TRUCK STORAGE YARD
Merced, CA
SOLD
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.