Extremely rare opportunity to
purchase a high-quality MHC
community ideally located just
outside of Los Angeles, CA.
– Strong occupancy with all tenant-owned homes positioned on
approximately 64 acres of land and serviced by public utilities.
– Although there is rent control in Los Angeles (LA) County, it
does allow for annual rent increases as defined by the county.
Annual rent increases are limited to 75% of the percentage
change in the average regional CPI over a 12-month period,
or 3%, whichever is greater. Given that, the Owner plans to
implement a $54 rent increase (or 4.69% increase based on
CPI) in January 2024, which will add approximately $79,000 in
additional annual revenue. Please see the link to LA County’s
rent stabilization ordinance for more details - https://dcba.
lacounty.gov/rentstabilizationprogram
– The ordinance also gives community owners the ability to
move rents up 10% for new tenants (upon turnover) and
pass-through capital improvement costs to the residents.
Assuming annual turnover of 10% (or 12 sites) that would add
approximately $21,000 in additional annual site rental revenue
for a new owner. This assumes the 12 highest paying tenants
get moved up 10%.
– With almost all multi-section homes, the community features a
spacious layout with off-street parking and paved roads. There
is also a large property management office and community
center for use by the residents.
– The community has been well maintained by ownership, and
there are no significant capital improvement requirements.
– Given the quality, size, and location of the community, we
would expect it to qualify for attractive non-recourse debt
(Agencies, Life Co, CMBS).
– There are two parcels that might allow for additional MHC
sites on the east side of the property as well as a large parking
lot used for RVs that provide an additional source of revenue
and could allow for further MH expansion if a new owner
decides to replace the RV parking with MH lots.
– There is also one parcel to the west (1.68 acres) not included
in the sale but available for purchase, which may be
converted to other uses or could benefit an MHC owner with
either additional amenities or additional income producing
opportunities.
– There is a strong demand for affordable housing in this market.
Within a 10-mile radius of the community, the total population
is 305,470 with average household income of $141,119 and
average home values of $733,433. This massive gap between
household incomes and home prices in LA County makes this
the most unaffordable housing market in the nation and helps
to ensure a permanent demand for affordable housing options.