SMALL DELTA MOBILE HOME PARK SELLS WITH UPSIDE

The sale of the Sandy Point Mobile Home Park located at 5625 Sandmound Boulevard, Oakley, CA closed on December 1, 2006 for $910,000. John Grant of Park Brokerage Inc. represented both parties in the sale.

The all ages, two star community was built in the 1960’s and has 17 mobile home and 7 RV sites on 1.07 acres. The sale also included four rental mobile homes. The park’s only amenity is a laundry room, but it is located across the street from the delta. The park is serviced by well water, city sewer, direct bill electric, and submetered gas utilities.

The mobile home site rents were approximately $100 below market at $325-$403 plus gas, $28.89 trash, and $24.88 sewer. The RV sites were $309-$385 and the rental mobile homes were $750-$1,000. The park is located in the unincorporated area of Oakley in Conta Costa County and subject to rent control. However, the rent control is not effective until the site rents reach $476.05.

The buyer obtained a new loan of $300,000 and the Seller carried a $300,000 2nd trust deed at at 8% interest for three years with no interest payments year one. The capitalization rate was 9.2%. The property was in fair condition at time of sale.

John Grant commented, “The east delta area of the Bay Area is exploding with new growth and the former sleepy town of Oakley is rapidly expanding with new housing tracts and retail properties. The park had been poorly managed and maintained for many years and had very low rents and occupancy. The park had immediate upside increasing the low rents to levels near the $476.05 threshold when Contra Costa rent control starts”.

John Grant sells and finances manufactured housing communities and RV parks exclusively throughout the states of California, Arizona, and Nevada. He has sold 131 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: 90 days

Escrow length: 90 days