Park Brokerage Inc.

PDF VERSION AVAILABLE

RV COMMUNITY INVESTMENT OPPORTUNITY

Price

Sold
Oct 19, 2001
$1,000,000

Bonanza Terrace RV Park

79 Space RV Park Community

 Down Payment  (30% of Price)

Cash to new loan

Estimated 30% Down

Or $330,000

Address/City

4800 Stoltz Road, Reno, Nevada

County

Washoe

State

Nevada

Est. Vac. & Expense %

See Actuals Attached

Age

Built Approximately 1979

Loan

Buyer to obtain new 1st TD

Capitalization Rate

10.0%

Est. Spendable Return

10.0%

Price per space

$13,925

Parcel Size

Approximately 4.75 Acres

No. Spaces

79

Map-Page

Zoning

Listing Salesman: Vince Reynolds (858) 546-5407, John Grant  (858) 586-9400

Office: San Diego

DESCRIPTION AND TENANT INFORMATION: Bonanza Terrace RV Park is a two star park in average condition.  The park is generally an extended stay RV park that consists of 79 spaces with less than 10% of the revenue generated from short time visitors. Monthly rates range from $300 to $325.  The daily rate is $20 and weekly rate of $92.  Space rental includes water, trash and sewer, which should be passed thru to the residents. Electricity and gas are submetered.  The demand for this type of park remains fairly strong with the potential to increase the overall occupancy rate of the park.  Great cash flow in a very good market.  Broker has only seen two other parks sell in Reno in the last three years.

        TOTAL ESTIMATED NET INCOME BEFORE DEBT SERVICE

See attached spreadsheet with year 2000 actual income and expenses.  Broker projected net income $110,707

                                                                      $110,707

LOAN INFORMATION

TOTAL ANNUAL PRIN.                                   ($77,544)

& INTEREST PAYMENT                                              

Buyer to obtain a new 1st trust deed at an estimated 70% loan to value or $770,000.  Broker estimates an adjustable interest rate of 9% amortized over 25 years due in 10 years with an approximate monthly payment of $6,462.

EST. ANNUAL PRE-TAX                                   $33,163

CASH FLOW (SPENDABLE)

CASH ON CASH RETURN                                   10.0%


The information contained herein has either been given to us by the owner or the property or obtained from sources that we deem reliable. We have no reason to doubt its accuracy but we do not guarantee it. Vacancy factors used herein are an arbitrary percentage used only as an example. It does not necessarily relate to actual vacancy, if any. The value of this investment is dependent upon these estimates and assumptions made above, as well as the investment income, the tax bracket and other factors which your tax advisor and/or legal counsel should evaluate. THE PROSPECTIVE BUYER SHOULD CAREFULLY VERIFY EACH ITEM OF INCOME, EXPENSE, AND ALL OTHER INFORMATION CONTAINED HEREIN.