SUSANVILLE RV PARK SELLS FOR 8.5% CAP RATE WITH UPSIDE

The sale of the Mountain View RV Park and Mini Golf located at 3075 Johnstonville Road in Susanville, California was completed on June 30, 2005 for $1,750,000. John Grant of Park Brokerage Inc. represented the seller in the sale.

The highway 395 mostly summer seasonal RV park was built in 1996, 1999, and 2005. The park has 101 full hookup RV sites with mostly 50 amp electrical service and city sewer and water. 65 of the RV sites were 60 foot pull thrus. Amenities include an office with 2 bedroom/2 bath manager’s apartment, bathrooms and showers, and asphalt paved roads. The park has mountain views and is walking distance to Wal-Mart, Safeway, restaurants, and near a casino.

The adjacent miniature golf, arcade, and batting cages were built in 2002. The main building is 3,600 square feet and houses the arcade, party room, and kitchen with snack bar and restrooms. The miniature golf course is landscaped and there is a separate area with six batting cages and pitching machines.

The RV park rental rates are daily $31, weekly $168, and monthly $360 + electric. Since the last phase of 24 new sites were not completed until June, 2005, occupancy and income has increased. The income from 2004 to 2006 increased 35%.

Because of health reasons, the Seller had not been operating the mini golf, batting cages, and arcade facilities. The facilities had grossed almost $50,000 in 2004 on a part time basis. Broker estimates the net income for the RV park alone at $150,000 for a 8.5% capitalization rate. There is obvious upside for the buyer by reopening the facilities.

The buyer made a $180,000 cash down payment, assumed an existing $1,470,000 1st trust deed at 7.5% interest with monthly payments amortized over 30 years with 5 years remaining, and the Seller carried a short term $100,000 2nd trust deed at 7% for two years. The properties were in good condition at time of sale.

John Grant sells and finances manufactured housing communities and RV parks exclusively throughout the states of California, Arizona, and Nevada. He has sold 134 manufactured housing communities and RV parks in the last 20 years and financed over 100. John can be reached at 800-987-3363.
Market time: 4 months, Escrow period: 4 weeks