HUNTINGTON BEACH, CA-A private investor based in Orange County has paid more than $40 million to Pacific Mobile Home Park LLC of Huntington Beach for Pacific Mobile Home Park, a 256-unit, non-rent restricted, all-age family rental community on roughly 18.1 acres at 80 Huntington St. here. The actual sales price could not be disclosed, but according to Les Whittlesey, a founding principal of land broker WD Land, “This was a very large land transaction, in the high $40-million range, making the land value over $2.5 million per acre.”
Whittlesey and his firm’s Orange County expert Greg Sullivan represented the seller along with Brian Hopkins of the Cortland Co. “The park was owned by three brothers who decided it was time to sell this long-term family asset,” said Whittlesey in a prepared statement. “The property was marketed both as a mobile-home park investment opportunity and as a development opportunity to maximize value. Due to its unique location and potential upside still as a mobile-home park, the offers from mobile-home park buyers were very competitive, and since this type of buyer did not require a change in zoning in order to complete the transaction, a mobile-home park operator was a better selection as a buyer.”
According to Sullivan, well-located and –maintained mobile/manufactured-home parks have “proven to be an excellent long-term investment. With institutional investors and REITs‘ entrance into the market, capitalization rates now approximate those for similarly located apartment product (+/-5%), and the product serves as a good, affordable alternative for residents. Typical living in a manufactured-home park sits somewhere in between garden-style apartment product and condominium living (as a more-affordable alternative). The affordability component helps ensure stabilized occupancy/low vacancy. The newer parks are highly amenitized with great pool areas recreation rooms and services.”
Regarding the Pacific Mobile Home Park transaction, Sullivan tells GlobeSt.com, “Marketing the property as both a mobile-home park and as a development opportunity allowed us to determine the highest value for our client. Ultimately, due to development risk associated with entitling the site, it was determined that the best approach and offers were as a mobile home park investment, which facilitated a quicker close.”
WD Land was formerly known as Whittlesey Doyle. As GlobeSt.com reported in May, Whittlesey Doyle inked the off-market sale of Toscana, a 960-acre master planned community located south of the City of Corona in Riverside County.