March 9, 2000, for $1,750,000. John Grant of Park Brokerage Inc. and Vince Reynolds of MHRV Advisors represented both parties in the transaction.

The park was built in 1978 and contains 180 full hook-up spaces. The property is located on approximately 7.0 acres of land. The park contains 100 annual tenants with balance being seasonal and monthly tenants. The park has annual rents of $1,300, seasonal of $1075, and monthly rents of $230. Amenities include a billiard room, pool, spa, and rec. hall. The park is almost 100% occupied during the winter months or "snowbird" season, which begins on November 1st and ends on April 1st.

The sales price worked out to a 9.9% capitalization rate with an 18.9% cash on cash return. The buyer put down $400,000, the seller carried an interest only AITD of $1,350,000. The interest rate starts at 7.25% for year 1 and 2, increasing to 8.25% for years 3 to 5, and finally 9.25% in year 6 through 8.

Vince Reynolds commented, "The sellers purchased this park in February, 1997 and planned on holding it long term. With this in mind they undertook several renovation projects and eliminated any deferred maintenance at this park. Circumstances changed and they made the decision to put the park back on the market. The buyer realized that the park without any deferred maintenance and below market rates was an excellent opportunity."

John Grant added, "The buyer purchased this park as part of 1031 exchange, and closed escrow a few days before on another Yuma park, Araby Acres RV Resort. With the acquisition of over 500 spaces in a few days, they now are one of the larger RV park owners in Yuma."

"Yuma had an excellent 99/00 winter, snowbird season. Occupancy and rental rates continue to increase. Larger real estate investors have taken notice of the excellent RV market and will now purchase parks in Yuma. Foothill Village was our seventh transaction in Yuma, and every buyer has been from California."

Vince Reynolds sells and finances mobile home and RV parks exclusively throughout the states of California, Arizona and Nevada. Vince has sold 60 RV and mobile home parks in the past 8 years with dozens of others financed. For further information please contact Vince at (866) 459-MHRV 6478.