COPPER MINING BOOMTOWN MHC SELLS FOR 9.3% CAP RATE WITH UPSIDE

The sale of the Valley View Mobile Home & RV Park located at 1600 E. US Highway 70 in Safford, Arizona closed on November 29, 2007 for $2,475,000. John Grant of Park Brokerage Inc. represented the Seller in the sale.

Silvercreek has 86sites on 12 acres. It is a well maintained, all ages community with 150 mature pine, eucalyptus, and mulberry trees. All the sites will accommodate doublewide homes and the average site size is 45-50 feet X 80-90 feet. The community has has submetered 100 amp electrical service, plastic gas lines, septic sewer, and city water. The manager’s residence is an approximately 2,000 square feet, 5 bedroom/3 bath manufactured home with a 2 car garage.

The site rents were below market at $200-$225 plus $25 for water and $5 for tax and turnover rents and the market were $275. The sale included 17 rental manufactured homes and 2 mh installment notes of $48,000.

The capitalization rate was 9.3%. The buyer paid cash to a new loan of $1,650,000. The property was in good condition at time of sale.

John Grant commented, “The price of copper has tripled in the last year and the area is one of the main copper mining communities in the country. A number of closed mines have reopened and others are being expanded or opened. Thousands of workers have been hired and the local small communities cannot accommodate all of them. There was some RV tenancy left in the community and local manufactured home dealers were replacing the RV’s with new manufactured homes”.

John Grant sells and finances manufactured housing communities and RV parks exclusively throughout the states of California, Arizona, and Nevada. He has sold 137manufactured housing communities and RV parks in the last 20 years and financed over 100. John can be reached at 800-987-3363.

Market time: 2 Months, Escrow length: 3½ Months