ROOSEVELT RESORT PARK
Roosevelt, AZ

PURCHASE DATE: April, 2016

Roosevelt Resort, is a unique park primarily due to the different components that provide multiple income streams.

The park is comprised of:

  • 82 spaces for RV and mobile homes (none of which are park owned)
  • 17 room motel and 6 cabins with full kitchens
  • 8,400 SF restaurant, bar and gaming area (to be added during renovation)
  • Park owned water company
  • Dry dock boat storage facility that will accommodate up to 40 boats
  • 60,000 SF pond

There are three mobile home parks in the area that are currently achieving monthly pad rental rates up to $200 higher than Roosevelt. A rental increase that goes into effect January 2017 will increase income $24,000 annually. Once the planned boat storage renovation is completed (April 2017), an additional $24,000 in annual income will be derived. This park was acquired from deceased parents’ children and has essentially been untouched for the last 25 years. The owners made no improvements, provided nominal maintenance, and had very poor operational oversight. Significant renovation will be completed to the restaurant/bar, hotel and cabins, and upon completion, one segment of the operations should provide an additional $100,000 to the gross income in excess of the $48,000 referenced above (rental increase + boat storage income).  As addressed above, the three competitive parks in the area are very successful, well maintained and achieving much higher rental rates. None of them provide the additional sources of income afforded with Roosevelt’s synergistic operational components. There are NO plans to acquire park owned mobile homes as part of the business plan for this acquisition. 

Planned Improvements

  • Enhance the park’s Infrastructure (clean up the park)
    • Roads
    • Landscaping
    • Improve the water system
  • Remodel the restaurant, bar, hotel and cabins
  • Operate the restaurant and bar until we find a suitable tenant to rent the entire facility
  • Renovate the boat storage area and add covered storage. Adjacent covered storage achieves up to $100 per month vs. the current uncovered facility in Roosevelt with rental rates in the $20 per month range.

The previous owner’s books were so unclear that we could only guess at the monthly revenues. Our first three months of operation grossed approximately $20,000 in April, $35,000 in May, and $44,000 in June. Projected gross income is expected to exceed $60,000/month by Q2 of 2017.

Based on our market research of surrounding parks and restaurant/bar facilities, the ownership intuitively sensed that the $755,000 acquisition price was a well-below market opportunity. Now other park owners in that area as well as our skeptical Asset Manager agree as well. Once ongoing property enhancements and planned renovations are completed and stabilized income is achieved, the returns could well exceed a net profit in the $2M+ range at disposition ($1.1M of total capital was raised). There was no formal prospectus or returns on this acquisition as our repeat investors fully committed to funding our capital requirements before we had a chance to formally model the cash flow. We appreciate their confidence in trusting our instincts and our ability to successfully source and implement a successful renovation plan.

www.rooseveltresortpark.com

PURCHASE DATE: April, 2016

Roosevelt Resort, is a unique park primarily due to the different components that provide multiple income streams.

The park is comprised of:

  • 82 spaces for RV and mobile homes (none of which are park owned)
  • 17 room motel and 6 cabins with full kitchens
  • 8,400 SF restaurant, bar and gaming area (to be added during renovation)
  • Park owned water company
  • Dry dock boat storage facility that will accommodate up to 40 boats
  • 60,000 SF pond

There are three mobile home parks in the area that are currently achieving monthly pad rental rates up to $200 higher than Roosevelt. A rental increase that goes into effect January 2017 will increase income $24,000 annually. Once the planned boat storage renovation is completed (April 2017), an additional $24,000 in annual income will be derived. This park was acquired from deceased parents’ children and has essentially been untouched for the last 25 years. The owners made no improvements, provided nominal maintenance, and had very poor operational oversight. Significant renovation will be completed to the restaurant/bar, hotel and cabins, and upon completion, one segment of the operations should provide an additional $100,000 to the gross income in excess of the $48,000 referenced above (rental increase + boat storage income).  As addressed above, the three competitive parks in the area are very successful, well maintained and achieving much higher rental rates. None of them provide the additional sources of income afforded with Roosevelt’s synergistic operational components. There are NO plans to acquire park owned mobile homes as part of the business plan for this acquisition. 

Planned Improvements

  • Enhance the park’s Infrastructure (clean up the park)
    • Roads
    • Landscaping
    • Improve the water system
  • Remodel the restaurant, bar, hotel and cabins
  • Operate the restaurant and bar until we find a suitable tenant to rent the entire facility
  • Renovate the boat storage area and add covered storage. Adjacent covered storage achieves up to $100 per month vs. the current uncovered facility in Roosevelt with rental rates in the $20 per month range.

The previous owner’s books were so unclear that we could only guess at the monthly revenues. Our first three months of operation grossed approximately $20,000 in April, $35,000 in May, and $44,000 in June. Projected gross income is expected to exceed $60,000/month by Q2 of 2017.

Based on our market research of surrounding parks and restaurant/bar facilities, the ownership intuitively sensed that the $755,000 acquisition price was a well-below market opportunity. Now other park owners in that area as well as our skeptical Asset Manager agree as well. Once ongoing property enhancements and planned renovations are completed and stabilized income is achieved, the returns could well exceed a net profit in the $2M+ range at disposition ($1.1M of total capital was raised). There was no formal prospectus or returns on this acquisition as our repeat investors fully committed to funding our capital requirements before we had a chance to formally model the cash flow. We appreciate their confidence in trusting our instincts and our ability to successfully source and implement a successful renovation plan.

www.rooseveltresortpark.com