Newer 55+ Mobile Home and RV Park Sold with Above Market Cash Flow

The sale of a Pinal County mobile home park and RV park was completed on January 3, 2008 for $3,900,000. Vince Reynolds and Norman Sangalang of MHRV Advisors represented the seller in the sale of this mobile home and RV park.

This newer mobile home park and RV park was built overtime from 2000 to 2006. 2006 was the first year it was fully operational. The park has 152 RV spaces and 62 mobile home sites. The RV section was 100% full in 2007 and is 100% reserved for the 2008 season. The mobile home section has 25 vacancies. In the last two years the seller has put all of his effort into filling the RV side of the business and increasing park model occupancy. Amenities at the park include an office and clubhouse. Rents in the mobile home and RV section are well below market at $1,500 for annual RV and $225 a month in the mobile home section. Electricity is direct billed through APS. The park is serviced by a new well and septic system. However city water and city sewer are close to the property and available. The population in Queen Creek has tripled since 2000 and there are over 40,000 new homes planned for the area surrounding the park.

Vince Reynolds commented, “The fact that this park was a newer park, in a prospering area with an upside in rents and filling spaces made this property an excellent long term investment. The buyer has built and owned several parks in the area and knows that it would be very tough to replace this park for $18,000 per space. Although, the residential housing market in Queen Creek is really suffering, the RV revenue continues to increase and the MH section will benefit from the spill over from the RV section. It took the right investor, ready to roll up their sleeves and bring new tenants to the park. The buyer knew it was a growing area and that new tenants and home sales would not be too difficult.

Norman Sangalang stated, “The buyer closed escrow and immediately began the preparations for adding concrete streets to the park. Using previous market knowledge, the buyers knows that “if you build it, they will come.” And if you build it nice, they will come even faster. The buyer is taking advantage of below market seller financing for the next few years that will give the park an above market cash flow which helps the buyer jump start the improvement costs and additional advertising.

Vince Reynolds and Norman Sangalang specialize in the sale of mobile home parks and RV parks in California, Arizona and Nevada. They also provided refinancing and new loans for over 100 mobile home parks 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.