MH + RV PARK LOCATED IN COPPER MINING BOOMTOWN SELLS FOR 13.5% CAP RATE

The sale of the Valley View Mobile Home & RV Park located at 441 Corral Road in Duncan, Arizona closed on October 12, 2007 for $3,300,000. John Grant of Park Brokerage Inc. represented the Seller in the sale.

The park contains 30 RV sites, 116 mobile home sites, and a manufactured home fourplex. The all ages community was built in the 1970’s and is located on a total of 34 acres. All the mobile home sites can accommodate doublewide homes but the park currently contains only 25 mobile homes and the balance are occupied by permanent RV’s. Phelps Dodge, a copper mining company, master leased 56 of the sites for their employees. Amenities include a 1,800 sf building that houses the office, rec room with kitchen, laundry room, bathroom and showers. The park is serviced by well water and septic utilities. Seven rental mobile homes and one manager home were included in the sale.

The site rents were $200-$300 with most at $300. There was a waiting list to get in the park. The local copper mines are expanding or building new mines and the copper mining companies have added thousands of workers. The local area has an acute housing shortage and Valley View was half occupied a year earlier with much lower rents.

The buyer paid cash to an existing loan of only $485,000 and planed to refinance after the close of escrow. The capitalization rate was 13.5%. 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. Valley View filled overnight and increased rents from $200 to $300 in one year”.

Grant added, “Potential buyers were nervous that the copper boom could go bust in a few years or the permanent RV’s would eventually purchase local housing as it was built to satisfy demand. The seller had a large gain in the property and offered an extremely high rate of return to compensate for the risk”.

John Grant sells and finances manufactured housing communities and RV parks exclusively throughout the states of California, Arizona, and Nevada. He has sold 136 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 length: 3 Weeks