Contact Information

Mobile Home Park Details

  • Price: $14,000,000
  • Purchase Method: Cash, New Loan
  • Cap Rate: 2.9%
  • Property ID: 1090403
  • Posted on Jun 5, 2019

Property Description

Rancho Cerritos is an all-age (family) 4-star mobile home park located in Watsonville California. It is a modern state-of-the-art park that consistently operates at full occupancy. It contains 128 double-wide spaces (there are some triple-wide homes in the park) and 17 single-wide spaces. It is situated on an 18.88 acre parcel of land resulting in 7.68 units per acre density. It has been well maintained and reflects little deferred maintenance.

Rancho Cerritos is well located in Watsonville which affords it good visibility and favorable rental exposure. It therefore normally operates at 100% occupancy. It was built in 1975 and has wide spacious streets and good design which gives the park a neighborhood type of ambiance. It thus affords its residents a pleasant, spacious setting with attractive landscaping.

There is a full array of amenities that include a clubhouse, swimming pool and an RV storage area. The streets are asphalt and are in excellent condition (see photographs) with gutters, curbs and streetlights.

Rancho Cerritos possesses all the desirable features of a low-risk real estate investment. First, it consistently operates near full occupancy. Second, it is not overly constrained by the City of Watsonville Rent Stabilization Ordinance (see below) which insures consistent growth in real rents. It has competent management in place and is served by city water and city sewer services. And, as previously mentioned, it has little deferred maintenance.

Purchase of Rancho Cerritos represents an opportunity to acquire an investment with an inflation-protected cash flow, substantial tax benefits and minimal managerial responsibilities.

City of Watsonville Mobile Home Park Rent Stabilization:

The City of Watsonville enacted a Mobile Home Park Rent Stabilization Ordinance (copy available on request) in which park owners are limited to annual rental increases of 70% of CPI or 5.0%, whichever is lower.

Utility Structure:

Water – Not Included in the Rent
Sewer – Not Included in the Rent
Trash – Not Included in the Rent
Gas - Not included in the rent; residents reimburse park owner
Electric – Not included in the rent; residents reimburse park owner
Telephone - Not included in the rent; directly billed from utility company
Cable TV - Not included in the rent; directly billed from utility company

Amenities

  • Laundromat
  • Pool
  • Club House
  • Storage
  • Handicap Accessible
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Park Information

Community Type: All Age
Number of MH Lots: 145
Total Occupancy: 100.0 %
Year Built: 1975
Average MH Lot Rent: $463
Size: 18.9 acre(s)

Financial Information

Gross Income $1,075,587
Operating Expense $666,875
Net Operating Income $408,712
Expense Ratio 62.0 %
Debt Info

Lot Information

Singlewide Lots: 17
Doublewide Lots: 128

Utility Information

Water: City
Water Paid By: Tenant - Submetered
Sewer: City

Park-Owned Homes

Number of Park-owned Homes: 2