IMMPECABLE PARK, BOOMING MARKETPLACE, EXPENSIVE DEAL

The sale of Tucalota Springs RV Resort located at 41601 E Benton Road in Sage, CA (Riverside County) was completed on March 26, 2004 for $1,900,000. Vince Reynolds and Norman Sangalang of MHRV Advisors represented the Buyer and Seller in this transaction.

The park consists of 80 full hook RV spaces with ample room for additional tent camping. Amenities include pool, clubhouse, laundry facility and onsite store. The property is situated on 66 acres and is serviced by well water and septic sewer. The park is located just east of the booming community of Temecula. The park is in immaculate condition and has ample room for expansion or additional development. The sellers carried $1,235,000 for 5 years at 4.5% year 1, 5.5% year 2 and 6.5% years 3-5.

Vince Reynolds commented, "This was an extremely sought after property because of its location, size and condition. Our list price was $1,750,000 and as soon as it hit the market a bidding war ensued. We priced this property based upon a conversion to more monthly occupancy because Southern Riverside County is encountering a growth spurt like none seen before. The sellers received 10+ calls a week from people looking for long terms space, but did allow any monthly residents. The buyer plans to continue operations 'as is' and keep the park open for short term guests and clubs/groups primarily occupying the park on the weekends even though he could substantially increase his cash flow by allowing long term stays."

Norman Sangalang added, "The park sits on 66 acres, but I estimate less than 30 acres are actually used. The remaining acreage is used for hay rides, hiking and bike trails. It is gently rolling and all useable so it will be quite valuable in years to come as the expansion in Temecula continues to move eastward."

Reynolds continued, "The owners were onsite so the actual income and expense numbers for the park needed to have substantial changes to get them inline with industry standards. The owner was very hands on so we needed to add almost 70,000 to the expense numbers for repairs/maintenance and payroll. On the income side we increased the gross over $150,000 above the sellers actual numbers, not including any revenue generated by the store. Some investors has a real hard time accepting that kind of proforma increase, but the ones who knew the area and the huge upside potential had knew that our estimates were very conservative and the change in operations would not be a problem."

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.