CHARTER WAY MOBILE HOME PARK
Stockton, CA

PURCHASE DATE: November 2013

Purchased on an FDIC ordered REO sale on a three week close, all cash purchase price of $1,000,000. The initial Cap rate was 18% but the park needed extensive renovation and repositioning totaling $300,000. Repositioning work included:

  • Acquiring 16 trailers and renovated them
  • Road widening
  • Resolving water drainage and sewer issues
  • Extensive replanting of landscaping
  • Upgraded tenant base and documentation

Current value estimated at $2,500,000. An $800,000 line of credit has been secured to pay the cost of adding an 50 pads (doubling number of pads in park) on surplus land. Current Cap rate is 30%. Long term plan is to expand park and retain ownership.

www.charterwaymhp.com

PURCHASE DATE: November 2013

Purchased on an FDIC ordered REO sale on a 3 week close, all cash purchase price of $1,000,000. The initial Cap rate was 18% but the park needed extensive renovation and repositioning totaling $300,000. Repositioning work included:

  • Acquiring 16 trailers and renovated them
  • Road widening
  • Resolving water drainage and sewer issues
  • Extensive replanting of landscaping
  • Upgraded tenant base and documentation

Current value estimated at $2,500,000. An $800,000 line of credit has been secured to pay the cost of adding an 50 pads (doubling number of pads in park) on surplus land. Current Cap rate is 30%. Long term plan is to expand park and retain ownership.

www.charterwaymhp.com