193 SITES IN TUCSON SELLS FOR 6.5% CAP RATE WITH 25% VACANCY UPSIDE

The sale of the Verde Plaza Mobile Home Community located at 2424 S. Cottonwood Lane in the City of Tucson, Arizona closed on July 18, 2008 for $5,300,000. John Grant of Park Brokerage Inc. represented both parties in the sale.

The all ages, four star community was built in 1974 and has 193 sites on 24 acres. It is located near downtown Tucson on the west side. The community has large lots that accommodate doublewides and/or 16x80 homes. The community is serviced by city sewer and water services. Amenities include a clubhouse with rec room, office, and billiards room, pool, spa, tennis and basketball court, playground, and covered bbq area.

The site rents were $296-$310 plus submetered gas, electric, sewer, and water utilities and $7 for trash. The property has struggled with vacancies and had 47 vacancies at time if sale. The property was in good condition at time of sale.

Even with the 25% vacancy rate, the capitalization rate was 6.5%. GE Capital provided new financing of $4,200,000.

John Grant commented, “Despite the soft economy and housing market, the demand for quality manufactured housing communities in metropolitan locations continues to be very strong. The average occupancy rate in Tucson is 92%, and this community offers strong upside”.

John Grant sells and finances manufactured housing communities and RV parks exclusively throughout the states of California, Arizona, and Nevada. He has sold 139 manufactured housing communities and RV parks in the last 20 years and financed over 200. John can be reached at 800-987-3363.

Market time:30 days, Escrow length:3½ Months