BUYER SEEKS UPSIDE IN HIGH DESERT

The sale of the Camelot Mobile Home Park located at 22020 Nisqually Road in Apple Valley, California was completed on November 20, 2000 for $1,400,000. John Grant of Park Brokerage Inc. and Vince Reynolds and Norman Sangalang of MHRV Advisors represented the seller in the transaction.

The all ages community was built in 1988 and has 76 large doublewide spaces. The community is considered four star and includes a pool and clubhouse. The park is situated on 9.39 acres and has concrete streets. The gas and electric utilities are directly billed by the utility companies. The sewer and water utilities are on city services.

The sale included 15 manufactured homes and six manufactured home installment notes for $89,238. The Buyer received a $65,000 credit in escrow for deferred maintenance. The manufactured homes are two and three bedroom doublewides built in 1988 and 1989 and are worth approximately $15,000-$20,000 each.

The community had average space rents of $242 plus all utilities. The park owned homes rented for an additional $160-$240/month. The community had 18 space vacancies at time of sale.

With the park owned home rentals and the note income, the community sold at a 10% capitalization rate. The buyer paid all cash with no financing.

Vince Reynolds commented, "The Apple Valley MHC market has been very active lately, there has been four transactions in Apple Valley so far this year. There probably has not been ten sales in all of San Bernardino County this year. When the median price for a home gets above $100,000, manufactured homes become the alternative. Couple that with the lack of affordable housing in the Los Angeles basin and Apple Valley becomes a great opportunity."

John Grant added, "The buyer is a manufactured home retailer with a large network of communities throughout Southern California. Average home prices in the Apple Valley/Victorville/Hesperia market increased 11% during the last year to $111,000 and the same approximate increase is expected this year. The buyer is confident that the community will fill".

Vince Reynolds and Norman Sangalang sell and finance mobile home and RV parks exclusively throughout the states of California, Arizona and Nevada and have sold or refinanced over 100 MH and RV parks over the past few years. For further information please contact Vince or Norman toll free at (866) 459-MHRV (6478) or via email at info@mhrvadvisors.com.