NEW OWNERS SEE POTENIAL IN UNDER PERFORMING RV PARK

The sale of the El Rancho Brookside RV Park located at 36805 Brookside Ave., Beaumont (Cherry Valley), California was completed on July 13, 2001 for $1,000,000. Vince Reynolds and Norman Sangalang of MHRV Advisors represented both parties in this transaction.

The park was built in the mid 1970's and contains 100 full hook-up spaces with 76 pull-thrus & several tent sites. The property is situated on 9.74 acres, .22 acres for the well and some additional acreage for future expansion. The monthly rate at the park was $246.75 and the daily rate was $18. The park had over 30 permanent residents at the time of sale. Amenities at the park include a pool, recreation room, spa, horseshoes, and laundry room. The park is situated along the I-10 freeway between Riverside and Palm Springs near, but not accessed through a freeway rest area. Numerous shade trees, ponds and grassy areas provide a scenic atmosphere for park visitors. The park was in good condition at the time of sale.

Because the park was under performing the sales price was primarily based upon a price per space which equated to $10,000 per space. The sales price was well below the replacement costs for a new RV park assuming that a new location could be found. The price of land in the area and development costs make new RV parks cost probative diminishing the likelihood that another RV park will be built in the Beaumont/Cherry Valley vicinity in the foreseeable future.

"The sellers have been focusing on their personal careers and other ventures for the past several years which left the operation of the park as their secondary priority. The strength of the location and condition of the El Rancho Brookside allowed the property to remain operational without any serious attention given to the advertising or marketing efforts. The new owners are experienced park operators and are looking at bringing the park to its full potential.," said Reynolds.

Vince Reynolds also commented, "The Beaumont/Cherry Valley region is poised for major development in the near future. Just across the freeway is the new Southern California PGA HQ which has 36 holes and have plans for 13,000 lots that will surround the new course. Adjacent to the park is the Oak Valley Development with plans for nearly 12,000 homes is planned as a classic quality golf and recreation-oriented, master-planned community. The project includes a mix of residential, commercial, business park/industrial, golf course, public and open space uses.

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.