PARK MODEL RV RESORT SELLS FOR 6.3% CAP RATE

The sale of the Rock Shadows RV Resort located at 600 S. Idaho Road in the City of Apache Junction, Arizona closed on December 2, 2005 for $14,500,000. John Grant of Park Brokerage Inc. represented the seller in the sale.

The resort contains 683 full hookup RV sites on 37 acres. Over 68% of all RV sites are permanent park model homes on annual rental agreements. The resort is 30 years old and is serviced by city water and sewer utilities, and 50-100 amp electrical service for the park model sites and 30 amp for the rest of the property. Amenities include five common area buildings with approximately 20,000 square feet housing the park office, the main dance hall, billiard room, computer lab and class room, smaller rec hall, several crafts rooms, library, exercise room, two laundry rooms, woodshop, lapidary, and work shop for maintenance. Outdoor amenities included include a large pool, two spas, twelve shuffleboard courts, putting green, driving ranges, and horseshoe pits. The property also includes a dog run, storage area for maintenance, and additional RV storage for over 50 vehicles

Rental rates were $30 daily, $180 weekly, $500 monthly, $1,385 three months, $1,810 five months, $2,700 annual with 7 month stay, and $2,975 annual with year round stay.

The price per site was $21,230. The buyer paid cash to an existing loan of $7,538,705 at a 5.71% fixed rate due 2013. The capitalization rate was 6.3%.

John Grant commented, “Rock Shadows is one of the two major RV resorts in Apache Junction and is institutional size and quality. The property was listed at $14,000,000 and was overbid to $14,500,000”.

Grant added, “Apache Junction and the entire east valley of Phoenix are one of the main winter snowbird locations in the country. Apache Junction has experienced tremendous growth and the property is located on a corner and in a great location next to a shopping center. 10 of the 37 acres are zoned commercial”.

John Grant sells and finances manufactured housing communities and RV parks exclusively throughout the states of California, Arizona, and Nevada. He has sold 120 manufactured housing communities and RV parks in the last 16 years and financed over 100. John can be reached at 800-987-3363.

Market time: 30 days

Escrow length: 145 days (Seller took options to extend to find exchange property)