Shopoff Realty Investments has announced the sale of Brookside Mobile Home Park, in El Monte, California. The 72.5 million deal follows the purchase as a joint venture 11 months ago that paid $52.7 million for the property.
Shopoff purchased the land-lease community in April 2017 together with Ladder Capital, a New York based real estate investment trust (“Ladder”) in a joint-venture.
The 421-homesite community, per a release from Shopoff to the Daily Business News, yields a stunning $172,209 average value per home site.
“Brookside Mobile Home Park was off-market and unsolicited when we were approached by the buyer with an offer to purchase the property at an acquisition price substantially higher than our original purchase price,” explained Shopoff Realty Investment CEO, William Shopoff. “While the sale of Brookside was certainly unplanned, we ultimately decided the sale would be in the best interest of all partners involved.”
John Santry, executive vice president of Shopoff Realty Investments Land Division explained, “Although we only owned Brookside a short period of time, we were still able to add value to the property. First, we streamlined park operations by combining the fee land and the leasehold/operations. In addition, we worked closely with the City of El Monte to secure approvals that allowed carports to be built at the property, which was previously not allowed by state code.”
Santry added, “Finally, we were able to change the outdated view of this property with mobile home dealers [sic], ultimately building partnerships with these dealers that will help facilitate the move-in and sale of new homes at the property in the coming year.”
The deal reflects just how ‘red hot’ the affordable housing property-based sector already is for manufactured home (MH) land-lease communities.
But there is meaning well beyond the MH community sector.
Secretary Ben Carson has promised positive movement by the Department of Housing and Urban Development this year on issues manufactured housing regulatory reform.
So, there is hope that issues such as enhanced preemption under the manufactured housing improvement act of 2000 could take hold in Washington, D.C.
The opportunities for current and new investors in manufactured housing may never have been stronger, because no legislation is needed. Once existing laws are enforced, the opportunities are legion, per the logic that flows from third-party research.
January 2018 new home shipment statistics will be posted tomorrow. They are another indicator of the growing momentum for manufactured homes. ## (News, analysis, and commentary.)
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Submitted by Soheyla Kovach to the Daily Business News for MHProNews.com.
Tony is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.